Needles City Council
April 14, 2026

1.6.B.5.d. PBV Site-Specific
Utility Allowances
Alternative requirement
under RAD. No
corresponding policy in
Chapter 17.
18-VII.C. UTILITY

ALLOWANCES

1.6.C.1. No Rescreening of
Tenants upon Conversion
Policies contained in
Chapter 3 relating to
eligibility do not apply
to existing tenants who
receive TPVs.
18-V.B. PROHIBITED

RESCREENING OF EXISTING

TENANTS UPON

CONVERSION

1.6.C.2. Right to Return Alternative requirement
under RAD. No
corresponding policy in
Chapter 17.
18-I.D. RELOCATION

REQUIREMENTS

1.6.C.3. Phase-in of Tenant
Rent Increases
Alternative requirements
under RAD. No
corresponding policy in
Chapter 17.
18-VIII.D. PHASE-IN OF

TENANT RENT INCREASES

1.6.C.4. Family Self
Sufficiency (FSS) and
Resident Opportunities and
Self-Sufficiency Service
Coordinator (ROSS-SC)
Programs
Not covered in
administrative plan.
18-VI.C. PUBLIC HOUSING

FSS AND ROSS

PARTICIPANTS

1.6.C.5. Resident Participation
and Funding
Alternative requirement
under RAD. No
corresponding policy in
Chapter 17.
18-VI.D. RESIDENT

PARTICIPATION AND

FUNDING

1.6.C.6. Resident Procedural
Rights
Policies related to
hearings in Chapter 16
apply, with added
procedural rights and
notice requirements as
outlined in Chapter 18.
18-VI.H. RESIDENTS’

PROCEDURAL RIGHTS

1.6.C.7. Earned Income
Disregard (EID)
Alternative requirements
under RAD for in-place
residents.

New admissions follow
policies in Chapter 6.
18-VI.G. EARNED INCOME

DISALLOWANCE

1.6.C.8. Jobs Plus Not covered in
administrative plan.

No corresponding policy.

1.6.C.9. When Total Tenant Alternative requirements 18-VI.B. LEASE, Continuation Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles
.

Payment Exceeds Gross Rent under RAD for in-place
residents.

New admissions follow
policies in 17-VII.B.

LEASE, Continuation of
Housing Assistance
Payments.
of Housing Assistance Payments

1.6.C.10. Under-Occupied
Unit
Alternative requirements
under RAD for in-place
residents.

New admissions follow
17-VII.C. MOVES,
Overcrowded, UnderOccupied, and
Accessible Units
18-VI.E. MOVES, Overcrowded,
Under-Occupied, and Accessible
Units

1.6.D.4. Establishment of
Waiting List
Alternative requirements
under RAD for initial
establishment of the
waiting list.

Once waiting list is
established, follow 17-
VI.D. SELECTION

FROM THE WAITING
LIST
18-V.D. ORGANIZATION OF

THE WAITING LIST

1.6.D.10. Initial Certifications
and Tenant Rent Calculations
Alternative requirements
under RAD for in-place
residents. No
corresponding policy in
Chapter 17.
18-VIII.C. TENANT RENT TO
OWNER, Initial Certifications
Note, while Notice PIH 2019-05 states that the PHA must screen families for eligibility for a tenant protection voucher and that families must be below the low-income limit (80 percent of AMI), Notice PIH 2019-23 waives these requirements for residents in projects that include RAD PBV units.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles
.

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Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Chapter 18

PROJECT BASED VOUCHERS (PBV) UNDER THE RENTAL ASSISTANCE

DEMONSTRATION (RAD) PROGRAM

INTRODUCTION
This chapter describes HUD regulations and PHA policies related to the Project-Based Voucher (PBV) program under the Rental Assistance Demonstration (RAD) program in eight parts:

Part I: General Requirements. This part describes general provisions of the PBV program, including maximum budget authority requirements, relocation requirements, and equal opportunity requirements.

Part II: PBV Project Selection. This part describes the cap on assistance at projects receiving PBV assistance, ownership and control, and site selection standards.

Part III: Dwelling Units. This part describes requirements related to NSPIRE standards, the type and frequency of inspections, and housing accessibility for persons with disabilities.

Part IV: Housing Assistance Payments Contract. This part discusses HAP contract requirements and policies including the execution and term of the HAP contract.

Part V: Selection of PBV Program Participants. This part describes the requirements and policies governing how the PHA and the owner will select a family to receive PBV assistance.

Part VI: Occupancy. This part discusses occupancy requirements related to the lease and describes under what conditions families are allowed or required to move.

Part VII: Determining Contract Rent. This part describes how the initial rent to owner is determined, and how rent will be redetermined throughout the life of the HAP contract.

Part VIII: Payments to Owner. This part describes the types of payments owners may receive under this program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

PART I: GENERAL REQUIREMENTS
18-I.A. OVERVIEW AND HISTORY OF THE RAD PROGRAM
The Rental Assistance Demonstration (RAD) program was authorized in 2012 in order to assess the effectiveness of converting public housing, moderate rehabilitation properties, and units under the rent supplement and rental assistance payments programs to long-term, project-based Section 8 rental assistance. The program’s four primary objectives are to:
• Preserve and improve public and other assisted housing. • Standardize the administration of the plethora of federally subsidized housing programs and rules. The conversions are intended to promote operating efficiency by using a Section 8 project-based assistance model that has proven successful and effective for over 30 years.

In other words, RAD aligns eligible properties more closely with other affordable housing programs.
• Attract private market capital for property renovations. Through the use of this model, properties may be able to leverage private debt and equity to make capital repairs. • Increase tenant mobility opportunities.

Under the first component, a PHA with public housing units may submit an application to HUD to convert some or all of their public housing units to long-term, project-based Section 8 HAP contracts under either:
• Project-based rental assistance (PBRA) under HUD’s Office of Multifamily Housing Programs.
• Project-based vouchers (PBVs) under HUD’s Office of Public and Indian Housing (PIH).

This chapter will focus on public housing conversions to the PBV program under RAD. In order to distinguish between requirements for public housing conversion under RAD and PBV units under the standard PBV program, we will refer to the standard PBV program and the RAD PBV program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-I.B. APPLICABLE REGULATIONS
On the whole, the regulations for both the standard and RAD PBV programs generally follow the regulations for the tenant-based HCV program found at 24 CFR Part 982. However, important parts of the tenant-based regulations do not apply to the project-based program. 24 CFR Part 983 outlines the sections of 24 CFR Part 982 that are not applicable to the project-based program.

For the RAD PBV program, Congress authorized HUD to waive certain statutory and regulatory provisions or establish alternative requirements from the standard PBV program. These provisions are identified in Notice PIH 2019-23 (issued September 5, 2019). Any non-RAD PBV units located in the covered project are subject to the same waivers and alternative requirements where noted in Notice PIH 2019-23 and in this policy.

Otherwise, all regulatory and statutory requirements for the standard PBV program in 24 CFR Part 983 and Section 8(o)(13) of the Housing Act of 1937, and all applicable standing and subsequent Office of Public and Indian Housing (PIH) notices and guidance, including related handbooks, apply to RAD PBV. This includes environmental review, Davis-Bacon, and fair housing requirements.

RAD is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55, approved November 18, 2011), as amended by the Consolidated Appropriations Act of 2014 (Public Law 113-76, approved January 17, 2014), the Consolidated and Further Continuing Appropriations Act of 2015 (Public Law 113-235, approved December 6, 2014), the Consolidated Appropriations Act of 2016 (Public Law 114-113, approved December 18, 2015), the Consolidated Appropriations Act, 2017 (Public Law 115-31, approved May 5, 2017), and section 237 of Title II, Division L, Transportation, Housing and Urban Development, and Related Agencies, of the Consolidated Appropriations Act, 2018 (Public Law 115-141, approved March 23, 2018) collectively, the “RAD Statute.” Requirements specific to the RAD program may be found in the following:
• Generally, public housing projects converting assistance under RAD are bound by the terms of the notice in effect at the time of closing. For all conversion types, HUD reserves the right, in its sole discretion and upon request from the applicant, to apply provisions from previous versions of this notice to program participants that are near conversion. - Notice PIH 2023-19 amends Notice PIH 2019-23 and Notice PIH 2021-07, and was effective immediately.
- Notice PIH 2019-23 was immediately applicable at the time of closing to all projects converting assistance (notwithstanding execution of a commitment for conversion).

Notice PIH 2019-23 was published on September 5, 2019.
 Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which are effective after a 30-day comment period. - Notice PIH 2012-32, REV-3 was applicable to projects that were seeking conversion of assistance through RAD, including those where a CHAP had already been issued when it was published January 12, 2017.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

 Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which were effective after a 30-day comment period.

Notice PIH 2012-32, REV-2 was applicable to projects that were seeking conversion of assistance through RAD, including those where a CHAP had already been issued when it was published June 15, 2015.
 Except with respect to changes in the project eligibility and selection criteria, not included in this policy, which are effective after a 30-day comment period. • RAD Quick Reference Guide for Public Housing Converting to PBV Assistance (6/20) • RAD Welcome Guide for New Awardees: RAD 1st Component (3/15) • Notice PIH 2016-17, Rental Assistance Demonstration (RAD) Notice Regarding Fair Housing and Civil Rights Requirements and Relocation Requirements Applicable to RAD First Component – Public Housing Conversions.
- This Notice applies to all projects that have applied for RAD conversion but have not yet converted as of November 10, 2016.
• Notice PIH 2014-17, Relocation Requirements under the RAD Program, Public Housing in the First Component.
- This notice may apply to projects that have converted to RAD prior to November 10, 2016, AND who have requested and received approval from HUD to be governed by this notice. See PIH Notice 2016-17, Section 1, Paragraph 1.3 for applicability.

NOTE: The policies in this chapter follow Notice PIH 2016-17. If your project falls under PIH 2014-17, applicable policies may be found in Section 18-I.D. • RAD FAQs (http://www.radresource.net/search.cfm)
HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program. 18-I.C. TENANT-BASED VS.

PROJECT-BASED VOUCHER ASSISTANCE
[24 CFR 983.2]
Much of the tenant-based voucher program regulations also apply to the PBV program.

Consequently, many of the PHA policies related to tenant-based assistance also apply to RAD PBV assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV program are listed at 24 CFR 983.2.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-I.D. RELOCATION REQUIREMENTS
For projects that apply for conversion of assistance under the First Component of RAD and will convert November 10, 2016 or later, the following applies [Notice PIH 2016-17]:
• In some developments, in-place residents may need to be relocated as a result of properties undergoing repairs, being demolished and rebuilt, or when assistance is transferred from one site to another. RAD program rules prohibit the permanent, involuntary relocation of residents as a result of conversion. Residents that are temporarily relocated retain the right to return to the project once it has been completed. Any non-RAD PBV units located in the same project are also subject to the right to return.
• Relocation assistance provided to residents will vary depending on the length of time relocation is required. Residents must be properly notified in advance of relocation requirements in accordance with RAD program rules and Uniform Relocation Act (URA) requirements, and other requirements which may be applicable such as Section 104(d) of the Housing and Community Development Act of 1974, as amended. Sample informing notices are provided in Appendices 2–5 of Notice PIH 2014-17. A written relocation plan is required if the RAD conversion involves permanent relocation (including a move in connection with a transfer of assistance) or temporary relocation anticipated to last longer than a year. While the PHA is not required to have a written relocation plan for temporary relocation lasting one year or less, HUD strongly encourages PHAs to prepare one. Appendix II of Notice PIH 2016-17 contains recommended contents for a relocation plan. • In addition, PHAs must undertake a planning process that complies with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), although not all relocations under RAD will trigger requirements under URA. URA statute and implementing regulations may be found at 49 CFR Part 24. The obligation due to relocating residents under RAD are broader than URA relocation assistance and payments.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

• Any residents that may need to be temporarily relocated to facilitate rehabilitation or construction will have a right to return to either: a) a unit at the development once rehabilitation or construction is completed, provided the resident’s household is not underhoused; or b) a unit in the development which provides the same major features as the resident’s unit in the development prior to the implementation of the RAD conversion. • Where the transfer of assistance to a new site is warranted and approved, residents of the converting development will have the right to reside in an assisted unit at the new site once rehabilitation or construction is complete.
• If the PHA’s proposed plans for conversion would preclude a resident from returning to the development, the resident must be given an opportunity to comment and/or object to such plans. PHAs must alter the project plans to accommodate the resident’s right to return to the development if the resident would be precluded from returning to the development. • Examples of project plans that may preclude a resident from returning to the development include, but are not limited to:
- Changes in the development’s bedroom distribution that decrease the size of the units, resulting in the resident being under-housed;
- The resident cannot be accommodated in the remaining assisted units due to a reduction in the number of assisted units at the development;
- Income limit eligibility requirements associated with the LIHTC program or another program; and
- Failure to provide a reasonable accommodation, in violation of applicable law, where reasonable accommodation may include installation of accessibility features that are needed by the resident.
• Residents of a development undergoing conversion that would be precluded from returning to the development may voluntarily accept a PHA or owner’s offer to permanently relocate to alternative housing, and thereby waive their right to return to the development after rehabilitation or construction is completed. In this event, the PHA must secure the resident’s written consent to a voluntary permanent relocation in lieu of returning to the development.

PHAs are prohibited from employing any tactics to pressure residents into relinquishing their right to return or accepting other housing options. Additionally, a PHA may not terminate a resident’s lease if the PHA fails to obtain the resident’s consent and the resident seeks to exercise the right to return.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

• In the case of multi-phase RAD transactions, the resident has a right to return to the development or to other converted phases of the development that are available for occupancy at the time the resident is eligible to exercise their right of return. Generally, the resident’s right to return must be accommodated within the development associated with the resident’s original unit, however, the PHA may treat multiple converted developments on the same site as one for purposes of right to return. Should the PHA seek to have the resident exercise the right to return at a future phase, the PHA must secure the resident’s consent in writing.
• Alternative housing options may involve a variety of housing options, including but not limited to:
- Transfers to public housing
- Admission to other affordable housing properties subject to the applicable program rules - Housing choice voucher (HCV) assistance
- Homeownership programs subject to the applicable program rules - Other options identified by the PHA
However, for projects that applied for conversion prior to November 10, 2016, the following applies [Notice PIH 2014-17]:
• In some developments, in-place residents may need to be relocated as a result of properties undergoing repairs, being demolished and rebuilt, or when assistance is transferred from one site to another. RAD program rules prohibit the permanent, involuntary relocation of residents as a result of conversion. Residents that are temporarily relocated retain the right to return to the project once it has been completed.
• Relocation assistance provided to residents will vary depending on the length of time relocation is required. Residents must be properly notified in advance of relocation requirements in accordance with RAD program rules and Uniform Relocation Act (URA) requirements. Sample informing notices are provided in Appendices 2–5 of Notice PIH 2014-17. While the PHA is not required to have a written relocation plan, HUD strongly encourages PHAs to prepare one. Appendix I of Notice PIH 2014-17 contains recommended contents for a relocation plan.
• In addition, PHAs must undertake a planning process that complies with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), although not all relocations under RAD will trigger requirements under URA. URA statute and implementing regulations may be found at 49 CFR Part 24. • Any residents that may need to be temporarily relocated to facilitate rehabilitation or construction will have a right to return to an assisted unit at the development once rehabilitation or construction is completed. Where the transfer of assistance to a new site is warranted and approved, residents of the converting development will have the right to reside in an assisted unit at the new site once rehabilitation or construction is complete. Residents of a development undergoing conversion of assistance may voluntarily accept a PHA or Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

owner’s offer to permanently relocate to another assisted unit, and thereby waive their right to return to the development after rehabilitation or construction is completed. 18-I.E. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8; 24 CFR 5.105; Notice PIH 2016-17]
RAD conversions are governed by the same civil rights authorities that govern HUD-assisted activities in general. These authorities prohibit discrimination and impose affirmative obligations on HUD program participants. PHAs must comply with all applicable fair housing and civil rights laws, including but not limited to the Fair Housing Act, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973, when conducting relocation planning and providing relocation assistance. For example, persons with disabilities returning to the RAD project may not be turned away or placed on a waiting list due to a lack of accessible units. Their need for an accessible unit must be accommodated. See the RAD Fair Housing, Civil Rights, and Relocation Notice [Notice PIH 2016-17] for more information.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

PART II: PBV PROJECT SELECTION
18-II.A. OVERVIEW
Unlike in the standard PBV program where the PHA typically selects the property through an owner proposal selection process, projects selected for assistance under RAD PBV are selected in accordance with the provisions in Notice PIH 2019-23. Therefore, 24 CFR 983.51 does not apply since HUD selects RAD properties through a competitive selection process. 18-II.B. OWNERSHIP AND CONTROL [Notice PIH 2019-23]
For projects governed by Notice PIH 2019-23, the following language applies:
• Under the PBV program, the contract administrator and the owner listed on the contract cannot be the same legal entity (i.e., the PHA cannot execute a contract with itself). To avoid this situation, the PHA may either: 1) Transfer the ownership of the project to a nonprofit affiliate or instrumentality of the PHA (including to a “single-purpose entity” that owns nothing other than the property, which will typically be a requirement of a lender or investor), or 2) The PHA can form a related entity that is responsible for management and leasing and can serve as the owner for purposes of the Section 8 HAP contract; in this scenario, the HAP is then executed between the PHA (as the contract administrator) and the PHA’s related entity (as the owner for HAP contract purposes). Note that in the second scenario, both the PHA and the entity serving as the owner for HAP contract purposes will be required to sign the RAD Use Agreement [RAD Resource Desk FAQ 01/24/19]. • Except where permitted to facilitate the use of low-income housing tax credits, during both the initial term and renewal terms of the HAP contract, ownership must be by a public or nonprofit entity. HUD may also allow ownership of the project to be transferred to a tax credit entity controlled by a for-profit entity to facilitate the use of tax credits for the project, but only if HUD determines that the PHA or a nonprofit entity preserves an interest in the profit. The requirement for a public or nonprofit entity, or preservation of an interest by a PHA or nonprofit in a property owned by a tax credit entity controlled by a for-profit entity, is satisfied if a public or nonprofit entity (or entities), directly or through a wholly owned affiliate (1) holds a fee simple interest in the property; (2) is the lessor under a ground lease with the property owner; (3) has the direct or indirect legal authority to direct the financial and legal interest of the property owner with respect to the RAD units, (4) owns 51 percent or more of the general partner interests in a limited partnership or 51 percent or more of the managing member interests in a limited liability company with all powers of a general partner or managing member, as applicable; (5) owns a lesser percentage of the general partner or managing member interests and holds certain control rights as approved by HUD; (6) owns 51 percent or more of all ownership interests in a limited partnership or limited liability company and holds certain control rights as approved by HUD; or (7) demonstrates other ownership and control arrangements approved by HUD.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

• Control may be established through the terms of the project owner’s governing documents or through a Control Agreement, provided that in either case amendment of the terms of control requires consent from HUD.

For projects subject to the requirements of Notice PIH 2012-32, REV-3, the following language applies:
• Except where permitted to facilitate the use of low-income housing tax credits, during both the initial term and renewal terms of the HAP contract, ownership must be by a public or nonprofit entity. The requirement for a public or nonprofit entity is satisfied if a public or nonprofit entity (or entities), directly or through a wholly owned affiliate (1) holds a fee simple interest in the property; (2) is the lessor under a ground lease with the property owner; (3) has the direct or indirect legal authority to direct the financial and legal interest of the property owner with respect to the RAD units, (4) owns 51 percent or more of the general partner interests in a limited partnership or 51 percent or more of the managing member interests in a limited liability company with all powers of a general partner or managing member, as applicable; (5) owns a lesser percentage of the general partner or managing member interests and holds certain control rights as approved by HUD; (6) owns 51 percent or more of all ownership interests in a limited partnership or limited liability company and holds certain control rights as approved by HUD; or (7) other ownership and control arrangements approved by HUD.
• If low-income housing tax credits will be used, HUD may allow ownership of the property to be transferred to a tax credit entity controlled by a for-profit entity if HUD determines that the PHA preserves its interest in the property. Preservation of PHA interest in the property includes but is not limited to the following:
- The PHA, or an affiliate under its sole control, is the general partner or managing member;
- The PHA retains fee ownership and leases the real estate to the tax credit entity pursuant to a long-term ground lease;
- The PHA retains control over leasing the property and determining program eligibility; - The PHA enters into a control agreement by which the PHA retains consent rights over certain acts of the project owner and retains certain rights over the project; - Other means that HUD finds acceptable
For projects that converted assistance prior to the implementation of Notice PIH 2012-32, REV-3, the following language applies:
• During both the initial term and renewal terms of the HAP contract, ownership must be either of the following:
- A public or nonprofit entity that has legal title to the property. The entity must have the legal authority to direct the financial, legal, beneficial, and other interests of the property; or
- A private entity, if the property has low-income tax credits. The PHA must maintain control via a ground lease.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-II.C. PHA-OWNED UNITS [24 CFR 983.59, FR Notice 1/18/17, and Notice PIH 2017-21]
If the project is PHA-owned, rent-setting and inspection functions set out in 24 CFR 983.59 must be conducted by an independent entity approved by HUD.

The definition of ownership or control provided under Notice PIH 2019-23 (listed above) is used specifically to determine whether a PHA retains control over a project for purposes of HUD’s requirement for ownership or control of the covered project under RAD. For purposes of determining whether an independent entity will perform certain functions for the project, the definition of PHA-owned under Notice PIH 2017-21 is used. This is the same definition used for standard PBV units. In some cases, a project may meet the RAD definition of ownership or control but may not be considered PHA-owned for purposes of requiring an independent entity.

The independent entity that performs the program services may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government), or another HUD-approved public or private independent entity.

The PHA may compensate the independent entity from PHA ongoing administrative fee income (including amounts credited to the administrative fee reserve). The PHA may not use other program receipts to compensate the independent entity for its services. The PHA, and the independent entity, may not charge the family any fee for the services provided by the independent entity.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-II.D. SUBSIDY LAYERING REQUIREMENTS [Notice PIH 2019-23; Notice PIH 2012-32, REV-3; Notice PIH 2012-32, REV-2]
For projects governed by Notice PIH 2019-23, the following language applies:
• In the case of a PHA that will no longer have ACC units as a result of the pending or simultaneous closing, or have less than 50 units remaining and have initiated procedures to dispose of their final ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project or projects though the conversion. However, the PHA must estimate and plan for outstanding liabilities and costs and must follow Notice PIH 2016-23 or successor notice regarding the administrative activities required to terminate the ACC if it has no plans to develop additional public housing. • In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory. • Following execution of the HAP contract, PHAs are authorized to use operating and capital funds to make HAP payments for the remainder of the first calendar year in which the HAP contract is effective. Otherwise, a PHA may not contribute public housing program funds to the covered project unless those funds have been identified in the RCC and converted at closing for Section 8 RAD purposes.

For projects governed by Notice PIH 2012-32, REV-3, the following language applies:
• In the case of a PHA that is converting all of its ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project at closing; the PHA may convey all program funds to the covered projects. In order to cover the cost of administrative activities required to terminate the ACC, once it no longer has units under the ACC and has no plans to develop additional public housing, the PHA may:
- Designate that a reserve associated with the project be available to fund any public housing closeout costs (such as an operating deficit reserve or a specific PHA closeout reserve). Any funds not needed for public housing closeout costs would remain in such reserve or may be transferred to another reserve associated with the project (such as the replacement reserve). Thereafter, these funds may be used at the project pursuant to the authorized use of the applicable reserve; or
- Retain funds under the public housing program for this purpose. However, HUD will recapture any public housing funds that a PHA does not expend for closeout costs.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

• In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory. • In addition, following execution of the HAP contract, PHAs are authorized to use operating and capital funds to make HAP payments for the remainder of the first calendar year in which the HAP contract is effective. Otherwise, a PHA may not contribute public housing program funds to the covered project unless such funding has been identified in the approved financing plan and included in the approved “sources and uses” attached to the RCC.

For projects governed by the requirements of Notice PIH 2012-32, REV-2, the following language applies:
• In the case of a PHA that is converting all of its ACC units, there is no restriction on the amount of public housing funds that may be contributed to the covered project at closing; the PHA may convey all program funds to the covered project. HUD will recapture any public housing funds that a PHA has not expended once it no longer has units under ACC. In the case where the PHA will continue to maintain other units in its inventory under a public housing ACC, a contribution of operating funds to the covered project that exceeds the average amount the project has held in operating reserves over the past three years will trigger a subsidy layering review under 24 CFR 4.13. Similarly, any contribution of capital funds, including Replacement Housing Factor (RHF) or Demolition Disposition Transitional Funding (DDTF), will trigger a subsidy layering review. Notwithstanding the subsidy layering review, PHAs should be mindful of how the capital funds or operating reserves used in the financing of its RAD properties may impact the physical and financial health of properties that will remain in its public housing inventory.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

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Agenda Item 4.

Housing Authority
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City od Needles

18-II.E. PBV PERCENTAGE LIMITATION AND UNIT CAP [Notice PIH 2019-23 and Notice PIH 2023-19]
PBV Percentage Limitation
Covered projects do not count against the maximum amount of assistance a PHA may utilize for the PBV program, which under the standard PBV program is set at 20 percent of the authorized units allocated to a PHA under the HCV program. The number of PBV units excluded from the PHA’s PBV program cap cannot exceed the number of former public housing units that those PBV units are replacing through the course of the RAD conversion. All PBV units in a covered project that replace former public housing units at the time of conversion are excluded from both the numerator and the denominator when calculating the percent of vouchers that may be projectbased by a PHA. To implement this provision, HUD is waiving section 8(o)(13)(B) of the 1937 Act as well as 24 CFR 983.6.

Unit Cap Limitation
When HUD published REV-3 of Notice PIH 2012-32, the cap on the number of assisted units in each project was eliminated. Under the standard PBV program the cap is set at the greater of 25 units or 25 percent of the units in the project. HUD is waiving this requirement, and projects governed by Notice PIH 2019-23 and Notice PIH 2012-32, REV-3 have no cap on the number of units that may receive PBV assistance in a project.

However, for projects that are governed by REV-2 of Notice PIH 2012-32, the cap on the number of PBV units in the project is increased to 50 percent. In these projects, however, provided units met certain exception criteria, the PHA may have converted a larger number of units to RAD PBV. For projects governed by the requirements of Notice PIH 2012-32, REV-2 only, the following language applies:
• In general, the PHA may not provide PBV assistance for units in a project if the total number of dwelling units in the project that will receive PBV assistance during the term of the PBV HAP contract is more than 50 percent of the number of dwelling units (assisted or unassisted) in the project. However, PHAs may exceed the 50 percent limitation when units in the project are occupied by elderly and/or disabled families or families that will receive supportive services. These units are known as “excepted units” and do not count toward the project cap.
• For projects governed by the requirements of Notice PIH 2012-32, REV-2 choosing to include excepted units, additional policy decisions may be required.

HACN Policy
For projects governed by Notice PIH 2012-32, REV-2, the PHA will not provide RAD PBV assistance for any excepted units.

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18-II.F. SITE SELECTION STANDARDS [Notice PIH 2019-23; Notice PIH 2016-17] Site selection requirements set forth in 24 CFR 983.57 apply to RAD PBV, with the exception of 983.57(b)(1) and (c)(2). HUD waives the provisions regarding deconcentration of poverty and expanding housing and economic opportunity for existing housing sites.

To facilitate the uniform treatment of residents and units, any non-RAD PBV units located in the same project are subject to the terms of this provision.

HUD will conduct a front-end civil rights review of the PHA’s proposed site in certain circumstances. For RAD PBV conversions that involve new construction located in an area of minority concentration (whether on the existing public housing site or on a new site) HUD will determine whether it meets one of the exceptions that would allow for new construction in an area of minority concentration.

The PHA must ensure that its RAD PBV conversion, including any associated new construction, is consistent with its certification to affirmatively further fair housing and complies with civil rights laws.
18-II.G. ENVIRONMENTAL REVIEW [Notice PIH 2019-23; Environmental Review Requirements for RAD Conversions, March 2019]
HUD cannot approve an applicant’s financing plan submission unless and until the required environmental review has been completed for the applicant’s proposed conversion project and found to meet environmental review requirements. Environmental documents must be submitted no later than the applicant’s financing plan. HUD will not issue a RAD Conversion Commitment (RCC) if the project plan does not meet the environmental review requirements described in Attachment 1A of Notice PIH 2019-23. Once an awardee has submitted an application for a specific project, they may not make any choice limiting actions before the completion of the environmental review.

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PART III: DWELLING UNITS
18-III.A. OVERVIEW
This part identifies the special housing quality standards that apply to the RAD PBV program, housing accessibility for persons with disabilities, and special procedures for NSPIRE inspections.
18-III.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE (NSPIRE) [24 CFR 983.101 and 24 CFR 5.703]
NSPIRE standards for the tenant-based program generally apply to the PBV program. NSPIRE requirements for shared housing, manufactured home space rental, and the homeownership option do not apply because these housing types are not assisted under the PBV program.

Lead-based Paint [24 CFR 983.101(c); Notice PIH 2019-23] The lead-based paint requirements for the tenant-based voucher program do not apply to the PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35, subparts A, B, H, and R, and 40 CFR 745.227, apply to the PBV program.
18-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES [Notice PIH 2016-17]
Federal accessibility requirements apply to all conversions, whether they entail new construction, alternations, or existing facilities. The housing must comply with program accessibility requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The PHA must ensure that the percentage of accessible dwelling units complies with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by HUD’s regulations at 24 CFR 8, subpart C.

Housing first occupied after March 13, 1991, must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102)
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18-III.D. INSPECTING UNITS
Initial Inspection [RAD Quick Reference Guide, Notice PIH 2019-23, and Notice PIH 2023-19]
Under standard PBV regulations at 24 CFR 983.103(b), a PHA may not enter into a HAP contract until the PHA has determined all units comply with NSPIRE standards. It is the responsibility of the contract administrator to perform this initial inspection (unless units are PHA-owned). In order to accommodate projects in which repairs are conducted, however, HUD has waived this requirement when units are undergoing rehabilitation. In this case, units must meet NSPIRE standards by the date indicated in the RAD Conversion Commitment (RCC). To place the unit under HAP contract and commence making payments, the PHA may rely on the owner’s certification that the owner has no reasonable basis to have knowledge that lifethreatening conditions exist in the unit or units to be added to the HAP contract instead of conducting an initial inspection. During the period of the work, NSPIRE requirements apply. The PHA must enforce the project owner’s obligations and conduct inspections when needed, (for example in response to tenant complaints or other information coming to its attention), and the owner must correct any deficiencies in accordance with NSPIRE requirements (i.e., no more than 24 hours for a life-threatening deficiency, and within no more than 30 calendar days or any PHA-approved extension for other defects, but no later than the date of the completion of the work as indicated in the RCC).

Turnover Inspections [24 CFR 983.103(c), FR Notice 1/18/17, and Notice PIH 2017-20] Before providing assistance to a new family in a contract unit, the PHA must inspect the unit.

The PHA may not provide assistance on behalf of the family until the unit fully complies with NSPIRE.

Annual/Biennial Inspections [24 CFR 983.103(d); FR Notice 6/25/14] At least once every 24 months (or once every 36 months for small rural PHAs) during the term of the HAP contract, the PHA must inspect a random sample consisting of at least 20 percent of the contract units in each building, to determine if the contract units and the premises are maintained in accordance with NSPIRE. Turnover inspections are not counted toward meeting this inspection requirement.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

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Alternative Inspections [24 CFR 983.103(g); Notice PIH 2016-05] In the case of mixed-finance properties that are subject to alternative inspections, the PHA may rely upon an alternative inspection conducted at least triennially to demonstrate compliance with inspection requirements.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Other Inspections [24 CFR 983.103(e)]
The PHA must inspect contract units whenever needed to determine that the contract units comply with NSPIRE and that the owner is providing maintenance, utilities, and other services in accordance with the HAP contract. The PHA must take into account complaints and any other information coming to its attention in scheduling inspections.

The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable, the family) has corrected an NSPIRE deficiency and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or family violation of NSPIRE standards.

In conducting PHA supervisory quality control inspections, the PHA should include a representative sample of both tenant-based and project-based units.

Inspecting PHA-Owned Units [24 CFR 983.103(f); Notice PIH 2017-21] In the case of PHA-owned units, all required inspections must be performed by an independent entity designated by the PHA and approved by HUD. The independent entity must furnish a copy of each inspection report to the PHA and to the HUD field office where the project is located.

The PHA must take all necessary actions in response to inspection reports from the independent agency, including exercise of contractual remedies for violation of the HAP contract by the PHA-owner.

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PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT
18-IV.A. OVERVIEW [RAD PBV Quick Reference Guide 6/20]
Public housing projects converting under RAD do not employ the PBV Agreement to Enter into a Housing Assistance Payments (AHAP) contract. Instead, following the execution of all requirements contained in the Commitment to Enter into a HAP (CHAP) contract and the RAD Conversion Commitment (RCC), a project is converted immediately to the RAD PBV HAP contract following the closing of any construction financing. Owners of public housing projects converted to PBV assistance via RAD enter into a HAP contract with the PHA that will administer the PBV assistance. Units assisted under a RAD PBV HAP contract must be subject to long-term, renewable use and affordability restrictions. 18-IV.B. HAP CONTRACT REQUIREMENTS
Contract Information [RAD PBV Quick Reference Guide 6/20; Notice PIH 2019-23] The RAD PBV program uses the PBV HAP contract for new construction or rehabilitated housing (Form HUD-52530A), as modified by the RAD rider (Form HUD-52621). For closings on or after January 1, 2018, HUD incorporated the RAD rider directly into the standard PBV HAP contract. For closing that occurred prior to January 1, 2018, the RAD rider must be attached to the PBV HAP contract.

The distinction between “existing housing” and “rehabilitated and newly constructed housing” is overridden by RAD requirements. The project must also have an initial RAD use agreement. All public housing RAD conversion properties financed with LIHTC are also required to include an LIHTC rider.

Execution and Effective date of the HAP Contract [RADBlast! 7/11/16] RAD PBV projects do not employ an Agreement to Enter into a Housing Assistance Payments (AHAP) contract like in the standard PBV program. Rather, when the conditions of the CHAP and the RCC are met and the conversion has closed, the PHA executes the HAP contract. Project owners may select the effective date of the HAP contract as the first day of either of the two months following the completed closing.

Term of HAP Contract [Notice PIH 2019-23]
The initial term of the HAP contract may not be for less than 15 years and may be for a term of up to 20 years upon request of the owner and with approval of the administering voucher agency.

Upon expiration of the initial term of the contract, and upon each renewal term of the contract, the owner must accept each offer to renew the contract, for the prescribed number and mix of units, either on the site of the project subject to the expiring contract or, upon request of the project owner and subject to PHA and HUD approval, at another site through a future transfer of assistance. Contracts are subject to the terms and conditions applicable at the time of each offer and further subject to the availability of appropriations for each year of each such renewal. To implement this provision, HUD is waiving section 8(o)(13)(F) of The United States Housing Act of 1937, which permits a minimum term of one year, as well as 24 CFR 983.205(a), which governs the contract term.

Agenda Item 4.

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Agreement to Enter into a HAP (AHAP) Contract [Notice PIH 2019-23] For public housing conversions to PBV, there will be no agreement to enter into a Housing Assistance Payments (AHAP) contract. Therefore, all regulatory references to the Agreement (AHAP), including regulations under 24 CFR Part 983 Subpart D, are waived. The definitions for proposal selection date, new construction, rehabilitation, and existing housing are not applicable.

Mandatory Contract Renewal [Notice PIH 2019-23]
By statue, upon contact expiration, the agency administering the vouchers will offer, and the PHA will accept, renewal of the contract for the prescribed number and mix of units, either on the site of the project subject to the expiring contract or, upon request of the project owner and subject to PHA and HUD approval, at another site through a future transfer of assistance. The contract is subject to the terms and conditions applicable at the time of renewal and the availability of appropriations each year for such renewal. Consequently 24 CFR 983.205(b), governing the PHA discretion to renew the contract, will not apply.

In the event that the HAP contract is removed due to breach, non-compliance or insufficiency of appropriations, for all units previously covered under the HAP contract, new tenants must have incomes at or below 80 percent of the area median income at the time of admission and rents may not exceed 30 percent of 80 percent of median income for an appropriate size unit for the remainder of the term of the RAD use agreement.

Remedies for NSPIRE Deficiencies [24 CFR 983.208(b)]
The PHA may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with NSPIRE. If the PHA determines that a contract unit does not comply with NSPIRE standards, the PHA may exercise any of its remedies under the HAP contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

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18-IV.C. AMENDMENTS TO THE HAP CONTRACT
Floating Units [Notice PIH 2019-23]
Upon request of the owner to the voucher agency that will administer the project, HUD will permit assistance to float among units within the project that are the same bedroom size. The unit to which assistance is floated must be comparable to the unit being replaced in quality and amenities.

If the PHA chooses to float units, units are not specifically identified on the HAP contract, rather the HAP contract must specify the number and type of units in the property that are RAD PBV units. The property must maintain the same number and type of RAD units from the time of the initial HAP contract execution forward.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Reduction in HAP Contract Units [Notice PIH 2019-23]
Project owners are required to make available for occupancy by eligible tenants the number of assisted units under the terms of the HAP contract.

The PHA may not reduce the number of assisted units without written HUD approval. Any HUD approval of a PHA’s request to reduce the number of assisted units under contract is subject to conditions that HUD may impose. MTW agencies may not alter this requirement.

If units are removed from the HAP contract because a new admission’s TTP comes to equal or exceed the gross rent for the unit and if the project is fully assisted, the PHA must reinstate the unit after the family has vacated the property. If the project is partially assisted, the PHA may substitute a different unit for the unit on the HAP contract in accordance with 24 CFR 983.207, or where the development has “floating” units.
18-IV.D. HAP CONTRACT YEAR AND ANNIVERSARY DATES [24 CFR 983.302(e)] The HAP contract year is the period of 12 calendar months preceding each annual anniversary of the HAP contract during the HAP contract term. The initial contract year is calculated from the first day of the first calendar month of the HAP contract term.

The annual anniversary of the HAP contract is the first day of the first calendar month after the end of the preceding contract year. There is a single annual anniversary date for all units under a particular HAP contract.

Agenda Item 4.

Housing Authority
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City od Needles

18-IV.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT
[24 CFR 983.210]
When the owner executes the HAP contract, they certify that at such execution and at all times during the term of the HAP contract:
• All contract units are in good condition and the owner is maintaining the premises and contract units in accordance with NSPIRE standards;
• The owner is providing all services, maintenance, equipment, and utilities as agreed to under the HAP contract and the leases;
• Each contract unit for which the owner is receiving HAP is leased to an eligible family referred by the PHA, and the lease is in accordance with the HAP contract and HUD requirements;
• To the best of the owner’s knowledge, the family resides in the contract unit for which the owner is receiving HAP, and the unit is the family’s only residence; • The owner (including a principal or other interested party) is not the spouse, parent, child, grandparent, grandchild, sister, or brother of any member of a family residing in a contract unit;
• The amount of the HAP the owner is receiving is correct under the HAP contract; • The rent for contract units does not exceed rents charged by the owner for comparable unassisted units;
• Except for HAP and tenant rent, the owner has not received and will not receive any other payment or consideration for rental of the contract unit; • The family does not own or have any interest in the contract unit (this does not apply to the family’s membership in a cooperative); and
• Repair work on the project selected as an existing project that is performed after HAP contract execution within such post-execution period as specified by HUD may constitute development activity, and if determined to be development activity, the repair work undertaken shall be in compliance with Davis-Bacon wage requirements. 18-IV.F. VACANCY PAYMENTS [24 CFR 983.352(b)]
At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner for a PHA-determined period of vacancy extending from the beginning of the first calendar month after the move-out month for a period not exceeding two full months following the moveout month. The amount of the vacancy payment will be determined by the PHA and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner, including amounts available from the tenant’s security deposit.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

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PART V: SELECTION OF PBV PROGRAM PARTICIPANTS
18-V.A. OVERVIEW
Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the PBV program. This includes requirements related to determining eligibility and selecting applicants from the waiting list. Even with these similarities, there are requirements that are unique to the PBV program. This part describes the requirements and policies related to eligibility and admission to the PBV program.
18-V.B. PROHIBITED RESCREENING OF EXISTING TENANTS UPON CONVERSION [Notice PIH 2019-23]
Current households cannot be excluded from occupancy at the covered project based on any rescreening, income eligibility, or income targeting provisions. Consequently, current households will be grandfathered for application of any eligibility criteria to conditions that occurred prior to conversion but will be subject to any ongoing eligibility requirements for actions that occur after conversion. Post-conversion, the tenure of all residents of the covered project is protected pursuant to PBV requirements regarding continued occupancy unless explicitly modified by Notice PIH 2019-23 (e.g., rent phase-in provisions). For example, a unit with a household that was over-income at time of conversion would continue to be treated as an assisted unit. Thus, 24 CFR 982.201, concerning eligibility and targeting, will not apply for current households. Once that remaining household moves out, the unit must be leased to an eligible family. Existing residents at the time of conversion may not be rescreened for citizenship status or have their social security numbers reverified.

Further, so as to facilitate the right to return to the assisted property, this provision must apply to current public housing residents of the converting project that will reside in non-RAD PBV units placed in a project that contain RAD PBV units. Such families and such contract units will otherwise be subject to all requirements of the applicable program, specifically 24 CFR 983 for non-RAD PBV. Any non-RAD PBV units located in the same project are also subject to the right to return.

For the RAD PBV program, in-place family means a family who lived in a pre-conversion property at the time assistance was converted from public housing to PBV under RAD.

Agenda Item 4.

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18-V.C. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)] Applicants for PBV assistance must meet the same eligibility requirements as applicants for the tenant-based voucher program. Applicants must qualify as a family as defined by HUD and the PHA, have income at or below HUD-specified income limits, and qualify on the basis of citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24 CFR 983.2(a)], and meet asset limitation requirements. In addition, an applicant family must provide social security information for family members [24 CFR 5.216 and 5.218] and consent to the PHA’s collection and use of family information regarding income, expenses, and family composition [24 CFR 5.230]. The PHA may also not approve a tenancy if the owner (including a principal or other interested party) of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the family, unless needed as a reasonable accommodation. An applicant family must also meet HUD requirements related to current or past criminal activity.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
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18-V.D. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(c); Notice PIH 2019-23]
The standard PBV regulations at 24 CFR 983.251 set out program requirements related to establishing and maintaining a voucher-wide, PBV program-wide, or site-based waiting list from which residents will be admitted. These provisions will apply unless the project is covered by a remedial order or agreement that specifies the type of waiting list and other waiting list policies.

Any non-RAD PBV units located in the same project are also subject to these requirements.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
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18-V.E. SELECTION FROM THE WAITING LIST [24 CFR 983.251(c)] After conversion to RAD PBV, applicants who will occupy units with RAD PBV assistance must be selected from the PHA’s waiting list. The PHA may establish selection criteria or preferences for occupancy of particular PBV units.

Income Targeting [24 CFR 983.251(c)(6); Notice PIH 2019-23] At least 75 percent of the families admitted to the PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the waiting list must be extremely-low income families. The income targeting requirement applies to the total of admissions to both programs.

Families in place at the time of the conversion are exempt from income targeting requirements.

New admissions follow standard PBV requirements. Any non-RAD PBV units located in the same project are also subject to these requirements.

Units with Accessibility Features [24 CFR 983.251(c)(7)] When selecting families to occupy PBV units that have special accessibility features for persons with disabilities, the PHA must first refer families who require such features to the owner.

Preferences [24 CFR 983.251(d); FR Notice 11/24/08; Notice PIH 2019-23] The PHA may use the same selection preferences that are used for the tenant-based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
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City od Needles

18-V.F. OFFER OF PBV ASSISTANCE
Refusal of Offer [24 CFR 983.251(e)(3)]
The PHA is prohibited from taking any of the following actions against a family who has applied for, received, or refused an offer of PBV assistance:
• Refusing to list the applicant on the waiting list for tenant-based voucher assistance • Denying any admission preference for which the applicant qualifies • Changing the applicant’s place on the waiting list based on preference, date, and time of application, or other factors affecting selection under the PHA’s selection policy • Removing the applicant from the tenant-based voucher waiting list Disapproval by Landlord [24 CFR 983.251(e)(2)]
If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect the family’s position on the tenant-based voucher waiting list.

Acceptance of Offer [24 CFR 983.252]
Family Briefing
When a family accepts an offer for PBV assistance, the PHA must give the family an oral briefing. The briefing must include information on how the program works and the responsibilities of the family and owner. In addition to the oral briefing, the PHA must provide a briefing packet that explains how the PHA determines the total tenant payment for a family, the family obligations under the program, and applicable fair housing information.

Persons with Disabilities
If an applicant family’s head or spouse is disabled, the PHA must assure effective communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing the written information packet. This may include making alternative formats available (see Chapter 2). In addition, the PHA must have a mechanism for referring a family that includes a member with a mobility impairment to an appropriate accessible PBV unit.

Persons with Limited English Proficiency
The PHA should take reasonable steps to assure meaningful access by persons with limited English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive Order 13166 (see Chapter 2).

Agenda Item 4.

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18-V.G. OWNER SELECTION OF TENANTS [24 CFR 983.253]
The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income families and reasonably related to program eligibility and an applicant’s ability to fulfill their obligations under the lease. An owner must promptly notify in writing any rejected applicant of the grounds for any rejection.

Leasing [24 CFR 983.253(a)]
During the term of the HAP contract, the owner must lease contract units to eligible families that are selected and referred by the PHA from the PHA’s waiting list. The contract unit leased to the family must be the appropriate size unit for the size of the family, based on the PHA’s subsidy standards.

Filling Vacancies [24 CFR 983.254(a)]
The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit.

After receiving such notice, the PHA must make every reasonable effort to promptly refer a sufficient number of families for the owner to fill such vacancies. The PHA and the owner must make reasonable efforts to minimize the likelihood and length of any vacancy.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-V.H. TENANT SCREENING [24 CFR 983.255]
PHA Responsibility
The PHA is not responsible or liable to the owner or any other person for the family’s behavior or suitability for tenancy. However, the PHA may opt to screen applicants for family behavior or suitability for tenancy and may deny applicants based on such screening.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

The PHA must provide the owner with an applicant family’s current and prior address (as shown in PHA records) and the name and address (if known by the PHA) of the family’s current landlord and any prior landlords.

In addition, the PHA may offer the owner other information the PHA may have about a family, including information about the tenancy history of family members or about drug trafficking and criminal activity by family members. The PHA must provide applicant families a description of the PHA policy on providing information to owners, and the PHA must give the same types of information to all owners.

The PHA may not disclose to the owner any confidential information provided in response to a request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking except at the written request or with the written consent of the individual providing the documentation [24 CFR 5.2007(c)].

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

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

When screening families the owner may consider a family’s background with respect to the following factors:
• Payment of rent and utility bills
• Caring for a unit and premises
• Respecting the rights of other residents to the peaceful enjoyment of their housing • Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or property of others
• Compliance with other essential conditions of tenancy Agenda Item 4.

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PART VI: OCCUPANCY
18-VI.A. OVERVIEW
After an applicant has been selected from the waiting list, determined eligible by the PHA, referred to an owner, and determined suitable by the owner, the family will sign the lease and occupancy of the unit will begin.
18-VI.B. LEASE [24 CFR 983.256]
The tenant must have legal capacity to enter into a lease under state and local law. Legal capacity means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner.

The tenant and the owner must enter into a written lease agreement that is signed by both parties.

The tenancy addendum must include, word-for-word, all provisions required by HUD.

Lease Requirements [24 CFR 983.256(c); Notice PIH 2019-23] The lease for a PBV unit must specify all of the following information:
• The names of the owner and the tenant;
• The unit rented (address, apartment number, if any, and any other information needed to identify the leased contract unit);
• The term of the lease (initial term and any provision for renewal); • The amount of the tenant rent to owner, which is subject to change during the term of the lease in accordance with HUD requirements;
• A specification of the services, maintenance, equipment, and utilities that will be provided by the owner;
• The amount of any charges for food, furniture, or supportive services; and • For any family admitted following conversion, the lease must specify what will happen if the family elects to remain in its unit after increasing its income such that it requires zero HAP.

Specifically, the lease must make clear how the tenant rent will be calculated, and it must address the transition to a new lease. The PHA must include resident procedural rights for termination notification and grievance procedures in the owner’s lease. These requirements are not part of the regular PBV program but are required under RAD.

Tenancy Addendum [24 CFR 983.256(d)]
The tenancy addendum in the lease must state:
• The program tenancy requirements
• The composition of the household as approved by the PHA (the names of family members and any PHA-approved live-in aide)
All provisions in the HUD-required tenancy addendum must be included in the lease. The terms of the tenancy addendum prevail over other provisions of the lease.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Initial Term and Lease Renewal [24 CFR 983.256(f); RAD PBV Quick Reference Guide 6/20]
Leases for residents who will remain in place (i.e., who will not be relocated solely as a result of conversion) must have an effective date that coincides with—and must be signed on or before— the effective date of the RAD PBV HAP contract.

The initial lease term must be for at least one year. The lease must provide for automatic renewal after the initial term of the lease in either successive definitive terms (e.g., month-to-month or year-to-year) or an automatic indefinite extension of the lease term. For automatic indefinite extension of the lease term, the lease terminates if any of the following occur:
• The owner terminates the lease for good cause
• The tenant terminates the lease
• The owner and tenant agree to terminate the lease
• The PHA terminates the HAP contract
• The PHA terminates assistance for the family
Changes in the Lease [24 CFR 983.256(e)]
If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give the PHA a copy of all changes.

The owner must notify the PHA in advance of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by the PHA and in accordance with the terms of the lease relating to its amendment.

The PHA must redetermine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant.

The redetermined reasonable rent will be used in calculation of the rent to owner from the effective date of the change.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Owner Termination of Tenancy [24 CFR 983.257; Notice PIH 2019-23] With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In the PBV program, terminating tenancy for “good cause” does not include doing so for a business or economic reason, or a desire to use the unit for personal or family use or other non-residential purpose.

Projects converting from public housing to PBV under RAD have additional procedural rights that do not apply to the standard PBV program. These procedural rights must be included in the owner’s lease as well as the PHA’s administrative plan. In addition to the regulations at 24 CFR 983.257 related to project owner termination of tenancy and eviction (which MTW agencies may not alter) the termination procedure for RAD conversions to PBV will require that PHAs provide adequate written notice of termination of the lease, which may not be less than:
• A reasonable period of time, but not to exceed 30 days:
- If the health or safety of other tenants, PHA employees, or persons residing in the immediate vicinity of the premises is threatened; or
- In the event of any drug-related or violent criminal activity or any felony conviction • Not less than 14 days in the case of nonpayment of rent • Not less than 30 days in any other case, except that if a state or local law provides for a shorter period of time, such shorter period will apply
These provisions apply to non-RAD PBV units located in the project as well.

Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)] The lease may specify a maximum period of family absence from the unit that may be shorter than the maximum period permitted by PHA policy. According to program requirements, the family’s assistance must be terminated if they are absent from the unit for more than 180 consecutive days. PHA termination of assistance actions due to family absence from the unit are subject to 24 CFR 982.312, except that the unit is not terminated from the HAP contract if the family is absent for longer than the maximum period permitted.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Continuation of Housing Assistance Payments [24 CFR 983.258; Notice PIH 2019-23; Notice PIH 2023-19; RAD PBV Quick Reference Guide 6/20] Pre-Conversion Residents
The unit for a family with a TTP that equals or exceeds the gross rent (which is defined as the contract rent plus any utility allowance for the unit) must be placed on the PBV HAP contract and the family must be admitted to the PBV program. In this case, and until such time as the family’s TTP falls below the gross rent, the family will pay the owner the alternate rent which is defined as the lesser of:
• The family’s TTP minus the utility allowance (subject to any required phase-in); or • The Zero HAP Rent Cap, which is the lower of:
- 110 percent fo the applicable FMR minus the utility allowance; or - In the event the units are subject to more restrictive rent setting requirement under the LIHTC or HOME programs (or other programs approved by HUD on a project-specific basis, the rent to owner set to comply with such requirements.

The family will continue to pay this amount until/if circumstances change, and HAP is paid on their behalf. In other words, assistance may subsequently be reinstated if the tenant becomes eligible for assistance in which case normal PBV rent requirements will apply to the family. In such cases, the resident is still considered a program participant. All of the family obligations and protections under RAD and standard PBV apply to the resident. Likewise, all requirements with respect to the unit, such as compliance with the NSPIRE standards, apply as long as the unit is under HAP contract or added back to the HAP Contract. Any non-RAD PBV units located in the same project are also subject to these requirements.

After a family has paid the Zero HAP Rent Cap for a period of 180 days, the PHA must remove the unit from the HAP Contract and the family’s participating in the PBV program ends. If the Covered Project is fully assisted and the family subsequently leaves the property, the PHA must reinstate the unit back onto the HAP contract and admit an eligible family. If the Covered Project is partially assisted and the family subsequently leaves the property, the unit must be reinstated back onto the HAP contract unless the PHA previously substituted a different unit on the HAP contract in accordance with 24 CFR § 983.207 or, where “floating units” have been permitted.

Additionally, if the family continues to reside in the project after the family’s unit was removed from the HAP contract, the family may request to return to the PBV program if the family’s income subsequently decreases to the extent that the family’s TTP is less than the Zero-HAP Rent Cap, and the family is otherwise eligible for PBV assistance. The PHA must, at the earliest opportunity, reinstate the family’s unit back onto the HAP contract to provide rental assistance to the family. If the project was partially assisted and the PHA previously substituted a different unit on the HAP contract, the PHA must substitute the family’s unit for a vacant unit on the HAP contract if there is a vacant unit at the time of the request, or by doing so as soon as a unit on the HAP contract becomes vacant if there are no vacant units on the HAP contract at the time of the family request
Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

New Admission Families
Unless a waiver is requested and approved, following conversion, 24 CFR 983.53(d) applies, and any new admission referred to the RAD PBV project must be initially eligible for a HAP payment at admission to the program. This means a family’s TTP may not equal or exceed the gross rent for the unit at admission. The PHA may request a waiver from HUD in order to admit otherwise eligible families whose TTP exceeds gross rent and to allow the units those families occupy to remain under the HAP contract even if the PHA has not paid HAP for the family in 180 days.

Further, for any new families admitted after the conversion, assistance will be terminated 180 days after the last housing assistance payment on their behalf. The cessation of housing assistance payments does not affect the family’s other rights under its lease, nor does it preclude the resumption of payments as a result of later changes in income, rents, or other relevant circumstances if such changes occur within the 180-day window. If a family’s assistance is terminated as a result of their zero HAP status, the PHA must remove the unit from the HAP contract. If the project is fully assisted and the family subsequently leaves the property, the PHA must reinstate the unit after the family has vacated the property and admit an eligible family. If the project is partially assisted, the PHA may substitute a different unit for the unit on the HAP contract in accordance with 24 CFR 983.207 or where floating units have been permitted.

Per the RAD Use Agreement, the owner may charge the family a rent that does not exceed 30 percent of 80 percent of the area median income. If a unit is removed from the RAD PBV HAP contract, then the lease terminates automatically, as stated in the tenancy addendum, as though the RAD PBV HAP contract had been terminated. The tenant must be offered a new lease, which must reflect the new tenant rent. A tenant in this circumstance is no longer a program participant and therefore no longer benefits from any of the rights or protections specific to RAD, or to the PBV program. Should the family subsequently lose employment, the owner may choose to reduce the family’s rent, but if the family wishes to be admitted to the HCV/PBV program, then it must be admitted through the waiting list like any other applicant.

In circumstances where low RAD PBV rents may prohibit a significant number of otherwise eligible families on the waiting list from being admitted to the project because they do not require subsidy, and which could consequently create an undue concentration of poverty at the project compared to non-RAD PBV projects, a PHA may request a waiver from HUD for the covered project. The waiver will apply the alternative requirements applicable to the preconversion residents to new admission families.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Security Deposits [24 CFR 983.259; RAD PBV Quick Reference Guide 6/20] Owners are permitted to recognize security deposit amounts that have been previously provided by tenants who are in-place at the time of the RAD conversion. If a tenant residing in a converting project has not previously provided a security deposit, then the owner may collect a security deposit at the time of initial lease execution. Otherwise, the security deposit requirements for standard PBV apply.

The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

When the tenant moves out of a contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the tenant under the lease.

The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant.

If the security deposit does not cover the amount owed by the tenant under the lease, the owner may seek to collect the balance from the tenant. The PHA has no liability or responsibility for payment of any amount owed by the family to the owner.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VI.C. PUBLIC HOUSING FSS AND ROSS PARTICIPANTS [Notice PIH 2019-23] Current PH FSS participants will continue to participate in the PHA’s FSS program, and PHAs will be allowed to use any PH FSS funds granted previously or pursuant to the current fiscal year (FY) PH FSS notice of funding availability (NOFA) to serve those FSS participants who live in units converted to RAD and who will as a result be moving to the HCV FSS program. A PHA must convert the PH FSS program participants at the covered project to their HCV FSS program.

Residents who were converted from the PH FSS program to the HCV FSS program through RAD may not be terminated from the HCV FSS program or have HCV assistance withheld due to the participant’s failure to comply with the contract of participation. Consequently, 24 CFR 984.303(b)(5)(iii) does not apply to FSS participants in converted properties.

At the completion of the FSS grant, PHAs should follow the normal closeout procedures outlined in the grant agreement. If the PHA continues to run an FSS program that serves PH and/or HCV participants, the PHA will continue to be eligible (subject to NOFA requirements) to apply for FSS funding.

Current Resident Opportunities and Self-Sufficiency–Service Coordinators (ROSS–SC) program grantees will be able to finish out their current ROSS–SC grants once their housing is converted under RAD. However, once the property is converted, it will no longer be eligible to be counted towards the unit count for future public housing ROSS–SC grants.

At the completion of the ROSS-SC grant, PHAs should follow the normal closeout procedures outlined in the grant agreement. Please note that ROSS-SC grantees may be a nonprofit or local resident association and this consequence of a RAD conversion may impact those entities.

Any non-RAD PBV units located in the same project are also subject to these requirements. 18-VI.D. RESIDENT PARTICIPATION AND FUNDING [Notice PIH 2019-23] Residents of covered projects converting assistance to PBVs will have the right to establish and operate a resident organization for the purpose of addressing issues related to their living environment and be eligible for resident participation funding.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VI.E. MOVES
Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260; Notice PIH 2019-23]
All in-place tenants at the time of conversion are eligible to remain in the project. Over-housed families should be moved into appropriately sized units if such units are available in the new or rehabbed project. If appropriately sized units are not available, the existing tenants may continue to be over-housed until an appropriately sized unit becomes available or until the tenant leaves the project. Once the unit turns over, it must be leased to an appropriately sized family. Any nonRAD PBV units located in the same project are also subject to these requirements.

Following conversion, the standard PBV regulations apply. If the PHA determines that a family is occupying a wrong-size unit, based on the PHA’s subsidy standards, or a unit with accessibility features that the family does not require, and the unit is needed by a family that does require the features, the PHA must promptly notify the family and the owner of this determination, and the PHA must offer the family the opportunity to receive continued housing assistance in another unit.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

If the PHA offers the family another form of assistance that is not a tenant-based voucher, and the family does not accept the offer, does not move out of the PBV unit within a reasonable time as determined by the PHA, or both, the PHA must terminate the housing assistance payments for the unit at the expiration of a reasonable period as determined by the PHA and remove the unit from the HAP contract.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Family Right to Move [24 CFR 983.261]
The family may terminate the lease at any time after the first year of occupancy. The family must give advance written notice to the owner in accordance with the lease and provide a copy of such notice to the PHA.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Choice Mobility [Notice PIH 2019-23; PRRAC Choice Mobility Implementation Guidance, 8/20]
Family’s Right to Choice Mobility
Under RAD PBV, the choice mobility option provides families with the opportunity to move with continued assistance any time after 12 months of occupancy. All residents in converted properties should be aware of their housing mobility rights and of their options in a range of neighborhoods.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Moving with Continued Assistance under Choice Mobility
If the family wishes to move with continued tenant-based assistance under choice mobility, the family must contact the PHA to request the rental assistance prior to providing notice to terminate the lease. If the family terminates the lease in accordance with lease requirements, the PHA is required to offer the family the opportunity for continued tenant-based assistance, in the form of a voucher or other comparable tenant-based rental assistance. If a voucher or other comparable tenant-based assistance is not immediately available, the PHA must give the family priority to receive the next available opportunity for continued tenant-based assistance.

Families are eligible to move with continued assistance under choice mobility after 12 months of occupancy. If the family terminates the assisted lease before the end of the first year, the family relinquishes the opportunity for continued tenant-based assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Turnover Cap
If as a result of RAD, the total number of PBV units (including RAD PBV units) administered by the PHA exceeds 20 percent of the PHA’s authorized units under its HCV ACC with HUD, the PHA may establish a turnover cap. The PHA is not required to provide more than three-quarters of its turnover vouchers in any single year to the residents of covered projects. If the PHA chooses to establish a turnover cap and the cap is implemented, the PHA must create and maintain a waiting list in the order requests from eligible households were received.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Emergency Transfers under VAWA [Notice PIH 2017-08]
Except where special consideration is needed for the project-based voucher program, the PHA will follow VAWA policies as outlined in Chapter 16 Part IX of this administrative plan, including using the Emergency Transfer Plan as the basis for PBV transfers under VAWA (Exhibit 16-4).

HUD requires that the PHA include policies that address when a victim has been living in a unit for less than a year or when a victim seeks to move sooner than a tenant-based voucher is available.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VI.F. REEXAMINATIONS [RAD PBV Quick Reference Guide 6/20] A family living in a unit converted from public housing to RAD PBV may retain its certification date. Unless a family’s annual reexamination is due at the same time as the effective date of the RAD PBV HAP contract, the PHA does not need to recertify tenants at the point of conversion.

For each family residing in a unit undergoing conversion of assistance under RAD, the administering PHA will have to submit a form HUD-50058 reflecting the family’s admission to the voucher program. The effective date of the new admission will be the same as the effective date of the RAD PBV HAP contract. The form should include the same information previously found on the public housing form 50058, including the next annual reexamination date. 18-VI.G. EARNED INCOME DISALLOWANCE [Notice PIH 2019-23] Tenants who are employed and are currently receiving the EID exclusion at the time of conversion will continue to receive the EID after conversion, in accordance with regulations at 24 CFR 5.617. Upon the expiration of the EID for such families, the rent adjustment will not be subject to rent phase-in; instead, the rent will automatically rise to the appropriate rent level based upon tenant income at that time. Any non-RAD PBV units located in the same project are also subject to these requirements.

Under the HCV program, the EID exclusion is limited to only persons with disabilities [24 CFR

5.617(b)]. In order to allow all tenants (including non-disabled persons) who are employed and currently receiving the EID at the time of conversion to continue to benefit from this exclusion in the PBV project, the provision in section 5.617(b) limiting EID to only persons with disabilities is waived. The waiver and resulting alternative requirement only applies to tenants receiving the EID at the time of conversion. No other tenant, such as tenants who at one time received the EID but are not receiving the EID exclusion at the time of conversion (e.g., due to loss of employment), tenants that move into the property following conversion, etc., is covered by this waiver.
18-VI.H. RESIDENTS’ PROCEDURAL RIGHTS [Notice PIH 2019-23] HUD is incorporating additional termination notification requirements for public housing projects that convert assistance under RAD to PBV and to non-RAD PBV units located in the same project beyond those for the standard PBV program. In addition to the regulations at 24 CFR 983.257 related to owner termination of tenancy and eviction (which MTW agencies may not alter), the termination procedure for RAD conversions to PBV requires that PHAs provide adequate written notice of termination of the lease, which is:
• A reasonable period of time, but not to exceed 30 days:
- If the health or safety of other tenants, project owner employees, or persons residing in the immediate vicinity of the premises is threatened; or - In the event of any drug-related or violent criminal activity or any felony conviction. • Not less than 14 days in the case of nonpayment of rent • Not less than 30 days in any other case, except that if a state or local law provides for a shorter period of time, such shorter period will apply
Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VI.I. INFORMAL REVIEWS AND HEARINGS [Notice PIH 2019-23] In addition to reasons for an informal hearing listed at 24 CFR 982.555(a)(1)(i)–(v) (See 16-III.C. Informal Hearings for Participants), an opportunity for an informal hearing must be given to residents for any dispute that a resident may have with respect to an owner action in accordance with the individual’s lease or the contract administrator in accordance with RAD PBV requirements that adversely affect the resident’s rights, obligations, welfare, or status. • For any hearing required under 24 CFR 982.555(a)(1)(i)–(v), the contract administrator will perform the hearing in accordance with Chapter 16 Part III: Informal Reviews and Hearings, as is the current standard in the program.
• For any additional hearings required under RAD, the PHA (as owner) will perform the hearing.

An informal hearing will not be required for class grievances or for disputes between residents not involving the PHA (as owner) or contract administrator. This hearing requirement does not apply to and is not intended as a forum for initiating or negotiating policy changes between a group or groups of residents and the PHA (as owner) or contract administrator.

The owner must give residents notice of their ability to request an informal hearing as outlined in 24 CFR 982.555(c)(1) for informal hearings that will address circumstances that fall outside of the scope of 24 CFR 982.555(a)(1)(i)–(v). (See Chapter 16) The owner must provide an opportunity for an informal hearing before an eviction.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

PART VII: DETERMINING CONTRACT RENT
18-VII.A. INITIAL CONTRACT RENTS [Notice PIH 2019-23]
RAD conversions are intended to be cost-neutral, and therefore, should not exceed current public housing funding as adjusted for unit size. Since public housing units do not currently have contract rents, HUD provides an estimate of current contract rents for each PHA’s public housing units based on current funding as adjusted by bedroom size. Current funding includes operating subsidy, tenant rents, capital funds, replacement housing factor funds (RHF), and demolition disposition transitional funding (DDTF). The funding may limit the amount of initial rent for a property. A detailed explanation of the determination of current funding may be found in Attachment 1C of Notice PIH 2019-23. Once the current funding amount is calculated, the amount is adjusted by bedroom size to determine the current funding rent. HUD uses the same bedroom adjustment factors as in the metropolitan FMR schedules where the project is located.

PHAs may adjust subsidy (and contract rents) across multiple projects as long as the PHA does not exceed the aggregate subsidy for all of the projects the PHA has submitted for conversion under RAD.

Notwithstanding HUD’s calculation of the initial contract rent based on the project’s subsidy under the public housing program and any modifications made to the initial contact rent, the initial rents are set at the lower of:
• An amount determined by the PHA, not to exceed 110 percent of the fair market rent (FMR) or the PHA’s exception payment standard approved by HUD, or the alternate rent cap in a PHA’s MTW agreement minus any utility allowance
• The reasonable rent
• The rent requested by the owner
Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VII.B. ADJUSTING CONTRACT RENTS [Notice PIH 2019-23; RAD PBV Quick Reference Guide 6/20; PHA Asset Repositioning “How to Apply OCAF for RAD PBV” Webinar]
RAD PBV contract rents are adjusted differently than contract rents in the standard PBV program. At each annual anniversary of the HAP contract, contract rents will be adjusted only by HUD’s operating cost adjustment factor (OCAF) that is applied to the current contract rent, less the portion of the rent paid for debt service, subject to the availability of appropriations for each year of the contract term. As such, section 8(o)(13)(I) of the 1937 Act, and 24 CFR 983.301 and 983.302, concerning rent determinations, do not apply when adjusting rents. The rent to owner may at no time exceed the reasonable rent charged for comparable unassisted units in the private market, as determined by the contract administrator in accordance with 24 CFR 983.303.

Contract rents may not exceed the reasonable rent (as determined by the PHA that administers the contract or the independent entity, as applicable), with the exception that the contract rent for each unit may not be reduced below the initial contract rent under the initial HAP contract.

However, the rent to owner may fall below the initial contract rent in the following situations:
• To correct errors in calculations in accordance with HUD requirements • If additional housing assistance has been combined with PBV assistance after the execution of the initial HAP contract and a rent decrease is required pursuant to 983.55 (prohibition of excess public assistance)
• If a decrease in rent to owner is required based on changes in the allocation of responsibility for utilities between the owner and the tenant
The contract rent adjustment will be the lesser of:
• The current contract rent increased by the operating cost adjustment factor (OCAF), which is published annually in the Federal Register; or
• The reasonable rent
The administering PHA (or independent entity, if the project is PHA-owned) is responsible for processing rent adjustments at each contract anniversary date in accordance with the prevailing OCAF. The PHA who administers the contract (directly or via an independent entity) must maintain records to demonstrate how OCAF amounts were determined and how rent adjustments were calculated. HUD approval of rent adjustments is not required.

Properties are eligible to receive prior years’ OCAF adjustments for years in which the OCAF was not taken. The OCAF must be applied retroactively if it was missed. The PHA administering the contract (or the independent entity) must make sure that all OCAFs have been applied correctly since the RAD closing and calculate the current rents accordingly, including making sure that the RAD PBV contract rents do not exceed the PBV program caps.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Rent Decrease
Rents must not be reduced below the initial rent except to correct errors, for additional subsidy to the property, or to realign utility responsibilities.
18-VII.C. UTILITY ALLOWANCES [Notice PIH 2019-23; RAD PBV Quick Reference Guide 6/20]
When contract rent amounts are set initially, the amount does not include a utility allowance. In general, the utility allowances that are used on the initial HAP contract at closing are the public housing utility allowances that are in effect prior to conversion. The CHAP must be updated prior to conversion to reflect current public housing utility allowances. At its discretion, a PHA may use the FMRs and utility allowances in effect during the 30-day period immediately before the beginning date of the HAP contract.

After conversion, the PHA that administers the contract must maintain the utility allowance schedule. The PHA may either maintain a utility allowance schedule for tenant-paid utilities in accordance with standard PBV and HCV utility allowance regulations at 24 CFR 983.301(f)(2)(ii) and 24 CFR 982.517, respectively, or the PHA may instead apply site-specific utility allowances. HUD waived the requirement for the standard PBV program that the HCV utility allowance be used. If a site-specific utility allowance is used, the utility allowance is applicable to non-RAD PBV units in the project and is calculated consistent with Notice H 2015-04.

Each family transitions to the new utility allowance at their first recertification following conversion.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VII.D. REASONABLE RENT [24 CFR 983.303]
At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by the PHA, except rents must not be reduced below the initial rent except to correct errors, for additional subsidy to the property, or to realign utility responsibilities.

How to Determine Reasonable Rent
The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, the PHA must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner.

Comparability Analysis
For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving projectbased assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by the PHA. The comparability analysis may be performed by PHA staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property.

PHA-Owned Units
For PHA-owned units, the amount of the reasonable rent must be determined by an independent entity approved by HUD in accordance with PBV program requirements. The independent entity must provide a copy of the determination of reasonable rent for PHA-owned units to the PHA and to the HUD field office where the project is located.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

PART VIII: PAYMENTS TO OWNER
18-VIII.A. HOUSING ASSISTANCE PAYMENTS
During the term of the HAP contract, the PHA must make housing assistance payments to the owner in accordance with the terms of the HAP contract. During the term of the HAP contract, payments must be made for each month that a contract unit complies with NSPIRE and is leased to and occupied by an eligible family. The housing assistance payment must be paid to the owner on or about the first day of the month for which payment is due, unless the owner and the PHA agree on a later date.

Except for discretionary vacancy payments, the PHA may not make any housing assistance payment to the owner for any month after the month when the family moves out of the unit (even if household goods or property are left in the unit).

The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant rent (total tenant payment minus the utility allowance).

In order to receive housing assistance payments, the owner must comply with all provisions of the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner does not have a right to receive housing assistance payments.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VIII.B. VACANCY PAYMENTS [24 CFR 983.352]
If an assisted family moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the family moves out. However, the owner may not keep the payment if the PHA determines that the vacancy is the owner’s fault.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner.

The PHA may only make vacancy payments if:
• The owner gives the PHA prompt, written notice certifying that the family has vacated the unit and identifies the date when the family moved out (to the best of the owner’s knowledge);
• The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed;
• The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and
• The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment.

The owner must submit a request for vacancy payments in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payment.

HACN Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VIII.C. TENANT RENT TO OWNER [24 CFR 983.353; Notice PIH 2019-23] The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent is determined by the PHA in accordance with HUD requirements. Any changes in the amount of tenant rent will be effective on the date stated in the PHA notice to the family and owner.

The family is responsible for paying the tenant rent (total tenant payment minus the utility allowance). The amount of the tenant rent determined by the PHA is the maximum amount the owner may charge the family for rental of a contract unit. The tenant rent covers all housing services, maintenance, equipment, and utilities to be provided by the owner. The owner may not demand or accept any rent payment from the tenant in excess of the tenant rent as determined by the PHA. The owner must immediately return any excess payment to the tenant.

Initial Certifications [Notice PIH 2019-23]
For the initial certification, the PHA will use the family’s public housing tenant rent (reflected on line 10f of the family’s most recent 50058) at the date of conversion to calculate HAP and tenant rent for the PBV program. The PHA will use this amount until the effective date of the earlier of the family’s first regular or interim recertification following the conversion. At that point, the PHA will use the family’s TTP based on the recertification and the applicable utility allowance (HCV or RAD PBV site-based, as applicable) to determine PBV HAP and tenant rent. Any nonRAD PBV units located in the same project are subject to the same requirements.

Tenant and PHA Responsibilities
The family is not responsible for the portion of rent to owner that is covered by the housing assistance payment and the owner may not terminate the tenancy of an assisted family for nonpayment by the PHA.

Likewise, the PHA is responsible only for making the housing assistance payment to the owner in accordance with the HAP contract. The PHA is not responsible for paying tenant rent, or any other claim by the owner, including damage to the unit. The PHA may not use housing assistance payments or other program funds (including administrative fee reserves) to pay any part of the tenant rent or other claim by the owner.

Utility Reimbursements
If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant rent to the owner must be zero.

The PHA may pay the utility reimbursement directly to the family or to the utility supplier on behalf of the family. If the PHA chooses to pay the utility supplier directly, the PHA must notify the family of the amount paid to the utility supplier.

PHA Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18-VIII.D. PHASE-IN OF TENANT RENT INCREASES [Notice PIH 2019-23; PHA Asset Repositioning “Phase-in of Tenant Rents” Webinar]
For in-place tenants, if the amount the tenant would pay for rent and utilities (TTP) would increase by more than the greater of 10 percent or $25 purely as a result of conversion, the rent increase will be phased in over three years. To implement this provision, HUD is waiving section 3(a)(1) of the 1937 Act, as well as 24 CFR 983.3 (definition of total tenant payment (TTP)) only to the extent necessary to allow for the phase-in of tenant rent increases. For families who were on EID at the time of conversion to RAD PBV, upon the expiration of the EID, the rent adjustment is not subject to rent phase-in.

The PHA must communicate this policy in writing to affected residents. Any non-RAD PBV units located in the same covered project are subject to the terms of the phase-in provisions.

PHA Policy
This section is not applicable to HACN as PHA will not operate project based vouchers under the rental assistance demonstration program.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

18.VIII.E. OTHER FEES AND CHARGES [24 CFR 983.354]
Meals and Supportive Services
With the exception of PBV assistance in assisted living developments, the owner may not require the tenant to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy.

In assisted living developments receiving PBV assistance, the owner may charge for meals or supportive services. These charges may not be included in the rent to owner, nor may the value of meals and supportive services be included in the calculation of the reasonable rent. However, non-payment of such charges is grounds for termination of the lease by the owner in an assisted living development.

Other Charges by Owner
The owner may not charge extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises.

Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

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Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

EXHIBIT 18-1: PBV DEVELOPMENT INFORMATION
(Fill out one for each development)
Date: [Enter the date on which this form was completed]

DEVELOPMENT INFORMATION
Development Name: [Insert name of PBV development]
Address: [Insert full address of PBV development]
Owner Information: [Insert PBV development owner name and contact information. If development is PHA-owned, enter “PHA-owned.”]
Property Management Company: [Insert property management company name and contact information, or enter “None”]
PHA-Owned: [Enter “Yes” or “No.” If yes, enter name of independent entity.] Mixed-Finance Development: [Enter “Yes” or “No.” If yes, list other types of funding and units to which other funding applies.]

HAP CONTRACT
Closing Date: [Enter closing date of RAD conversion]
List Which RAD Notice Applies to the Project: [Enter “PIH 2012-32, REV-2,” “PIH 2012-32, REV-3,” or “PIH 2019-23”]
Effective Date of Contract: [Enter start date of HAP contract] HOTMA Requirements: [If HAP contract was signed prior to April 18, 2017, enter “PreHOTMA.” If HAP contract was signed on or after April 18, 2017, enter “Post-HOTMA.”] Term of HAP Contract: [Enter term from HAP contract]
Expiration Date of Contract: [Enter expiration date from HAP contract]

PBV UNITS
0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Total
# of
Units
Initial
Contract
Rent
$ $ $ $ $ $
Unit Designation: [Enter “Fixed” or “Floating”]
Accessible Units and Features: [Identify which units are accessible and describe accessibility features or enter “None”]
Agenda Item 4.

Housing Authority
of the Administrative Plan5/1/26
City od Needles

Target Population: [Describe targeted population in accordance with HAP contract or enter “None”]
Excepted Units (Notice PIH 2012-32, REV-2 Developments Only): [Identify excepted unit types below or enter “None”]
Supportive Services: [Enter “Yes, see Exhibit D of HAP contract” or enter “No”] Elderly Units: [Enter “Yes” or “No.” If yes, identify which units are elderly units.] Disabled Units [Enter “Yes” or “No.” If yes, identify which units are for persons with disabilities.]

WAITING LIST AND SELECTION
Waiting List Type: [Enter “Site-based waiting list,” “Combined with HCV,” “Waiting list for entire PBV program,” or “Merged with another assisted housing program”] Preferences: [Enter “Same as HCV; see Chapter 4” or describe preferences offered. If different from HCV, note in Section 18.1.C. of this policy.]
Preference Verification: [Enter “Same as HCV; see Chapter 7” or describe for each preference listed above. If different from HCV, note in Section 18.1.C. of this policy.] For the PBV program, is the income limit the same as the HCV program? (Note: In mixedfinance developments, other income limits may also apply.) [Enter “Same as HCV; see Chapter 3” or clearly describe]

OCCUPANCY
Subsidy Standards: [Enter “Same as HCV; see Chapter 5” or describe. If different from HCV, note in Section 18.1.C. of this policy.]
Utilities: [Enter in accordance with HAP contract Exhibit C] Vacancy Payments: [Enter in accordance with HAP contract Part 1, e, 2 and Section 18-IV.F. within this chapter]
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Chapter 19

SPECIAL PURPOSE VOUCHERS

INTRODUCTION
Special purpose vouchers are specifically funded by Congress in separate appropriations from regular HCV program funding in order to target specific populations. Special purpose vouchers include vouchers for the following programs:
• Family Unification Program (FUP)
• Foster Youth to Independence (FYI) program
• Veterans Affairs Supportive Housing (VASH)
• Mainstream
• Non-Elderly Disabled (NED)
• Stability Voucher program
HACN Policy
The PHA will administer the following types of special purpose vouchers:

Veterans Affairs Supportive Housing (VASH)
This chapter describes HUD regulations and PHA policies for administering special purpose vouchers. The policies outlined in this chapter are organized into five sections, as follows:

Part I: Family Unification Program (FUP)
Part II: Foster Youth to Independence (FYI) program
Part III: Veterans Affairs Supportive Housing (VASH)
Part IV: Mainstream voucher program
Part V: Non-Elderly Disabled (NED) vouchers
Part VI: Stability Voucher program
Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to special purpose vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART I: FAMILY UNIFICATION PROGRAM (FUP)
19-I.A. PROGRAM OVERVIEW [Fact Sheet, Housing Choice Voucher Program Family Unification Program (FUP)]
Overview
The Family Unification Program (FUP) was authorized by Congress in 1990 to help preserve and reunify families. PHAs that administer the program provide vouchers to two different populations—FUP families and FUP youth.

Families eligible for FUP are families for whom the lack of adequate housing is a primary factor in:
• The imminent placement of the family’s child or children in out-of-home care; or • The delay in the discharge of the child or children to the family from out-of-home care.

There is no time limitation on FUP family vouchers, and the family retains their voucher as long as they are HCV-eligible. There is no requirement for the provision of supportive services for FUP family vouchers.

Youth eligible for FUP are those who:
• Are at least 18 years old and not more than 24 years of age; • Have 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 at age 16 and older; and • Are homeless or at risk of becoming homeless.

FUP youth vouchers are limited by statute to a period between 36 and 60 months of housing assistance. Supportive services must also be provided to FUP-eligible youth by the Public Child Welfare Agency (PCWA) or by another agency or organization under contract with the PCWA for the period of time defined in the notice or Notice of Funding Availability/Opportunity (NOFA/O) for which funding was made available.

PHAs that wish to administer FUP vouchers must apply to HUD by submitting an application under an active Notice of Funding Opportunity (NOFO). While the FUP program is administered in accordance with HCV regulations, the FUP NOFOs issued by HUD provide specific program information and requirements.

In order to administer the program, the PHA must also form a partnership with a local PCWA who is responsible for determining the family or youth meets FUP eligibility requirements and referring them to the PHA. Once the referral is received, the PHA is responsible for placing the FUP family or youth on the PHA’s waiting list and determining whether they are eligible to receive assistance under the PHA’s HCV program.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Assigning Vouchers [FUP FAQs]
The PHA may, but is not required to, assign a specific number or percentage of FUP vouchers for FUP youths and FUP families. Unless the PHA assigns a specific number or percentage of FUP vouchers to a designated FUP population, the PHA must serve any referrals (youths or families) that meet all program eligibility requirements up to the PHA’s designated FUP program size.

HACN Policy
The PHA does not administer Family Unification Program vouchers. 19-I.B. PUBLIC CHILD WELFARE AGENCY (PCWA)
Families and youth do not apply directly to the PHA for FUP vouchers. They are instead referred by a PCWA with whom the PHA has entered into a Memorandum of Understanding (MOU).

The partnering PCWA initially determines whether the family or youth meets the FUP program eligibility requirements listed in 19-I.C. and 19-I.D. and then refers those families or youths to the PHA.

HUD strongly encourages PHAs and PCWAs to make decisions collaboratively on the administration of the program and to maintain open and continuous communication. The PCWA must have a system for identifying FUP-eligible youth within the agency’s caseload and for reviewing referrals from a Continuum of Care (COC) if applicable.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Supportive Services
The PCWA must provide supportive services for the period of time defined in the notice or NOFA/O for which the funding was made available to all FUP-eligible youth regardless of their age. The MOU between the PHA and the PCWA should identify the period of time in which supportive services will be provided.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Supportive services may be provided to FUP-eligible youth by the PCWA or by another agency or organization under agreement or contract with the PCWA, including the PHA. The organization providing the services and resources must be identified in the MOU. The following services must be offered:
• Basic life skills information or counseling on money management, use of credit, housekeeping, proper nutrition or meal preparation, and access to health care (e.g., doctors, medication, and mental and behavioral health services); • Counseling on compliance with rental lease requirements and with HCV program participant requirements, including assistance or referrals for assistance on security deposits, utility hook-up fees, and utility deposits;
• Providing such assurances to owners of rental property as are reasonable and necessary to assist a FUP-eligible youth to rent a unit with a FUP voucher; • Job preparation and attainment counseling (where to look and how to apply, dress, grooming, relationships with supervisory personnel, etc.); and
• Educational and career advancement counseling regarding attainment of general equivalency diploma (GED), or attendance or financing of education at a technical school, trade school, or college, including successful work ethic and attitude models.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

A FUP-eligible youth cannot be required to participate in these services as condition of receipt of the FUP voucher.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.C. FUP FAMILY VOUCHER ELIGIBILITY CRITERIA
FUP family assistance is reserved for eligible families that the PCWA has certified are a family for whom a lack of adequate housing is a primary factor in:
• The imminent placement of the family’s child or children in out-of-home care, or • The delay in the discharge of the child or children to the family from out-of-home care.

Lack of adequate housing means the family meets any one of the following conditions:
• Living in substandard housing, which refers to a unit that meets any one of the following conditions:
- Does not have operable indoor plumbing
- Does not have a usable flush toilet inside the unit for the exclusive use of a family or youth
- Does not have a usable bathtub or shower inside the unit for the exclusive use of a family or youth
- Does not have electricity, or has inadequate or unsafe electrical service - Does not have a safe or adequate source of heat
- Should, but does not, have a kitchen
- Has been declared unfit for habitation by an agency or unit of government, or in its present condition otherwise endangers the health, safety, or well-being of the family or youth
- Has one or more critical defects, or a combination of intermediate defects in sufficient number or to the extent that it requires considerable repair or rebuilding. The defects may result from original construction, from continued neglect or lack of repair, or from serious damage to the structure
• Being homeless as defined in 24 CFR 578.3
• Living in a unit where the presence of a household member with certain characteristics (i.e., conviction for certain criminal activities) would result in the imminent placement of the family’s child or children in out-of-home care, or the delay in the discharge of the child or children to the family from out-of-home care
• Living in housing not accessible to the family’s disabled child or children due to the nature of the disability
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

• Living in an overcrowded unit, which is defined as living in a unit where one of the following conditions has been met:
- The family is separated from its child or children and the parents are living in an otherwise standard housing unit, but, after the family is reunited, the parents’ housing unit would be overcrowded for the entire family and would be considered substandard; or - The family is living with its child or children in a unit that is overcrowded for the entire family and this overcrowded condition may result, in addition to other factors, in the imminent placement of its child or children in out-of-home care. - For purposes of this definition, the determination as to whether the unit is overcrowded is made in accordance with the PHA subsidy standards in Chapter 5, Part III of this policy.

Since HUD does not define imminent placement, the partnering PCWA may use its discretion to determine whether the potential out of home placement of the family’s child or children is imminent [FUP FAQs].

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.D. FUP YOUTH VOUCHER ELIGIBILITY CRITERIA
While FUP family vouchers operate as regular HCVs after the family is referred from the PCWA, there are several aspects of the FUP youth vouchers that make them distinct from the FUP family vouchers and from regular HCVs.

Eligibility Criteria
A FUP-eligible youth is a youth the PCWA has certified:
• Is at least 18 years old and not more than 24 years of age (has not yet reached their 25th birthday);
- The FUP youth must be no more than 24 years old at the time the PCWA certifies them as eligible and at the time of HAP contract execution.
• 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; - Foster care placement can include, but is not limited to, placements in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities, child care institutions, and pre-adoptive homes in accordance with 24 CFR 5.576. • Is homeless or at risk of becoming homeless at age 16 or older; - At risk of being homeless is fully defined at 24 CFR 576.2. o This includes a person that is exiting a publicly funded institution, or system of care (such as a healthcare facility, a mental health facility, foster care or other youth facility, or correction program or institution).
o Therefore, youth being discharged from an institution may be eligible for a FUP voucher [FUP FAQs].
• Has an annual income at or below 30 percent of area median income; and • Does not have sufficient resources or support networks (e.g., family, friends, faith-based or other social networks) immediately available to prevent them from moving to a supervised publicly or privately operated shelter designed to provide temporary living arrangements.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.E. ASSISTANCE PERIOD [FR Notice 1/24/22]
Maximum Assistance Period
Although there is no time limit on FUP family vouchers, FUP youth vouchers are limited by statute. Unless the FUP youth meets an exception outlined below, after 36 months of assistance, the FUP youth voucher must be terminated. However, any period of time for which no subsidy (HAP) is being paid on behalf of the youth does not count toward the 36-month limitation.

If the FUP youth does meet the requirements outlined below, the statutory limit on FUP assistance is a total of 60 months of FUP voucher assistance [FR Notice 1/24/22].

Extension of Assistance
FUP youth who first leased or lease a unit after December 27, 2020, may be eligible for an extension of assistance up to 24 months beyond the 36-month time limit (for a total of 60 months of assistance).

While FUP youth cannot be required to participate in the Family Self-Sufficiency (FSS) program as a condition of receipt of assistance, an eligible youth who participates in the FSS program and is in compliance with the applicable terms and conditions of the program is entitled to receive assistance for up to an additional 24 months. A FUP youth must accept an FSS slot if it is offered to them prior to the 36-month mark in order to receive an extension of assistance (unless the youth meets one of the statutory exceptions described below).

Statutory Exceptions
A FUP youth will be entitled to receive an extension of assistance for up to 24 months beyond the 36-month time limit without participating in the PHA’s FSS program if they certify that they meet one of the exceptions below:
• The FUP youth is a parent or other household member responsible for the care of a dependent child under the age of six or for the care of an incapacitated person.

PHA Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The FUP youth is a person who is regularly and actively participating in a drug addiction or alcohol treatment and rehabilitation program.

PHA Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

PHA Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Education, Workforce Development, or Employment Activities If a PHA that carries out an FSS program is unable to offer a FUP youth an FSS slot during their first 36 months of receiving FUP youth assistance, the youth is considered to have been “unable to enroll” in the program and may have their voucher extended by meeting the education, workforce development, or employment criteria described below:
• The youth was engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.
• The youth was enrolled in an institution of higher education, as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) or an institution that meets the definition of a proprietary institution of higher education or a postsecondary vocational institution under sections 102(b)(1) and (c)(1) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1) and (c)(1)), respectively.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The youth was participating in a career pathway, as such term is defined in Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102). The term career pathway means a combination of rigorous and high-quality education, training, and other services that:
- Aligns with the skill needs of industries in the economy of the state or regional economy involved;
- Prepares an individual to be successful in any of a full range of secondary or postsecondary education options, including apprenticeships registered under the Act of August 16, 1937 (commonly known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) (referred to individually in this Act as an apprenticeship, except in section 3226 of this title);
- Includes counseling to support an individual in achieving the individual’s education and career goals;
- Includes, as appropriate, education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster;
- Organizes education, training, and other services to meet the particular needs of an individual in a manner that accelerates the educational and career advancement of the individual to the extent practicable;
- Enables an individual to attain a secondary school diploma or its recognized equivalent, and at least one recognized postsecondary credential; and - Helps an individual enter or advance within a specific occupation or occupational cluster. • The youth was employed.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

FSS Enrollment at 24 Months
If the FUP youth has not been provided an opportunity to enroll in the FSS program during the first 24 months of FUP assistance, HUD encourages the PHA to remind the youth at the 24- month reexamination of the education, workforce development, and employment requirements described above so that the youth has enough time to meet these requirements prior to the expiration of the 36-month time period for FUP assistance.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

FSS Enrollment Between 36 and 48 Months
If an FSS slot becomes available between the 36-month and 48-month mark:
• The PHA must offer the slot to a FUP youth who had their voucher extended based on meeting the education, workforce development, or employment requirement listed above, or one of the statutory exceptions listed above (even if the youth previously declined an FSS slot because they met one of the statutory exceptions). • The PHA must work with the youth to determine whether enrollment in FSS is feasible and in their best interest given any education, workforce development, or employment activities that the youth is engaged in and any statutory exceptions that apply to the youth, as well as the remaining time on their voucher.
• If the FUP youth accepts the FSS slot, the PHA must work with the youth to establish Contract of Participation goals and an Individual Training and Services Plan (ITSP) that can be accomplished within the time period left on the voucher.

If the FUP youth is offered an FSS slot prior to the 36-month mark, the youth:
• Will be required to enroll in the FSS program in order to receive an extension of assistance at the end of the 36-month time period (unless they meet one of the statutory exceptions described above).
• Will not be considered to have been “unable to enroll” in the FSS program as described above, and as a result, will not be eligible to receive an extension of assistance based on meeting the education, workforce development, or employment requirements described above.

FSS Enrollment After 48 Months
The PHA may, but is not required to, offer a FUP youth an FSS slot that becomes available between the 48-month mark and the 60-month mark, since the youth will have already received their second and final extension.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Extensions of Assistance
At the 36-month and 48-month reexamination, the PHA must extend FUP youth assistance if the youth is participating in and in compliance with the FSS program as long as the youth is still eligible for the HCV program.

In any case, the FUP youth cannot receive more than a total of 60 months of FUP youth voucher assistance, even if the FSS Contract of Participation time period extends beyond the voucher 60- month mark.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

No FSS Program or Unable to Enroll in FSS
If a PHA does not carry out an FSS program or the FUP youth has been unable to enroll in the program during the first 36 months of receiving FUP assistance, the FUP youth is entitled to receive an extension of assistance for up to two successive 12-month periods beyond the 36- month time limit provided that the youth engaged in at least one of the education, workforce development, or employment activities described above for not less than nine months of the 12- month period preceding each extension. In order to meet the nine months out of the preceding 12 months requirement, the youth may have engaged in one of the education, workforce development, or employment activities described above or a combination of these activities.

Verification Prior to Annual Reexam
In order to provide an extension of assistance, the PHA must verify compliance with the above requirements at the end of the 36-month time period and the 48-month time periods. The PHA does not need to verify compliance with these requirements at the end of the 60-month time period since the maximum length of assistance is 60 months.

To verify compliance with the education, workforce development, or employment requirement or one of the statutory exceptions, the PHA must provide the FUP youth written notification informing them that they may receive an extension of their FUP assistance and providing instructions on how the youth may demonstrate that they meet one of these conditions. This notification must be provided sufficiently in advance of the end of the 36-month or 48-month time periods, as applicable, to allow the FUP youth to demonstrate that they meet the education, workforce development, or employment requirement, or one of the statutory exceptions, and for the PHA to conduct an annual reexamination prior to the expiration of the FUP assistance.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The PHA will use the following verification methods to verify a FUP youth’s eligibility for voucher extensions:

To verify compliance with the FSS requirement, the PHA will examine its records to confirm, or obtain confirmation from the PHA’s FSS program staff, that the FUP youth participant is in compliance with FSS program requirements and has not been terminated from the FSS program.

To meet the education, workforce development, or employment requirement, the PHA will verify that the FUP youth was engaged in at least one education, workforce development, or employment activity for at least nine months of the 12-month period immediately preceding the end of 36-month or 48-month time period, as applicable.

Due to the timing of when the PHA verifies compliance and conducts the annual reexamination, the FUP youth may have not yet met the ninemonth requirement but may be able to demonstrate that they will meet the nine-month requirement as of the end of the 36-month or 48-month time period. In such cases, the FUP/FYI youth will still be considered to have met the requirements.

In order for the FUP youth to meet one of the statutory exceptions described above, the youth must submit a certification to the PHA that they meet one of these exceptions. This certification is the only documentation that the FUP youth must submit in order to demonstrate that they meet one of the statutory exceptions.

A FUP youth who received an extension of voucher assistance at the end of the 36-month time period based on meeting one of the conditions described in this chapter does not have to meet the same conditions when they reach the end of the 48-month time period. The FUP youth may demonstrate that they meet a different condition in order to receive an extension of their assistance.

If the PHA determines that the youth meets one of the statutory conditions, the PHA would then conduct an annual reexamination. If the annual reexamination determines that the youth is still eligible for the HCV program, the PHA must provide the FUP youth the extension of voucher assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Termination of Assistance for Failure to Meet Conditions Failure of the FUP youth to meet one of the above conditions will only impact their ability to receive subsequent extensions of assistance. It will not serve as a basis for terminating the FUP assistance prior to the annual reexam.

If the FUP youth does not meet any of the conditions described in in this chapter, the youth is subject to the statutory time limit of 36 months or the time limit of any extension that the youth has already received, and the FUP youth voucher must be terminated once the youth reaches this time limit. The calculation of the time limit begins from the date the first HAP contract is signed (for tenant-based vouchers) or from the date the youth entered into the initial lease agreement (for project-based vouchers). The number of months is calculated based on the number of months that HAP subsidy is being paid on behalf of the youth, not the number of months that the youth is in the FUP youth program. Prior to termination, the PHA must offer the FUP youth the opportunity to request an informal hearing, in accordance with Chapter 16.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.F. REFERRALS AND WAITING LIST MANAGEMENT
Referrals
The PCWA must establish and implement a system to identify FUP-eligible families and youths within the agency’s caseload and make referrals to the PHA. The PCWA must certify that the FUP applicants they refer to the PHA meet FUP eligibility requirements. The PHA is not required to maintain full documentation that demonstrates the family’s or youth’s FUP eligibility as determined by the PCWA but should keep the referral or certification from the PCWA.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

A PHA must serve any referrals (youths or families) that meet all program eligibility requirements. If a PHA determines that it has received a sufficient number of referrals from the PCWA so that the PHA will be able to lease all FUP vouchers awarded, the PHA may request that the PCWA suspend transmission of referrals. If the PHA determines that additional referrals will be needed after it has made such a request, the PHA may request that the PCWA resume transmission of referrals [Notice PIH 2011-52].

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Waiting List Placement
A family that is already participating in the regular HCV program cannot be transferred to a FUP voucher.

Once a referral is made, the PHA must compare the list of PCWA referrals to its HCV waiting list to determine if any applicants on the PCWA’s referral list are already on the PHA’s HCV waiting list. Applicants already on the PHA’s HCV waiting list retain the order of their position on the list. Applicants not already on the PHA’s HCV waiting list must be placed on the HCV waiting list.

If the PHA’s HCV waiting list is closed, the PHA must open its HCV waiting list in order to accept new FUP applicants. If necessary, the PHA may open its waiting list solely for FUP applicants, but this information must be included in the PHA’s notice of opening its waiting list (see section 4-II.C., Opening and Closing the Waiting List of this administrative plan).

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Waiting List Selection
The PHA selects FUP-eligible families or youths based on the PHA’s regular HCV waiting list selection policies in Chapter 4, including any preferences that may apply.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.G. PHA HCV ELIGIBILITY DETERMINATION
Once a FUP-eligible family or youth is selected from the HCV waiting list, the PHA must determine whether the family or youth meets HCV program eligibility requirements. Applicants must be eligible under both FUP family or youth eligibility requirements, as applicable, and HCV eligibility requirements as outlined in Chapter 3 of this policy.

The PCWA may, but is not obligated to, provide information to the PHA on the family’s criminal history.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Additional FUP Eligibility Factors [FUP FAQs]
For FUP family vouchers, the family must remain FUP-eligible thorough lease-up. • If, after a family is referred by the PCWA but prior to issuing a family FUP voucher, the PHA discovers that the lack of adequate housing is no longer a primary factor for the family not reunifying, the FUP voucher may not be issued to the family. • Similarly, if the FUP voucher has already been issued before the PHA discovers that the reunification will not happen, but the family has not yet leased up under the voucher, the PHA must not execute the HAP contract, as the family is no longer FUP-eligible.

FUP-eligible youth must be no more than 24 years old both at the time of PCWA certification and at the time of the HAP execution. If a FUP youth is 24 at the time of PCWA certification but will turn 25 before the HAP contract is executed, the youth is no longer eligible for a FUP youth voucher.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19.I.H. LEASE UP [FR Notice 1/24/22]
Once the PHA determines that the family or youth meets HCV eligibility requirements, the family or youth will be issued a FUP voucher in accordance with PHA policies.

During the family briefing, PHAs must inform the FUP youth of:
• The extension of assistance provisions and requirements; • The availability of the FSS program and offer them an FSS slot, if available, or offer to place them on the FSS waiting list (provided the PHA has an FSS program); and • Supportive services available to them, the existence of any other programs or services, and their eligibility for such programs and services. However, participation in supportive services cannot be required as a condition of receiving FUP youth assistance.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Once the family or youth locate a unit, the PHA conducts all other processes relating to voucher issuance and administration per HCV program regulations and the PHA’s policies (including, but not limited to: NSPIRE inspections, determination of rent reasonableness, etc.).

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-I.I. TERMINATION OF ASSISTANCE
General Requirements
With the exception of terminations of assistance for FUP youth after the statutorily required time period, terminations of FUP assistance are handled in the same way as the regular HCV program.

Termination of a FUP voucher must be consistent with regulations for termination in 24 CFR Part 982, Subpart L and be in compliance with PHA policies (Chapter 12).

If the person who qualifies for the FUP voucher passes away, the family retains the FUP voucher. In the case of a FUP-youth voucher, assistance will terminate after the statutorily required time period, even if the FUP-eligible youth is no longer included in the household.

If the person who qualifies for the FUP voucher moves, the remaining family members may keep the FUP voucher based on PHA policy (see administrative plan, Section 3-I.C., Family Breakup and Remaining Member of Tenant Family).

FUP Family Vouchers
If parents lose their parental rights or are separated from their children after voucher lease-up (or their children reach adulthood), the family is still eligible to keep their FUP assistance, as the regulations do not permit HCV termination for a family losing parental rights or the children reaching adulthood. However, the PHA may transfer the assistance of a FUP family voucher holder to regular HCV assistance if there are no longer children in the household.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

FUP Youth Vouchers
A PHA cannot terminate a FUP youth’s assistance for noncompliance with PCWA case management, nor may the PHA terminate assistance for a FUP youth for not accepting services from the PCWA.

The PHA may not transfer the assistance of a FUP youth voucher holder to regular HCV assistance upon the expiration of the statutorily required time period. However, the PHA may issue a regular HCV to FUP youth if they were selected from the waiting list in accordance with PHA policies and may also adopt a preference for FUP youth voucher holders who are being terminated for this reason.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Upon the expiration of the statutorily required time period, a FUP youth voucher holder who has children and who lacks adequate housing may qualify for a FUP family voucher provided they are referred by the PCWA as an eligible family and meet the eligibility requirements for the PHA’s HCV program.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

9-I.J. FUP PORTABILITY
Portability for a FUP family or youth is handled in the same way as for a regular HCV family. A PHA may not restrict or deny portability for a FUP family or youth for reasons other than those specified in the HCV program regulations, as reflected in Chapter 10 of the administrative plan.

A FUP family or youth does not have to port to a jurisdiction that administers FUP.

If the receiving PHA administers the FUP voucher on behalf of the initial PHA, the voucher is still considered a FUP voucher regardless of whether the receiving PHA has a FUP program.

If the receiving PHA absorbs the voucher, the receiving PHA may absorb the incoming port into its FUP program (if it has one) or into its regular HCV program (if the receiving PHA has vouchers available to do so) and the family or youth become regular HCV participants. In either case, when the receiving PHA absorbs the voucher, a FUP voucher becomes available to the initial PHA.

Considerations for FUP Youth Vouchers
If the voucher is a FUP youth voucher and remains such upon lease-up in the receiving PHA’s jurisdiction, termination of assistance must still take place once the youth has received assistance for the statutorily required time period. If the receiving PHA is administering the FUP youth voucher on behalf of the initial PHA, the two PHAs must work together to initiate termination upon expiration of the statutorily required time period. 19-I.K. PROJECT-BASING FUP VOUCHERS [Notice PIH 2017-21; FR Notice 1/24/22] The PHA may project-base FUP vouchers without HUD approval in accordance with Notice PIH 2017-21, FR Notice 1/24/22, and all statutory and regulatory requirements for the PBV program.

Project-based FUP vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A.

The PHA may limit PBVs to one category of FUP-eligible participants (families or youth) or a combination of the two.

While FUP vouchers can be used for either families or youth, a PBV unit may only be counted towards the PHA’s 10 percent exception authority under the program cap and the project’s income-mixing requirement if the FUP PBV assistance is provided on behalf of an eligible youth. The PHA must amend its administrative plan to include the limitation of these FUP PBV units to eligible youth.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART II: FOSTER YOUTH TO INDEPENDENCE INITIATIVE
19-II.A. PROGRAM OVERVIEW [Notice PIH 2020-28; Notice PIH 2023-04; FR Notice 1/24/22]
The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows PHAs who partner with a Public Child Welfare Agency (PCWA) to request targeted HCVs to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of between 36 and 60 months.

Funding is available either competitively though an FYI NOFA or noncompetitively on a rolling basis in accordance with the application requirements outlined in Notice PIH 2020-28, Notice PIH 2021-26, or Notice PIH 2023-04, as applicable. Under the noncompetitive process, PHAs are limited to 25 vouchers in a fiscal year with the ability to request additional vouchers. Where the PHA has a combined FYI and/or FUP size of no more than 10 vouchers, the PHA may request FYI vouchers with at least 50 percent utilization of its FUP and/or FYI vouchers. Where the PHA has a combined FYI and/or FUP size of 11 or more vouchers, the PHA may request FYI vouchers with 90 percent or greater utilization of its FUP and/or FYI vouchers. For competitive awards, the number of vouchers is dependent on PHA program size and need.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.B. PARTNERING AGENCIES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar]
Public Child Welfare Agency (PCWA)
The PHA must enter into a partnership agreement with a PCWA in the PHA’s jurisdiction in the form of a Memorandum of Understanding (MOU) or letter of intent. The PCWA is responsible for identifying and referring eligible youth to the PHA and providing or securing a commitment for the provision of supportive services once youth are admitted to the program.

HACN Policy
The PHA will implement a Foster Youth to Independence (FYI) program in partnership with [insert name(s) of PCWA(s)].

The PCWA is responsible for:
• Identifying FYI-eligible youth;
• Developing a system of prioritization based on the level of need of the youth and the appropriateness of intervention;
• Providing a written certification to the PHA that the youth is eligible; and • Providing or securing supportive services for 36 months.

Continuum of Care (CoC) and Other Partners
HUD strongly encourages PHAs to add other partners into the partnership agreement with the PCWA such as state, local, philanthropic, faith-based organizations, and the CoC, or a CoC recipient it designates.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.C. YOUTH ELIGIBILITY CRITERIA [Notice PIH 2023-04; FYI Q&As; FYI FAQs] The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. As determined by the PCWA, eligible youth:
• Are at least 18 years of age and not more than 24 years of age (have not yet reached their 25th birthday);
- Youth must be no more than 24 years of age at the time the PCWA certifies them as eligible and at the time of HAP contract execution.
• Have 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; - Placements can include, but are not limited to, placements in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities, child care institutions, and pre-adoptive homes in accordance with 24 CFR 5.576; • Are homeless or at risk of becoming homeless at age 16 and older; - At risk of being homeless is fully defined at 24 CFR 576.2. o This includes a person that is exiting a publicly funded institution, or system of care (such as a healthcare facility, a mental health facility, foster care or other youth facility, or correction program or institution). Therefore, youth being discharged from an institution may be eligible for an FYI voucher [FYI FAQs].

Eligibility is not limited to single persons. For example, pregnant and/or parenting youth are eligible to receive assistance assuming they otherwise meet eligibility requirements.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.D. SUPPORTIVE SERVICES [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As]
Supportive services may be provided by the PHA, PCWA, or a third party. The PCWA must provide or secure a commitment to provide supportive services for participating youth for the period of time defined in the NOFA/O for which the funding was made available. At a minimum, the following supportive services must be offered:
• Basic life skills information/counseling on money management, use of credit, housekeeping, proper nutrition/meal preparation, and access to health care (e.g., doctors, medication, and mental and behavioral health services);
• Counseling on compliance with rental lease requirements and with HCV program participant requirements, including assistance/referrals for assistance on security deposits, utility hookup fees, and utility deposits; • Providing such assurances to owners of rental property as are reasonable and necessary to assist eligible youth to rent a unit with a voucher;
• Job preparation and attainment counseling (where to look/how to apply, dress, grooming, relationships with supervisory personnel, etc.); and
• Educational and career advancement counseling regarding attainment of general equivalency diploma (GED) or attendance/financing of education at a technical school, trade school, or college, including successful work ethic and attitude models.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Since participation in supportive services is optional, but strongly encouraged, an FYI participant may decline supportive services.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.E. REFERRALS AND WAITING LIST MANAGEMENT [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] Referrals
The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. Once the PCWA sends the PHA the referral certifying the youth is programeligible, the PHA determines HCV eligibility.

The PCWA must have a system for identifying eligible youth within the agency’s caseload and reviewing referrals from other partners, as applicable. The PCWA must also have a system for prioritization of referrals to ensure that youth are prioritized for an FYI voucher based upon their level of need and appropriateness of the intervention.

Referrals may come from other organizations in the community who work with the population, but the PCWA must certify that the youth meets eligibility requirements, unless the PCWA has vested another organization with this authority.

The PHA is not required to maintain full documentation that demonstrates the youth’s eligibility as determined by the PCWA but should keep the referral or certification from the PCWA. The PCWA is not required to provide the PHA with HCV eligibility documents.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Waiting List Placement [Notice PIH 2023-04 and FYI FAQs] The PHA must use the HCV waiting list for the FYI program. Youth already on the HCV program may not be transferred to an FYI voucher since they are not homeless or at-risk of homelessness.

Once a referral is made, the PHA must compare the list of PCWA referrals to its HCV waiting list to determine if any applicants on the PCWA’s referral list are already on the PHA’s HCV waiting list. Applicants already on the PHA’s HCV waiting list retain the order of their position on the list. Applicants not already on the PHA’s HCV waiting list must be placed on the HCV waiting list.

If the PHA’s HCV waiting list is closed, the PHA must open its HCV waiting list in order to accept new referrals. The PHA may reopen the waiting list to accept an FYI eligible youth without opening the waiting list for other applicants; however, the requirements at 24 CFR 982.206 for giving public notice when opening and closing the waiting list apply (see section 4- II.C., Opening and Closing the Waiting List of this administrative plan).

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Waiting List Selection
The PHA selects eligible youths based on the PHA’s regular HCV waiting list selection policies in Chapter 4, including any preferences that may apply.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.F. PHA HCV ELIGIBILITY DETERMINATION [FYI FAQs]
Once an eligible youth is selected from the HCV waiting list, the PHA must determine whether the youth meets HCV program eligibility requirements. Applicants must be eligible under both FYI eligibility requirements and HCV eligibility requirements as outlined in Chapter 3 of this policy.

The PCWA may, but is not obligated to, provide information to the PHA on the youth’s criminal history.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Additional Eligibility Factors
Youth must be no more than 24 years old both at the time of PCWA certification and at the time of the HAP execution. If a youth is 24 at the time of PCWA certification but will turn 25 before the HAP contract is executed, the youth is no longer eligible for a FYI voucher.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.G. LEASE UP [FR Notice 1/24/22]
Once the PHA determines that the family or youth meets HCV eligibility requirements, the youth will be issued an FYI voucher in accordance with PHA policies.

During the family briefing, PHAs must inform the FYI voucher holder of:
• The extension of assistance provisions and requirements; • The availability of the FSS program and offer them an FSS slot, if available, or offer to place them on the FSS waiting list (provided the PHA has an FSS program); and • The supportive services available to them, the existence of any other programs or services, and their eligibility for such programs and services. However, participation in supportive services cannot be required as a condition of receiving FYI assistance.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Once the youth locates a unit, the PHA conducts all other processes relating to voucher issuance and administration per HCV program regulations and the PHA policy in Chapter 9.

Should a youth fail to use the voucher, the PHA may issue the voucher to another eligible youth if one has been identified [Notice PIH 2023-04].

Turnover [Notice PIH 2023-04]
Awards of FYI Tenant Protection Vouchers (TPVs) continue to be administered under the requirements of Notice PIH 2019-20. This includes turnover requirements and the requirement to inform HUD should a youth not use a voucher or leave the program. For example, FYI TPVs awarded under Notice PIH 2019-20 “sunset” when a youth leaves the program. This means that the PHA cannot reissue FYI TPV assistance issued under that notice to another youth when an initial youth exits the HCV program. HUD does not have the authority to allow the voucher to be used for a youth other than the one identified in the request.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.H. MAXIMUM ASSISTANCE PERIOD [Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22]
Vouchers are limited by statute to a total of between 36 months and 60 months of housing assistance. At the end of the statutory time period, assistance must be terminated. However, any period of time for which no subsidy (HAP) is being paid on behalf of the youth does not count toward the limitation. It is not permissible to reissue another FYI TPV to the same youth upon expiration of their FYI assistance.

Participants do not “age out” of the program. A participant may continue with the program until they have received the period of assistance for which they are eligible. Age limits are only applied for entry into the program.

Extension of Assistance
FYI voucher holders who first leased or lease a unit after December 27, 2020, may be eligible for an extension of assistance up to 24 months beyond the 36-month time limit (for a total of 60 months of assistance).

While FYI voucher holders cannot be required to participate in the Family Self-Sufficiency (FSS) program as a condition of receipt of assistance, an eligible youth who participates in the FSS program and is in compliance with the applicable terms and conditions of the program is entitled to receive assistance for up to an additional 24 months. A FYI voucher holders must accept an FSS slot if it is offered to them prior to the 36-month mark in order to receive an extension of assistance (unless the youth meets one of the statutory exceptions described below).

Statutory Exceptions
FYI voucher holders will be entitled to receive an extension of assistance for up to 24 months beyond the 36-month time limit without participating in the PHA’s FSS program if they certify that they meet one of the exceptions below:
• The FYI voucher holder is a parent or other household member responsible for the care of a dependent child under the age of six or for the care of an incapacitated person.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.
• The FYI voucher holder is a person who is incapable of complying with the requirement to participate in a FSS program as described above or engage in education, workforce development, or employment activities as described below, as applicable, due to a documented medical condition.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

An FYI voucher holder that meets one of the above exceptions must still be offered an opportunity to enroll in the PHA’s FSS program (if it is available to them) and receive any supportive services available to FYI voucher holders. An FYI voucher holder may choose to participate in an FSS program or engage in education, workforce development, or employment activities, even if they meet one of the above statutory exceptions.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Education, Workforce Development, or Employment Activities If a PHA that carries out an FSS program is unable to offer a FYI voucher holder an FSS slot during their first 36 months of receiving FYI assistance, the FYI voucher holder is considered to have been “unable to enroll” in the program and may have their voucher extended by meeting the education, workforce development, or employment criteria described below:
• The FYI voucher holder was engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.
• The FYI voucher holder was enrolled in an institution of higher education, as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) or an institution that meets the definition of a proprietary institution of higher education or a postsecondary vocational institution under sections 102(b)(1) and (c)(1) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1) and (c)(1)), respectively.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The FYI voucher holder was participating in a career pathway, as such term is defined in Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102). • The FYI voucher holder was employed.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

FSS Enrollment at 24 Months
If the FYI voucher holder has not been provided an opportunity to enroll in the FSS program during the first 24 months of FYI assistance, HUD encourages the PHA to remind the FYI voucher holder at the 24-month reexamination of the education, workforce development, and employment requirements described above so that they have enough time to meet these requirements prior to the expiration of the 36-month time period for FYI assistance.

HACN Policy
This section is not applicable to HACN as the PHA does not administer Family Unification Program vouchers.

FSS Enrollment Between 36 and 48 Months
If an FSS slot becomes available between the 36-month and 48-month mark:
• The PHA must offer the slot to an FYI voucher holder who had their voucher extended based on meeting the education, workforce development, or employment requirement listed above, or one of the statutory exceptions listed above (even if the FYI voucher holder previously declined an FSS slot because they met one of the statutory exceptions). • The PHA must work with the FYI voucher holder to determine whether enrollment in FSS is feasible and in their best interest given any education, workforce development, or employment activities that the FYI voucher holder is engaged in and any statutory exceptions that apply to the FYI voucher holder, as well as the remaining time on their voucher. • If the FYI voucher holder accepts the FSS slot, the PHA must work with them to establish Contract of Participation goals and an Individual Training and Services Plan (ITSP) that can be accomplished within the time period left on the voucher.

If the FYI voucher holder is offered an FSS slot prior to the 36-month mark, the FYI voucher holder:
• Will be required to enroll in the FSS program in order to receive an extension of assistance at the end of the 36-month time period (unless they meet one of the statutory exceptions described above).

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

• Will not be considered to have been “unable to enroll” in the FSS program, and as a result, will not be eligible to receive an extension of assistance based on meeting the education, workforce development, or employment requirements described above.

FSS Enrollment After 48 Months
The PHA may, but is not required, to offer an FYI voucher holder an FSS slot that becomes available between the 48-month mark and the 60-month mark, since the FYI voucher holder will have already received their second and final extension.

HACN Policy
If an FSS slot becomes available between the 48 and 60-month marks, the PHA will not offer the FSS slot to an FYI voucher holder.

Extensions of Assistance
At the 36-month and 48-month reexamination, the PHA must extend FYI assistance if the FYI voucher holder is participating in and in compliance with the FSS program as long as the FYI voucher holder is still eligible for the HCV program.

In any case, the FYI voucher holder cannot receive more than a total of 60 months of FYI assistance even if the FSS Contract of Participation time period extends beyond the voucher 60- month mark.

No FSS Program or Unable to Enroll in FSS
If a PHA does not carry out an FSS program or the FYI voucher holder has been unable to enroll in the program during the first 36 months of receiving FYI assistance, the FYI voucher holder is entitled to receive an extension of assistance for up to two successive 12-month periods beyond the 36-month time limit provided that the FYI voucher holder engaged in at least one of the education, workforce development, or employment activities described above for not less than nine months of the 12-month period preceding each extension. In order to meet the nine months out of the preceding 12 months requirement, the FYI voucher holder may have engaged in one of the education, workforce development, or employment activities described above or a combination of these activities.

Verification Prior to Annual Reexam
In order to provide an extension of assistance, the PHA must verify compliance with the above requirements at the end of the 36-month time period and the 48-month time periods. The PHA does not need to verify compliance with these requirements at the end of the 60-month time period since the maximum length of assistance is 60 months.

To verify compliance with the education, workforce development, or employment requirement or one of the statutory exceptions, the PHA must provide the FYI voucher holder written notification informing them that they may receive an extension of their FYI assistance and providing instructions on how the FYI voucher holder may demonstrate that they meet one of these conditions. This notification must be provided sufficiently in advance of the end of the 36- month or 48-month time periods, as applicable, to allow the FYI voucher holder to demonstrate that they meet the education, workforce development, or employment requirement, or one of the statutory exceptions, and for the PHA to conduct an annual reexamination prior to the expiration of the FYI assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

HACN Policy
The PHA will verify compliance with the education, workforce development, or employment requirement, or one of the statutory exceptions, at the end of the 36-month and 48-month time periods prior to the FYI voucher holder’s scheduled annual reexamination. The PHA will not verify compliance at the end of the 60-month time period.

The PHA will provide each FYI voucher holder on the PHA’s program with a written notification informing them that they may receive an extension of their FYI assistance if they meet conditions outlined in this chapter and providing them with instructions on how they may demonstrate compliance at least 60 days prior to their scheduled annual reexamination date. When necessary, the PHA will provide this notification in a format accessible to FYI voucher holders with disabilities and in a translated format for FYI voucher holders with limited English proficiency in accordance with Chapter 2.

The PHA will use the following verification methods to verify an FYI voucher holder’s eligibility for voucher extensions:

To verify compliance with the FSS requirement, the PHA will examine its records to confirm, or obtain confirmation from the PHA’s FSS program staff, that the FYI participant is in compliance with FSS program requirements and has not been terminated from the FSS program.

To meet the education, workforce development, or employment requirement, the PHA will verify that the FYI voucher holder was engaged in at least one education, workforce development, or employment activity for at least nine months of the 12-month period immediately preceding the end of the 36-month or 48-month time period, as applicable.

Due to the timing of when the PHA verifies compliance and conducts the annual reexamination, the FYI voucher holder may have not yet met the nine-month requirement but may be able to demonstrate that they will meet the nine-month requirement as of the end of the 36-month or 48- month time period. In such cases, the FYI voucher holder will still be considered to have met the requirements.

In order for the FYI voucher holder to meet one of the statutory exceptions described above, the FYI voucher holder must submit a certification to the PHA that they meet one of these exceptions. This certification is the only documentation that the FYI voucher holder must submit in order to demonstrate that they meet one of the statutory exceptions.

An FYI voucher holder who received an extension of voucher assistance at the end of the 36- month time period based on meeting one of the conditions described in this chapter does not have to meet the same conditions when they reach the end of the 48-month time period. The FYI voucher holder may demonstrate that they meet a different condition in order to receive an extension of their assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

If the PHA determines that the FYI voucher holder meets one of the statutory conditions, the PHA would then conduct an annual reexamination. If the annual reexamination determines that the FYI voucher holder is still eligible for the HCV program, the PHA must provide the FYI voucher holder the extension of voucher assistance.

Termination of Assistance for Failure to Meet Conditions Failure of the FYI voucher holder to meet one of the above conditions will only impact their ability to receive subsequent extensions of assistance. It will not serve as a basis for terminating the FYI assistance prior to the annual reexam.

If the FYI voucher holder does not meet any of the statutory conditions described in in this chapter, the youth is subject to the statutory time limit of 36 months or the time limit of any extension that the youth has already received, and the FYI voucher must be terminated once they reach this time limit. The calculation of the time limit begins from the date the first HAP contract is signed (for tenant-based vouchers) or from the date the FYI voucher holder entered into the initial lease agreement (for project-based vouchers). The number of months is calculated based on the number of months that HAP subsidy is being paid on behalf of the FYI voucher holder, not the number of months that they are in the FYI program. Prior to termination, the PHA must offer the FYI voucher holder the opportunity to request an informal hearing, in accordance with Chapter 16.
19-II.I. TERMINATION OF ASSISTANCE [FYI FAQs]
Termination of a FYI voucher is handled in the same way as with any HCV; therefore, termination of a FYI voucher must be consistent with HCV regulations at 24 CFR Part 982, Subpart L and PHA policies in Chapter 12. Given the statutory time limit that requires FYI vouchers to sunset, a PHA must terminate the youth’s assistance once the limit on assistance has expired.

A PHA cannot terminate a FYI youth’s assistance for noncompliance with PCWA case management, nor may the PHA terminate assistance for a FYI youth for not accepting services from the PCWA.

The PHA may not transfer the assistance of FYI voucher holders to regular HCV assistance upon the expiration of the limit on assistance. However, the PHA may issue a regular HCV to FYI voucher holders if they were selected from the waiting list in accordance with PHA policies. The PHA may also adopt a waiting list preference for FYI voucher holders who are being terminated for this reason.

HACN Policy
The PHA will not provide a selection preference on the PHA’s HCV waiting list for FYI voucher holders who are terminated due to the time limit on assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-II.J. PORTABILITY [FYI FAQs]
Portability for an FYI youth is handled in the same way as for a regular HCV family. A PHA may not restrict or deny portability for an FYI youth for reasons other than those specified in the HCV program regulations, as reflected in Chapter 10 of the administrative plan.

An FYI youth does not have to port to a jurisdiction that administers FYI vouchers.

If the receiving PHA absorbs the voucher, the PHA may absorb the youth into its regular HCV program if it has vouchers available to do so. If the receiving PHA absorbs the youth into its regular HCV program, that youth becomes a regular HCV participant with none of the limitations of an FYI voucher.

The initial and receiving PHA must work together to initiate termination of assistance upon expiration of the time limit on assistance.
19-II.K. PROJECT-BASING FYI VOUCHERS [FYI FAQs; FR Notice 1/24/22; Notice PIH 2024-03]
PHAs that have initiated the selection process to project-base FYI and/or FUP vouchers may be eligible to project-base FYI and FUP units formally identified for project basing in accordance with all applicable PBV regulations and PHA policies in Chapter 17. This includes FYI vouchers awarded under Notices PIH 2020-28, PIH 2021-26, and PIH 2023-04. Assistance awarded under Notice PIH 2019-20 is prohibited from being project-based.

HACN Policy
The PHA will not project-base FYI vouchers. All FYI vouchers will be used to provide tenant-based assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART III: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM 19-III.A. OVERVIEW
Since 2008, HCV program funding has provided rental assistance under a supportive housing program for homeless veterans. The Veterans Affairs Supportive Housing (VASH) program combines HCV rental assistance with case management and clinical services provided by the Department of Veterans Affairs (VA) at VA medical centers (VAMCs) and Community-Based Outpatient Clinics (CBOCs), or through a designated service provider (DSP) as approved by the VA Secretary. Eligible families are homeless veterans and their families that agree to participate in VA case management and are referred to the VAMC’s partner PHA for HCV assistance. The VAMC or DSP’s responsibilities include:
• Screening homeless veterans to determine whether they meet VASH program participation criteria;
• Referring homeless veterans to the PHA;
- The term homeless veteran means a veteran who is homeless (as that term is defined in subsection (a) or (b) of Section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302)). See 38 U.S.C. 2002.
• Providing appropriate treatment and supportive services to potential VASH participants, if needed, prior to PHA issuance of a voucher;
• Providing housing search assistance to VASH participants; • Identifying the social service and medical needs of VASH participants, and providing or ensuring the provision of regular ongoing case management, outpatient health services, hospitalization, and other supportive services as needed throughout the veterans’ participation period; and
• Maintaining records and providing information for evaluation purposes, as required by HUD and the VA.

VASH vouchers are awarded noncompetitively based on geographic need and PHA administrative performance. Eligible PHAs must be located within the jurisdiction of a VAMC and in an area of high need based on data compiled by HUD and the VA. When Congress funds a new allocation of VASH vouchers, HUD invites eligible PHAs to apply for a specified number of vouchers.

Generally, the HUD-VASH program is administered in accordance with regular HCV program requirements. However, HUD is authorized to waive or specify alternative requirements to allow PHAs to effectively deliver and administer VASH assistance. Alternative requirements are established in the HUD-VASH Operating Requirements, which were originally published in the Federal Register on May 6, 2008, and updated September 27, 2021. Unless expressly waived by HUD, all regulatory requirements and HUD directives regarding the HCV program are applicable to VASH vouchers, including the use of all HUD-required contracts and other forms, and all civil rights and fair housing requirements. In addition, the PHA may request additional statutory or regulatory waivers that it determines are necessary for the effective delivery and administration of the program.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The VASH program is administered in accordance with applicable Fair Housing requirements since civil rights requirements cannot be waived under the program. These include applicable authorities under 24 CFR 5.105(a) and 24 CFR 982.53 including, but not limited to, the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination Act and all PHA policies as outlined in Chapter 2 of this document.

When HUD-VASH recipients include veterans with disabilities or family members with disabilities, reasonable accommodation requirements in Part II of Chapter 2 of this policy apply. 19-III.B. REFERRALS [FR Notice 9/27/21 and HUD-VASH Qs and As] VAMC case managers will screen all families in accordance with VA screening criteria and refer eligible families to the PHA for determination of program eligibility and voucher issuance. The PHA has no role in determining or verifying the veteran’s eligibility under VA screening criteria, including determining the veteran’s homelessness status. The PHA must accept referrals from the partnering VAMC and must maintain written documentation of referrals in VASH tenant files. Upon turnover, VASH vouchers must be issued to eligible veteran families as identified by the VAMC.

HACN Policy
In order to expedite the screening process, the PHA will provide all forms and a list of documents required for the VASH application to the VAMC. Case managers will work with veterans to fill out the forms and compile all documents prior to meeting with the PHA and submitting an application. When feasible, the VAMC case manager should email or fax copies of all documents to the PHA prior to the meeting in order to allow the PHA time to review them and start a file for the veteran.

After the VAMC has given the PHA a complete referral, the PHA will perform an eligibility screening within five business days of receipt of a VAMC referral.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.C. HCV PROGRAM ELIGIBILITY [FR Notice 9/27/21]
Eligible participants are homeless veterans and their families who agree to participate in case management from the VAMC.
• A VASH Veteran or veteran family refers to either a single veteran or a veteran with a household composed of two or more related persons. It also includes one or more eligible persons living with the veteran who are determined to be important to the veteran’s care or well-being.
• A veteran for the purpose of VASH is a person whose length of service meets statutory requirements, and who served in the active military, naval, or air service, was discharged or released under conditions other than dishonorable, and is eligible for VA health care.

Under VASH, PHAs do not have authority to determine family eligibility in accordance with HCV program rules and PHA policies. The only reasons for denial of assistance by the PHA are failure to meet the income eligibility requirements and/or that a family member is subject to a lifetime registration requirement under a state sex offender registration program. Under portability, the receiving PHA must also comply with these VASH screening requirements.

Social Security Numbers
When verifying Social Security numbers (SSNs) for homeless veterans and their family members, an original document issued by a federal or state government agency, which contains the name and SSN of the individual along with other identifying information of the individual, is acceptable in accordance with Section 7-II.B. of this policy.

In the case of the homeless veteran, the PHA must accept the Certificate of Release or Discharge from Active Duty (DD-214) or the VA-verified Application for Health Benefits (10-10EZ) as verification of SSN and cannot require the veteran to provide a Social Security card. A VAissued identification card may also be used to verify the SSN of a homeless veteran.

Proof of Age
The DD-214 or 10-10EZ must be accepted as proof of age in lieu of birth certificates or other PHA-required documentation as outlined in Section 7-II.C. of this policy. A VA-issued identification card may also be used to verify the age of a homeless veteran.

Photo Identification
A VA-issued identification card must be accepted in lieu of another type of government-issued photo identification. These cards also serve as verification of SSNs and date of birth.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Income Eligibility
The PHA must determine income eligibility for VASH families in accordance with 24 CFR 982.201 and policies in Section 3-II.A. If the family is over-income based on the most recently published income limits for the family size, the family will be ineligible for HCV assistance.

While income-targeting does not apply to VASH vouchers, the PHA may include the admission of extremely low-income VASH families in its income targeting numbers for the fiscal year in which these families are admitted.

HACN Policy
While income-targeting requirements will not be considered by the PHA when families are referred by the partnering VAMC, the PHA will include any extremely low-income VASH families that are admitted in its income targeting numbers for the fiscal year in which these families are admitted.

Screening
The PHA may not screen any potentially eligible family members or deny assistance for any grounds permitted under 24 CFR 982.552 and 982.553 with one exception: the PHAs is still required to prohibit admission if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. Accordingly, with the exception of denial for registration as a lifetime sex offender under state law and PHA policies on how sex offender screenings will be conducted, PHA policy in Sections 3-III.B. through 3-III.E. do not apply to VASH. The prohibition against screening families for anything other than lifetime sex offender status applies to all family members, not just the veteran.

If a family member is subject to lifetime registration under a state sex offender registration program, the remaining family members may be served if the family agrees to remove the sex offender from its family composition. This is true unless the family member subject to lifetime registration under a state sex offender registration program is the homeless veteran, in which case the family would be denied admission to the program [New HCV GB, HUD-VASH, p. 6].

Denial of Assistance [Notice PIH 2008-37]
Once a veteran is referred by the VAMC, the PHA must either issue a voucher or deny assistance. If the PHA denies assistance, it must provide the family with prompt notice of the decision and a brief statement of the reason for denial in accordance with Section 3-III.F. Like in the standard HCV program, the family must be provided with the opportunity for an informal review in accordance with policies in Section 3-III.F. In addition, a copy of the denial notice must be sent to the VAMC case manager.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.D. CHANGES IN FAMILY COMPOSITION
Adding Family Members [FR Notice 9/27/21]
When adding a family member after the family has been admitted to the program, PHA policies in Section 3-II.B. apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve additional family members and will apply its regular screening criteria in doing so.

Remaining Family Members [HUD-VASH Qs and As]
If the homeless veteran dies while the family is being assisted, the voucher would remain with the remaining members of the tenant family. The PHA may use one of its own regular vouchers, if available, to continue assisting this family and free up a VASH voucher for another VASHeligible family. If a regular voucher is not available, the family would continue utilizing the VASH voucher. Once the VASH voucher turns over, however, it must go to a homeless veteran family.

Family Break Up [HUD-VASH Qs and As]
In the case of divorce or separation, since the set-aside of VASH vouchers is for veterans, the voucher must remain with the veteran. This overrides the PHA’s policies in Section 3-I.C. on how to determine who remains in the program if a family breaks up.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.E. LEASING [FR Notice 9/27/21]
Waiting List
The PHA does not have the authority to maintain a waiting list or apply local preferences for HUD–VASH vouchers. Policies in Chapter 4 relating to applicant selection from the waiting list, local preferences, special admissions, cross-listing, and opening and closing the waiting list do not apply to VASH vouchers.

Exception Payment Standards
To assist VASH participants in finding affordable housing, especially in competitive markets, HUD allows PHAs to establish a HUD-VASH exception payment standard. PHAs may go up to but no higher than 120 percent of the published area-wide fair market rent (FMR) or small area fair market rent (SAFMR) specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD through the regular waiver process outlined in Notice PIH 2018-16.

Voucher Issuance
Unlike the standard HCV program which requires an initial voucher term of at least 60 days, VASH vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply.

HACN Policy
All VASH vouchers will have an initial term of 120 calendar days.

The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless the PHA grants an extension.

The PHA must track issuance of HCVs for families referred by the VAMC or DSP in PIC as required in Notice PIH 2011-53.

Initial Lease Term
Unlike in the standard the HCV program, VASH voucher holders may enter into an initial lease that is for less than 12 months. Accordingly, PHA policy in Section 9-I.E., Term of Assisted Tenancy, does not apply.

Ineligible Housing [FR Notice 6/18/14]
Unlike in the standard HCV program, VASH families are permitted to live on the grounds of a VA facility in units developed to house homeless veterans. This applies to both tenant-based assistance and PBV. Therefore, 24 CFR 982.352(a)(5) and 983.53(a)(2), which prohibit units on the physical grounds of a medical, mental, or similar public or private institution, do not apply to VASH for this purpose only. Accordingly, PHA policy in 9-I.D., Ineligible Units, does not apply for this purpose only.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Pre-Inspections
To expedite the leasing process, PHAs may pre-inspect available units that veterans may be interested in leasing in order to maintain a pool of eligible units. If a VASH family selects a unit that passed an NSPIRE inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval (Form HUD-52517), the unit may be approved if it meets all other conditions under 24 CFR 982.305. However, the veteran must be free to select their unit and cannot be steered to these units.

HACN Policy
To expedite the leasing process, the PHA may pre-inspect available units that veterans may be interested in leasing to maintain a pool of eligible units. If a VASH family selects a unit that passed a pre-inspection (without intervening occupancy) within 45 days of the date of the RTA, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The veteran will be free to select their unit.

When a pre-inspected unit is not selected, the PHA will make every effort to fast-track the inspection process, including adjusting the normal inspection schedule for both initial and any required reinspections.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.F. PORTABILITY [FR Notice 9/27/21 and Notice PIH 2011-53] General Requirements
Portability policies under VASH depend on whether the family wants to move within or outside of the initial VA facility’s catchment area (the area in which the VAMC or DSP operates). In all cases, the initial VA facility must be consulted prior to the move and provide written confirmation that case management will continue to be provided in the family’s new location.

VASH participant families may only reside in jurisdictions that are accessible to case management services, as determined by case managers at the partnering VAMC or DSP.

Under VASH, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied. As a result, PHA policies in Section 10-II.B. about nonresident applicants do not apply.

If the family no longer requires case management, there are no portability restrictions. Normal portability rules apply.

Portability within the Initial VAMC or DSP’s Catchment Area A VASH family can move within the VAMC’s catchment area as long as case management can still be provided, as determined by the VA. If the initial PHA’s partnering VAMC will still provide the case management services, the receiving PHA must process the move in accordance with portability procedures:
• If the receiving PHA has been awarded VASH vouchers, it can choose to either bill the initial PHA or absorb the family if it has a VASH voucher available to do so. - If the PHA absorbs the family, the VAMC or DSP providing the initial case management must agree to the absorption and the transfer of case management. • If the receiving PHA does not administer a VASH program, it must always bill the initial PHA.

Portability Outside of the Initial VAMC or DSP’s Catchment Area If a family wants to move to another jurisdiction where it will not be possible for the initial PHA’s partnering VAMC or DSP to provide case management services, the initial VAMC or DSP must first determine that the VASH family could be served by another VAMC or DSP that is participating in the VASH program, and the receiving PHA has an available VASH voucher.

In these cases, the family must be absorbed by the receiving PHA either as a new admission or as a portability move-in, as applicable. Upon absorption, the initial PHA’s VASH voucher will be available to lease to a new VASH-eligible family, and the absorbed family will count toward the number of VASH slots awarded to the receiving PHA.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Portability Outside of the Initial VAMC or DSP’s Catchment Area under VAWA Veterans who request to port beyond the catchment area of the VAMC or DSP where they are receiving case management to protect the health or safety of a person who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and who reasonably believes they are threatened with imminent harm from further violence by remaining in the unit may port prior to receiving approval from the receiving VAMC or DSP.

The initial PHA must follow its emergency transfer plan (see Exhibit 16-3). PHAs may require verbal self-certification or a written request from a participant seeking a move beyond the catchment area of the VAMC or DSP.

The verbal self-certification or written request must include either a statement expressing why the participant reasonably believes that there is a threat of imminent harm from further violence if they were to remain in the same unit or a statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-day period preceding the participants request for the move.

The participant must still port to a PHA that has a VASH program. If the receiving PHA does not have a VASH voucher available to lease, they may bill the initial PHA until a VASH voucher is available, at which point the porting veteran must be absorbed into the receiving PHA’s program.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.G. TERMINATION OF ASSISTANCE [FR Notice 9/27/21] With the exception of terminations for failure to receive case management, HUD has not established any alternative requirements for termination of assistance for VASH participants.

However, prior to terminating VASH participants, HUD strongly encourages PHAs to exercise their discretion under 24 CFR 982.552(c)(2) as outlined in Section 12-II.D. of this policy and consider all relevant circumstances of the specific case. This includes granting reasonable accommodations for persons with disabilities, as well as considering the role of the case manager and the impact that ongoing case management services can have on mitigating the conditions that led to the potential termination.

VASH participant families may not be terminated after admission for a circumstance or activities that occurred prior to admission and were known to the PHA but could not be considered at the time of admission due to VASH program requirements. The PHA may terminate the family’s assistance only for program violations that occur after the family’s admission to the program.

Cessation of Case Management
As a condition of receiving HCV rental assistance, a HUD-VASH-eligible family must receive case management services from the VAMC or DSP. A VASH participant family’s assistance must be terminated for failure to participate, without good cause, in case management as verified by the VAMC or DSP.

However, a VAMC or DSP determination that the participant family no longer requires case management is not grounds for termination of voucher or PBV assistance. In such a case, at its option, the PHA may offer the family continued assistance through one of its regular vouchers. If the PHA has no voucher to offer, the family will retain its VASH voucher or PBV unit until such time as the PHA has an available voucher for the family.

VAWA [FR Notice 9/27/21]
When a veteran’s family member is receiving protection under VAWA because the veteran is the perpetrator of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator’s VASH assistance, the victim must be given a regular HCV if one is available, and the perpetrator’s VASH voucher must be used to serve another eligible veteran family. If a regular HCV is not available, the perpetrator must be terminated from assistance and the victim will continue to use the VASH voucher.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-III.H. PROJECT-BASING VASH VOUCHERS
General Requirements [Notice PIH 2017-21 and FR Notice 9/27/21] PHAs are authorized to project-base their tenant-based VASH vouchers without additional HUD review or approval in accordance with Notice PIH 2017-21 and all PBV program requirements provided that the VAMC will continue to make supportive services available. In addition, since 2010, HUD has awarded VASH vouchers specifically for project-based assistance in the form of PBV HUD-VASH set-aside vouchers. While these vouchers are excluded from the PBV program cap as long as they remain under PBV HAP contract at the designated project, all other VASH vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. Note that VASH supportive services only need to be provided to VASH families receiving PBV assistance in the project, not all families receiving PBV assistance in the project. If a VASH family does not require or no longer requires case management, the unit continues to count as an excepted PBV unit as long as the family resides in the unit.

If the PHA project-bases VASH vouchers, the PHA must consult with the partnering VAMC or DSP to ensure approval of the project or projects. PHAs may project-base VASH vouchers in projects alongside other PBV units and may execute a single HAP contract covering both the VASH PBVs and the other PBVs. The PHA must refer only VASH families to PBV units exclusively made available to VASH families and to PBV units funded through a HUD set-aside award.

If a VASH family is referred to the PHA and there is an available PBV unit that is not exclusively made available to VASH families, the PHA may offer to refer the family to the owner if allowable under the selection policy for that project, and the owner and PHA may amend the HAP contract to designate the PBV unit as a VASH PBV unit.

The PHA and owner may agree to amend a PBV HAP contract to redesignate a regular PBV unit as a unit specifically designated for VASH families so long as the PHA first consults with the VAMC or DSP. Additionally, the PHA and owner may agree to amend a PBV HAP contract to redesignate a unit specifically designated for VASH families as a regular PBV unit, so long as the unit is not funded through a VASH PBV set-aside award and is eligible for regular PBV (i.e., the unit is not on the grounds of a medical facility and the unit is eligible under the PHA’s program and project caps).

Policies for VASH PBV units will generally follow PHA policies for the standard PBV program as listed in Chapter 17, with the exception of the policies listed below.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Failure to Participate in Case Management [FR Notice 9/27/21] Upon notification by the VAMC or DSP of the family’s failure to participate, without good cause, in case management, the PHA must provide the family a reasonable time period to vacate the unit. The PHA must terminate assistance to the family at the earlier of either the time the family vacates or the expiration of the reasonable time period given to vacate.

HACN Policy
Upon notification by the VAMC or DSP that a VASH PBV family has failed to participate in case management without good cause, the PHA will provide written notice of termination of assistance to the family and the owner within 10 business days. The family will be given 60 days from the date of the notice to move out of the unit.

The PHA may make exceptions to this 60-day period if needed for reasons beyond the family’s control such as death, serious illness, or other medical emergency of a family member.

If the family fails to vacate the unit within the established time, the owner may evict the family.

If the owner does not evict the family, the PHA must remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. The PHA may add the removed unit to the HAP contract after the ineligible family vacates the property.

Moves [HUD-VASH Qs and As, FR Notice 9/27/21]
When a VASH PBV family is eligible to move from its PBV unit in accordance with Section 17- VIII.C. of this policy, but there is no other comparable tenant-based rental assistance, the following procedures must be implemented:
• If a VASH tenant-based voucher is not available at the time the family wants (and is eligible) to move, the PHA may require a family who still requires case management to wait for a VASH tenant-based voucher for a period not to exceed 180 days; • If a VASH tenant-based voucher is still not available after that period, the family must be allowed to move with its VASH voucher. Alternatively, the PHA may allow the family to move with its VASH voucher without having to meet this 180-day period. In either case, the PHA is required to replace the assistance in the PBV unit with one of its regular vouchers, unless the PHA and owner agree to temporarily remove the unit from the HAP contract; and • If a VASH veteran is determined to no longer require case management, the PHA must allow the family to move with the first available tenant-based voucher if no VASH voucher is immediately available and cannot require the family to wait for a VASH voucher to become available.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART IV: MAINSTREAM VOUCHER PROGRAM
19-IV.A. PROGRAM OVERVIEW [Notice PIH 2020-01]
Mainstream vouchers assist non-elderly persons with disabilities and their families in the form of either project-based or tenant-based voucher assistance.

Aside from separate funding appropriations and serving a specific population, Mainstream vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a Mainstream voucher differently from other applicants and participants. For example, the PHA cannot apply different payment standards, establish conditions for allowing portability, or apply different screening criteria to Mainstream families.

The Mainstream voucher program, (previously referred to as the Mainstream 5-Year program or the Section 811 voucher program) was originally authorized under the National Affordable Housing Act of 1990. Mainstream vouchers operated separately from the regular HCV program until the passage of the Frank Melville Supportive Housing Investment Act of 2010. Funding for Mainstream voucher renewals and administrative fees was first made available in 2012. In 2017 and 2019, incremental vouchers were made available for the first time since the Melville Act (in addition to renewals and administrative fees), and PHAs were invited to apply for a competitive award of Mainstream vouchers under the FY17 and FY19 NOFAs. In 2020, Notice PIH 2020-22 provided an opportunity for any PHA administering an HCV program to apply for Mainstream vouchers noncompetitively, while Notice PIH 2020-09 authorized an increase in Mainstream voucher units and budget authority for those PHAs already awarded Mainstream vouchers under the FY17 and FY19 NOFAs.

Funds for Mainstream vouchers may be recaptured and reallocated if the PHA does not comply with all program requirements or fails to maintain a utilization rate of 80 percent for the PHA’s Mainstream vouchers.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-IV.B. ELIGIBLE POPULATION [Notice PIH 2020-01 and Notice PIH 2020-22] All Mainstream vouchers must be used to serve non-elderly persons with disabilities and their families, defined as any family that includes a person with disabilities who is at least 18 years old and not yet 62 years old as of the effective date of the initial HAP contract. The eligible disabled household member does not need to be the head of household.

The definition of person with disabilities for purposes of Mainstream vouchers is the statutory definition under section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy.

Existing families receiving Mainstream vouchers, where the eligible family member is now age 62 or older, will not “age out” of the program as long as the family was eligible on the day it was first assisted under a HAP contract.

The PHA may not implement eligibility screening criteria for Mainstream vouchers that is different from that of the regular HCV program.
19-IV.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2020-01] PHAs are encouraged but not required to establish formal and informal partnerships with a variety of organizations that assist persons with disabilities to help ensure eligible participants find and maintain stable housing.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-IV.D. WAITING LIST ADMINISTRATION
General Waiting List Requirements [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20]
PHAs must not have a separate waiting list for Mainstream voucher assistance since the PHA is required by the regulations to maintain one waiting list for tenant-based assistance [24 CFR 982.204(f)]. All PHA policies on opening, closing, and updating the waiting list, as well as waiting list preferences in Chapter 4, apply to the Mainstream program.

When the PHA is awarded Mainstream vouchers, these vouchers must be used for new admissions to the PHA’s program from the waiting list. The PHA must lease these vouchers by pulling the first Mainstream-eligible family from its tenant-based waiting list. PHAs are not permitted to reassign existing participants to the program in order to make regular tenant-based vouchers available. Further, the PHA may not skip over Mainstream-eligible families on the waiting list because the PHA is serving the required number of Mainstream families.

Upon turnover, vouchers must be provided to Mainstream-eligible families. If a Mainstream turnover voucher becomes available, the PHA must determine if the families at the top of the waiting list qualify under program requirements.

Admission Preferences [Notice PIH 2020-01; FY17 Mainstream NOFA; FY19 Mainstream NOFA]
If the PHA claimed points for a preference in a NOFA application for Mainstream vouchers, the PHA must adopt a preference for at least one of the targeted groups identified in the NOFA.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-IV.E. PORTABILITY [Notice PIH 2020-01 and Mainstream Voucher Basics Webinar, 10/15/20]
Mainstream voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to Mainstream families.

The following special considerations for Mainstream vouchers apply under portability:
• If the receiving PHA has a Mainstream voucher available, the participant may remain a Mainstream participant.
- If the receiving PHA chooses to bill the initial PHA, then the voucher will remain a Mainstream voucher.
- If the receiving PHA chooses to absorb the voucher, the voucher will be considered a regular voucher, or a Mainstream voucher if the receiving PHA has a Mainstream voucher available, and the Mainstream voucher at the initial PHA will be freed up to lease to another Mainstream-eligible family.
• If the receiving PHA does not have a Mainstream voucher available, the participant may receive a regular voucher.
19-IV.F. PROJECT-BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A]
The PHA may project-base Mainstream vouchers in accordance with all applicable PBV regulations and PHA policies in Chapter 17. PHAs are responsible for ensuring that, in addition to complying with project-based voucher program requirements, the project complies with all applicable federal nondiscrimination and civil rights statutes and requirements. This includes, but is not limited to, Section 504 of the Rehabilitation Act (Section 504), Titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR Part 8; 28 CFR Parts 35 and 36; and 24 CFR Part 100. Mainstream vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART IV: NON-ELDERLY DISABLED (NED) VOUCHERS
19-V.A. PROGRAM OVERVIEW [Notice PIH 2013-19]
NED vouchers help non-elderly disabled families lease suitable, accessible, and affordable housing in the private market. Aside from separate funding appropriations and serving a specific population, NED vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a NED voucher differently from other applicants and participants.

Some NED vouchers are awarded to PHAs through competitive NOFAs. The NOFA for FY2009 Rental Assistance for NED made incremental funding available for two categories of NED families:
• Category 1 vouchers enable non-elderly persons or families with disabilities to access affordable housing on the private market.
• Category 2 vouchers enable non-elderly persons with disabilities currently residing in nursing homes or other healthcare institutions to transition into the community. PHAs with NED Category 2 vouchers were required to partner with a state Medicaid or health agency or the state Money Follows the Person (MFP) Demonstration agency.

Since 1997, HCVs for NED families have been also awarded under various special purpose HCV programs: Rental Assistance for Non-Elderly Persons with Disabilities in Support of Designated Housing Plans (Designated Housing), Rental Assistance for Non-Elderly Persons with Disabilities Related to Certain Types of Section 8 Project-Based Developments (Certain Developments), One-Year Mainstream Housing Opportunities for Persons with Disabilities, and the Project Access Pilot Program (formerly Access Housing 2000). • Designated Housing vouchers enable non-elderly disabled families, who would have been eligible for a public housing unit if occupancy of the unit or entire project had not been restricted to elderly families only through an approved Designated Housing Plan, to receive rental assistance. These vouchers may also assist non-elderly disabled families living in a designated unit/project/building to move from that project if they so choose. The family does not have to be listed on the PHA’s voucher waiting list. Instead, they may be admitted to the program as a special admission. Once the impacted families have been served, the PHA may begin issuing these vouchers to non-elderly disabled families from their HCV waiting list.

Upon turnover, these vouchers must be issued to non-elderly disabled families from the PHA’s HCV waiting list.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

• Certain Developments vouchers enable non-elderly families having a person with disabilities, who do not currently receive housing assistance in certain developments where owners establish preferences for, or restrict occupancy to, elderly families, to obtain affordable housing. These non-elderly families with a disabled person do not need to be listed on the PHA’s HCV waiting list in order to be offered and receive housing choice voucher rental assistance. It is sufficient that these families' names are on the waiting list for a covered development at the time their names are provided to the PHA by the owner. Once the impacted families have been served, the PHA may begin issuing these vouchers to nonelderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non-elderly disabled families from the PHA’s HCV waiting list. • One-Year Mainstream Housing Opportunities for Persons with Disabilities (One-Year Mainstream) vouchers enable non-elderly disabled families on the PHA’s waiting list to receive a voucher. After initial leasing, turnover vouchers must be issued to non-elderly disabled families from the PHA’s voucher waiting list.
19-V.B. ELIGIBLE POPULATION
General Requirements [Notice PIH 2013-19]
Only eligible families whose head of household, spouse, or cohead is non-elderly (under age 62) and disabled may receive a NED voucher. Families with only a minor child with a disability are not eligible.

In cases where the qualifying household member now qualifies as elderly due to the passage of time since the family received the NED voucher, existing NED participant families do not “age out,” as the family was eligible on the day it was first assisted under a housing assistance payments (HAP) contract.

The definition of person with disabilities for purposes of NED vouchers is the statutory definition under Section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy.

The PHA may not implement eligibility screening criteria for NED vouchers that is different from that of the regular HCV program.

NED Category 2 [Notice PIH 2013-19 and NED Category 2 FAQs] In addition to being eligible for the PHA’s regular HCV program and a non-elderly person with a disability, in order to receive a Category 2 voucher, the family’s head, spouse, cohead, or sole member must be transitioning from a nursing home or other healthcare institution and provided services needed to live independently in the community.

Nursing homes or other healthcare institutions may include intermediate care facilities and specialized institutions that care for those with intellectual disabilities, developmentally disabled, or mentally ill, but do not include board and care facilities (e.g., adult homes, adult day care, adult congregate living).

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The PHA cannot limit who can apply to just those persons referred or approved by a Money Follows the Person (MFP) Demonstration agency or state health agency. Other individuals could be placed on the waiting list if they can show, with confirmation by an independent agency or organization that routinely provides such services (this can be the MFP or partnering agency, but need not be), that the transitioning individual will be provided with all necessary services, including care or case management.

For each Category 2 family, there must be documentation (e.g., a copy of a referral letter from the partnering or referring agency) in the tenant file identifying the institution where the family lived at the time of voucher issuance.
19-V.C. WAITING LIST
General Requirements [Notice PIH 2013-19]
Families must be selected for NED vouchers from the PHA’s waiting list in accordance with all applicable regulations and PHA policies in Chapter 4.

Regardless of the number of NED families the PHA is required to serve, the next family on the waiting list must be served. Further, the PHA may not skip over NED-eligible families on the waiting list because the PHA is serving the required number of NED families.

NED Category 2 Referrals [NED Category 2 FAQs]
For NED Category 2 families, the partnering agency may make referrals of eligible families to the PHA for placement on the waiting list. The PHA will then select these families from the waiting list for voucher issuance. Because language in the NOFA established that vouchers awarded under the NOFA must only serve non-elderly disabled families transitioning from institutions, the PHA does not need to establish a preference in order to serve these families ahead of other families on the PHA’s waiting list.

PHAs must accept applications from people living outside their jurisdictions or from people being referred from other Medicaid or MFP service agencies in their state.

If the PHA’s waiting list is closed, the PHA must reopen its waiting list to accept referrals from its partnering agency. When opening the waiting list, PHAs must advertise in accordance with 24 CFR 982.206 and PHA policies in Section 4-II.C. In addition, the PHA must ensure that individuals living in eligible institutions are aware when the PHA opens its waiting list by reaching out to social service agencies, nursing homes, intermediate care facilities and specialized institutions in the local service area.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Reissuance of Turnover Vouchers [Notice PIH 2013-19]
All NED turnover vouchers must be reissued to the next NED family on the PHA’s waiting list with the following exception: A Category 2 voucher must be issued to another Category 2 family upon turnover if a Category 2 family is on the PHA’s waiting list. If there are no Category 2 families on the PHA’s waiting list, the PHA must contact its partnering agency as well as conduct outreach through appropriate social service agencies and qualifying institutions to identify potentially eligible individuals. Only after all means of outreach have been taken to reach Category 2 families can the PHA reissue the voucher to another Category 2 NED family on the PHA’s waiting list. Any subsequent turnover of that voucher must again be used for a Category 2 family on the PHA’s waiting list, and the PHA is under the same obligation to conduct outreach to Category 2 families if no such families are on the PHA’s waiting list.

For PHAs that received both Category 1 and Category 2 vouchers, if at any time the PHA is serving fewer Category 2 families than the number of Category 2 HCVs awarded under the NOFA, when a Category 2 family applies to the waiting list and is found eligible, the PHA must issue the next NED voucher to that family. HUD monitors the initial leasing and reissuance of Category 2 HCVs. These vouchers may be recaptured and reassigned if not leased properly and in a timely manner.

All NED vouchers should be affirmatively marketed to a diverse population of NED-eligible families to attract protected classes least likely to apply. If at any time following the turnover of a NED HCV a PHA believes it is not practicable to assist NED families, the PHA must contact HUD.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-V.D. LEASE UP [Notice PIH 2013-19]
Briefings
In addition to providing families with a disabled person a list of accessible units known to the PHA, HUD encourages, but does not require, PHAs to provide additional resources to NED families as part of the briefing.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Voucher Term
While the PHA is not required to establish different policies for the initial term of the voucher for NED vouchers, HUD has encouraged PHAs with NED vouchers to be generous in establishing reasonable initial search terms and subsequent extensions for families with a disabled person.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Special Housing Types [Notice PIH 2013-19 and NED Category 2 FAQs] In general, a PHA is not required to permit families to use any of the special housing types and may limit the number of families using such housing. However, the PHA must permit the use of a special housing type if doing so provides a reasonable accommodation so that the program is readily accessible to and usable by a person with disabilities.

Such special housing types include single room occupancy housing, congregate housing, group homes, shared housing, cooperative housing, and manufactured homes when the family owns the home and leases the manufactured home space.

Persons with disabilities transitioning out of institutional settings may choose housing in the community that is in a group or shared environment or where some additional assistance for daily living is provided for them on site. Under HUD regulations, group homes and shared housing are considered special housing types and are not excluded as an eligible housing type in the HCV program. Assisted living facilities are also considered eligible housing under the normal HCV program rules, as long as the costs for meals and other supportive services are not included in the housing assistance payments (HAP) made by the PHA to the owner, and as long as the person does not need continual medical or nursing care. 19-V.E. PORTABILITY [NED Category 2 FAQs]
NED voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to NED families. However, the PHA may, but is not required to, allow applicant NED families to move under portability, even if the family did not have legal residency in the initial PHA’s jurisdiction when they applied.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

PART VI: STABILITY VOUCHER PROGRAM
19-VI.A. PROGRAM OVERVIEW [Notice PIH 2022-24]
The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act) provided new incremental funding for voucher assistance through Stability Vouchers (SVs) for households who are:
• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a));
• At-risk of homelessness;
• Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and
• Veterans and families that include a veteran family member that meet one of the above criteria.

HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs.

Unless expressly waived below, all statutory and regulatory requirements and HUD directives regarding the HCV program are applicable to SVs, including the use of all HUD required contracts and other forms. A PHA may request additional good cause regulatory waivers as established in Notice PIH 2018-16 in connection with the use of the SVs, which HUD will consider and assess upon the request of the PHA.
19-VI.B. PARTNERING ORGANIZATION [Notice PIH 2022-24]
SV funding is only awarded to PHAs that partner with eligible Continuums of Care (CoCs) or other entities that serve the targeted population, such as Victim Service Providers (VSPs) and Veteran Service Organizations (VSOs) serving the targeted population in the PHA’s jurisdiction to implement coordinated approaches to reduce the prevalence of homelessness, improve service engagement, and promote housing stability while ensuring geographical need of assistance.

The PHA must enter into a Memorandum of Understanding (MOU) with the CoC to establish a partnership with the CoC to pair SVs with CoC-funded supportive services, and to collaborate with the CoC and other stakeholders to develop a prioritization plan for these vouchers.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-VI.C. REFERRALS [Notice PIH 2022-24]
In general, families are issued SVs as the result of either:
• The direct referral process from the CoC or other partnering organizations; or • A situation where the PHA makes an SV available in order to facilitate an emergency transfer for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking.

CoC Referrals
The primary responsibility of the CoC under the MOU is to make direct referrals of qualifying individuals and families to the PHA and to identify any CoC-funded available supportive services that may be paired with SVs.

The CoC or other partnering agency must certify that the SV applicants they refer to the PHA meet the definition of a qualifying individual or family for SV assistance.

The referring agency must provide documentation to the PHA of the referring agency’s verification that the family meets one of the four eligible categories for SV assistance. The PHA must retain this documentation as part of the family’s file.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Referrals from Outside the CoC
The PHA must also take direct referrals from outside the CoC process if:
• The CoC does not have a sufficient number of eligible families to refer to the PHA; or • The CoC does not identify families that may be eligible for SV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking.

If a direct referral is taken from outside of the CoC, the PHA must enter into a partnership to receive direct referrals from another entity, assuming there are such additional organizations that can certify that an individual or family is eligible for an SV.

The PHA must enter into an MOU with a partnering referral agency or may add the partnering referral agency to the MOU between the PHA and CoC.
19-VI.D. WAITING LIST [Notice PIH 2022-24]
HCV Waiting List
The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the SV program. Direct referrals are not added to the PHA’s HCV waiting list.

The PHA must inform families on the HCV waiting list of the availability of SVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2022-24.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

SV Waiting List
The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the SV program. Instead, when the number of applicants referred by the CoC or partnering agency exceeds the SVs available, the PHA must maintain a separate waiting list for SV referrals. Upon turnover, SV vouchers must continue to remain available for eligible families.

Further, the SV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the SV waiting list.

HCV Waiting List Preferences
If local preferences are established by the PHA for HCV in Chapter 4, they do not apply to SVs.

However, if the PHA has a homelessness preference or a preference for survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking for the regular HCV program, the PHA must refer any applicant on the waiting list that indicated they qualified for this preference to the CoC, or the applicable partnering referral agency.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
SV Waiting List Preferences
With the exception of a residency preference, which may not be applied to the PHA’s SV waiting list, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for SVs, or may simply choose to not establish any local preferences for the SV waiting list. The preference system may not prohibit SV admissions from any of the four qualifying categories of eligibility.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-VI.E. FAMILY ELIGIBILITY [Notice PIH 2022-24]
Referring Agency Determination of Eligibility
The CoC or referring agency determines whether the individual or family meets any one of the eligibility criteria described in Notice PIH 2022-24 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the SV program and outlined below.

In order to be eligible for an SV, a household must meet one of four eligibility criteria:
• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)) and 24 CFR 578.3;
• At-risk of homelessness as defined in 24 CFR 5.78.3;
• Those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, or human trafficking; and
• Veterans [as defined in 38 U.S.C. 101(2); 38 CFR 3.1(d)] and families that include a veteran family member that meet one of the above criteria.

Mandatory Denials
HUD waived 24 CFR 982.552 and 982.553 in part for the SV applicants and established alternative requirements for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening individuals and families for eligibility for an SV. Instead, the SV alternative requirement listed in this section will apply to all SV applicants.

The mandatory and permissive prohibitions listed in Notice PIH 2022-24 and in this chapter, however, apply only when screening the individual or family for eligibility for an SV. When adding a family member after the family has been placed under a HAP contract with SV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court-awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so.

Under alternative requirements for the SV program, mandatory denials for SV applicants include:
• 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. • 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program.

The PHA will also deny assistance to household members already receiving assistance from another program.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited SV grounds for denial of admission first.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Permissive Denial
Notice PIH 2022-24 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to SV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for SV families.

If the PHA intends to establish permissive prohibition policies for SV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoC’s recommendations into consideration.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

In compliance with PIH 2022-24, the PHA will not deny an SV applicant admission regardless of whether:

Any member of the family has been evicted from federally assisted housing in the last five years
A PHA has ever terminated assistance under the program for any member of the family
The family currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act The family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease
The family breached an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA
The family would otherwise be prohibited admission under alcohol abuse standards established by the PHA in accordance with 24 CFR 982.553(a)(3) The PHA determines that any household member is currently engaged in or has engaged in during a reasonable time before the admission, drug-related criminal activity
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Self-Certification of Income at Admission
The requirement to obtain third-party verification of income in accordance with Notice PIH 2018-18 does not apply to the SV program applicants at admission, and alternatively, PHAs may consider self-certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to SV families at admission. Instead, applicants must submit an affidavit attesting to their reported income, assets, expenses, and other factors that would affect an income eligibility determination.

Additionally, applicants may provide third-party documentation that represents the applicant’s income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA’s request.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Recently Conducted Income Determinations
PHAs may accept income calculations and verifications from third-party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as:
• The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and
• The family certifies there has been no change in income or family composition in the interim.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

EIV Income Validation
Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must:
• Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family-reported income within 90 days of the PIC submission date; • Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and • Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates.

Prior to admission, PHAs must continue to use HUD’s EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3.

If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12.

Social Security Number and Citizenship Status Verification For the SV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the SV program. Instead, PHAs may adopt policies to admit SV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good-faith effort to obtain the documentation.

If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Age and Disability Verifications
PHAs may accept self-certification of date of birth and disability status if a higher level of verification is not immediately available. If self-certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV.

If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Income Targeting
The PHA must determine income eligibility for SV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for SV families. The PHA may still choose to include the admission of extremely low-income SV families in its income targeting numbers for the fiscal year in which these families are admitted.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-VI.F. HOUSING SEARCH AND LEASING
Initial Voucher Term
Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, SV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Pre-Inspections
To expedite the leasing process, PHAs may pre-inspect available units that SV families may be interested in leasing in order to maintain a pool of eligible units.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Initial Lease Term
Unlike in the standard the HCV program, SV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Portability
The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to SVs. Exceptions are addressed below.
• Under SV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.B.
• A receiving PHA cannot refuse to assist an incoming SV family, regardless of whether the PHA administers SVs under its own ACC.
• If the SV family moves under portability to another PHA that administers SVs under its own ACC:
- The receiving PHA may only absorb the incoming SV family with an SV (assuming it has an SV voucher available to do so).
- If the PHA does not have an SV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with SV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family’s SV assistance, the SV administration of the voucher is in accordance with the receiving PHA’s SV policies.
• If the SV family moves under portability to another PHA that does not administer SVs under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA.

Family Briefing
In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2) as to how portability works and how portability may affect the family’s assistance, the initial PHA must inform the family how portability may impact the special SV services and assistance that may be available to the family.

The initial PHA is required to help facilitate the family’s portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP).

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-VI.G. PAYMENT STANDARDS
Overview
For the SV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for SVs. Lower SV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the SV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate SV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below.

Further, if the PHA chooses to establish higher payments standards for SVs, HUD has provided other regulatory waivers:
• Defining the “basic range” for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). • Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD-published SAFMRs.

The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
All rent reasonableness requirements apply to SV units, regardless of whether the PHA has established an alternative or exception SV payment standard.

Increases in Payment Standards
The requirement that the PHA apply increased payment standards at the family’s first regular recertification on or after the effective date of the increase does not apply to SV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family’s first regular reexamination following the change.

HACN Policy
This section is not applicable to HACN as the PHA does not administer this special purpose voucher
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

19-VI.H. PROJECT-BASED UNITS
All tenant-based SV awards can be converted to Project-Based Vouchers (PBV) at any time after award without HUD approval provided all the established PBV regulations and requirements are followed.

All PBV requirements in 24 CFR Part 983 and in Chapter 17 apply to project-based SVs with the exception of 24 CFR 983.251(c)(1), which requires PHAs to select families for project-based units from its HCV or PBV waiting list. HUD is waiving this requirement and establishing an alternative requirement that PHAs receive SV referrals from CoC partners for vouchers as well as project-based assistance.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

EXHIBIT 19-1: SAMPLE STABILITY VOUCHER (SV)
HOMELESS PROVIDER’S CERTIFICATION
Stability Voucher (SV)

HOMELESS CERTIFICATION
SV Applicant Name: ____________________________________________________________ ☐ Household without dependent children (complete one form for each adult in the household) ☐ Household with dependent children (complete one form for household) Number of persons in the household: ______________
This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation Check only one box and complete only that section
Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks)
☐ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or campground.

Description of current living situation:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Homeless Street Outreach Program Name: ___________________________________________ This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc.

Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

Living Situation: Emergency Shelter
☐ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows:

Emergency Shelter Program Name: _________________________________________________ This emergency shelter must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to the U.S. Department of Housing and Urban Development (HUD) or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter).

Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Living Situation: Recently Homeless
☐ The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (e.g., households in rapid rehousing programs, residents of permanent supportive housing programs participating in Moving On, etc.)
Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
This referring agency must appear on the CoC’s Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory.

Immediately prior to entering the household’s current living situation, the person(s) named above was/were residing in:
☐ Emergency shelter OR ☐ A place unfit for human habitation Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

EXHIBIT 19-2: SAMPLE VICTIM SERVICE PROVIDER’S CERTIFICATION Stability Voucher (SV)

SAMPLE CERTIFICATION FOR SURVIVORS OF DOMESTIC VIOLENCE, DATING

VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN TRAFFICKING Use of this Optional Form:

Service providers may utilize this form to certify a family’s eligibility for SV to document households who are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, and/or human trafficking. In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for the U.S. Department of Housing and Urban Development’s (HUD) Stability Voucher program.

Confidentiality:

All information provided during the referral process concerning the incident(s) of domestic violence, dating violence, dating violence, sexual assault, stalking, and human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law.

TO BE COMPLETED ON BEHALF OF SURVIVORS OF DOMESTIC VIOLENCE,

DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND/OR HUMAN

TRAFFICKING
SV Applicant Name: ____________________________________________________________ The applicant named above is a survivor of (please check from the list all that apply):
☐ Domestic Violence
☐ Dating Violence
☐ Sexual Assault
☐ Stalking
☐ Human Trafficking
Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

This certifies that the above named individual or household meets the definition for persons who are fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking and/or human trafficking as these terms are defined under 34 U.S.C. Section 12291 of the Violence Against Women Act1 and 22 U.S.C. Section 7102(11) of the Trafficking Victims Protection Act.2
I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction.

Authorized Agency Representative Signature: ________________________________________ Date: ________________________________
1 The Violence Against Women Act protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
2 The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other federally-funded social service programs available to assist victims in rebuilding their lives.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

EXHIBIT 19-3: SAMPLE SV MEMORANDUM OF UNDERSTANDING3
[** This sample document demonstrates the Memorandum of Understanding requirements for the administration of Stability Vouchers. Unless otherwise noted, all elements are required. **] Memorandum of Understanding – Stability Vouchers
This Memorandum of Understanding (MOU) has been created and entered on [Insert execution date] by [insert PHA name and address] and [insert CoC/VSP name and address].

I. Introduction and Goals
The [insert PHA name] and [insert CoC/VSP name] through the Stability Voucher (SV) Program seek to prevent and end homelessness among individuals and families who are experiencing or at-risk of homelessness, those fleeing or attempting to flee domestic violence dating violence, sexual assault, stalking, and human trafficking, and veterans and families that include a veteran family member that meets one of the proceeding criteria.

The Consolidated Appropriations Act, 2021 (Public Law 116-260) (2021 Act), makes available $43,343,000 for new incremental voucher assistance under Section 8(o) of the United States Housing Act of 1937 for use by individuals and families experiencing or at-risk of homelessness; those fleeing or attempting to flee domestic violence, dating violence, sexual assault, and stalking; and veterans and families that include a veteran family member that meets one of the proceeding criteria.

The Further Consolidated Appropriations Act, 2022 (Public Law 117-103 (2022 Act) further provides that HUD may waive certain statutory and regulatory provisions to administer the SVs (except for requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards and the environment) upon a finding that any such waivers or alternative requirements are necessary to facilitate the use of funds made available for SVs.

This Memorandum of Understanding (MOU) outlines the collaboration and commitment between [insert PHA name] and [insert CoC/VSP name] to pair Stability Vouchers with CoCfunded supportive services; and to collaborate with the CoC/VSP and other stakeholders to develop a prioritization plan for these vouchers.

Lead Agency Liaisons:

Name and title of PHA staff position:

Name and title CoC and/or VSP staff position:
3 If PHA policy in Section 19-VI.B. of this administrative plan states that a copy of the MOU will be attached at the end of this chapter as Exhibit 19-3, you may either fill in the language shown here or replace the text with the PHA’s own MOU, then delete the word sample. If the PHA does not wish to attach its own MOU to the chapter, this statement should be removed from the policy in Section 19-VI.B.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

II. Individuals and Families Eligibility under the Qualifying Categories In order to be eligible for an SV, an individual or family must meet one of four eligibility categories:
• Homeless
• At risk of homelessness
• Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking
• Veterans
III. SV Roles and Responsibilities
A. PHA Roles and Responsibilities [**The following responsibilities are listed for example purposes. **]

1. Coordinate and consult with the CoC in developing the services and assistance to be offered under the SV services fee.

2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System.

3. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner.

4. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner.

5. Designate a staff to serve as the lead SV liaison.

6. Comply with the provisions of this MOU.

B. CoC Roles and Responsibilities [**The following responsibilities are listed for example purposes. **]

1. Designate and maintain a lead SV liaison to communicate with the PHA.

2. Refer eligible individuals and families to PHA using the community’s coordinated entry system.

3. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the PHA (i.e., self-certifications, birth certificate, social security card, etc.).

4. Attend SV participant briefings when needed.

Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

5. Assess all households referred for SV for mainstream benefits and supportive services available to support eligible individuals and families through their transition.

6. Identify and provide supportive services to SV families. (While SV participants are not required to participate in services, the CoC should assure that services are available and accessible.)

7. Comply with the provisions of this MOU.

IV. CoC-funded supportive services that will be paired with SVs CoCs are encouraged to outline any existing partnerships with health and behavioral health care providers and agencies, state Medicaid agencies and agencies and organizations that may be leveraged to provide ongoing tenancy and wrap-around supportive services for those that may benefit from such services to maintain housing stability. All services provided by the CoC must be outlined in the MOU with the CoC and should demonstrate the community’s strategy to coordinate assistance through available resources. HUD recommends that PHAs and partnering CoCs seek a diverse range of supportive services by partnering with organizations trusted by people experiencing homelessness.

V. PHA Adopted Waivers and Alternative Requirements
Notice PIH 2022-24 provides [insert PHA name] with authority to adopt certain statutory and regulatory requirements and alternative requirements for Stability Vouchers. [insert PHA name] and [insert CoC/VSP name] have agreed to adopt the following waivers and alternative requirements:
[List all waivers and alternative requirements discussed, agreed upon by the PHA and CoC for the administration of SVs]
VI. PHA Permissive Prohibition Policies agreed upon by the PHA and CoC [Insert PHA name] in consultation with [insert CoC/VSP name] have agreed to adopt the following permissive prohibitions for the Stability Voucher program:
[List any permissive prohibition policies agreed upon by the PHA and CoC] Agenda Item 4.

Housing Authority
of the Administrative Plan 5/1/26
City of Needles

VII. Program Evaluation
[Insert PHA name] and [insert CoC /VSP] agree to cooperate with HUD, provide requested data to HUD or HUD-approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD-approved contractor.

Signed By:
________________________________________ ____________________ Public Housing Agency Executive Director Date
________________________________________ ____________________ CoC/VSP Executive Director Date
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Agenda Item 4.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 14, 2026
Title: Authorize an Increase to the FY26 Electrical Engineering Services Agreement with Brooks Consulting, Not to Exceed $20,000
Background: In 2020, the Needles Public Utility Authority (NPUA) issued a request for proposals for professional electrical engineering services. The agreement with Brooks Consulting was extended in 2023 for an additional three years.

On August 12, 2025, for FY26, the Board of Public Utilities authorized $15,000 for electrical engineering services. During this fiscal year, the Board of Public Utilities also authorized the installation of SCADA at two substations, which required additional electrical engineering support. To date, all authorized funds have been expended on the SCADA project, and additional funding is needed to complete the installation.

Approval of this item will increase the FY26 authorization by $20,000, for a total not-to-exceed amount of $35,000.

Fiscal Impact: $20,000 to be funded within the adopted FY26 Electric Operations and Maintenance Budget; no additional appropriation required.

Environmental Impact: N/A
Recommended Action: Authorize an increase to the FY26 Electrical Engineering Services Agreement with Brooks Consulting, in an amount not to exceed $20,000.

Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
4/9/2026
04/09/26
Agenda Item 5.
1 CITY OF NEEDLES

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this ____ day of _______, between the CITY OF NEEDLES, a California Charter City, (hereinafter referred to as the “City”) and Brooks Consulting LLC (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Services.

The City solicited proposals to provide Professional Services for Electrical Engineering pursuant to that certain Request for Proposals, which is attached hereto as Exhibit “A.”

2.2 Proposal
Consultant has made a proposal (“Proposal”) to the City dated ___ _to provide such professional services, which Proposal is attached hereto as Exhibit “B.”

2.3 Consultant.

City desires to retain Consultant to perform and assume responsibility for the provision of such services required by the City on the terms and conditions set forth in this Agreement. Consultant represents and warrants to City that Consultant possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 Professional Services. Consultant agrees to perform the services described herein and in “Exhibit B” (“Services”). All Services shall, as is consistent with the generally accepted professional standard of care, be performed in the manner and according to the timeframe set forth in the Proposal. Consultant designates _self or various persons as Consultant’s professional responsible for overseeing the Services provided by Consultant.

3.1.2 Term. This Agreement shall become effective when executed and shall remain in effect until terminated as provided herein. Notwithstanding anything to the contrary in this Agreement, this Agreement shall 13th October
September 14, 2020
Agenda Item 5.
2 automatically terminate after __3_ years unless extended in writing by the Parties with the approval of the City Council of the City.

3.1.3 Conflict. In the event that the terms of the Proposal shall conflict with the terms of this Agreement, or contain additional terms other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

3.2 Responsibilities of Consultant.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or by its employees under Consultant’s supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. The City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for other clients during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of the City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall determine its own work hours and schedule; provide its own equipment; maintain its own offices; provide its own vehicles; insurance; cell phones and office phones; and Consultant shall be solely responsible for managing and supervising its personnel and employees. Consultant shall further be responsible for all reports and obligations, including, but not limited to:
social security taxes, income tax withholding, payroll taxes, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and reasonably prudent manner, consistent with, and limited to, the standard of skill and care generally recognized as being employed by professionals performing similar services at the same time in the same discipline in the same locality in the State of California. The Consultant makes no other representations or warranties, whether expressed or implied, with respect to the services rendered hereunder. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant agrees that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications Agenda Item 5.
3 and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the applicable standard of care.

Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of a Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-assigned to perform any Services to City.

3.2.3 Laws and Regulations. Consultant shall exercise usual and customary professional care in its efforts to keep itself informed of and in compliance with applicable local, state and federal laws, rules and regulations affecting the performance of Services, including applicable Cal/OSHA requirements, and shall give notices required by law. Consultant shall be liable for violations of such laws and regulations in connection with the Services, but only to the extent such violation constitutes a breach of the generally accepted professional standard of care Consultant shall indemnify and hold the City, its officials, directors, officers, and employees harmless, pursuant to the indemnification provisions of this Agreement, from liability to the extent caused by its negligent failure to comply with such applicable laws, rules or regulations.

3.2.4 Employment Eligibility. Consultant shall be solely responsible for obtaining Employment Eligibility Verification information from Consultant’s employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that Consultant’s employees are eligible to work in the United States.

3.2.5 CalPers. In the event that Consultant employs, contracts with, or otherwise utilizes any CalPers retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the City and shall be subject to the City’s advance written approval.

3.2.6 Drug-free Workplace Certification. By signing this Agreement, the Consultant hereby certifies under penalty of perjury under the laws of the State of California that the Consultant will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug-free workplace.

Agenda Item 5.
4 3.2.7 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with applicable local, state and federal laws, rules and regulations, and shall exercise necessary precautions for the safety of its employees appropriate to the nature of the work and the conditions under which the work is to be performed.

Safety precautions as applicable shall include, but shall not be limited to:
(A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. Nothing herein shall be construed as establishing any responsibility or obligation on the part of the Consultant for jobsite safety issues, programs, or precautions of anyone but its own employees and subconsultants for whom it is legally responsible.

4. Indemnification; Insurance.

4.1 Insurance. Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit “C” attached to and made a part of this Agreement.

4.2 Indemnity for Professional Liability. When the law establishes a professional to the fullest extent permitted by law, Consultant shall indemnify and hold harmless the City and its officials, and employees (“Indemnified Parties”) from and against losses, liabilities, damages, costs and expenses, including reasonable legal counsel’s fees and costs, but only to the extent caused by any negligent performance of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. In no event shall the indemnification obligation extend beyond the date when the institution of legal or equitable proceedings for professional negligence would be barred by any applicable statute of repose or statute of limitations. The parties expressly agree that this indemnity provision does not include, and in no event shall the Consultant be required to assume, any obligation or duty to defend any claims, causes of action, demands, or lawsuits in connection with or arising out of this Project or the services rendered by the Consultant.

4.3 Indemnity Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration Agenda Item 5.
5 proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same directly arise out of, are a direct consequence of, or are in any way directly attributable to, in whole or in part, the performance of this Agreement by Consultant, including but not limited to officers, agents, employees or subcontractors of Consultant except where the same is caused by negligent or willful misconduct of the City.

5. Responsibilities of City.

5.1 Requests. The City agrees to comply with all reasonable requests of Consultant and provide reasonable access to documents including objectives and constraints, space, capacity, and performance requirements, flexibility, and expandability, and any budgetary limitations, reasonably necessary to the performance of Consultant's duties under this Agreement. In order to facilitate Consultant’s conformance with the performance schedule, the City shall respond to Consultant’s submittals in a timely manner.

5.2 City Representative. The City designates the City Manager or his designee as City representative (“City Representative”) with respect to the work to be performed under this Agreement. The City Representative shall have complete authority to transmit instructions, receive information, and interpret and define the City’s policy and decisions with respect to materials, equipment, elements, and systems pertinent to the Services covered by this Agreement.

6. Fees and Payments.

6.1 Compensation. City agrees to pay per the bid specifications submitted.

Consultant shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Section 6, total fees and charges paid by City under this Agreement shall not exceed $ ______ without approval by the City Council of City.

6.2 Invoices. Consultant shall submit to the City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall have the right to review and audit all invoices prior to or after payment to Consultant. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater 6,600
Agenda Item 5.
6 than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall either return the bill to Consultant with a request for explanation or adjust the payment accordingly, and give notice to Consultant of the adjustment.

6.3 Payment. If the work is satisfactorily completed, City shall pay such invoice within fourty-five (45) days of its receipt. Should City dispute any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Consultant in writing of the disputed portion.

6.4 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by the City Manager.

6.5 Additional Services. In the event Consultant performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of City, Consultant shall not be compensated for such services. Consultant expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the City in writing.

6.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. The City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

6.7 Accounting Records.

6.7.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of the City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

Agenda Item 5.
7 7. General Provisions.

7.1 Termination of Agreement.

7.1.1 Grounds for Termination. The City or Consultant may, by written notice to the other party, terminate this Agreement at any time and without cause by giving written notice to the other party of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been actually and adequately rendered to the City, and Consultant shall be entitled to no further compensation.

7.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Consultant shall, as long as Consultant has been fully paid for Services rendered, provide all finished or unfinished Documents and Data (as defined below), programming source code, plans reports and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such documents and other information within fifteen (15) days of the request. If the City subsequently reproduces projectrelated documents or creates (or causes others to create) a derivative work based upon project-related documents created by the Consultant, the City shall completely remove the original professional seals, logos and other indications on the documents of the identity of the Consultant. The City agrees that any future use, reuse, or modification of the Consultant’s work product without retaining and maintaining the retention of the Consultant shall be at the City’s sole risk and without liability to the Consultant and the City agrees to waive any and all claims against the Consultant and release, defend, indemnify and hold the Consultant harmless from any and all claims or liabilities arising therefrom.

7.1.3 Services. In the event this Agreement is terminated in whole or in part as provided herein, the City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

7.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

To Vendor: Brooks Consulting LLC
664 Vermilion Peak Dr.

Windsor, CO 80550
Attention: Christopher Brooks
Agenda Item 5.
8 To City: City of Needles
817 Third Street
Needles, CA 92363
Attention: City Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

7.3 Ownership of Materials and Confidentiality.

7.3.1 City Ownership. Upon full payment to Consultant for Services rendered, all documents and data (“Documents & Data”), including data on electric, digital or magnetic media, prepared by Consultant under this Agreement shall be the property of the City for use solely in connection with the purpose for which they were created, except that Consultant shall have the right to retain copies of all Documents & Data for its records. The City recognizes that data, plans, specifications, reports, documents or other information recorded on or transmitted as electronic media are subject to undetectable alteration, either intentional or unintentional due to, among other causes, transmission, conversion, media degradation, software error, or human alteration. Accordingly, the electronic documents provided to the City are for informational purposes only and are not intended as an end-product. The Consultant makes no warranties, either expressed or implied, regarding the fitness or suitability of the electronic documents. If the City subsequently reproduces project-related documents or creates (or causes others to create) a derivative work based upon project-related documents created by the Consultant, the City shall completely remove the original professional seals, logos and other indications on the documents of the identity of the Consultant. The City agrees that any future use, reuse, or modification of the Consultant’s work product without retaining and maintaining the retention of the Consultant shall be at the City’s sole risk and without liability to the Consultant and the City agrees to waive any and all claims against the Consultant and release, defend, indemnify and hold the Consultant harmless from any and all claims or liabilities arising therefrom.

7.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall Agenda Item 5.
9 not, without the prior written consent of the City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use the City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City. Disclosure of any information in compliance with any legal orders shall not constitute a breach of this provision.

7.4 Cooperation; Further Acts. The Parties shall reasonably cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. Consultant shall not be required to take any additional acts or execute any documents that in any way might, in the sole judgment of the Consultant, increase the Consultant’s contractual or legal obligations or risks, or the availability or costs of its professional or general liability insurance.

7.5 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties.

7.6 Governing Law. This Agreement is entered into and shall be performed in Needles, California and shall be governed by the laws of the State of California. Any claims arising under this Agreement shall be brought in the state or federal courts located in San Bernardino County. The City and Consultant agree to submit all claims and disputes arising out of this Agreement to non-binding mediation prior to the initiation of legal proceedings. This provision shall survive completion or termination of this Agreement; however, neither party shall seek mediation of any claim or dispute arising out of this Agreement beyond the period of time that would bar the initiation of legal proceedings to litigate such claim or dispute under the applicable law.

7.7 Time of Performance. Consultant shall perform as expeditiously as is consistent with the generally accepted professional standard of care.

7.8 City’s Right to Employ Other Consultants. The City reserves the right to employ other consultants at any time for any purpose.

7.9 Assignment; Sublease; Transfer. Consultant shall not assign, sublease, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior signed written consent of the City Manager. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

Agenda Item 5.
10 7.10 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, and subcontractors of Consultant, except as otherwise specified in this Agreement. All references to the City include its elected officials, officers, and employees except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

7.11 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

7.12 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

7.13 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. Nothing contained in this Agreement shall create a contractual relationship with, or a cause of action in favor of, a third party against either the City or the Consultant. Consultant’s services hereunder are being performed solely for the benefit of the City, and no other entity shall have any claim against the Consultant because of this Agreement or the Consultant’s performance or nonperformance of services hereunder.

7.14 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

7.15 Improper Payment. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability.

7.16 Conflict of Interest. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. Consultant has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. Consultant agrees that they are unaware of any financial or economic interest Agenda Item 5.
11 of any public officer or employee of the City relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the City may immediately terminate this Agreement by giving notice thereof. Consultant shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

7.17 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

7.18 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

7.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

7.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

7.22 Contents of Request for Proposal and Proposal. Consultant is bound by the contents of City's Request for Proposal and the Proposal. In the event of conflict, the requirements of this Agreement shall take precedence over those contained in the Proposal and the City’s Request for Proposals. The incorporation of the Proposal shall be for the Services to be rendered and the price for such Services only, and any other terms and conditions included in the Proposal shall have no force and effect on this Agreement or the relationship between Consultant and/or City, unless expressly agreed to in writing.

IN WITNESS WHEREOF, the Parties hereto have made and executed this Agreement on the date and year set forth above.

Agenda Item 5.

Agenda Item 5.
13 EXHIBIT A
Request for Proposals
[Attached behind this page]
Agenda Item 5.
14 EXHIBIT B
Proposal
[Attached behind this page]
Agenda Item 5.
15 EXHIBIT C
Insurance Requirements
Time for Compliance.

Consultant shall not commence Services under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

Minimum Requirements.

Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement.

Such insurance shall meet at least the following minimum levels of coverage:
i. General liability. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. ii. Automobile liability. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. iii. Professional liability (errors & omissions). Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the Services required by this Agreement. iv. Worker’s Compensation. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Agenda Item 5.
16 Other Provisions or Requirements
• Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insured’s provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. • Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
• Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.

Best’s rating no less than A:VII, licensed to do business in California, and satisfactory to the City.
• Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by the City prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. • City Approval. All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
• Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant Agenda Item 5.
17 or City will withhold amounts sufficient to pay premium from Consultant payments.

In the alternative, City may cancel this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
• Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. • Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. • Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
• Additional insured status. All policies required herein shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies.
• Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
• City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change Agenda Item 5.
18 results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
• Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
• Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

Agenda Item 5.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 14, 2026
Title: Authorize the City Manager to Execute a Professional Services Agreement with SMH Electrical Construction to Complete XIO SCADA Installation at L Street Booster Station and Well No. 15, Not to Exceed $43,533
Background: The City is completing final implementation of its XIO SCADA system to improve reliability, efficiency, and remote monitoring of water infrastructure. Existing installations are in place at the Claypool Booster Station, Tanks, and Well No. 11. The remaining sites requiring installation are Well No. 15 and the L Street Booster Station.

SMH Electrical Construction is currently completing SCADA installation at the Claypool Booster Station and Well No. 11 and is familiar with the City’s system configuration.

City staff do not have the technical expertise to perform this installation.

Staff recommends sole-sourcing this project to SMH Electrical Construction due to their direct experience with the City’s SCADA system, continuity with ongoing installations, and ability to complete the work efficiently while minimizing integration risks and operational disruption.

Electrical Contractor Scope of Work
XIO L Street SCADA Installation (Labor) $14,300
XIO L Street SCADA Equipment: $14,273
XIO SCADA Installation # 15 $14,960
$43,533
The Board of Public Utilities approved the recommended action on April 7, 2026 Fiscal Impact: $43,533 to be funded from the Water Asset Replacement Fund, which is projected to have a balance of $619,096 as of June 30, 2026. Completion of SCADA installation at L Street and Well No. 15 will reduce manual site visits, improve operational efficiency, and lower long-term labor costs.

Environmental Impact: N/A
Recommended Action: Authorize the City Manager to execute a Professional Services Agreement with SMH Electrical Construction to complete XIO SCADA installation at the L Street Booster Station and Well No. 15, in an amount not to exceed $43,533.

Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
4/9/2026
04/09/26
Agenda Item 6.
1 CITY OF NEEDLES

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 14th day April 2026, between the CITY OF NEEDLES, a California Charter City, (hereinafter referred to as the “City”) and SMH Electrical Construction (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Services.

The City solicited proposals to provide on-site electrical work

2.2 Proposal
Consultant has made a proposal (“Proposal”) to the City dated 2026 to provide such professional services, which Proposal is attached hereto as Exhibit “A.”

2.3 Consultant.

City desires to retain Consultant to perform and assume responsibility for the provision of such services required by the City on the terms and conditions set forth in this Agreement. Consultant represents and warrants to City that Consultant possesses the necessary skills, licenses, certifications, qualifications, personnel, and equipment to provide such services.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 Professional Services. Consultant agrees to perform the services described herein and in “Exhibit A” (“Services”). All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. Consultant designates Mark Sotelo as Consultant’s professional responsible for overseeing the Services provided by Consultant.

3.1.2 Term. This Agreement shall become effective when executed and shall remain in effect until terminated as provided herein. Notwithstanding anything to the contrary in this Agreement, this Agreement shall automatically terminate after 1 year unless extended in writing by the Parties with the approval of the City Council of the City.

Agenda Item 6.
2 3.1.3 Conflict. In the event that the terms of the Proposal shall conflict with the terms of this Agreement, or contain additional terms other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

3.2 Responsibilities of Consultant.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or by its employees under Consultant’s supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. The City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for other clients during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of the City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall determine its own work hours and schedule; provide its own equipment; maintain its own offices; provide its own vehicles; insurance; cell phones and office phones; and Consultant shall be solely responsible for managing and supervising its personnel and employees. Consultant shall further be responsible for all reports and obligations, including, but not limited to:
social security taxes, income tax withholding, payroll taxes, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the applicable standard Agenda Item 6.
3 of care. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of a Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-assigned to perform any Services to City.

3.2.3 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of Services, including all Cal/OSHA requirements, and shall give all notices required by law.

Consultant shall be liable for all violations of such laws and regulations in connection with the Services. If the Consultant performs any work contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold the City, its officials, directors, officers, employees and agents harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.4 Employment Eligibility. Consultant shall be solely responsible for obtaining Employment Eligibility Verification information from Consultant’s employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that Consultant’s employees are eligible to work in the United States.

3.2.5 CalPers. In the event that Consultant employs, contracts with, or otherwise utilizes any CalPers retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the City and shall be subject to the City’s advance written approval.

3.2.6 Drug-free Workplace Certification. By signing this Agreement, the Consultant hereby certifies under penalty of perjury under the laws of the State of California that the Consultant will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug-free workplace.

3.2.7 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees, City personnel and third parties appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as Agenda Item 6.
4 applicable shall include, but shall not be limited to: (A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

4. Indemnification; Insurance.

4.1 Insurance. Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit “C” attached to and made a part of this Agreement.

4.2 Indemnity for Professional Liability. When the law establishes a professional standard of care for Consultant’s Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless the City and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.

4.3 Indemnity Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or the City for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant.

4.4 Duty to Defend. In the event the City, its officers, employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the Services encompassed by this Agreement, and upon demand by City, Consultant shall have an immediate duty to defend the City at Consultant’s cost or at City’s option, to reimburse City for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters. Payment by City is not a condition precedent to enforcement of this indemnity.

In the event of any dispute between Consultant and City, as to whether liability arises Agenda Item 6.
5 from the sole negligence of the City or its officers, employees, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as solely negligent. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation.

5. Responsibilities of City.

5.1 Requests. The City agrees to comply with all reasonable requests of Consultant and provide reasonable access to documents including objectives and constraints, space, capacity, and performance requirements, flexibility, and expandability, and any budgetary limitations, reasonably necessary to the performance of Consultant's duties under this Agreement. In order to facilitate Consultant’s conformance with the performance schedule, the City shall respond to Consultant’s submittals in a timely manner.

5.2 City Representative. The City designates the City Manager or his designee as City representative (“City Representative”) with respect to the work to be performed under this Agreement. The City Representative shall have complete authority to transmit instructions, receive information, and interpret and define the City’s policy and decisions with respect to materials, equipment, elements, and systems pertinent to the Services covered by this Agreement.

6. Fees and Payments.

6.1 Compensation. City agrees to pay Consultant the amount of $200.00/hr.

Consultant shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Section 6, total fees and charges paid by City under this Agreement shall not exceed $43,533 without approval by the City Council of City.

6.2 Invoices. Consultant shall submit to the City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall have the right to review and audit all invoices prior to or after payment to Consultant. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall either return the bill to Consultant with a request for Agenda Item 6.
6 explanation or adjust the payment accordingly, and give notice to Consultant of the adjustment.

6.3 Payment. If the work is satisfactorily completed, City shall pay such invoice within thirty (30) days of its receipt. Should City dispute any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Consultant in writing of the disputed portion.

6.4 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by the City Manager.

6.5 Additional Services. In the event Consultant performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of City, Consultant shall not be compensated for such services. Consultant expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the City in writing.

6.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. The City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

6.7 Accounting Records.

6.7.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of the City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

7. General Provisions.

Agenda Item 6.
7 7.1 Termination of Agreement.

7.1.1 Grounds for Termination. The City or Consultant may, by written notice to the other party, terminate this Agreement at any time and without cause by giving written notice to the other party of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been actually and adequately rendered to the City, and Consultant shall be entitled to no further compensation.

7.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Consultant shall provide all finished or unfinished Documents and Data (as defined below), programming source code, plans reports and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such documents and other information within fifteen (15) days of the request.

7.1.3 Services. In the event this Agreement is terminated in whole or in part as provided herein, the City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

7.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

To Consultant: SMH Electrical Construction
16700 Canyon View Dr,
Riverside, CA. 92504

To City: City of Needles
817 Third Street
Needles, CA 92363
Attention: City Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

7.3 Ownership of Materials and Confidentiality.

Agenda Item 6.
8 7.3.1 City Ownership. All documents and data (“Documents & Data”), including data on electric, digital or magnetic media, prepared by Consultant under this Agreement shall be the property of the City, except that Consultant shall have the right to retain copies of all Documents & Data for its records. The City shall not be limited in any way in its use of the Documents & Data at any time. Should Consultant, either during or following termination of this Agreement, desire to use any Documents & Data prepared in connection with this Agreement, Consultant shall first obtain the written approval of the City Manager.

7.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of the City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use the City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

7.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

7.5 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties.

7.6 Governing Law. This Agreement is entered into and shall be performed in Needles, California and shall be governed by the laws of the State of California. Any claims arising under this Agreement shall be brought in the state or federal courts located in San Bernardino County.

7.7 Time of Essence. Time is of the essence for each and every provision of this Agreement.

7.8 City’s Right to Employ Other Consultants. The City reserves the right to employ other consultants at any time for any purpose.

Agenda Item 6.
9 7.9 Assignment; Sublease; Transfer. Consultant shall not assign, sublease, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior signed written consent of the City Manager. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

7.10 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subcontractors of Consultant, except as otherwise specified in this Agreement. All references to the City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

7.11 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

7.12 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

7.13 No Third Party Beneficiaries. The Needles Public Utility Authority and other City entities shall be intended beneficiaries of this Agreement. Otherwise, there are no intended third party beneficiaries of any right or obligation assumed by the Parties.

7.14 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

7.15 Improper Payment. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability.

7.16 Conflict of Interest. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. Consultant has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers Agenda Item 6.
10 and employees. Consultant agrees that they are unaware of any financial or economic interest of any public officer or employee of the City relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the City may immediately terminate this Agreement by giving notice thereof. Consultant shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

7.17 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

7.18 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

7.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

7.20 Attorney Fees. If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which that party may be entitled.

7.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

7.22 Contents of Request for Proposal and Proposal. Consultant is bound by the contents of City's Request for Proposal and the Proposal. In the event of conflict, the requirements of City's Request for Proposals and this Agreement shall take precedence over those contained in the Proposal. The incorporation of the Proposal shall be for the Services to be rendered and the price for such Services only, and any other terms and conditions included in the Proposal shall have no force and effect on this Agreement or the relationship between Consultant and/or City, unless expressly agreed to in writing.

IN WITNESS WHEREOF, the Parties hereto have made and executed this Agreement on the date and year set forth above.

Agenda Item 6.
11 CITY: (City of Needles)

BY:

TITLE:

DATE:

ATTEST:

BY:

TITLE:

DATE:

CONSULTANT: (SMH Electrical Construction)

BY: Mark Sotelo

TITLE: CEO/Owner

DATE: 01-20-2026
Agenda Item 6.
12 EXHIBIT A
Scope of Work
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13 EXHIBIT B
Insurance Requirements
Time for Compliance.

Consultant shall not commence Services under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

Minimum Requirements.

Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement.

Such insurance shall meet at least the following minimum levels of coverage:
i. General liability. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. ii. Worker’s Compensation. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Agenda Item 6.
14 Other Provisions or Requirements
• Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insured’s provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. • Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
• Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.

Best’s rating no less than A:VII, licensed to do business in California, and satisfactory to the City.
• Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by the City prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. • City Approval. All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.
• Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant Agenda Item 6.
15 or City will withhold amounts sufficient to pay premium from Consultant payments.

In the alternative, City may cancel this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
• Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. • Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. • Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
• Additional insured status. All policies required herein shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies.
• Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
• City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change Agenda Item 6.
16 results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
• Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
• Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

Agenda Item 6.

Agenda Item 7.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
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M I N U T E S

REGULAR MEETING OF THE CITY COUNCIL

NEEDLES PUBLIC UTILITY AUTHORITY

HOUSING AUTHORITY CITY OF NEEDLES

CITY OF NEEDLES, CALIFORNIA
COUNCIL CHAMBERES, 1111 BAILEY AVE, NEEDLES
TUESDAY, MARCH 24, 2026 - COUNCIL EXECUTIVE SESSION – 5:00 - CITY COUNCIL MEETING – 6:00 PM CALL TO ORDER - Mayor Jernigan called the meeting to order at 5:00 pm and announced an excused absence for Council Member Belt.

ROLL CALL

PRESENT
Council Member Larry Ford
Council Member Jamie McCorkle
Vice Mayor Ellen Campbell arrived at 5:02 pm
Mayor Janet Jernigan
Council Member JoAnne Pogue
Council Member Henry Longbrake
ABSENT
Council Member Tona Belt
PUBLIC COMMENTS PERTAINING TO THE EXECUTIVE SESSION - None RECESSED TO EXECUTIVE SESSION - 5:02 PM

EXECUTIVE SESSION
a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS – Pursuant to Government Code section 54956.8 Property within the Fort Mojave Indian Tribe California Village Agency Negotiator: Patrick Martinez, City Manager or designee Negotiating Parties: Fort Mohave Indian Tribe Under Negotiation: Price and terms of payment
No reportable action
b. Conference with legal counsel regarding existing litigation pursuant to Government Code section 54956.9(d)(1) Jane Doe v. City of Needles, et al., Superior Court of the County of San Bernardino, Case No. CIVSB2603777
No reportable action
c. Conference with legal counsel regarding existing litigation pursuant to Government Code 54956.9(d)(1) Sylvia Miledi v. City of Needles, et al., Superior Court of the County of San Bernardino, Case No. CIVSB2510533
No reportable action
CALL TO ORDER - Mayor Jernigan called the meeting to order at 6:00 pm and announced an excused absence for Council Member Belt.

ROLL CALL (previously taken, as noted above)
EXECUTIVE SESSION REPORT – Deputy City Attorney Lena Wade gave report as noted above.

PLEDGE OF ALLEGIANCE - led by Mayor Jernigan
INVOCATION - given by Vice Mayor Campbell

APPROVAL OF AGENDA
Council Member Pogue made a motion, seconded by Vice Mayor Campbell, to approve the agenda.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None
CONFLICT OF INTEREST – None
CORRESPONDENCE – None
INTRODUCTIONS - Mayor Jernigan acknowledged former Council Member Tim Terral in attendance.

Agenda Item 8.

CITY ATTORNEY – Parliamentary Procedures given by Deputy City Attorney Lena Wade.

PUBLIC APPEARANCE
Elizabeth (?), a student of PVCC spoke about the Board’s position on cancelling the Needles’ graduation ceremony and combining it with the Blythe campus and urged everyone to write letters of opposition.

Jaclyn Randall, Dean of the PVCC Needles Campus, gave an update on the recent 5k run, announcing that they raised $11,000.

Jon McNeil thanked Jaclyn Randall and congratulated her on her recent appointment to the Board of the Hospital in Blythe.

COUNCIL CONSENT CALENDAR
Council Member Ford made a motion, seconded by Council Member Pogue, to approve items 1-3 on the Consent Calendar.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None

1. Approved the Warrants Register through March 24, 2026

2. Approved the Minutes of March 10, 2026

3. Accepted and Filed the Treasurer's Report for February 2026

END OF COUNCIL CONSENT CALENDAR

REGULAR COUNCIL ITEMS

4. Accept Change Order No. 3 to the Design-Build Contract with Pacific Hydrotech Corporation for the Well 11 Treatment Facility project resulting in an increase to the contract in the amount of $69,394.32 for a final contract amount of $6,330,480.22; and authorize staff to execute said Change Order and record the Notice of Completion for the work.

City Manager Martinez gave staff report
Council asked no questions
Mayor Jernigan opened public comment at 6:14pm
No Public Comment
Mayor Jernigan closed public comment at 6:14pm
Council Member Pogue made a motion, seconded by Council Member McCorkle, to Accept Change Order No. 3 to the Design-Build Contract with Pacific Hydrotech Corporation for the Well 11 Treatment Facility project resulting in an increase to the contract in the amount of $69,394.32 for a final contract amount of $6,330,480.22; and authorize staff to execute said Change Order and record the Notice of Completion for the work.

Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None

5. Appoint Three (3) Council Members to Serve on an Ad Hoc Committee to Evaluate Potential Ballot Measures for the November 3, 2026, General Election
City Manager Martinez gave staff report
Council discussion ensued and Mayor Jernigan, Vice Mayor Campbell, and Council Member Longbrake expressed interest in being on the Ad-Hoc committee.

Mayor Jernigan opened public comment at 6:15 pm
No Public Comment
Mayor Jernigan closed public comment at 6:15 pm
Agenda Item 8.

Council Member McCorkle made a motion, seconded by Council Member Pogue, to Appoint Mayor Jernigan, Vice Mayor Campbell, and Council Member Longbrake to Serve on an Ad Hoc Committee to Evaluate Potential Ballot Measures for the November 3, 2026, General Election Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None

6. Approve Agreement with Hinderliter, de Llamas and Associates (HdL) for Sales and Use Tax Audit and Information Services and Authorize the City Manager to Execute the Agreement City Manager Martinez gave staff report
Council asked no questions
Mayor Jernigan opened public comment at 6:17 pm
No Public Comment
Mayor Jernigan closed public comment at 6:17 pm
Vice Mayor Campbell made a motion, seconded by Council Member Ford, to Approve Agreement with Hinderliter, de Llamas and Associates (HdL) for Sales and Use Tax Audit and Information Services and Authorize the City Manager to Execute the Agreement
Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None

7. Appoint a delegate to the San Bernardino Regional Housing Trust (SBRHT) to serve as the City of Needles representative on the Board of Directors
City Manager Martinez gave staff report
Council discussion ensued. Mayor Jernigan requested to be appointed as the delegate.

Mayor Jernigan opened public comment at 6:18 pm
No Public Comment
Mayor Jernigan closed public comment at 6:18 pm
Vice Mayor Campbell made a motion, seconded by Council Member Ford, to Appoint Mayor Jernigan as the delegate to the San Bernardino Regional Housing Trust (SBRHT) to serve as the City of Needles representative on the Board of Directors
Motion carried by the following roll call vote:

Ayes: Council Members Ford, McCorkle, Vice Mayor Campbell, Council Members Pogue, Longbrake Noes: None

Absent: Council Member Belt
Abstain: None
CITY ATTORNEY REPORT – given by Deputy City Attorney Lena Wade CITY CLERK REPORT – given by City Clerk Candace Clark
CITY MANAGER REPORT – given by City Manager Patrick Martinez

COUNCIL REQUESTS
Council Member Ford
 Reported that the flashing stop sign on G and Broadway is not aligned and cars are not stopping Council Member McCorkle
 Asked staff to provide an overview of water infrastructure improvements Vice Mayor Campbell
 Spoke about the status of Palo Verde Community College’s Needles Campus and spoke against combining the graduation ceremonies Agenda Item 8.
 Thanked staff for fixing the sidewalks on Front Street, and asked staff to repaint the bar at the underpass  Thanked Jan for her hard work and the success of the Resource and Job Fair  Reported on upcoming events and encouraged everyone to support the Rodeo  Wished everyone a Happy Easter
Council Member Pogue
 Participated in the recent blood drive
 Requested staff look into daylight savings time and adopt the same time zone as Arizona  Keep Palo Verde Needles Campus open
Council Member Longbrake
 Agreed with JoAnne - Keep Palo Verde Needles Campus open  Santa Fe Park cement work looks good, but there is a section of lights out Mayor Jernigan
 Thanked Public Works and Kathy Raasch for holding the ATP event at the Resource Fair  Reported on the success of the Resource Fair
 Thanked Henry and KTOX for being a part of the Resource Fair  Reported on the upcoming Art in the Park, Craft Fair, Rodeo, and Easter Egg Hunt ADJOURNMENT – Mayor Jernigan adjourned the meeting at 6:46 PM ________________________________________ ________________________________________ Mayor Janet Jernigan City Clerk Candace Clark
Agenda Item 8.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 14, 2026
Title: FY 2025-2026 Mid-Year Budget Revisions for the City of Needles, NPUA, and Housing Authority of the City of Needles, Amending Resolutions 2026-11, 04-14-26-NPUA, and 2026-14-HACN Background: The City Manager and Finance staff have completed a mid-year review of the FY 2025-2026 adopted budget, comparing actual revenues and expenditures through December 31, 2025.

The proposed revisions were reviewed by the Council Budget Committee on March 18, 2026, and approved by the Board of Public Utilities on April 7, 2026.

At mid-year, the City’s financial position remains stable. The General Fund maintains a reserve of approximately

19.5%, well above the City’s 10% policy target.

Revenues are generally stable, with stronger-than-anticipated investment earnings offsetting softer developmentrelated activity. Planning, building, and cannabis revenues are trending below projections due to reduced permit activity and fewer active operators. These declines are partially offset by increased revenues from engineering permits, code enforcement, and short-term rental inspections. Interest income continues to outperform expectations, driven by favorable returns through LAIF.

Expenditure adjustments reflect targeted investments to support core operations, facility maintenance, and service delivery. Key increases include professional services, technology upgrades, emergency facility repairs, and expanded public works efforts such as street maintenance and equipment. Through disciplined financial management, underspending in select areas has been strategically redirected to priority needs, including the purchase of a patch truck, mobile broom attachment, and installation of fencing at the Duke Watkins Park basketball court.

Additional adjustments include staffing alignment and wage-related increases, balanced by operational efficiencies, reduced reliance on outside services, and maintaining select vacancies. Public safety expenditures remain stable, and overall spending continues to be actively managed to ensure long-term fiscal sustainability.

Attached are the proposed revised budgets, including summary sheets with detailed explanations of recommended changes.

Fiscal Impact: See attached budget report.

Recommended Action: Adopt Resolutions 2026-11, 04-14-26-NPUA, and 2026-14-HACN approving the proposed revised budgets for the fiscal year ending June 30, 2026.

Submitted By: Mark DeMay, Director of Finance and Administrative Services City Manager Approval: Date:

Other Department Approval (when required): Date:
4/9/2026
04/10/26
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RESOLUTION 2026-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEEDLES, CALIFORNIA ADOPTING THE PROPOSED REVISED BUDGET FOR FISCAL YEAR 2025–2026, AMENDING RESOLUTION NO. 2025-28
WHEREAS, the Proposed Revised Budget for the operations of the City of Needles, California for fiscal year 2025-26 has been prepared and submitted to the City Council; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Needles, California does hereby approve and adopt the 2025–2026 fiscal year Proposed Revised Budget for the operation of the City of Needles as submitted.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 14th day of April, 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 9.

RESOLUTION 04-14-2026-NPUA

A RESOLUTION OF THE NEEDLES PUBLIC UTILITY AUTHORITY

OF THE CITY OF NEEDLES, CALIFORNIA

ADOPTING THE PROPOSED REVISED BUDGET FOR FISCAL YEAR
2025–2026, AMENDING RESOLUTION NO. 06-10-2025-NPUA
WHEREAS, the Proposed Revised Budget for the operations of the NPUA for fiscal year 2025-26 has been prepared and submitted to the Needles Public Utility Authority; NOW, THEREFORE, BE IT RESOLVED that the Needles Public Utility Authority of the City of Needles, California does hereby approve and adopt the 2025–2026 fiscal year Proposed Revised Budget for the operation of the NPUA as submitted.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the Needles Public Utility Authority of the City of Needles, California, held on the 14th day of April, 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 9.

RESOLUTION NO. 2026-14-HACN

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF NEEDLES,

CALIFORNIA ADOPTING THE PROPOSED REVISED BUDGET FOR FISCAL YEAR 2025–2026, AMENDING RESOLUTION NO. 2025-10-HACN
WHEREAS, the Proposed Revised Budget for the operations of the Housing Authority of the City of Needles, California for fiscal year 2025-26 has been prepared and submitted to the Board of Commissioners of the Housing Authority of the City of Needles, NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Needles, California does hereby approve and adopt the 2025–2026 fiscal year revised budget for the operation of the Housing Authority of the City of Needles as submitted.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Needles, California, held on the 14th day of April, 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Janet Jernigan, Mayor
ATTEST:

Candace Clark, City Clerk
APPROVED AS TO FORM:

Lena Wade, Deputy City Attorney
Agenda Item 9.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 14, 2026
Title: Accept and Adjust the Adopted FY26 Budget for the Q4 2025 T-Mobile Hometown Grant Program Award in the amount of $50,000.

Background: The City of Needles submitted an application to T-Mobile’s Hometown Grant Program for the development of a downtown Route 66 Arch. On February 19, 2026, the City was officially notified that its Q4 2025 submission was selected for funding.

The $50,000 award will support the construction of the Route 66 Drive-Thru Arch along Front Street near the Train Park and the historic El Garces. The arch is designed as a landmark feature celebrating the upcoming Route 66 Centennial in 2026 and will serve as a visual gateway into downtown, encouraging travelers to stop, take photos, and patronize local businesses. This project aligns with the City’s broader downtown revitalization and tourism activation efforts.

Fiscal Impact: $50,000 in grant funds to complete the Route 66 Drive-Thru Arch project.

Environmental Impact: None
Recommended Action: Accept and Adjust the Adopted FY26 Budget for the Q4 2025 T-Mobile Hometown Grant Program Award in the amount of $50,000.

Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
4/9/2026
04/09/26
Agenda Item 10.

T-Mobile Hometown Grant Recipients Quote Sheet
Pine Bluff, Arkansas:
“We are honored that Pine Bluff has been selected as a recipient of a T-Mobile Hometown Grant from among nearly 900 applicants nationwide. This investment will help advance the Delta Rhythm & Bayous Cultural District in downtown Pine Bluff, which, upon completion, will be the largest outdoor gallery dedicated to Delta music and culture in the country. As a primary anchor along the Delta Rhythm & Bayous Highway connecting Pine Bluff, Arkansas, to Indianola, Mississippi, our city is proud to help tell a more complete story of the Delta’s extraordinary musical heritage. We are grateful to T-Mobile for investing in communities like ours.”
- Vivian Flowers, Mayor, Pine Bluff
“The Delta Rhythm & Bayous Cultural District is the Trail Head to the 1st Multi-state Music Highway (DRB Highway) which ends at the B.B. King Museum in Indianola, MS. Regional revitalization is a key tourism development strategy for our city and burgeoning cultural, arts and entertainment district. Thank you to TMobile for investing in the Arkansas Delta.” - Michael McCray, Public Relations & Cultural Development Specialist, Pine Bluff Advertising & Promotion Commission
Texarkana, Arkansas:
“We are deeply grateful to T-Mobile for this generous grant, which will strengthen the interactive library at We Are Washington. This investment gives our young people access to hands-on learning tools and digital resources. With T-Mobile support, we’re creating opportunities that help students feel seen, supported, and empowered to imagine a bright future.”
- Allen Brown, Mayor, Texarkana, Arkansas
“T-Mobile’s investment in We Are Washington will help transform this space into a vibrant hub where students can engage with technology, learning tools, and hands-on experiences. Interactive learning spaces like this are a proven gateway to opportunity and help spark creativity for the next generation. The City of Texarkana would like to extend our sincere thanks to T-Mobile for their investment and to We Are Washington for their vision, passion, and dedication.”
- Tyler Richards, City Manager, Texarkana, Arkansas
"We are incredibly grateful to T-Mobile for investing in the future of our children - this grant will transform our library into an innovative, inspiring space where imagination, learning, and opportunity come to life at We Are Washington."
- Donnie Reid, Founder, We Are Washington
Agenda Item 10.
"This investment allows us to create a library that will serve as a dynamic learning environment for the children and families we support every day. We're grateful to T-Mobile for partnering with us to expand access to resources that encourage creativity, curiosity, and growth." - Paige Godfrey, Treasurer, We Are Washington
"We Are Washington means giving our kids a place to belong, grow, and believe in their future. I'm incredibly grateful for partners like T-Mobile who see the vision and invest in the next generation." - Destiny Thomas, Outreach Director, We Are Washington
“There is something powerful happening at We Are Washington. The pride radiating from this space is unshakable, and its impact on youth and families is undeniable. T-Mobile is helping amplify what this community is building together.”
- Amanda Shavers, Founder & CEO, Arc & Root Funding Co. | Leadership Texarkana Chino Valley, Arizona:
"In a small town like Chino Valley, projects like this bring people together. Thanks to T-Mobile's support, we're creating a space where our community can gather, play, and make lasting memories." - Tom Armstrong, Mayor, City of Chino Valley
Nogales, Arizona:
"The T-Mobile Hometown Grant awarded to the Santa Cruz County Justice Project (SCCJP) is a transformative investment in the heart of our downtown. No organization is more deserving — SCCJP brings the vision, professionalism, and values this community needs. Their justice education center will unite Nogales residents and open doors to brighter futures for all." - Evan Kory, President, La Linea Art Studio, Wittner Museum and Fellow, Economic Recovery Corps "The T-Mobile Hometown Grant is a crucial lifeline for the Santa Cruz County Justice Project (SCCJP), a new initiative that brings legal advocacy to an underserved population. As a retired judge from the Santa Cruz County Justice Court, I know firsthand how essential this project is for the people in our community. Those who come before the court seeking help with orders of protection, eviction actions, or debt collection cases are often unable to afford an attorney. SCCJP provides education, self-help tools, and legal guidance that create a fairer and more supportive community for all. The SCCJP internships have also offered meaningful learning opportunities for local youth who have helped develop the tools that assist residents. This grant allows SCCJP to continue helping people understand their rights and navigate legal challenges by transforming their downtown Nogales space into a welcoming community center for justice, learning, and connection."
Agenda Item 10.
- Hon. Mary Helen Maley, Retired Santa Cruz County Justice of the Peace and Santa Cruz County Justice Project Board Member
Needles, California:
“Needles is honored to be selected as a recipient of a T-Mobile Hometown Grant! As we celebrate the 100th Anniversary of Historic Route 66 this year, this investment from T-Mobile represents more than a monument — it represents momentum for our community. Located near our official Route 66 roadside rest stop at Train Park, the new arch will serve as a permanent gateway feature that strengthens our downtown corridor, enhances the visitor experience, and reinforces Needles’ identity as California’s eastern gateway to the Mother Road. We are grateful for T-Mobile’s partnership and continued commitment to Needles.” - Janet Jernigan, Mayor, City of Needles
Henderson, Kentucky:
"Central Park is one of our most popular recreational areas, so I am thrilled that we are able to make it even better with needed safety upgrades. I extend my gratitude to the team who is spearheading this project and to T-Mobile for the grant that is making it happen. These enhancements help ensure that the park remains a welcoming community gathering space for years to come." - Brad Staton, Mayor, City of Henderson
Scandia, Minnesota:
“As Mayor, I see firsthand how vital shared connections are to the health of our community. The T-Mobile Hometown Grant is helping Scandia build an amazing venue that will celebrate local talent, preserve our stories and heritage, and increase community pride. Thank you, T-Mobile! The Water Tower Barn project will activate an under-used public space, provide opportunities for local businesses and civic groups to engage, and offer young people and families enriching cultural experiences -- ultimately enhancing Scandia's quality of life.”
- Steve Kronmiller, Mayor, City of Scandia
“As a downtown business owner, I see how much Scandia needs visible, welcoming places where people naturally gather. The restoration of a working windmill and water system at Water Tower Barn will create a place people recognize, talk about, and return to — a shared point of pride that feels both historic and alive.

I can easily imagine families stopping after the farmers market, grandparents explaining how the windmill works, and visitors lingering downtown longer because there is something meaningful to see and experience.”
- Dawn Pivec, Business Owner in Scandia
Agenda Item 10.
“The Water Tower Barn project isn't about nostalgia for the past. It's about rooting Scandia's future in a sense of place. By activating a central, walkable site with inclusive programming and a high-visibility windmill atop a historic barn, SHA is helping create reasons for residents to stay in town, support local businesses, and feel invested in Scandia.” - Dan Lindgren, Fast-Pitch Softball Tournament Organizer in Scandia “We are thrilled that T-Mobile is joining us at a pivotal moment of fundraising for WATER TOWER BARN SCANDIA arts and heritage center—helping us cross the finish line to create a vibrant community space that will bring people together through music, theater, history, visual arts, and environmental programs. TMobile's support is a powerful investment in rural placemaking—transforming a historic tankhouse barn into a welcoming destination where creativity, culture, and community life can thrive.” - Susan Rodsjo, Board Chair, Scandia Heritage Alliance
Nettleton, Mississippi:
“Our city and Main Street Association have worked tirelessly with modest resources to strengthen our community, and today T‑Mobile’s support gives us fresh momentum and the freedom to bring new ideas to life—beginning with a new public tennis court that will benefit Nettleton for years to come.” - Phillip Baulch, Mayor, Town of Nettleton
West Point, Mississippi:
"The Black Prairie Blues Museum is a vibrant part of our downtown that draws local residents and visitors from all over the world. Being chosen as a T-Mobile Hometown Grant recipient will elevate the museum's programs and events, promoting our culture, music and history in the Blues and bringing the community together. "
- Lisa Klutts, Executive Director, The Growth Alliance
Grants, New Mexico:
“We are incredibly grateful to T-Mobile for investing in the revitalization of the Grants Amphitheater. This funding will help transform the space into a vibrant community gathering place where residents and visitors can come together for music, events, and cultural celebrations. Projects like this strengthen our downtown, support local businesses, and create more opportunities for families and visitors to experience Grants. The amphitheater will play an important role in expanding community events, outdoor entertainment, and tourism in our historic Route 66 corridor. This investment is not just about improving a physical space—it’s about building community pride and creating memorable experiences for generations to come.” - Grants MainStreet
Lima, Ohio:

Agenda Item 10.
"This investment from T-Mobile's Hometown Grant program is a powerful vote of confidence in Lima's future and in the strength of inclusive growth. Renovating the Mizpah Community Center will transform this space into a renewed hub for learning, connection, and opportunity - ensuring more residents have access to the resources they need to thrive. When outside partners invest in the priorities our community identified, it allows us to open doors, remove barriers, and create pathways forward for everyone." - Sharetta Smith, Mayor, City of Lima
Ashland, Oregon:
“This project is more than a mural; it’s a living time capsule of Ashland's culture. It layers the Indigenous stories of this land with our town's cultural history. By bringing together John Pugh’s place-based art with interactive AI, we are creating a space where our city's history meets its future. We are incredibly grateful to T-Mobile for recognizing the potential of this project and investing in Ashland's creative and scientific community.”
- Cynthia Salbato, Artnow and White Rabbit Creator Clubhouse "This installation is designed to be an artistic land acknowledgement,' said John Pugh. "I am grateful to have worked closely with members of the Indigenous community, especially Russell Beebe and David West, to get these stories right. It is their stories, shared with such generosity, that allow this artwork to bridge the past with the future of Ashland. "
- John Pugh, Muralist, Big Dog Studios
“This collaboration not only creates a unique landmark for Ashland but provides an equally unique hands-on opportunity for SOU students to apply computer science to community creativity. An early iteration of the AI Guide won first place at the International Conference for Creative Computation last June in Brazil." - Daniel DeFreez, Professor, Computer Science, Southern Oregon University Stroudsburg, Pennsylvania:
"We are so grateful for the support of T-Mobile and the Hometown Grant, with every family we serve, a new story of hope begins."
- Kristi Hammond, Executive Director, Pocono Service for Family and Children Bristol, Tennessee:
“Appalachian Literacy Initiative is thrilled to be a recipient of the T-Mobile Hometown Grant! Access to books shouldn’t depend on geography. On the backroads of rural Appalachia, our future bookmobile will turn miles into moments - moments where curiosity is sparked, connections are made, confidence is built, and communities are strengthened.”
Agenda Item 10.
- Hannah Smith, Operations Manager, Appalachian Literacy Initiative Loudon, Tennessee:
“For nearly 40 years, the Public Library at Tellico Village has served residents of all ages, expanding their knowledge and fueling creativity. This investment will help protect and strengthen an important community resource while supporting the library’s continued growth. I’m grateful to everyone who helped make this possible and I look forward to seeing the library continue serving and inspiring the community for years to come.”
- State Representative Lowell Russell, R-Vonore
“The (T-Mobile Hometown Grant) will help finance the land recontouring for flood control for this most worthwhile and broad reaching community library….This library serves us countywide with their outreach programs.”
- Rollen “Buddy” Bradshaw, Mayor, Loudon County
“The Tellico Village Library has the largest book and e-book distribution in the county. T-Mobile could not put their money to better use than to help this library which was built with so much devotion.” - Henry Cullen, Commissioner, Loudon County
“The proposed flood prevention and drainage improvements are critical to ensuring that this vital community resource can continue operating safely and sustainably. The library’s volunteers enrich lives daily by providing books, media, companionship and programs that uplift older adults and support lifelong learning. Our facility represents only a small portion of the far-reaching impact they have on our community.”
- Katie Johnson, Business Manager, Morning Pointe Assisted Living Residence “Friends of the Tellico Village Library has done so much in our community to support others in need, I am hopeful (T-Mobile) will come to their aid in their time of need.” - Tony Gibbons, Executive Director, Loudon County Habitat for Humanity “The Public Library at Tellico Village is a library with a heart and outreach to match.” - Ruth Henderson, Chair of the Loudon County Library Board “Thank you so very much, T-Mobile, for this much-needed grant. We can now sleep at night and enjoy the pitter patter of rain on the roof instead of lying awake worrying about whether the library will flood. Your generosity for land recontouring will protect our library so we can continue our many community-based projects.”
Agenda Item 10.
- Billie Whitney, Former President, Friends of the Tellico Village Library Board of Directors “T-Mobile, your grant will guarantee the physical longevity of our community built and maintained public library. We are a privately funded library operating as an information and social hub for a diverse population, and this grant strengthens our commitment to lifelong learning for the community.” - Phyllis Thompson, Former Grants Team Lead, Friends of the Tellico Village Library Board “Fourteen years ago, the dream of a few became “The Heart of the Village,” the beautiful Public Library at Tellico Village. That dream occasionally morphed into nightmare status when Mother Nature presented challenges to the building. Yet, the Library has remained “The Heart of the Village.” Thanks to the generosity of T-Mobile, the challenges may be mastered and the dream will continue to touch and enrich the lives of Villagers and those in the outlying communities.” - Sandi Jorgensen, Former President, Friends of the Tellico Village Library Board of Directors Rio Grande City, Texas:
“This grant is a meaningful and a Blessing investment for the Hope and Help Center of Starr.” - Eleazar Velasquez, Commissioner, Precinct 3, La Casita ‘At the Hope and Help Center, we are committed to creating a safe and supportive space. This funding helps to continue providing essential resources that strengthen our community.” - Lamar De La Cruz Justice of the Peace, Precinct 6
“Thank you to all these wonderful ladies that are truly working for the community. Thank you the T-mobile for your support.”
- Jose “PapaJoe” Garza, Constable, Precinct 6
“Excellent Hope and Help Center will be able to service many families.” - Rene Fuentes, Sheriff, Starr County
“What a blessing and great news! The Hope and Help Center is a very essential assistance to Starr residents.”
- Evangelina Valdez, Nurse Practitioner
“Congratulations and Keep up the good work Hope and Help Center of Starr.” - Orlando Velasquez, District Clerk
Agenda Item 10.
“Thank you, T-Mobile, for helping our community and The Hope and Help Center of Starr they are wonderful persons and excellent service.”
- Fermin Orta, Constable, Precinct 8
“Excellent Job Hope and Help Center of Starr. Thank you T-Mobile for this great opportunity for our community.”
- Rose Benavides, The President of Starr County Industrial Foundation Charlotte, Vermont:
"We are incredibly grateful to Main Street America and T-Mobile for this Hometown Grant. This investment in our community will fund a generator for our library, ensuring it can continue to serve as a warming and cooling center — and a safe haven during power outages and other emergencies — for our most vulnerable residents. This kind of partnership is exactly what makes small towns resilient." - Natalie Kanner, Chair of the Charlotte Selectboard
Rocky Mount, Virginia:
“This project reflects our commitment to keeping our parks not only active and vibrant, but safe. By placing AEDs at high-use facilities, we’re improving emergency readiness across our system.” - Paul Chapman, Director of Parks & Recreation, Franklin County “Youth sports participation continues to grow in Franklin County. Having AEDs readily available gives our coaches and families added confidence that we’re prepared when seconds matter.” - Nikki Custer, Youth Athletic Manager, Franklin County Parks & Recreation “We’re grateful to see this grant awarded to Franklin County. Having AEDs at our ballfields adds an extra layer of protection for our players, families, and volunteers.” - James Hunt, President, Franklin County Baseball Inc.
“Our parks bring the community together. Adding AED access helps ensure those spaces remain safe and welcoming for everyone.”
- Katie Waters, Franklin County Lacrosse Club
“This investment strengthens the safety net around our athletes and supports the positive environment we work hard to create at our fields.”
Agenda Item 10.
- Jamie Tuck, Franklin County Sandlot
“Franklin County Department of Public Safety is proud to partner with Parks & Recreation on the installation of Automated External Defibrillators (AEDs) in our public parks. This collaborative initiative strengthens community safety by ensuring that life-saving equipment is readily accessible in the places where our families gather and recreate. Sudden cardiac arrest can happen without warning, and rapid access to an AED dramatically improves survival outcomes. We are especially grateful to T-Mobile for their generous support of this program and their investment in the health and safety of our community. Through strong partnerships and shared commitment, we continue to build a safer, more resilient Franklin County.” - Chief Mike Fowler, Franklin County Fire & EMS
Manitowoc, Wisconsin:
“The City of Manitowoc is so thankful for T-Mobile for playing a role in bringing Red Arrow Park’s upgrades to fruition. We can’t wait to welcome thousands of visitors and residents to enjoy the beach at our events and at their leisure later this summer.”
- Courtney Hansen, Director of Tourism, City of Manitowoc Agenda Item 10.

City of Needles
817 Third Street, Needles, California 92363
(760) 326-2113  FAX (760) 326-6765
www.cityofneedles.com
Mayor Janet Jernigan
Vice Mayor Ellen Campbell
Councilmember Tona Belt
Councilmember Jamie McCorkle
Councilmember JoAnne Pogue
Councilmember Henry Longbrake
Councilmember Larry Ford
City Manager Patrick Martinez
Needles Route 66 Arch Project – T-Mobile Hometown Grant Proposal Population: 4,900 (rural, <50,000)
Entity Type: Local government (eligible applicant)
Community Background
Founded in 1883, the City of Needles is a historic Route 66 community nestled along the western banks of the Colorado River in eastern San Bernardino County, within California’s Mojave Desert. Once a bustling stop along the famed “Mother Road,” Needles has a proud legacy rooted in tourism, rail, and river commerce. Today, the city serves as a gateway to the Mojave National Preserve and continues to welcome travelers exploring the iconic Route 66.

Despite its rich cultural and historical assets, Needles is one of the most disadvantaged and isolated rural communities in California. Median household income is $48,061 and approximately 55% of residents receive public assistance. Needles is also home to members of the Fort Mojave Indian Tribe, adding cultural diversity and heritage but underscoring the need for economic opportunity and revitalization.

Project Overview: Route 66 Arch – A Landmark for the Next Century To celebrate its deep connection to Route 66 and revitalize its historic downtown, the City of Needles proposes constructing a 13.5-foot by 16.5-foot metal Route 66-themed novelty drive-through arch. Designed in the shape of the classic Route 66 highway shield, this distinctive structure will sit near the Needles Train Park and historic El Garces Building along Front Street, allowing vehicles to pass through and creating a unique photo opportunity.

The arch will:
 Serve as a visual anchor for downtown revitalization.  Mark the upcoming 100th Anniversary of Route 66 in 2026.  Attract travelers, encourage social media sharing, and drive foot traffic to local businesses.
 Reignite civic pride in a historically underserved area.

Community Engagement
 The Route 66 Arch has been discussed for nearly a decade through public meetings, visioning sessions, and City Council workshops.
 More than 150 residents have participated in design discussions; surveys and social media polls show strong public enthusiasm for creating a Route 66 landmark.  Local business owners have voiced support, citing increased visitor stops and sales opportunities.
 The Fort Mojave Indian Tribe and the Needles Chamber of Commerce have expressed partnership interest.
[Rest of Page Left Intentionally Blank]
Agenda Item 10.

Budget & Funding Plan
Item Cost
Steel fabrication & powder coat $28,000
Structural engineering & design $5,000
Site prep & concrete foundation $6,000
Electrical & solar LED lighting $4,500
Smart QR tourism sign / plaque $1,500
Installation (crane & labor) $4,000
Permitting & inspections $1,000
Contingency (10%) $5,000
Total Project Cost $55,000
 City of Needles match / in-kind: $5,000 (completion of structural engineering and design, in-kind match of staff time to complete).
 T-Mobile Request: $50,000 (covers fabrication, lighting, smart sign, and installation).

Project Timeline (Shovel-Ready)
Phase Date
Final design & permit approval March 2026
(complete)
Fabrication contract awarded April 2026
Steel fabrication & finishing May – July 2026
Site preparation & foundation August 2026
Arch delivery & installation September 2026
Lighting/tech setup & inspection October 2026
Ribbon Cutting & Centennial Kick-off November 2026
All city approvals are complete; building permit ready to issue once funding is confirmed. No Caltrans or state highway approvals required for this site.

Letters of Support (to be attached)

1. Needles Chamber of Commerce / Visitor Center

2. Needles Regional Museum

3. Needles Tourism
These letters confirm community buy-in, business support, and the project’s alignment with regional tourism goals.

Technology & Innovation Tie-In
 Solar-powered LED lighting with smart controls for energy efficiency.  Interactive QR code plaque linking visitors to city tourism pages, Route 66 history, and local businesses.
 Opportunity for T-Mobile brand placement as “Connectivity Partner,” reinforcing the company’s rural technology mission.

Impact & Measurability
 Visitor Growth: Over 500,000 visitors annually stop in Needles (Jack Smith Park & river tourism). Projected 10% increase in downtown stops = +50,000 visitors/year.  Local Economy: Each visitor stop estimated at $12 average spend = ~$600,000 new downtown revenue annually.

Agenda Item 10.
 Digital Reach: Social media posts tagged #Route66Arch expected to generate >1M impressions annually.
 Equity: Benefits low-income and tribal residents by increasing small business traffic and local job hours for fabrication/installation.

Sustainability & Maintenance
 Ownership: City of Needles Public Works Department will maintain the arch.  Funding: Annual maintenance cost ($1,000) absorbed into existing Parks & Recreation budget.
 LED/solar system chosen for low operational cost and long lifespan.

Grant Request & Why T-Mobile Matters
We respectfully request $50,000 from the T-Mobile Hometown Grant program to close the final funding gap for construction and installation. T-Mobile’s investment will:
 Deliver a long-awaited landmark just in time for the Route 66 Centennial.  Showcase T-Mobile’s commitment to small-town revitalization, connectivity, and cultural preservation.
 Provide a high-visibility, brandable destination for travelers, with a direct technology story (smart signage & solar lighting).

Conclusion
The Route 66 Arch will be more than a structure—it will be a symbol of resilience, identity, and renewal for Needles. With T-Mobile’s support, this project will transform our historic downtown into a destination, fuel economic activity, and strengthen civic pride in one of California’s most rural, underserved towns.

Together, we can ensure Needles remains a vital part of the Route 66 story for the next 100 years—and celebrate it with a modern, tech-connected landmark that proudly says: This is Needles.

Attachments:
 Rendering of proposed arch & site map
 Five letters of support
 Photos of downtown/Front Street
 Final design & permit approval letter
[Rest of Page Left Intentionally Blank]
Agenda Item 10.

Proposed Project – Installation of a 13 ½ ft x 16 ½ ft metal Route 66 Drive-Thru Arch Proposed Location – Front Street at the City of Needles Train Park Agenda Item 10.

City of Needles, California
Request for City Council Action
CITY COUNCIL NPUA HACN Regular Special
Meeting Date: April 14, 2026
Title: Authorize the City Manager to Execute the Restricted Grant Agreement (RGA) with Caltrans and Adjust the Adopted FY 2025–2026 Budget for the Clean California Community Cleanup & Employment Pathway (CCEP) Grant Program award in the amount of $169,355
Background: Caltrans has awarded the City of Needles $169,355 through the Clean California Community Cleanup & Employment Pathway (CCEP) Grant Program for the City’s “Revive the Desert – Illegal Dumping Cleanup & Community Stewardship” project.

The CCEP program, established under California Streets and Highways Code Section 91.41, supports litter abatement, public space beautification, and workforce development opportunities for individuals facing barriers to employment, including those experiencing homelessness, justice-impacted individuals, and at-risk youth.

Since launching in 2021, Clean California has removed millions of cubic yards of litter, hosted hundreds of free dump days, mobilized thousands of volunteers, and created more than 18,000 jobs statewide. The program is designed to deliver both environmental improvement and economic opportunity.

Needles’ selection in this competitive program reflects the City’s continued ability to secure state investment aligned with its beautification, stewardship, and workforce goals.

The grant will fund two temporary Maintenance Construction Worker positions, along with staff support, equipment, and disposal services to complete cleanup operations. The project will address approximately 25 illegal dumping sites throughout the City of Needles. The grant performance period will begin upon Caltrans approval and issuance of a Notice to Proceed and will run through November 1, 2027.

Acceptance of the grant requires execution of the Restricted Grant Agreement (RGA) and a corresponding budget adjustment to appropriate the awarded funds.

Fiscal Impact: $169,355 in grant funding for illegal dumping cleanup and associated project costs.

No local match is required and there is no impact to the General Fund.

Environmental Impact: The project will improve environmental conditions by removing hazardous waste and debris and promoting responsible disposal practices.

Recommended Action: Authorize the City Manager to execute the Restricted Grant Agreement (RGA) and adjust the adopted FY 2025–2026 Budget for the Clean California Community Cleanup & Employment Pathway (CCEP) Grant Program award in the amount of $169,355
Submitted By: Rainie Torrance, Utility Manager
City Manager Approval: Date:

Other Department Approval (when required): Date:
4/9/2026
4/10/26
Agenda Item 11.

City of Needles
Agreement Number 08-CCEP-5220(012)
AMS ADV ID: 082600103
Project Number: CCEP 08-CCEP-08