Agenda packet — Oxnard City Council, October 18, 2022 (part 1 of 5)

Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be ma
de available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during c
ustomary business hours. Agenda reports are also
on the City of Oxnard web site at www.oxnard.org.

In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.

Agenda Item time estimates: (Presentation / Council Discussion / Public Comment) AGENDA

OXNARD CITY COUNCIL
OXNARD

COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY

OXNARD FINANCING AUTHORITY

OXNARD HOUSING AUTHORITY
Meeting Location: Council Chambers, 305 West Third Street October 18, 2022
Closed Session - 4:30 PM
Appointment
Items - 5:00 PM
Regular
Meeting - 6:00 PM
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2. Enter Meeting ID:885 1969 9611

3. Passcode: 072057
If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom calling in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room.

IN ACCORDANCE WITH ASSEMBLY BILL 361 AND IN RESPONSE TO THE DECLARED STATE AND

LOCAL EMERGENCIES DUE TO THE NOVEL CORONAVIRUS, THE LEGISLATIVE BODY WILL MEET IN- PERSON AND REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.ORG.

To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.

The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.

Video
recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.

YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:

1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.

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b. Submit an email to [email protected] no later than 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.

AMENDED AGENDA
Section A – Added Legislative Body: Oxnard Financing Authority Appointment Item D.1 - Revised Legislative Body: Housing Authority Added Public Hearings Section & Moved Report Item M.1 to Public Hearings (Item L.1) 1 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 2

3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING a. To provide public comment during the meeting dial (888) 475-4499 and enter the Meeting ID and Passcode listed above as the Zoom details for this meeting. When the presiding officer announces the particular item on the agenda you want to speak on, press *9 to raise your hand while in the zoom waiting room. Once called on, press *6 to unmute your phone.
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.

Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.

In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call- in option or internet-based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on a meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislative body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored. * The City has filed pre-election and post-election lawsuits regarding the validity of Measure M.

A. ROLL CALL, POSTING OF AGENDA
THE FOLLOWING LEGISLATIVE BODIES ARE MEETING: City Council, Housing Authority, and Oxnard Financing Authority.

B. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, a person may address the legislative body only on matters appearing on the closed session agenda. The presiding officer shall limit public comments to three minutes.

C. CLOSED SESSION (4:30 PM)

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Government Code section 54956.9(d)(2))
Based on existing facts and circumstances, there is significant exposure to litigation against the City in one potential case pertaining to groundwater allocation that may impact the City’s water supply, in OPV Coalition; et al. v. Fox Canyon Groundwater Management Agency; et al. (SBSC Case No. VENCI00555357)
Legislative Body: City Council
D. APPOINTMENT ITEMS (5:00 PM)

1. Housing Department
SUBJECT: The Role of the Public Housing Authorities in Homelessness. (0/15/15) RECOMMENDATION: That the Board of Commissioners of the Housing Authority of the City of Oxnard:

1. Receive a Report on the United States Department of Housing and Urban Development's Housing Choice Voucher Programs progression over time to respond to changing housing needs; and
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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 3

2. Direct staff to prepare and present to the Oxnard Housing Authority Board of Commissioners a comprehensive proposal for adoption of a homeless services program including the continued solicitation of special purpose vouchers, future voucher project-based commitments and adoption of a local preference in support of homeless individuals.

Legislative Body: Housing Authority
Contact: Emilio Ramirez, (805) 385-8094

2. Housing Department
SUBJECT: Public Housing Agency (PHA) Governance and Financial Management Training. (10/15/5)

RECOMMENDATION: That the Board of Commissioners of the Housing Authority of the City of Oxnard receive a presentation by William M. Rhodes, Portfolio Management Specialist/UPCS/UPCS-V SME, for the United States Department of Housing and Urban Development on governance training, “Lead the Way” and “Whistleblower Protection”.

(This item did not originate in Committee.)
Legislative Body: Housing Authority
Contact: Emilio Ramirez, (805) 385-8094
E. OPENING CEREMONIES (6:00 PM)
Pledge of allegiance to the flag of the United States.

F. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

G. REPORT OF CITY MANAGER/EXECUTIVE DIRECTOR/SECRETARY

The City Manager/Executive Director/Secretary shall report on items of interest to the legislative body occurring since the last meeting. The legislative body cannot enter into detailed discussion or take action on any item presented during this report. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion.

1. Public Works Department
SUBJECT: Ratification of Director Orders regarding the water shortage emergency and mandatory water conservation measures.

RECOMMENDATION: That the City Council adopt a resolution ratifying orders issued by the Director in response to the previously proclaimed water shortage emergency and mandatory water conservation measures.

Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055
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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 4
H. CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY/FINANCING AUTHORITY

BUSINESS/COMMITTEE REPORTS

At this time, a member of the legislative body may make a brief announcement, or make a brief report on his or her activities. Further, members of the legislative body may request to schedule consideration of whether to place an item on a future agenda. The legislative body cannot enter into detailed discussion or take action on any item presented during this report. The member's report shall not exceed three minutes, unless additional time is granted by the presiding officer.

I. REVIEW OF INFORMATION/CONSENT AGENDA
The members of the legislative body will consider whether to remove Information/Consent Agenda items for discussion later during the meeting.

J. PUBLIC COMMENTS ON INFORMATION/CONSENT AGENDA
At this time, a person may address the legislative body only on matters appearing on the information/consent agenda. The presiding officer shall limit public comments to three minutes.

K. INFORMATION/CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the City Council approve the minutes of the September 6, 2022 regular meeting as presented.

Legislative Body: City Council
Contact: Rose Chaparro, (805) 385-7805

2. Public Works Department
SUBJECT: First Amendment to Professional Services Agreement A-8303 with Kennedy Jenks Consultants for the Central Trunk Sewer Main Replacement Project PW 21-27.

RECOMMENDATION: That the City Council approve and authorize the Mayor to execute a First Amendment to Professional Services Agreement A-8303 with Kennedy Jenks Consultants in the amount of $317,104 for a new not to exceed contract amount of $676,998 for additional design work required for the Central Trunk Sewer Main Replacement Project PW 21-27 (Project No. 206602).

This item did not originate in Committee as this is a capital improvement project specifically listed in the City's Capital Improvement Program budget, which was previously approved by the City Council.

Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

3. Public Works Department
SUBJECT: Agreement A-8493 with BPR, Inc. for On-Call Sidewalk, Curb and Gutter, and Spandrel Grinding Services Project, Specification No. PW 22-130.

RECOMMENDATION: That the City Council approve and authorize Agreement A-8493 with BPR, Inc. for a total amount not to exceed $800,000 for a three year term for the On-call Sidewalk, Curb and Gutter and Spandrel Grinding Services Project, Specification No. PW 22-130 (Project No. MO3102).

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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 5
(Public Works and Transportation Committee approved 3-0.) Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

4. Public Works Department

SUBJECT: Memorandum of Understanding and Caltrans Cooperative Agreements for the Village Specific Plan (Wagon Wheel) Berm/Flood Protection and U.S.101 Ventura Road Off-Ramp Projects.

RECOMMENDATION: That the City Council approve and authorize the following:

1. The Mayor to execute a Memorandum of Understanding with Oxnard CRFL Partners, LLC, for Caltrans Right of Way Improvements (Agreement No. A-8497);

2. The Mayor to execute Caltrans Cooperative Agreement 07-5237 for Berm Construction (Agreement No. A-8348); and

3. Adopt a Resolution Authorizing the Mayor to Execute forthcoming Caltrans Cooperative Agreement 07-5238 for U.S. 101 Exit 63A Off-Ramp Construction (Agreement No. A-8349).

(Public Works and Transportation Committee approved 3-0.) Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

5. Public Works Department
SUBJECT: Amend Department-Wide Blanket Purchase Orders that have Not to Exceed (NTE) Amounts Greater than $200,000 Each.

RECOMMENDATION: That the City Council approve and authorize the Purchasing Agent to amend the following:

1. Purchase Order #8797 with Consolidated Electrical Distributors for an additional $100,000 for a new not to exceed amount of $300,000 through June 30, 2023;

2. Purchase Order #8831 with Napa dba Ventura County Auto Supply for an additional $200,000 for a new not to exceed amount of $400,000 through June 30, 2023;

3. Purchase Order #8841 with Ferguson Enterprise, LLC for an additional $150,000 for a new not to exceed amount of $350,000 through June 30, 2023;

4. Purchase Order #8842 with Famcon Pipe & Supply Inc. for an additional $400,000 for a new not to exceed amount of $600,000 through June 30, 2023; and

5. Purchase Order #8859 with O’Reilly Auto Parts for an additional $100,000 for a new not to exceed amount of $300,000 through June 30, 2023.

(Public Works and Transportation Committee approved 3-0.) Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

6. Community Development Department
SUBJECT: M6 Contract Amendment.

RECOMMENDATION: That the City Council approve and authorize the Mayor to execute a First Amendment to Agreement Number A-8418 with M6 Consulting, Inc for on-call development plan check services, increasing the agreement amount by $1,500,000.00 for a total agreement amount of $2,000,000.00 through February 1, 2025.
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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 6

(Community Services, Public Safety, Housing & Development Committee approved 3-0.) Legislative Body: City Council
Contact: Ashley Golden, (805) 385-7478

7. Police Department
SUBJECT: Southern California High Technology Task Force Service Agreement.

RECOMMENDATION: That City Council approve and authorize the Mayor to execute a two- year service agreement (Agreement #A-8490) with the County of Ventura and the Ventura County Sheriff's Office for services with the Southern California High Technology Task Force (SCHTTF) in an amount not to exceed $250,000.

(The Community Services, Public Safety, Housing & Development Committee approved 3-0 on September 27, 2022.)
Legislative Body: City Council
Contact: Jason Benites, (805) 385-7624
L. PUBLIC HEARINGS

1. Finance Department
SUBJECT: Approval of 2022 Lease Revenue Bonds, Series A and B. (0/15/15)

RECOMMENDATION: 1) That the City Council conduct a public hearing and approve a resolution approving the issuance by the City of Oxnard Financing Authority of (I) not to exceed $36,000,000 of City of Oxnard Public Financing Authority Lease Revenue Bonds, Series 2022A (Tax Exempt), and (II) not to exceed $9,000,000 of City of Oxnard Financing Authority Lease Revenue Bonds, Series 2022B (Federally Taxable); approving the execution and delivery of various related documents in connection with the offering and sale of such bonds; and other matters related thereto.

2) That the City of Oxnard Financing Authority’s Board of Directors approve a resolution authorizing the issuance of (I) not to exceed $36,000,000 of City of Oxnard Public Financing Authority Lease Revenue Bonds, Series 2022A (Tax Exempt), and (II) not to exceed $9,000,000 of City of Oxnard Financing Authority Lease Revenue Bonds, Series 2022B (Federally Taxable); approving the execution and delivery of various related documents in connection with the offering and sale of such bonds; and other matters related thereto.

Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/XVVlaQEB-ds
Legislative Body: City Council and Oxnard Financing Authority Contact: Betsy George, (805) 200-5400
M. REPORTS

1. Community Development Department
SUBJECT: Climate Action and Adaptation Plan and an Addendum to the 2030 General Plan Program Environmental Impact Report (PEIR; SCH # 2007041024). (15/10/10)

RECOMMENDATION: That the City Council:

1. Approve the associated Addendum to the PEIR;
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2. Approve the Draft CAAP with recommended edits and any further Council edits; and

3. Direct staff to produce the Final CAAP.

(Community Services, Public Safety, Housing & Development Committee and Public Works & Transportation Committee both received a presentation and provided feedback on the City’s Draft CAAP. No formal vote taken.)

(Presentation will be live upon consultant's request.)
Legislative Body: City Council
Contact: Ashley Golden, (805) 385-7478

2. City Attorney Department
SUBJECT: Options to Fill Council Vacancy. (10/15/20)

RECOMMENDATION: That the City Council receive a report regarding the vacancy in the District 6 City Council seat and take one of the following actions to fill the vacancy:

1. Call a special election for March 7, 2023 to fill the remainder of the District 6 City Council term (which runs until November 2024) by adopting the following resolutions:
a. A resolution calling and giving notice of a special election on March 7, 2023 to fill the remainder of the District 6 City Council term;
b. A resolution requesting the Ventura County Board of Supervisors authorize the Ventura County Elections Division to render specified services to conduct the March 7, 2023 special election; and
c. A resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at the special election to be held on March 7, 2023.

2. Direct staff to: a) commence the process to appoint the District 6 Councilmember on or before November 29, 2022, with a term to run until November 7, 2023; and b) on or before November 29, 2022 return to the City Council for the appointment of the District 6 Councilmember and the adoption of a resolution calling and giving notice of holding a special election on November 7, 2023, to fill the remainder of the District 6 term, which runs until November 2024. (Any potential appointee or candidate must be a resident of District 6, at least 18 years of age, and a registered voter.)

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/rkE9o-FSC_w
Legislative Body: City Council
Contact: Stephen Fischer, (805) 385-7483

3. Public Works Department
SUBJECT: Proposed Speed Hump Program. (0/15/15)

RECOMMENDATION: That the City Council:

1. Approve the proposed speed hump program as outlined in this staff report; and

2. Direct the City Manager or his designee to implement procedures to effectuate the Program as 7 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 8
outlined in the staff report.

(Public Works and Transportation Committee approved 3-0 at a Special Meeting on September 17, 2022)

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/n0-Fpo_MouA
Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

4. Public Works Department
SUBJECT: Consideration of Naming a Sports Field at Durley Park the “Helen Lopez Field". (0/10/10)

RECOMMENDATION: That the City Council:

1. Review and consider the request from the Sunset Little League, along with the recommendation from the Parks, Recreation, and Community Services Commission, to name a sports field at Durley Park the “Helen Lopez Field”; and

2. Direct staff to install appropriate signage to effectuate the naming, should it be approved, taking into consideration upcoming park improvements.

(Public Works and Transportation Committee approved 3-0.)

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/vbE4ZGRgcKo
Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

5. Public Works Department
SUBJECT: Professional Services Agreement A-8500 with Tetra Tech, Inc. for Oxnard Conduit Replacement and Rehabilitation Project PW 22-105. (0/5/5)

RECOMMENDATION: That the City Council approve and authorize the following for a total of $2,497,312 in Project funds for the Oxnard Conduit Replacement and Rehabilitation Project, Specification No. PW 22-105 (Project No. 226501):

1. The Mayor to execute Professional Services Agreement A-8500 with Tetra Tech, Inc. in the amount of $2,270,284 for the Project;

2. A Project contingency amount of $227,028 for the Project; and

3. Authorize the Finance Director or designee to approve a budget appropriation in the amount of $1,027,312 from the available fund balance from the Water Operating Fund (601) for use in this Project.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/tE9mX9OhwjU
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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY October 18, 2022 PAGE 9
Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055
N. ADJOURNMENT

9 CITY COUNCIL AGENDA REPORT

APPOINTMENT ITEMS (5:00 PM)
AGENDA ITEM NO. D.1

DATE: October 18, 2022

TO: Housing Authority

FROM: Emilio Ramirez, Housing Director, (805) 385-8094, [email protected]

SUBJECT: The Role of the Public Housing Authorities in Homelessness. (0/15/15)

RECOMMENDATION

That the Board of Commissioners of the Housing Authority of the City of Oxnard:

1. Receive a Report on the United States Department of Housing and Urban Development's Housing Choice Voucher Programs progression over time to respond to changing housing needs; and

BACKGROUND

EXECUTIVE SUMMARY

The United States Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (HCV) is a key tool to addressing the housing crisis and is in alignment with a Housing First model the City Council formally supported in July of 2021. Housing First is based on the simple idea that housing paired with supportive services can more successfully lead to recovery from homelessness. This model can be implemented in several ways, including with the provision of housing by use of a housing choice voucher which is then paired with in-unit supportive services.

The idea of combining supportive services with a housing voucher is the basic tenet of many of the special purpose vouchers which will be described in this report. Having acknowledged the benefits of a Housing First model, HUD encourages the use of housing vouchers for homeless services.

The Oxnard Housing Authority has 1,840 vouchers, and a waiting list of more than 5,700. The 2022 Point in Time Homeless Count (PIT) identified 793 homeless persons, 463 of which were unsheltered. This is an increase in the numbers of individuals experiencing homelessness in Oxnard. There was not an unsheltered PIT in 2021 due to COVID restrictions.

In alignment with the Housing First model and HUD's mission to assist very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market, staff recommends that the Board of Commissioners amend the HCV Program Administrative Plan and the Annual Agency Plan in the following areas:

1. Adoption of a local Homeless Preference to the HCV Administrative Plan; and

2. Amendment to the 2021 Annual Plan to undertake new activities related to project-based vouchers

10 These recommendations are an efficient and effective way to address the housing crisis by immediately increasing the number of affordable units and providing support services to individuals once they are housed.

This report will provide a brief history of HUD and an overview of the HCV program, as well as recommendations on opportunities to utilize this program in support of the Housing First Model to address the housing crisis.

BACKGROUND

Congress enacted the Housing Act in 1937 establishing the United States Housing Authority for “the provision of decent, safe, and sanitary dwellings for families of low income” among other purposes. In doing so, the United States started offering public housing opportunities.

Soon thereafter, housing policies in the United States changed in order to reflect the changing needs of the population, including the Housing Act of 1949, the Civil Rights Act (Fair Housing Act) of 1965, and finally the Housing and Community Development Act which created the HCV program (or most commonly known as the Section 8 program). The largest component of today's HCV program was first authorized by the Housing and Urban-Rural Recovery Act of 1983. It was originally a demonstration program, but was made permanent in 1988. During this period of transition, the United States Housing Authority became the independent cabinet department of Housing and Urban Development. The responsibility to operate the Public Housing and HCV programs was assumed by local public housing authorities, where funding for program operations was granted by HUD.

The HCV program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. In short, the subsidy is tied to the family, rather than to a unit of housing.

Housing choice vouchers are administered locally by public housing authorities who receive federal funds from the HUD to administer the HCV program. A family that is issued a housing choice voucher is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the program. Rental units must meet minimum health and safety standards.

A housing subsidy is paid to the landlord directly by the local public housing authority on behalf of the participating household. The household then pays the difference between the actual rent charged by the landlord and the amount subsidized by the HCV program.

Program regulations are found in 24 CFR Part 982.

THE HOUSING CHOICE VOUCHER PROGRAM

Since the beginning of housing public policy, HUD has been responsive to the changing needs of the community including very clear shifts from public housing to the HCV program because of the demonstrated need to deconcentrate poverty and offering fair housing choices to impoverished households. Today, the HCV Program offers seven types of special voucher programs, all of which can help Oxnard address the housing crisis and support the Housing First Model.

First, this report will define the types of vouchers and how Oxnard is utilizing the vouchers, and make recommendations on additional ways Oxnard can utilize vouchers to address the housing crisis and implement the Housing First Model.

Special Population Housing Choice Voucher Programs

Emergency Housing Vouchers Non-Elderly Disabled
Family Unification Program Tenant Protection Vouchers
Foster Youth to Independence Initiative Veterans Affairs Supportive Housing Mainstream Vouchers

Emergency Housing Vouchers
11 The Emergency Housing Voucher (EHV) program is available through the American Rescue Plan Act (ARPA). Through EHV, HUD is providing 70,000 housing choice vouchers to local public housing authorities in order to assist individuals and families who are homeless, at-risk of homelessness, fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking, or were recently homeless or have a high risk of housing instability.

(https://www.hud.gov/ehv).

The Oxnard Housing Authority was awarded a total of forty-six EHV vouchers and partnered with the Ventura County Continuum of Care to establish a formal referral process and with United Way’s Forward Home program to offer housing navigation support. Several of the families referred for the program will be able to lease in place. Without the EHV vouchers, their current subsidized assistance will terminate and they will be homeless in the very near future. EHV is not funded through the same funds as the HCV program and utilization has a positive impact (meaning it is in addition to the 1,840 Section 8 or HCV program the Authority currently operates) on the agency’s overall utilization success rate.

As of the date of drafting of this report, of the forty-six EHV vouchers, sixteen have been issued.

Family Unification Program Vouchers

The Family Unification Program (FUP) is a program under which vouchers to two different populations including:

1. Families for whom the lack of adequate housing is a primary factor in:

a. The imminent placement of the family’s child or children in out-of-home care, or

b. The delay in the discharge of the child or children to the family from out-of-home care.

2. For a period not to exceed thirty-six months, otherwise eligible youths who have attained at least eighteen years and not more than twenty-four years of age and who have left foster care, or will leave foster care within ninety days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act, and is homeless or is at risk of becoming homeless at age sixteen or older.

Public housing authorities administer the FUP in partnership with Public Child Welfare Agencies (PCWAs), who are responsible for referring FUP families and youths to the public housing authority for determination of eligibility for rental assistance. Once the PCWA makes the referral, the public housing authority places the FUP applicant on its waiting list, determines whether the family or youth meets HCV program eligibility requirements, and conducts all other processes relating to voucher issuance and administration.

(https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/family)

The Oxnard Housing Authority was awarded ten FUP vouchers and partnered with the County of Ventura Human Services Agency (HSA) to establish a formal referral process. The HSA verifies eligibility for the FUP program and provides full-service case management. The Oxnard Housing Authority verifies eligibility for the HCV program and administers the vouchers.

The Foster Youth to Independence

The Foster Youth to Independence (FYI) initiative makes HCV assistance available to public housing authorities in partnership with Public Child Welfare Agencies (PCWAs). Under FYI, public housing authorities provide housing assistance on behalf of youth at least eighteen years and not more than twenty-four years of age who left foster care, or will leave foster care within ninety days, in accordance with a transition plan described in Section 475(5)(H) of the Social Security Act, and are homeless or are at risk of becoming homeless at age sixteen or older. As required by statute, an FYI voucher issued to such a youth may only be used to provide housing assistance for the youth for a maximum of thirty-six months.

(https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/fyi) 12 The Housing Authority does not get a direct allocation of FYI vouchers.

Mainstream Vouchers

Mainstream vouchers assist non-elderly persons with disabilities. Aside from serving a special population, Mainstream vouchers are administered using the same rules as other housing choice vouchers. Funding and financial reporting for Mainstream vouchers is separate from the regular tenant-based voucher program.

(https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mainstream)

Although the Oxnard Housing Authority serves the non-elderly persons with disabilities through its regular HCV program, there is no program available for families who are in critical need of housing services. The Oxnard Housing Authority contacted local agencies to identify 1). the need for a targeted preference for homeless families and 2). opportunities to leverage resources. An overwhelming response was received from agencies who serve individuals in the City of Oxnard, including but not limited to: Mercy House, the Salvation Army, the Lighthouse for Women and Children, the Kingdom Center, Ventura County Behavioral Health, Ventura County Rescue Mission, the National Health Foundation, and Casa Aliento (former Vagabond Inn). The Oxnard Housing Authority was allocated forty Mainstream vouchers, of which thirteen have been issued.

Staff is working on issuing the remaining vouchers to eligible families. The partnering agencies are providing supportive services and housing navigation support to each applicant. Similar to the EHVs, this program does not reduce the Section 8 voucher allocation and it is funded through a separate source of funds. However, effective utilization will positively impact funding for the Section 8 program.

Recommendations to utilize these vouchers are contained later in this report.

Non-Elderly Disabled

Non-Elderly Disabled (NED) 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, or building to move from that project if they so choose. The family does not have to be listed on the voucher waiting list. Instead, they may be admitted to the program as a special admission.

https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/ned

The Housing Authority does not get a direct allocation of NED vouchers

Tenant Protection or Enhanced Vouchers

Another type of voucher, called a tenant protection voucher, is given to families that were already receiving assistance through another HUD housing program, before being displaced. These would be given when public housing is demolished, similar to what the City of Oxnard provided with “The Courts” was demolished. Another example is when a landlord terminates a Section 8 project-based rental assistance contract.

Families that risk being displaced from project-based Section 8 units are eligible to receive a special form of tenant- protection voucher, called an enhanced voucher. The "enhanced" feature of the voucher allows the maximum value of the voucher to grow to be equal to the new rent charged in the property, as long as it is reasonable in the market, even if it is higher than the payment standard. This allows a family to stay in their homes; but if they choose to move, then the enhanced feature is lost and the voucher becomes subject to the normal payment standard.

(https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/tenant_protection_vouchers)

Veterans Affairs Supportive Housing

13 Beginning in 1992, through a collaboration between HUD and the VA, Section 8 vouchers have been made available for use by homeless veterans. The HUD-Veterans Affairs Supportive Housing (HUD-VASH) program combines HUD’s Housing Choice Voucher (HCV) rental assistance for homeless Veterans with case management and clinical services provided by the Department of Veterans Affairs.

(https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/vash)

In 2010, the Oxnard Housing Authority ventured into homeless services with its first allocation of VASH vouchers in service of homeless veterans. Currently, the Oxnard Housing Authority has seventy-seven VASH vouchers, of which thirty-six are utilized.

This year, the U.S. Department of Veteran Affairs Ventura and Santa Barbara County HealthCare System, which operates in the City of Oxnard, doubled its capacity to increase the number of Veterans referred for a VASH voucher. The Oxnard Housing Authority’s goal is to increase voucher utilization to at least ninety percent.

Recommendations to utilize these vouchers are contained later in this report.

HUD Project-Based Vouchers

Separate from the types of vouchers, the use or application of vouchers allows for the vouchers to be tied to a specific housing unit or project. When a voucher is tied to a specific unit or project, it is termed “Project Based.” In order to project-base vouchers, a landlord must sign a contract with the local public housing authority agreeing to set-aside up to twenty-five of the units in a development for low-income families. Each of those set-aside units then receives voucher assistance as long as a family that is eligible for a voucher lives there. Public housing authorities can choose to project- base up to twenty-percent of their voucher allocation.

AMENDMENTS TO OXNARD’S HOUSING CHOICE VOUCHER PROGRAM ADMINISTRATIVE PLAN &

ANNUAL AGENCY

The Oxnard Housing Authority proposes to amend the HCV Program Administrative Plan and the Annual Agency Plan.

The Five-Year Administrative Plan describes the mission of the Oxnard Housing Authority and long-range goals and objectives for achieving the mission over the course of the five-year period. The Annual Agency Plan coincides with the current fiscal year and provides details about the Oxnard Housing Authority’s immediate operations, program participants, programs, services, and strategies for handling operation and resident concerns in the upcoming fiscal year.

HUD permits amendments to the Annual Plan or Five-Year Administrative plan at any time, subject to approval by the Los Angeles Housing and Urban Development Field Office.

1. Adoption of a local Homeless Preference to the HCV Administrative Plan.

2. Amendment to the 2021 Annual Agency Plan to undertake new activities related to project-based vouchers.

Regulations permit an amendment to the Agency Plan at any time. Any “significant amendment or modification” to the Agency Plan requires a forty-five-day public comment period and a public hearing.

The proposed amendments have been presented to the Resident Advisory Board (RAB) consisting of tenant commissioners, public housing residents, and Housing Choice Voucher Program participants. The RAB did not object to these amendments. The forty-five-day comment period was also completed without any objection received.

Existing HCV Preferences in the Administrative Plan and Annual Agency Plan

14 The demand for housing assistance often exceeds the limited resources available to HUD and the Oxnard Housing Authority, therefore long wait lists are common. One tool that public housing authorities use to select applicants from a waiting list is the establishment of preferences. The Oxnard Housing Authority has 1,840 vouchers, and a waiting list of 5,700. The waiting list has been closed since February 1, 2019.

The adopted preferences by the Oxnard Housing Authority include:

1. Residency preference

2. Public Housing residents on the Section 8 waitlist in need of a reasonable accommodation

3. Veterans

4. Involuntary displacement by a natural disaster or the Oxnard Housing Authority

5. Homeless (adopted in 2015, 15 vouchers)

6. Farm Worker (adopted in 2022)

The language for the fifteen set aside Section 8 vouchers for homeless was adopted in 2015 by the Board of Commissioners and has had the same language every year since.

“Homelessness Preference – The PHA has a local preference for homeless families or those at risk of being homeless.

The PHA must offer the opportunity to current applicants on the HCV waiting list and who are receiving supportive services. The eligibility criteria will be determined by local service agencies partnering with the PHA in an effort to address homelessness. The PHA will issue vouchers to the first fifteen (15) referrals received from local service agencies to eligible families. The PHA will assist families when a Homeless Set Aside Voucher becomes available. If the PHA does not have enough applicants on the waiting list who qualify for the preference, the PHA will open its waiting list strictly for families to which the preference applies.”

There has been some confusion on if the fifteen vouchers are on a per year, meaning fifteen new vouchers per year, or fifteen total vouchers. Currently, fifty of the 1,840 Section 8 vouchers were utilized using this preference, and additional twenty-five have been selected and are pending eligibility review. Staff recommends that the Administrative Plan be amended to clearly state that the fifteen vouchers are an annual allocation.

In 2021, the Resident Advisory Board (RAB) reviewed the creation of a farm worker preference and a homeless preference. The language for both of these preferences was included at public meetings on September 23, 2021 and October 28, 2021.

The farm worker preference language reads as follows:

Applicants in which the head of household, spouse or cohead are currently employed as farm worker(s) in the OHA’s jurisdiction will receive this preference. The OHA limits the number of families that qualify for the farmworker preference to fifteen (15) families annually. Once the OHA is serving (15) families under the preference in a given year, and one family leaves the program, the next family on the waitlist who meets the preference criteria will be served.

The Homeless preference proposed language is:

Applicants and families who meet the McKinney-Vento definition of “homeless” will be eligible for the homeless individuals and families preference. The OHA limits the number of families that qualify for the homeless preference to fifteen families annually. Once the OHA is serving newly admitted families under the preference in a given year, and one family leaves the program, the next eligible family on the waitlist who meets the preference criteria will be selected. A certification of homelessness completed by a homeless services provider is required.

The farm worker preference was approved by the Board of Commissioners on March 15, 2022. Although the RAB supported the homeless preferences and no concerns were received during the public review period, staff tabled the 15 homeless preference until additional research could be completed to verify if a homeless preference met the goals and mission of the housing choice voucher program. That research has now been completed and is summarized below.

The research concludes that public housing authorities throughout the country have been engaged in housing and homeless services for well over a decade. In a 2013 publication of the Council of Large Public Housing Authorities entitled Housing Authorities: Essential Partners in Ending Homelessness, Sunia Zaterman, Executive Director, of the Council of Large Public Housing Authorities, expressed that the “largest and most forward-thinking housing authorities in the country committed to an effort to reshape the way that the housing system works with other systems . . . as evidenced by their local level work on homelessness.” (Publication attached)

The publication featured several public housing authorities throughout the country committed to ending homelessness in their communities, including six from California. The public housing authorities from Fresno, Marin County, Santa Clara County, Oakland, Los Angeles and San Diego featured innovative programs. Additional research and examples demonstrating public housing authorities creating homeless preferences and engaging in homeless services are included in the attachments to this report. As an example, taken directly from the HCV Fact Sheet (https://www.hud.gov/topics/housing_choice_voucher_program_section_8) “PHAs may give a preference to a family who is (1) homeless or living in substandard housing, (2) paying more than 50% of its income for rent, or (3) involuntarily displaced. Families who qualify for any such local preferences move ahead of other families on the list who do not qualify for any preference. Each PHA has the discretion to establish local preferences to reflect the housing needs and priorities of its particular community.”

The Section 8 regulations (previously referenced and attached hereto) expressly state that a public housing authority “may adopt a preference for admission of single persons who are age 62 or older, displaced, homeless, or persons with disabilities over other single persons.” §982.207(b)(5)

In 2013, Department of Housing and Urban Development published PIH Notice 2013-15 offering “Guidance on housing individuals and families experiencing homelessness through the Public Housing and Housing Choice Voucher programs.” Additionally, the Housing and Urban Development website (Housing Choice Voucher Program Section 8 | HUD.gov / U.S. Department of Housing and Urban Development (HUD)) offers a summary fact sheet on the use of housing choice vouchers which acknowledges that each public housing authority “has the discretion to establish local preferences to reflect the housing needs and priorities of its particular community.” The same section declares that public housing authorities may establish local preferences for selecting Section 8 applicants from their waitlist.

Most recently, Housing and Urban Development Secretary Marcia Fudge declared that housing is a human right and pledged that she is ready to fight homelessness.

Adoption of a homeless preference to the Administrative Plan

The Oxnard Housing Authority proposes to adopt a limited homeless preference for the Mainstream vouchers and the existing Homeless Set Aside Section 8 Vouchers.

The homeless preference would be applied to applicants and families who meet the McKinney-Vento Homeless Assistance Act definition of homelessness as applied to the general population. A certification of homelessness completed by a homeless service provider will be required. For the purposes of the Oxnard Housing Authority’s tenant selection policies, the following definition of “homeless” shall apply to all families, including single adults and families with or without children:

An individual or family who lacks a fixed, regular, and adequate nighttime residence; or

Any individual or family who:

1. Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return to their primary nighttime residence; and

16 2. Has no other residence; and

3. Lacks the resource or support networks, e.g., family, friends and faith-based or other social networks, to obtain other permanent housing.

Project Based Vouchers in Oxnard

HUD does not require Board of Commissioners approval to project base vouchers. However, in recent history, in order to be transparent, and because it is not explicitly called out in the Administrative Plan or Annual Agency Plan, the Housing Director has presented and sought approval of the Board of Commissioners to project base the vouchers. Most recently, the Commissioners have authorized project-based vouchers for the following projects:

1. Homeless Solutions Center

2. The Central Terrace Apartments

3. Ormond Beach Villas

4. Casa Aliento

5. The Etting Road Apartments

Currently, our VASH and Mainstream Vouchers are underutilized. One of the greatest challenges in exhausting the special purpose voucher allocations is the limited housing inventory coupled with a high rent market. The Oxnard Housing Authority staff proposed solution to address the underutilization of these vouchers is to partner with developers to "project base" vouchers, meaning vouchers would be tied to specific units. Since project-based vouchers are tied to a specific unit, the landlord is required to rent only to an eligible family. This requirement increases the number of affordable housing units available to participants. Additionally, the project must then offer supportive services on-site, which allows providers to work more efficiently with residents and improves access to services. This increases the likelihood that the participants remain housed.

Oftentimes, the need to project base vouchers is tied to a real estate transaction or financing deadlines. Because of these deadlines, it is not always possible to present to the Board of Commissions in time for the deadlines. Coupling the need to commit the resources quickly with the fact that HUD does not require the Board of Commissioners' approval, staff is seeking the inclusion of the ability to project base vouchers within the Annual Agency Plan. If this is supported, the Oxnard Housing Authority proposes to convert twenty-five of the seventy-seven Veteran Assisted Supportive Housing Vouchers and all forty of the Mainstream Vouchers to project-based vouchers. The project-based vouchers will continue to serve the target population for each program accordingly. The Oxnard Housing Authority will review proposals to confirm compliance with the Housing Choice Voucher Administrative plan policies and program regulations and requirements, including a determination that the property is eligible housing, compliance with the maximum limit on the number of project-based voucher units per project, site selection standards, and proposal selection requirements.

The Mainstream Voucher program provides vouchers for low-income households that include a person(s) with disabilities. Both programs are eligible for families who are or have experienced homelessness, and meet the other parameters of Veteran and Mainstream.

IMPACT OF THE RECOMMENDATIONS TO CITY HOUSING DEPARTMENT AND OXNARD COMMUNITY

This item will result in a higher utilization rate of voucher assistance programs, which will trigger higher administrative funds being granted to the Oxnard Housing Authority. In addition, it will allow the Oxnard Housing Authority to fully realize its mission, which is to house the most vulnerable. The overall benefit to the residents of the city of Oxnard is that its residents who currently find themselves without a home will be afforded an opportunity to once again find and maintain a home.

STRATEGIC PRIORITIES

17 This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.

FINANCIAL IMPACT

This item has no financial impact to the General Fund; however, implementation of the recommendations will trigger higher administrative funds being granted to the Oxnard Housing Authority.

COMMITTEE OUTCOME

The Community Services, Public Safety, and Housing & Development Committee approved 3-0 on May 24, 2022 to approve the staff recommendation and to forward the item for Council approval.

Prepared by: Emilio Ramirez, Housing Director

ATTACHMENTS

1. Housing Choice Voucher Program Regulations (24 CFR Part 982)

2. PIH Notice 2013-15

3. Housing Choice Vouchers Fact Sheet from the Housing and Urban Development website (www.hud.gov/topics/housing_choice_voucher_program_section_8)

4. Housing Authorities: Essential Partners in ending Homelessness

5. Presentation
18 497
Asst. Secry., for Public and Indian Housing, HUD Pt. 982 but a slightly different methodology (use of
residual value as a public housing cost, in-
flating forward the discount numbers), the
ratio of public housing costs to voucher costs
would be 1.16 for the 20-year amortization pe-
riod, 1.03 for the 30-year amortization period,
and .97 for the 20-year amortization period.

Thus, in voluntary conversion, the appro-
priate amortization period would decide
whether public housing is more costly or is
slightly more costly, or less than vouchers.

Under a 20-year amortization assumption
and possibly under a 30-year amortization
period, the PHA would have the option of
preparing a conversion plan for the develop-
ment under subpart B of this part. Different
sets of data would yield different conclusions
for required and voluntary conversion deter-
minations.
[71 FR 14336, Mar. 21, 2006]
PART 982—SECTION 8 TENANT-
BASED ASSISTANCE: HOUSING

CHOICE VOUCHER PROGRAM
Subpart A—General Information
Sec.
982.1 Programs: Purpose and structure.
982.2 Applicability.
982.3 HUD.
982.4 Definitions.
982.5 Notices required by this part.

Subpart B—HUD Requirements and PHA
Plan for Administration of Program
982.51 PHA authority to administer pro-
gram.
982.52 HUD requirements.
982.53 Equal opportunity requirements and
protection for victims of domestic vio-
lence, dating violence, sexual assault, or
stalking.
982.54 Administrative plan.

Subpart C—Funding and PHA Application
for Funding
982.101 Allocation of funding.
982.102 Allocation of budget authority for
renewal of expiring CACC funding incre-
ments.
982.103 PHA application for funding.
982.104 HUD review of application.

Subpart D—Annual Contributions Contract
and PHA Administration of Program
982.151 Annual contributions contract.
982.152 Administrative fee.
982.153 PHA responsibilities.
982.154 ACC reserve account.
982.155 Administrative fee reserve.
982.156 Depositary for program funds.
982.157 Budget and expenditure.
982.158 Program accounts and records.
982.159 Audit requirements.
982.160 HUD determination to administer a
local program.
982.161 Conflict of interest.
982.162 Use of HUD-required contracts and
other forms.
982.163 Fraud recoveries.

Subpart E—Admission to Tenant-Based
Program
982.201 Eligibility and targeting.
982.202 How applicants are selected: General
requirements.
982.203 Special admission (non-waiting list):

Assistance targeted by HUD.
982.204 Waiting list: Administration of wait-
ing list.
982.205 Waiting list: Different programs.
982.206 Waiting list: Opening and closing;
public notice.
982.207 Waiting list: Local preferences in ad-
mission to program.

Subpart F [Reserved]
Subpart G—Leasing a Unit
982.301 Information when family is selected.
982.302 Issuance of certificate or voucher;
Requesting PHA approval of assisted ten-
ancy.
982.303 Term of voucher.
982.304 Illegal discrimination: PHA assist-
ance to family.
982.305 PHA approval of assisted tenancy.
982.306 PHA disapproval of owner.
982.307 Tenant screening.
982.308 Lease and tenancy.
982.309 Term of assisted tenancy.
982.310 Owner termination of tenancy.
982.311 When assistance is paid.
982.312 Absence from unit.
982.313 Security deposit: Amounts owed by
tenant.
982.315 Family break-up.
982.316 Live-in aide.
982.317 Lease-purchase agreements.

Subpart H—Where Family Can Live and
Move
982.351 Overview.
982.352 Eligible housing.
982.353 Where family can lease a unit with
tenant-based assistance.
982.354 Move with continued tenant-based
assistance.
982.355 Portability: Administration by ini-
tial and receiving PHA.

Subpart I—Dwelling Unit: Housing Quality
Standards, Subsidy Standards, Inspec-
tion and Maintenance
982.401 Housing quality standards (HQS).

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24 CFR Ch. IX (4–1–21 Edition) Pt. 982
982.402 Subsidy standards.
982.403 Terminating HAP contract when
unit is too small.
982.404 Maintenance: Owner and family re-
sponsibility; PHA remedies.
982.405 PHA initial and periodic unit inspec-
tion.
982.406 Use of alternative inspections.
982.407 Enforcement of HQS.

Subpart J—Housing Assistance Payments
Contract and Owner Responsibility
982.451 Housing assistance payments con-
tract.
982.452 Owner responsibilities.
982.453 Owner breach of contract.
982.454 Termination of HAP contract: Insuf-
ficient funding.
982.455 Automatic termination of HAP con-
tract.
982.456 Third parties.

Subpart K—Rent and Housing Assistance
Payment
982.501 Overview.
982.503 Payment standard amount and
schedule.
982.504 Payment standard for family in re-
structured subsidized multifamily
project.
982.505 How to calculate housing assistance
payment.
982.506 Negotiating rent to owner.
982.507 Rent to owner: Reasonable rent.
982.508 Maximum family share at initial oc-
cupancy.
982.509 Rent to owner: Effect of rent con-
trol.
982.510 Other fees and charges.
982.514 Distribution of housing assistance
payment.
982.515 Family share: Family responsibility.
982.516 Family income and composition: An-
nual and interim examinations.
982.517 Utility allowance schedule.
982.521 Rent to owner in subsidized project.

Subpart L—Family Obligations; Denial and
Termination of Assistance
982.551 Obligations of participant.
982.552 PHA denial or termination of assist-
ance for family.
982.553 Denial of admission and termination
of assistance for criminals and alcohol
abusers.
982.554 Informal review for applicant.
982.555 Informal hearing for participant.

Subpart M—Special Housing Types
982.601 Overview.

SINGLE ROOM OCCUPANCY (SRO)
982.602 SRO: Who may reside in an SRO?
982.603 SRO: Lease and HAP contract.
982.604 SRO: Voucher housing assistance
payment.
982.605 SRO: Housing quality standards.

CONGREGATE HOUSING
982.606 Congregate housing: Who may reside
in congregate housing.
982.607 Congregate housing: Lease and HAP
contract.
982.608 Congregate housing: Voucher hous-
ing assistance payment.
982.609 Congregate housing: Housing quality
standards.

GROUP HOME
982.610 Group home: Who may reside in a
group home.
982.611 Group home: Lease and HAP con-
tract.
982.612 Group home: State approval of group
home.
982.613 Group home: Rent and voucher hous-
ing assistance payment.
982.614 Group home: Housing quality stand-
ards.

SHARED HOUSING
982.615 Shared housing: Occupancy.
982.616 Shared housing: Lease and HAP con-
tract.
982.617 Shared housing: Rent and voucher
housing assistance payment.
982.618 Shared housing: Housing quality
standards.

COOPERATIVE
982.619 Cooperative housing.

MANUFACTURED HOME
982.620 Manufactured home: Applicability of
requirements.
982.621 Manufactured home: Housing qual-
ity standards.

MANUFACTURED HOME SPACE RENTAL
982.622 Manufactured home space rental:

Rent to owner.
982.623 Manufactured home space rental:

Housing assistance payment.
982.624 Manufactured home space rental:

Utility allowance schedule.

HOMEOWNERSHIP OPTION
982.625 Homeownership option: General.
982.626 Homeownership option: Initial re-
quirements.
982.627 Homeownership option: Eligibility
requirements for families.
982.628 Homeownership option: Eligible
units.
982.629 Homeownership option: Additional
PHA requirements for family search and
purchase.

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Asst. Secry., for Public and Indian Housing, HUD § 982.3 982.630 Homeownership option: Homeowner-
ship counseling.
982.631 Homeownership option: Home in-
spections, contract of sale, and PHA dis-
approval of seller.
982.632 Homeownership option: Financing
purchase of home; affordability of pur-
chase.
982.633 Homeownership option: Continued
assistance requirements; Family obliga-
tions.
982.634 Homeownership option: Maximum
term of homeownership assistance.
982.635 Homeownership option: Amount and
distribution of monthly homeownership
assistance payment.
982.636 Homeownership option: Portability.
982.637 Homeownership option: Move with
continued tenant-based assistance.
982.638 Homeownership option: Denial or
termination of assistance for family.
982.639 Homeownership option: Administra-
tive fees.
982.641 Homeownership option: Applica-
bility of other requirements.
982.642 Homeownership option: Pilot pro-
gram for homeownership assistance for
disabled families.
982.643 Homeownership option: Downpay-
ment assistance grants.

A
UTHORITY: 42 U.S.C. 1437f and 3535(d).

SOURCE: 59 FR 36682, July 18, 1994, unless
otherwise noted.

EDITORIAL NOTE: Nomenclature changes to
part 982 appear at 64 FR 26640, May 14, 1999.

Subpart A—General Information
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.1 Programs: purpose and struc-
ture.
(a) General description. (1) In the HUD
Housing Choice Voucher (HCV) pro-
gram, HUD pays rental subsidies so eli-
gible families can afford decent, safe,
and sanitary housing. The HCV pro-
gram is generally administered by
State or local governmental entities
called public housing agencies (PHAs).

HUD provides housing assistance funds
to the PHA. HUD also provides funds
for PHA administration of the pro-
gram.
(2) Families select and rent units
that meet program housing quality
standards. If the PHA approves a fam-
ily’s unit and tenancy, the PHA con-
tracts with the owner to make rent
subsidy payments on behalf of the fam-
ily. A PHA may not approve a tenancy
unless the rent is reasonable.
(3) Subsidy in the HCV program is
based on a local ‘‘payment standard’’
that reflects the cost to lease a unit in
the local housing market. If the rent is
less than the payment standard, the
family generally pays 30 percent of ad-
justed monthly income for rent. If the
rent is more than the payment stand-
ard, the family pays a larger share of
the rent.
(b) Tenant-based and project-based as-
sistance. (1) Section 8 assistance may be
‘‘tenant-based’’ or ‘‘project-based’’. In
project-based programs, rental assist-
ance is paid for families who live in
specific housing developments or units.

With tenant-based assistance, the as-
sisted unit is selected by the family.

The family may rent a unit anywhere
in the United States in the jurisdiction
of a PHA that runs a voucher program.
(2) To receive tenant-based assist-
ance, the family selects a suitable unit.

After approving the tenancy, the PHA
enters into a contract to make rental
subsidy payments to the owner to sub-
sidize occupancy by the family. The
PHA contract with the owner only cov-
ers a single unit and a specific assisted
family. If the family moves out of the
leased unit, the contract with the
owner terminates. The family may
move to another unit with continued
assistance so long as the family is com-
plying with program requirements.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26640, May 14, 1999; 80 FR 8245, Feb. 17,
2015]
§ 982.2 Applicability.

Part 982 contains the program re-
quirements for the tenant-based hous-
ing assistance program under Section 8
of the United States Housing Act of
1937 (42 U.S.C. 1437f). The tenant-based
program is the HCV program.
[80 FR 8245, Feb. 17, 2015]
§ 982.3 HUD.

The HUD field offices have been dele-
gated responsibility for day-to-day ad-
ministration of the program by HUD.

In exercising these functions, the field
offices are subject to HUD regulations
and other HUD requirements issued by
HUD headquarters. Some functions are
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24 CFR Ch. IX (4–1–21 Edition) § 982.4
specifically reserved to HUD head-
quarters.
§ 982.4 Definitions.
(a) Definitions found elsewhere —(1)
General definitions. The following terms
are defined in part 5, subpart A of this
title: 1937 Act, covered person, drug,
drug-related criminal activity, feder-
ally assisted housing, guest, household,
HUD, MSA, other person under the ten-
ant’s control, public housing, Section
8, and violent criminal activity.
(2) Definitions concerning family in-
come and rent. The terms ‘‘adjusted in-
come,’’ ‘‘annual income,’’ ‘‘extremely
low income family,’’ ‘‘tenant rent,’’
‘‘total tenant payment,’’ ‘‘utility al-
lowance,’’ ‘‘utility reimbursement,’’
and ‘‘welfare assistance’’ are defined in
part 5, subpart F of this title. The defi-
nitions of ‘‘tenant rent’’ and ‘‘utility
reimbursement’’ in part 5, subpart F of
this title do not apply to the HCV pro-
gram under part 982.
(b) In addition to the terms listed in
paragraph (a) of this section, the fol-
lowing definitions apply:

Absorption. For purposes of subpart
H, the point at which a receiving PHA
starts making assistance payments
with funding under its consolidated
ACC, rather than billing, the initial
PHA.

Administrative fee. Fee paid by HUD
to the PHA for administration of the
program. See § 982.152.

Administrative fee reserve (formerly
‘‘operating reserve’’). Account estab-
lished by PHA from excess administra-
tive fee income. The administrative fee
reserve must be used for housing pur-
poses. See § 982.155.

Administrative plan. The plan that de-
scribes PHA policies for administration
of the HCV program. See § 982.54.

Admission. The point when the family
becomes a participant in the program.

The date used for this purpose is the ef-
fective date of the first HAP contract
for a family (first day of initial lease
term) in the tenant-based program.

Applicant (applicant family). A fam-
ily that has applied for admission to
the HCV program but is not yet a pro-
gram participant.

Budget authority. An amount author-
ized and appropriated by the Congress
for payment to PHAs under the HCV
program. For each funding increment
in the program, budget authority is the
maximum amount that may be paid by
HUD to the PHA over the ACC term of
the funding increment.

Common space. In shared housing:

Space available for use by the assisted
family and other occupants of the unit.

Congregate housing. Housing for elder-
ly persons or persons with disabilities
that meets the HQS for congregate
housing. A special housing type: see
§ 982.606 to § 982.609.

Continuously assisted. An applicant is
continuously assisted under the 1937
Act if the family is already receiving
assistance under any 1937 Act program
when the family is admitted to the
HCV program.

Cooperative. Housing owned by a cor-
poration or association, and where a
member of the corporation or associa-
tion has the right to reside in a par-
ticular unit, and to participate in man-
agement of the housing.

Cooperative member. A family of which
one or more members owns member-
ship shares in a cooperative.

Domicile. The legal residence of the
household head or spouse as deter-
mined in accordance with State and
local law.

Downpayment assistance grant. A form
of homeownership assistance in the
homeownership option: A single down-
payment assistance grant for the fam-
ily. If a family receives a downpayment
assistance grant, a PHA may not make
monthly homeownership assistance
payments for the family. A downpay-
ment assistance grant is applied to the
downpayment for purchase of the home
or reasonable and customary closing
costs required in connection with pur-
chase of the home.

Fair market rent (FMR). The rent, in-
cluding the cost of utilities (except
telephone), as established by HUD for
units of varying sizes (by number of
bedrooms), that must be paid in the
housing market area to rent privately
owned, existing, decent, safe and sani-
tary rental housing of modest (non-lux-
ury) nature with suitable amenities.

See periodic publications in the F
ED-
ERAL REGISTER in accordance with 24
CFR part 888.

Family. A person or group of persons,
as determined by the PHA consistent
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Asst. Secry., for Public and Indian Housing, HUD § 982.4 with 24 CFR 5.403, approved to reside in
a unit with assistance under the pro-
gram. See ‘‘family composition’’ at
§ 982.201(c).

Family rent to owner. In the voucher
program, the portion of rent to owner
paid by the family. For calculation of
family rent to owner, see § 982.515(b).

Family self-sufficiency program (FSS
program). The program established by
a PHA in accordance with 24 CFR part
984 to promote self-sufficiency of as-
sisted families, including the coordina-
tion of supportive services (42 U.S.C.
1437u).

Family share. The portion of rent and
utilities paid by the family. For cal-
culation of family share, see
§ 982.515(a).

Family unit size. The appropriate
number of bedrooms for a family, as de-
termined by the PHA under the PHA
subsidy standards.

First-time homeowner. In the home-
ownership option: A family of which no
member owned any present ownership
interest in a residence of any family
member during the three years before
commencement of homeownership as-
sistance for the family. The term
‘‘first-time homeowner’’ includes a sin-
gle parent or displaced homemaker (as
those terms are defined in 12 U.S.C.
12713) who, while married, owned a
home with his or her spouse, or resided
in a home owned by his or her spouse.

Funding increment. Each commitment
of budget authority by HUD to a PHA
under the consolidated annual con-
tributions contract for the PHA pro-
gram.

Gross rent. The sum of the rent to
owner plus any utility allowance.

Group home. A dwelling unit that is
licensed by a State as a group home for
the exclusive residential use of two to
twelve persons who are elderly or per-
sons with disabilities (including any
live-in aide). A special housing type:
see § 982.610 to § 982.614.

HAP contract. Housing assistance
payments contract.

Home. In the homeownership option:

A dwelling unit for which the PHA
pays homeownership assistance.

Homeowner. In the homeownership
option: A family of which one or more
members owns title to the home.

Homeownership assistance. Assistance
for a family under the homeownership
option. There are two alternative and
mutually exclusive forms of homeown-
ership assistance by a PHA for a fam-
ily: monthly homeownership assistance
payments, or a single downpayment as-
sistance grant. Either form of home-
ownership assistance may be paid to
the family, or to a mortgage lender on
behalf of the family.

Homeownership expenses. In the home-
ownership option: A family’s allowable
monthly expenses for the home, as de-
termined by the PHA in accordance
with HUD requirements (see § 982.635).

Homeownership option. Assistance for
a homeowner or cooperative member
under § 982.625 to § 982.641. A special
housing type.

Housing assistance payment. The
monthly assistance payment by a PHA,
which includes:
(1) A payment to the owner for rent
to the owner under the family’s lease;
and
(2) An additional payment to the
family if the total assistance payment
exceeds the rent to owner.

Housing quality standards (HQS). The
HUD minimum quality standards for
housing assisted under the HCV pro-
gram. See § 982.401.

Initial PHA. In portability, the term
refers to both:
(1) a PHA that originally selected a
family that later decides to move out
of the jurisdiction of the selecting
PHA; and
(2) a PHA that absorbed a family that
later decides to move out of the juris-
diction of the absorbing PHA.

Initial payment standard. The pay-
ment standard at the beginning of the
HAP contract term.

Initial rent to owner. The rent to
owner at the beginning of the HAP con-
tract term.

Interest in the home. In the homeown-
ership option:
(1) In the case of assistance for a
homeowner, ‘‘interest in the home’’ in-
cludes title to the home, any lease or
other right to occupy the home, or any
other present interest in the home.
(2) In the case of assistance for a co-
operative member, ‘‘interest in the
home’’ includes ownership of member-
ship shares in the cooperative, any
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24 CFR Ch. IX (4–1–21 Edition) § 982.4
lease or other right to occupy the
home, or any other present interest in
the home.

Jurisdiction. The area in which the
PHA has authority under State and
local law to administer the program.

Lease. (1) A written agreement be-
tween an owner and a tenant for the
leasing of a dwelling unit to the ten-
ant. The lease establishes the condi-
tions for occupancy of the dwelling
unit by a family with housing assist-
ance payments under a HAP contract
between the owner and the PHA.
(2) In cooperative housing, a written
agreement between a cooperative and a
member of the cooperative. The agree-
ment establishes the conditions for oc-
cupancy of the member’s cooperative
dwelling unit by the member’s family
with housing assistance payments to
the cooperative under a HAP contract
between the cooperative and the PHA.

For purposes of this part 982, the coop-
erative is the Section 8 ‘‘owner’’ of the
unit, and the cooperative member is
the Section 8 ‘‘tenant.’’
Manufactured home. A manufactured
structure that is built on a permanent
chassis, is designed for use as a prin-
cipal place of residence, and meets the
HQS. A special housing type: see
§ 982.620 and § 982.621.

Manufactured home space. In manu-
factured home space rental: A space
leased by an owner to a family. A man-
ufactured home owned and occupied by
the family is located on the space. See
§ 982.622 to § 982.624.

Membership shares. In the homeowner-
ship option: shares in a cooperative. By
owning such cooperative shares, the
share-owner has the right to reside in a
particular unit in the cooperative, and
the right to participate in management
of the housing.

Merger date. October 1, 1999, which is
the effective date of the merger of the
two tenant-based programs (the hous-
ing voucher and housing certificate
programs) into the Housing Choice
Voucher (HCV) program.

Notice of Funding Availability (NOFA).

For budget authority that HUD distrib-
utes by competitive process, the F
ED-
ERAL REGISTER document that invites
applications for funding. This docu-
ment explains how to apply for assist-
ance and the criteria for awarding the
funding.

Owner. Any person or entity with the
legal right to lease or sublease a unit
to a participant.

Participant (participant family). A
family that has been admitted to the
PHA program and is currently assisted
in the program. The family becomes a
participant on the effective date of the
first HAP contract executed by the
PHA for the family (first day of initial
lease term).

Payment standard. The maximum
monthly assistance payment for a fam-
ily assisted in the voucher program
(before deducting the total tenant pay-
ment by the family).

PHA plan. The annual plan and the 5-
year plan as adopted by the PHA and
approved by HUD in accordance with
part 903 of this chapter.

Portability. Renting a dwelling unit
with Section 8 tenant-based assistance
outside the jurisdiction of the initial
PHA.

Premises. The building or complex in
which the dwelling unit is located, in-
cluding common areas and grounds.

Present homeownership interest. In the
homeownership option: ‘‘Present own-
ership interest’’ in a residence includes
title, in whole or in part, to a resi-
dence, or ownership, in whole or in
part, of membership shares in a cooper-
ative. ‘‘Present ownership interest’’ in
a residence does not include the right
to purchase title to the residence under
a lease-purchase agreement.

Private space. In shared housing: The
portion of a contract unit that is for
the exclusive use of an assisted family.

Program. The Section 8 HCV program
under this part.

Program receipts. HUD payments to
the PHA under the consolidated ACC,
and any other amounts received by the
PHA in connection with the program.

Public housing agency (PHA). PHA in-
cludes both:
(1) Any State, county, municipality,
or other governmental entity or public
body which is authorized to administer
the program (or an agency or instru-
mentality of such an entity), and
(2) Any of the following:
(i) A consortium of housing agencies,
each of which meets the qualifications
in paragraph (1) of this definition, that
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Asst. Secry., for Public and Indian Housing, HUD § 982.4 HUD determines has the capacity and
capability to efficiently administer the
program (in which case, HUD may
enter into a consolidated ACC with any
legal entity authorized to act as the
legal representative of the consortium
members);
(ii) Any other public or private non-
profit entity that was administering a
Section 8 tenant-based assistance pro-
gram pursuant to a contract with the
contract administrator of such pro-
gram (HUD or a PHA) on October 21,
1998; or
(iii) For any area outside the juris-
diction of a PHA that is administering
a tenant-based program, or where HUD
determines that such PHA is not ad-
ministering the program effectively, a
private non-profit entity or a govern-
mental entity or public body that
would otherwise lack jurisdiction to
administer the program in such area.

Reasonable rent. A rent to owner that
is not more than rent charged:
(1) For comparable units in the pri-
vate unassisted market; and
(2) For comparable unassisted units
in the premises.

Receiving PHA. In portability: A PHA
that receives a family selected for par-
ticipation in the HCV program of an-
other PHA. The receiving PHA issues a
voucher and provides program assist-
ance to the family.

Renewal units. The number of units,
as determined by HUD, for which fund-
ing is reserved on HUD books for a
PHA’s program. This number is used is
calculating renewal budget authority
in accordance with § 982.102.

Rent to owner. The total monthly
rent payable to the owner under the
lease for the unit. Rent to owner covers
payment for any housing services,
maintenance and utilities that the
owner is required to provide and pay
for.

Residency preference. A PHA pref-
erence for admission of families that
reside anywhere in a specified area, in-
cluding families with a member who
works or has been hired to work in the
area (‘‘residency preference area’’).

Residency preference area. The speci-
fied area where families must reside to
qualify for a residency preference.

Shared housing. A unit occupied by
two or more families. The unit consists
of both common space for shared use
by the occupants of the unit and sepa-
rate private space for each assisted
family. A special housing type: see
§ 982.615 to § 982.618.

Single room occupancy housing (SRO).

A unit that contains no sanitary facili-
ties or food preparation facilities, or
contains either, but not both, types of
facilities. A special housing type: see
§ 982.602 to § 982.605.

Special admission. Admission of an ap-
plicant that is not on the PHA waiting
list or without considering the appli-
cant’s waiting list position.

Special housing types. See subpart M
of this part 982. Subpart M of this part
states the special regulatory require-
ments for: SRO housing, congregate
housing, group home, shared housing,
manufactured home (including manu-
factured home space rental), coopera-
tive housing (rental assistance for co-
operative member) and homeownership
option (homeownership assistance for
cooperative member or first-time
homeowner).

Statement of homeowner obligations. In
the homeownership option: The family’s
agreement to comply with program ob-
ligations.

Subsidy standards. Standards estab-
lished by a PHA to determine the ap-
propriate number of bedrooms and
amount of subsidy for families of dif-
ferent sizes and compositions.

Suspension. The term on the family’s
voucher stops from the date that the
family submits a request for PHA ap-
proval of the tenancy, until the date
the PHA notifies the family in writing
whether the request has been approved
or denied.

Tenant. The person or persons (other
than a live-in aide) who executes the
lease as lessee of the dwelling unit.

Utility reimbursement. The portion of
the housing assistance payment which
exceeds the amount of the rent to
owner. (See § 982.514(b)).

Voucher holder. A family holding a
voucher with an unexpired term
(search time).

Voucher (rental voucher). A document
issued by a PHA to a family selected
for admission to the voucher program.

This document describes the program
and the procedures for PHA approval of
a unit selected by the family. The
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24 CFR Ch. IX (4–1–21 Edition) § 982.5
voucher also states obligations of the
family under the program.

Waiting list admission. An admission
from the PHA waiting list.

Welfare-to-work (WTW) families. Fami-
lies assisted by a PHA with voucher
funding awarded to the PHA under the
HUD welfare-to-work voucher program
(including any renewal of such WTW
funding for the same purpose).
[63 FR 23857, Apr. 30, 1998; 63 FR 31625, June
10, 1998, as amended at 64 FR 26641, May 14,
1999; 64 FR 49658, Sept. 14, 1999; 64 FR 56887,
56911, Oct. 21, 1999; 65 FR 16821, Mar. 30, 2000;
65 FR 55161, Sept. 12, 2000; 66 FR 28804, May
24, 2001; 66 FR 33613, June 22, 2001; 67 FR
64492, Oct. 18, 2002; 77 FR 5675, Feb. 3, 2012; 80
FR 8245, Feb. 17, 2015; 80 FR 50572, Aug. 20,
2015]
§ 982.5 Notices required by this part.

Where part 982 requires any notice to
be given by the PHA, the family or the
owner, the notice must be in writing.

Subpart B—HUD Requirements
and PHA Plan for Administra-
tion of Program
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.51 PHA authority to administer
program.
(a) The PHA must have authority to
administer the program. The PHA
must provide evidence, satisfactory to
HUD, of its status as a PHA, of its au-
thority to administer the program, and
of the PHA jurisdiction.
(b) The evidence submitted by the
PHA to HUD must include enabling
legislation and a supporting legal opin-
ion satisfactory to HUD. The PHA
must submit additional evidence when
there is a change that affects its status
as a PHA, its authority to administer
the program, or its jurisdiction.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26641, May 14, 1999; 80 FR 8245, Feb. 17,
2015]
§ 982.52 HUD requirements.
(a) The PHA must comply with HUD
regulations and other HUD require-
ments for the program. HUD require-
ments are issued by HUD headquarters,
as regulations, F
EDERAL REGISTER no-
tices or other binding program direc-
tives.
(b) The PHA must comply with the
consolidated ACC and the PHA’s HUD-
approved applications for program
funding.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995]
§ 982.53 Equal opportunity require-
ments and protection for victims of
domestic violence, dating violence,
sexual assault, or stalking.
(a) The tenant-based program re-
quires compliance with all equal oppor-
tunity requirements imposed by con-
tract or federal law, including the au-
thorities cited at 24 CFR 5.105(a) and
title II of the Americans with Disabil-
ities Act, 42 U.S.C. 12101 et seq.
(b) Civil rights certification. The PHA
must submit a signed certification to
HUD that:
(1) The PHA will administer the pro-
gram in conformity with the Fair
Housing Act, Title VI of the Civil
Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and Title II
of the Americans with Disabilities Act.
(2) The PHA will affirmatively fur-
ther fair housing in the administration
of the program.
(c) Obligation to affirmatively further
fair housing. The PHA shall affirma-
tively further fair housing as required
by § 903.7(o) of this title.
(d) State and local law. Nothing in
part 982 is intended to pre-empt oper-
ation of State and local laws that pro-
hibit discrimination against a Section
8 voucher-holder because of status as a
Section 8 voucher-holder. However,
such State and local laws shall not
change or affect any requirement of
this part, or any other HUD require-
ments for administration or operation
of the program.
(e) Protection for victims of domestic vi-
olence, dating violence, sexual assault, or
stalking. The PHA must apply the re-
quirements in 24 CFR part 5, subpart L
(Protection for Victims of Domestic
Violence, Dating Violence, Sexual As-
sault, or Stalking). For purposes of
compliance with HUD’s regulations in
24 CFR part 5, subpart L, the covered
housing provider is the PHA or owner,
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Asst. Secry., for Public and Indian Housing, HUD § 982.54 as applicable given the responsibilities
of the covered housing provider as set
forth in 24 CFR part 5, subpart L. For
example, the PHA is the covered hous-
ing provider responsible for providing
the Notice of occupancy rights under
VAWA and certification form described
at 24 CFR 5.2005(a). In addition, the
owner is the covered housing provider
that may choose to bifurcate a lease as
described at 24 CFR 5.2009(a), while the
PHA is the covered housing provider
responsible for complying with emer-
gency transfer plan provisions at 24
CFR 5.2005(e).
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 63 FR 23859, Apr. 30,
1998; 64 FR 26641, May 14, 1999; 64 FR 56911,
Oct. 21, 1999; 73 FR 72344, Nov. 28, 2008; 75 FR
66263, Oct. 27, 2010; 80 FR 8245, Feb. 17, 2015;
81 FR 80816, Nov. 16, 2016]
§ 982.54 Administrative plan.
(a) The PHA must adopt a written
administrative plan that establishes
local policies for administration of the
program in accordance with HUD re-
quirements. The administrative plan
and any revisions of the plan must be
formally adopted by the PHA Board of
Commissioners or other authorized
PHA officials. The administrative plan
states PHA policy on matters for which
the PHA has discretion to establish
local policies.
(b) The administrative plan must be
in accordance with HUD regulations
and requirements. The administrative
plan is a supporting document to the
PHA plan (part 903 of this title) and
must be available for public review.

The PHA must revise the administra-
tive plan if needed to comply with HUD
requirements.
(c) The PHA must administer the
program in accordance with the PHA
administrative plan.
(d) The PHA administrative plan
must cover PHA policies on these sub-
jects:
(1) Selection and admission of appli-
cants from the PHA waiting list, in-
cluding any PHA admission pref-
erences, procedures for removing appli-
cant names from the waiting list, and
procedures for closing and reopening
the PHA waiting list;
(2) Issuing or denying vouchers, in-
cluding PHA policy governing the
voucher term and any extensions of the
voucher term. If the PHA decides to
allow extensions of the voucher term,
the PHA administrative plan must de-
scribe how the PHA determines wheth-
er to grant extensions, and how the
PHA determines the length of any ex-
tension.
(3) Any special rules for use of avail-
able funds when HUD provides funding
to the PHA for a special purpose (e.g.,
desegregation), including funding for
specified families or a specified cat-
egory of families;
(4) Occupancy policies, including:
(i) Definition of what group of per-
sons may qualify as a ‘‘family’’;
(ii) Definition of when a family is
considered to be ‘‘continuously as-
sisted’’;
(iii) Standards for denying admission
or terminating assistance based on
criminal activity or alcohol abuse in
accordance with § 982.553;
(5) Encouraging participation by
owners of suitable units located out-
side areas of low income or minority
concentration;
(6) Assisting a family that claims
that illegal discrimination has pre-
vented the family from leasing a suit-
able unit;
(7) Providing information about a
family to prospective owners;
(8) Disapproval of owners;
(9) Subsidy standards;
(10) Family absence from the dwell-
ing unit;
(11) How to determine who remains in
the program if a family breaks up;
(12) Informal review procedures for
applicants;
(13) Informal hearing procedures for
participants;
(14) The process for establishing and
revising payment standards, including
policies on administering decreases in
the payment standard during the HAP
contract term (see § 982.505(d)(3)).
(15) The method of determining that
rent to owner is a reasonable rent (ini-
tially and during the term of a HAP
contract);
(16) Special policies concerning spe-
cial housing types in the program (e.g.,
use of shared housing);
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24 CFR Ch. IX (4–1–21 Edition) § 982.101
(17) Policies concerning payment by a
family to the PHA of amounts the fam-
ily owes the PHA;
(18) Interim redeterminations of fam-
ily income and composition;
(19) Restrictions, if any, on the num-
ber of moves by a participant family
(see § 982.354(c));
(20) Approval by the Board of Com-
missioners or other authorized officials
to charge the administrative fee re-
serve;
(21) Procedural guidelines and per-
formance standards for conducting re-
quired HQS inspections; and
(22) PHA screening of applicants for
family behavior or suitability for ten-
ancy.
(23) Policies concerning application
of Small Area FMRs to project-based
voucher units (see § 888.113(h)).
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 27163, May 30,
1996; 63 FR 23859, Apr. 30, 1998; 64 FR 26641,
May 14, 1999; 64 FR 49658, Sept. 14, 1999; 64 FR
56911, Oct. 21, 1999; 66 FR 28804, May 24, 2001;
80 FR 8245, Feb. 17, 2015; 80 FR 50572, Aug. 20,
2015; 81 FR 80582, Nov. 16, 2016]
Subpart C—Funding and PHA
Application for Funding
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.101 Allocation of funding.
(a) Allocation of funding. HUD allo-
cates available budget authority for
the tenant-based assistance program to
HUD field offices.
(b) Section 213(d) allocation. (1) Sec-
tion 213(d) of the HCD Act of 1974 (42
U.S.C. 1439) establishes requirements
for allocation of assisted housing budg-
et authority. Some budget authority is
exempt by law from allocation under
section 213(d). Unless exempted by law,
budget authority for the tenant-based
programs must be allocated in accord-
ance with section 213(d).
(2) Budget authority subject to allo-
cation under section 213(d) is allocated
in accordance with 24 CFR part 791,
subpart D. There are three categories
of section 213(d) funding allocations
under part 791 of this title:
(i) Funding retained in a head-
quarters reserve for purposes specified
by law;
(ii) funding incapable of geographic
formula allocation (e.g., for renewal of
expiring funding increments); or
(iii) funding allocated by an objective
fair share formula. Funding allocated
by fair share formula is distributed by
a competitive process.
(c) Competitive process. For budget au-
thority that is distributed by competi-
tive process, the Department solicits
applications from PHAs by publishing
one or more notices of funding avail-
ability (NOFAs) in the F

EDERAL REG-
ISTER. See 24 CFR part 12, subpart B;
and 24 CFR 791.406. The NOFA explains
how to apply for assistance, and speci-
fies the criteria for awarding the as-
sistance. The NOFA may identify any
special program requirements for use
of the funding.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26642, May 14, 1999; 80 FR 8246, Feb. 17,
2015]
§ 982.102 Allocation of budget author-
ity for renewal of expiring consoli-
dated ACC funding increments.
(a) Applicability. This section applies
to the renewal of consolidated ACC
funding increments in the program (as
described in § 982.151(a)(2)) that expire
after December 31, 1999 (including any
assistance that the PHA has attached
to units for project-based assistance
under 24 CFR part 983). This section
implements section 8(dd) of the 1937
Act (42 U.S.C. 1437f(dd)).
(b) Renewal Methodology. HUD will
use the following methodology to de-
termine the amount of budget author-
ity to be allocated to a PHA for the re-
newal of expiring consolidated ACC
funding increments in the program,
subject to the availability of appro-
priated funds. If the amount of appro-
priated funds is not sufficient to pro-
vide the full amount of renewal funding
for PHAs, as calculated in accordance
with this section, HUD may establish a
procedure to adjust allocations for the
shortfall in funding.
(c) Determining the amount of budget
authority allocated for renewal of an ex-
piring funding increment. Subject to
availability of appropriated funds, as
determined by HUD, the amount of
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Asst. Secry., for Public and Indian Housing, HUD § 982.102 budget authority allocated by HUD to
a PHA for renewal of each program
funding increment that expires during
a calendar year will be equal to:
(1) Number of renewal units. The num-
ber of renewal units assigned to the
funding increment (as determined by
HUD pursuant to paragraph (d) of this
section); multiplied by
(2) Adjusted annual per unit cost. The
adjusted annual per unit cost (as deter-
mined by HUD pursuant to paragraph
(e) of this section).
(d) Determining the number of renewal
units—(1) Number of renewal units. HUD
will determine the total number of re-
newal units for a PHA’s program as of
the last day of the calendar year pre-
vious to the calendar year for which re-
newal funding is calculated. The num-
ber of renewal units for a PHA’s pro-
gram will be determined as follows:
(i) Step 1: Establishing the initial base-
line. HUD will establish a baseline
number of units (‘‘baseline’’) for each
PHA program. The initial baseline
equals the number of units reserved by
HUD for the PHA program as of De-
cember 31, 1999.
(ii) Step 2: Establishing the adjusted
baseline. The adjusted baseline equals
the initial baseline with the following
adjustments from the initial baseline
as of the last day of the calendar year
previous to the calendar year for which
renewal funding is calculated:
(A) Additional units. HUD will add to
the initial baseline any additional
units reserved for the PHA after De-
cember 31, 1999.
(B) Units removed. HUD will subtract
from the initial baseline any units de-
reserved by HUD from the PHA pro-
gram after December 31, 1999.
(iii) Step 3: Determining the number of
renewal units. The number of renewal
units equals the adjusted baseline
minus the number of units supported
by contract funding increments that
expire after the end of the calendar
year.
(2) Funding increments. HUD will as-
sign all units reserved for a PHA pro-
gram to one or more funding incre-
ment(s).
(3) Correction of errors. HUD may ad-
just the number of renewal units to
correct errors.
(e) Determining the adjusted per unit
cost. HUD will determine the PHA’s ad-
justed per unit cost when HUD proc-
esses the allocation of renewal funding
for an expiring contract funding incre-
ment. The adjusted per unit cost cal-
culated will be determined as follows:
(1) Step 1: Determining monthly pro-
gram expenditure —(i) Use of most recent
HUD-approved year end statement. HUD
will determine the PHA’s monthly per
unit program expenditure for the HCV
program (including project-based as-
sistance under such program) under the
consolidated ACC with HUD using data
from the PHA’s most recent HUD-ap-
proved year end statement.
(ii) Monthly program expenditure. The
monthly program expenditure equals:
(A) Total program expenditure. The
PHA’s total program expenditure (the
total of housing assistance payments
and administrative costs) for the PHA
fiscal year covered by the approved
year end statement; divided by
(B) Total unit months leased. The total
of unit months leased for the PHA fis-
cal year covered by the approved year
end statement.
(2) Step 2: Determining annual per unit
cost. HUD will determine the PHA’s an-
nual per unit cost. The annual per unit
cost equals the monthly program ex-
penditures (as determined under para-
graph (e)(1)(ii) of this section) multi-
plied by 12.
(3) Step 3: Determining adjusted annual
per unit cost. (i) HUD will determine the
PHA’s adjusted annual per unit cost.

The adjusted annual per unit cost
equals the annual per unit cost (as de-
termined under paragraph (e)(2) of this
section) multiplied cumulatively by
the applicable published Section 8
housing assistance payments program
annual adjustment factors in effect
during the period from the end of the
PHA fiscal year covered by the ap-
proved year end statement to the time
when HUD processes the allocation of
renewal funding.
(ii) Use of annual adjustment factor ap-
plicable to PHA jurisdiction. For this
purpose, HUD will use the annual ad-
justment factor from the notice pub-
lished annually in the F

EDERAL REG-
ISTER pursuant to part 888 that is appli-
cable to the jurisdiction of the PHA.

For a PHA whose jurisdiction spans VerDate Sep<11>2014 14:49 Dec 15, 2021 Jkt 253086 PO 00000 Frm 00517 Fmt 8010 Sfmt 8010 Y:\SGML\253086.XXX 253086lhorne on DSKJLZT7X2PROD with CFR 29 508
24 CFR Ch. IX (4–1–21 Edition) § 982.102
multiple annual adjustment factor
areas, HUD will use the highest appli-
cable annual adjustment factor.
(iii) Use of annual adjustment factors
in effect subsequent to most recent Year
End Statement. HUD will use the An-
nual Adjustment Factors in effect dur-
ing the time period subsequent to the
time covered by the most recent HUD
approved Year End Statement and the
time of the processing of the contract
funding increment to be renewed.
(iv) Special circumstances. At its dis-
cretion, HUD may modify the adjusted
annual per unit cost based on receipt of
a modification request from a PHA.

The modification request must dem-
onstrate that because of special cir-
cumstances application of the annual
adjustment factor will not provide an
accurate adjusted annual per unit cost.
(4) Correction of errors. HUD may cor-
rect for errors in the adjusted per unit
cost.
(f) Consolidated ACC amendment to add
renewal funding. HUD will reserve allo-
cated renewal funding available to the
PHA within a reasonable time prior to
the expiration of the funding incre-
ment to be renewed and establish a new
expiration date one-year from the date
of such expiration.
(g) Modification of allocation of budget
authority—(1) HUD authority to conform
PHA program costs with PHA program fi-
nances through Federal Register notice.

In the event that a PHA’s costs in-
curred threaten to exceed budget au-
thority and allowable reserves, HUD
reserves the right, through F
EDERAL
REGISTER notice, to bring PHA pro-
gram costs and the number of families
served, in line with PHA program fi-
nances.
(2) HUD authority to limit increases of
per unit cost through Federal Register no-
tice. HUD may, by F

EDERAL REGISTER
notice, limit the amount or percentage
of increases in the adjusted annual per
unit cost to be used in calculating the
allocation of budget authority.
(3) HUD authority to limit decreases to
per unit costs through Federal Register
notice. HUD may, by F

EDERAL REGISTER
notice, limit the amount or percentage
of decreases in the adjusted annual per
unit cost to be used in calculating the
allocation of budget authority.
(4) Contents of Federal Register notice.

If HUD publishes a F

EDERAL REGISTER
notice pursuant to paragraphs (g)(1),
(g)(2) or (g)(3) of this section, it will de-
scribe the rationale, circumstances and
procedures under which such modifica-
tions are implemented. Such cir-
cumstances and procedures shall, be
consistent with the objective of ena-
bling PHAs and HUD to meet program
goals and requirements including but
not limited to:
(i) Deconcentration of poverty and
expanding housing opportunities;
(ii) Reasonable rent burden;
(iii) Income targeting;
(iv) Consistency with applicable con-
solidated plan(s);
(v) Rent reasonableness;
(vi) Program efficiency and economy;
(vii) Service to additional households
within budgetary limitations; and
(viii) Service to the adjusted baseline
number of families.
(5) Public consultation before issuance
of Federal Register notice. HUD will de-
sign and undertake informal public
consultation prior to issuing F
EDERAL
REGISTER notices pursuant to para-
graphs (g)(1) or (g)(2) of this section.
(h) Ability to prorate and synchronize
contract funding increments. Notwith-
standing paragraphs (c) through (g) of
this section, HUD may prorate the
amount of budget authority allocated
for the renewal of funding increments
that expire on different dates through-
out the calendar year. HUD may use
such proration to synchronize the expi-
ration dates of funding increments
under the PHA’s consolidated ACC.
(i) Reallocation of budget authority. If
a PHA has performance deficiencies,
such as a failure to adequately lease
units, HUD may reallocate some of its
budget authority to other PHAs. If
HUD determines to reallocate budget
authority, it will reduce the number of
units reserved by HUD for the PHA
program of the PHA whose budget au-
thority is being reallocated and in-
crease the number of units reserved by
HUD for the PHAs whose programs are
receiving the benefit of the realloca-
tion, so that such PHAs can issue
vouchers. HUD will publish a notice in
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Asst. Secry., for Public and Indian Housing, HUD § 982.151 the F EDERAL REGISTER that will de-
scribe the circumstances and proce-
dures for reallocating budget authority
pursuant to this paragraph.
[64 FR 56887, Oct. 21, 1999; 65 FR 16818, Mar.
30, 2000; 80 FR 8246, Feb. 17, 2015]
§ 982.103 PHA application for funding.
(a) A PHA must submit an applica-
tion for program funding to HUD at the
time and place and in the form re-
quired by HUD.
(b) For competitive funding under a
NOFA, the application must be sub-
mitted by a PHA in accordance with
the requirements of the NOFA.
(c) The application must include all
information required by HUD. HUD re-
quirements may be stated in the HUD-
required form of application, the
NOFA, or other HUD instructions.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 63 FR 23859, Apr. 30,
1998. Redesignated at 64 FR 56887, Oct. 21,
1999; 80 FR 8246, Feb. 17, 2015]
§ 982.104 HUD review of application.
(a) Competitive funding under NOFA.

For competitive funding under a
NOFA, HUD must evaluate an applica-
tion on the basis of the selection cri-
teria stated in the NOFA, and must
consider the PHA’s capacity and capa-
bility to administer the program.
(b) Approval or disapproval of PHA
funding application. (1) HUD must no-
tify the PHA of its approval or dis-
approval of the PHA funding applica-
tion.
(2) When HUD approves an applica-
tion, HUD must notify the PHA of the
amount of approved funding.
(3) For budget authority that is dis-
tributed to PHAs by competitive proc-
ess, documentation of the basis for pro-
vision or denial of assistance is avail-
able for public inspection in accord-
ance with 24 CFR 12.14(b).
(c) PHA disqualification. HUD will not
approve any PHA funding application
(including an application for competi-
tive funding under a NOFA) if HUD de-
termines that the PHA is disbarred or
otherwise disqualified from providing
assistance under the program.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26642, May 14, 1999. Redesignated at 64 FR
56887, Oct. 21, 1999]
Subpart D—Annual Contributions
Contract and PHA Administra-
tion of Program
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.151 Annual contributions con-
tract.
(a) Nature of ACC. (1) An annual con-
tributions contract (ACC) is a written
contract between HUD and a PHA.

Under the ACC, HUD agrees to make
payments to the PHA, over a specified
term, for housing assistance payments
to owners and for the PHA administra-
tive fee. The ACC specifies the max-
imum payment over the ACC term. The
PHA agrees to administer the program
in accordance with HUD regulations
and requirements.
(2) HUD’s commitment to make pay-
ments for each funding increment in
the PHA program constitutes a sepa-
rate ACC. However, commitments for
all the funding increments in a PHA
program are listed in one consolidated
contractual document called the con-
solidated annual contributions con-
tract (consolidated ACC). A single con-
solidated ACC covers funding for the
PHA’s HCV program. .
(b) Budget authority. (1) Budget au-
thority is the maximum amount that
may be paid by HUD to a PHA over the
ACC term of a funding increment. Be-
fore adding a funding increment to the
consolidated ACC for a PHA program,
HUD reserves budget authority from
amounts authorized and appropriated
by the Congress for the program.
(2) For each funding increment, the
ACC specifies the term over which HUD
will make payments for the PHA pro-
gram, and the amount of available
budget authority for each funding in-
crement. The amount to be paid to the
PHA during each PHA fiscal year (in-
cluding payment from the ACC reserve
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24 CFR Ch. IX (4–1–21 Edition) § 982.152
account described in § 982.154) must be
approved by HUD.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26642, May 14,
1999; 80 FR 8246, Feb. 17, 2015]
§ 982.152 Administrative fee.
(a) Purposes of administrative fee. (1)
HUD may approve administrative fees
to the PHA for any of the following
purposes:
(i) Ongoing administrative fee;
(ii) Costs to help families who experi-
ence difficulty finding or renting ap-
propriate housing under the program;
(iii) The following types of extraor-
dinary costs approved by HUD:
(A) Costs to cover necessary addi-
tional expenses incurred by the PHA to
provide reasonable accommodation for
persons with disabilities in accordance
with part 8 of this title (e.g., additional
counselling costs), where the PHA is
unable to cover such additional ex-
penses from ongoing administrative fee
income or the PHA administrative fee
reserve;
(B) Costs of audit by an independent
public accountant;
(C) Other extraordinary costs deter-
mined necessary by HUD Headquarters;
(iv) Preliminary fee (in accordance
with paragraph (c) of this section);
(v) Costs to coordinate supportive
services for families participating in
the family self-sufficiency (FSS) pro-
gram.
(2) For each PHA fiscal year, admin-
istrative fees are specified in the PHA
budget. The budget is submitted for
HUD approval. Fees are paid in the
amounts approved by HUD. Adminis-
trative fees may only be approved or
paid from amounts appropriated by the
Congress.
(3) PHA administrative fees may only
be used to cover costs incurred to per-
form PHA administrative responsibil-
ities for the program in accordance
with HUD regulations and require-
ments.
(b) Ongoing administrative fee. (1) The
PHA ongoing administrative fee is paid
for each program unit under HAP con-
tract on the first day of the month.

The amount of the ongoing fee is deter-
mined by HUD in accordance with Sec-
tion 8(q)(1) of the 1937 Act (42 U.S.C.
1437f(q)(1)).
(2) If appropriations are available,
HUD may pay a higher ongoing admin-
istrative fee for a small program or a
program operating over a large geo-
graphic area. This higher fee level will
not be approved unless the PHA dem-
onstrates that it is efficiently admin-
istering its HCV program, and that the
higher ongoing administrative fee is
reasonable and necessary for adminis-
tration of the program in accordance
with HUD requirements.
(3) HUD may pay a lower ongoing ad-
ministrative fee for PHA-owned units.
(c) Preliminary fee. (1) If the PHA was
not administering a program of Section
8 tenant-based assistance prior to the
merger date, HUD will pay a one-time
fee in the amount of $500 in the first
year the PHA administers a program.

The fee is paid for each new unit added
to the PHA program by the initial
funding increment under the consoli-
dated ACC.
(2) The preliminary fee is used to
cover expenses the PHA incurs to help
families who inquire about or apply for
the program, and to lease up new pro-
gram units.
(d) Reducing PHA administrative fee.

HUD may reduce or offset any adminis-
trative fee to the PHA, in the amount
determined by HUD, if the PHA fails to
perform PHA administrative respon-
sibilities correctly or adequately under
the program (for example, PHA failure
to enforce HQS requirements; or to re-
imburse a receiving PHA promptly
under portability procedures).
[60 FR 23695, July 3, 1995, as amended at 63
FR 23860, Apr. 30, 1998; 64 FR 26642, May 14,
1999; 80 FR 8246, Feb. 17, 2015]
§ 982.153 PHA responsibilities.

The PHA must comply with the con-
solidated ACC, the application, HUD
regulations and other requirements,
and the PHA administrative plan.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27,
1996; 63 FR 23860, Apr. 30, 1998]
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Asst. Secry., for Public and Indian Housing, HUD § 982.157 § 982.154 ACC reserve account.
(a) HUD may establish and maintain
an unfunded reserve account for the
PHA program from available budget
authority under the consolidated ACC.

This reserve is called the ‘‘ACC reserve
account’’ (formerly ‘‘project reserve’’).

There is a single ACC reserve account
for the PHA program.
(b) The amount in the ACC reserve
account is determined by HUD. HUD
may approve payments for the PHA
program, in accordance with the PHA’s
HUD-approved budget, from available
amounts in the ACC reserve account.
[64 FR 26642, May 14, 1999]
§ 982.155 Administrative fee reserve.
(a) The PHA must maintain an ad-
ministrative fee reserve (formerly ‘‘op-
erating reserve’’) for the program.

There is a single administrative fee re-
serve for the PHA program. The PHA
must credit to the administrative fee
reserve the total of:
(1) The amount by which program ad-
ministrative fees paid by HUD for a
PHA fiscal year exceed the PHA pro-
gram administrative expenses for the
fiscal year; plus
(2) Interest earned on the administra-
tive fee reserve.
(b)(1) The PHA must use funds in the
administrative fee reserve to pay pro-
gram administrative expenses in excess
of administrative fees paid by HUD for
a PHA fiscal year. If funds in the ad-
ministrative fee reserve are not needed
to cover PHA administrative expenses
(to the end of the last expiring funding
increment under the consolidated
ACC), the PHA may use these funds for
other housing purposes permitted by
State and local law. However, HUD
may prohibit use of the funds for cer-
tain purposes.
(2) The PHA Board of Commissioners
or other authorized officials must es-
tablish the maximum amount that
may be charged against the adminis-
trative fee reserve without specific ap-
proval.
(3) If the PHA has not adequately ad-
ministered any Section 8 program,
HUD may prohibit use of funds in the
administrative fee reserve, and may di-
rect the PHA to use funds in the re-
serve to improve administration of the
program or to reimburse ineligible ex-
penses.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26642, May 14,
1999]
§ 982.156 Depositary for program
funds.
(a) Unless otherwise required or per-
mitted by HUD, all program receipts
must be promptly deposited with a fi-
nancial institution selected as deposi-
tary by the PHA in accordance with
HUD requirements.
(b) The PHA may only withdraw de-
posited program receipts for use in con-
nection with the program in accord-
ance with HUD requirements.
(c) The PHA must enter into an
agreement with the depositary in the
form required by HUD.
(d)(1) If required under a written
freeze notice from HUD to the deposi-
tary:
(i) The depositary may not permit
any withdrawal by the PHA of funds
held under the depositary agreement
unless expressly authorized by written
notice from HUD to the depositary; and
(ii) The depositary must permit with-
drawals of such funds by HUD.
(2) HUD must send the PHA a copy of
the freeze notice from HUD to the de-
positary.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995]
§ 982.157 Budget and expenditure.
(a) Budget submission. Each PHA fis-
cal year, the PHA must submit its pro-
posed budget for the program to HUD
for approval at such time and in such
form as required by HUD.
(b) PHA use of program receipts. (1)
Program receipts must be used in ac-
cordance with the PHA’s HUD-ap-
proved budget. Such program receipts
may only be used for:
(i) Housing assistance payments; and
(ii) PHA administrative fees.
(2) The PHA must maintain a system
to ensure that the PHA will be able to
make housing assistance payments for
all participants within the amounts
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24 CFR Ch. IX (4–1–21 Edition) § 982.158
contracted under the consolidated
ACC.
(c) Intellectual property rights. Pro-
gram receipts may not be used to in-
demnify contractors or subcontractors
of the PHA against costs associated
with any judgment of infringement of
intellectual property rights.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26642, May 14,
1999]
§ 982.158 Program accounts and
records.
(a) The PHA must maintain complete
and accurate accounts and other
records for the program in accordance
with HUD requirements, in a manner
that permits a speedy and effective
audit. The records must be in the form
required by HUD, including require-
ments governing computerized or elec-
tronic forms of record-keeping. The
PHA must comply with the financial
reporting requirements in 24 CFR part
5, subpart H.
(b) The PHA must furnish to HUD ac-
counts and other records, reports, doc-
uments and information, as required by
HUD. For provisions on electronic
transmission of required family data,
see 24 CFR part 908.
(c) HUD and the Comptroller General
of the United States shall have full and
free access to all PHA offices and fa-
cilities, and to all accounts and other
records of the PHA that are pertinent
to administration of the program, in-
cluding the right to examine or audit
the records, and to make copies. The
PHA must grant such access to com-
puterized or other electronic records,
and to any computers, equipment or fa-
cilities containing such records, and
shall provide any information or assist-
ance needed to access the records.
(d) The PHA must prepare a unit in-
spection report.
(e) During the term of each assisted
lease, and for at least three years
thereafter, the PHA must keep:
(1) A copy of the executed lease;
(2) The HAP contract; and
(3) The application from the family.
(f) The PHA must keep the following
records for at least three years:
(1) Records that provide income, ra-
cial, ethnic, gender, and disability sta-
tus data on program applicants and
participants;
(2) An application from each ineli-
gible family and notice that the appli-
cant is not eligible;
(3) HUD-required reports;
(4) Unit inspection reports;
(5) Lead-based paint records as re-
quired by part 35, subpart B of this
title.
(6) Accounts and other records sup-
porting PHA budget and financial
statements for the program;
(7) Records to document the basis for
PHA determination that rent to owner
is a reasonable rent (initially and dur-
ing the term of a HAP contract); and
(8) Other records specified by HUD.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 27163, May 30,
1996; 63 FR 23860, Apr. 30, 1998; 63 FR 46593,
Sept. 1, 1998; 64 FR 50229, Sept. 15, 1999; 80 FR
8246, Feb. 17, 2015]
§ 982.159 Audit requirements.
(a) The PHA must engage and pay an
independent public accountant to con-
duct audits in accordance with HUD re-
quirements.
(b) The PHA is subject to the audit
requirements in 2 CFR part 200, subpart
F.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 80 FR 75943, Dec. 7,
2015]
§ 982.160 HUD determination to ad-
minister a local program.

If the Assistant Secretary for Public
and Indian Housing determines that
there is no PHA organized, or that
there is no PHA able and willing to im-
plement the provisions of this part for
an area, HUD (or an entity acting on
behalf of HUD) may enter into HAP
contracts with owners and perform the
functions otherwise assigned to PHAs
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Asst. Secry., for Public and Indian Housing, HUD § 982.201 under this part with respect to the
area.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995]
§ 982.161 Conflict of interest.
(a) Neither the PHA nor any of its
contractors or subcontractors may
enter into any contract or arrange-
ment in connection with the HCV pro-
gram in which any of the following
classes of persons has any interest, di-
rect or indirect, during tenure or for
one year thereafter:
(1) Any present or former member or
officer of the PHA (except a partici-
pant commissioner);
(2) Any employee of the PHA, or any
contractor, subcontractor or agent of
the PHA, who formulates policy or who
influences decisions with respect to the
programs;
(3) Any public official, member of a
governing body, or State or local legis-
lator, who exercises functions or re-
sponsibilities with respect to the pro-
grams; or
(4) Any member of the Congress of
the United States.
(b) Any member of the classes de-
scribed in paragraph (a) of this section
must disclose their interest or prospec-
tive interest to the PHA and HUD.
(c) The conflict of interest prohibi-
tion under this section may be waived
by the HUD field office for good cause.
[60 FR 34695, July 3, 1995, as amended at 80
FR 8246, Feb. 17, 2015]
§ 982.162 Use of HUD-required con-
tracts and other forms.
(a) The PHA must use program con-
tracts and other forms required by
HUD headquarters, including:
(1) The consolidated ACC between
HUD and the PHA;
(2) The HAP contract between the
PHA and the owner; and
(3) The tenancy addendum required
by HUD (which is included both in the
HAP contract and in the lease between
the owner and the tenant).
(b) Required program contracts and
other forms must be word-for-word in
the form required by HUD head-
quarters. Any additions to or modifica-
tions of required program contracts or
other forms must be approved by HUD
headquarters.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26642, May 14, 1999]
§ 982.163 Fraud recoveries.

Under 24 CFR part 792, the PHA may
retain a portion of program fraud
losses that the PHA recovers from a
family or owner by litigation, court-
order or a repayment agreement.
[60 FR 34695, July 3, 1995; 60 FR 43840, Aug. 23,
1995]
Subpart E—Admission to Tenant-
Based Program
§ 982.201 Eligibility and targeting.
(a) When applicant is eligible: General.

The PHA may admit only eligible fami-
lies to the program. To be eligible, an
applicant must be a ‘‘family;’’ must be
income-eligible in accordance with
paragraph (b) of this section and 24
CFR part 5, subpart F; and must be a
citizen or a noncitizen who has eligible
immigration status as determined in
accordance with 24 CFR part 5, subpart
E. If the applicant is a victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, 24 CFR part 5,
subpart L (Protection for Victims of
Domestic Violence, Dating Violence,
Sexual Assault, or Stalking) applies.
(b) Income—(1) Income-eligibility. To be
income-eligible, the applicant must be
a family in any of the following cat-
egories:
(i) A ‘‘very low income’’ family;
(ii) A low-income family that is
‘‘continuously assisted’’ under the 1937
Housing Act;
(iii) A low-income family that meets
additional eligibility criteria specified
in the PHA administrative plan. Such
additional PHA criteria must be con-
sistent with the PHA plan and with the
consolidated plans for local govern-
ments in the PHA jurisdiction;
(iv) A low-income family that quali-
fies for voucher assistance as a non-
purchasing family residing in a HOPE 1
(HOPE for public housing homeowner-
ship) or HOPE 2 (HOPE for homeowner-
ship of multifamily units) project.
(Section 8(o)(4)(D) of the 1937 Act (42
U.S.C. 1437f(o)(4)(D));
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24 CFR Ch. IX (4–1–21 Edition) § 982.201
(v) A low-income or moderate-income
family that is displaced as a result of
the prepayment of the mortgage or vol-
untary termination of an insurance
contract on eligible low-income hous-
ing as defined in § 248.101 of this title;
(vi) A low-income family that quali-
fies for voucher assistance as a non-
purchasing family residing in a project
subject to a resident homeownership
program under § 248.173 of this title.
(2) Income-targeting. (i) Not less than
75 percent of the families admitted to a
PHA’s HCV program during the PHA
fiscal year from the PHA waiting list
shall be extremely low income fami-
lies. Annual income of such families
shall be verified within the period de-
scribed in paragraph (e) of this section.
(ii) A PHA may admit a lower per-
cent of extremely low income families
during a PHA fiscal year (than other-
wise required under paragraph (b)(2)(i)
of this section) if HUD approves the use
of such lower percent by the PHA, in
accordance with the PHA plan, based
on HUD’s determination that the fol-
lowing circumstances necessitate use
of such lower percent by the PHA:
(A) The PHA has opened its waiting
list for a reasonable time for admission
of extremely low income families resid-
ing in the same metropolitan statis-
tical area (MSA) or non-metropolitan
county, both inside and outside the
PHA jurisdiction;
(B) The PHA has provided full public
notice of such opening to such families,
and has conducted outreach and mar-
keting to such families, including out-
reach and marketing to extremely low
income families on the Section 8 and
public housing waiting lists of other
PHAs with jurisdiction in the same
MSA or non-metropolitan county;
(C) Notwithstanding such actions by
the PHA (in accordance with para-
graphs (b)(2)(ii)(A) and (B) of this sec-
tion), there are not enough extremely
low income families on the PHA’s wait-
ing list to fill available slots in the
program during any fiscal year for
which use of a lower percent is ap-
proved by HUD; and
(D) Admission of the additional very
low income families other than ex-
tremely low income families to the
PHA’s tenant-based voucher program
will substantially address worst case
housing needs as determined by HUD.
(iii) If approved by HUD, the admis-
sion of a portion of very low income
welfare-to-work (WTW) families that
are not extremely low income families
may be disregarded in determining
compliance with the PHA’s income-tar-
geting obligations under paragraph
(b)(2)(i) of this section. HUD will grant
such approval only if and to the extent
that the PHA has demonstrated to
HUD’s satisfaction that compliance
with such targeting obligations with
respect to such portion of WTW fami-
lies would interfere with the objectives
of the welfare-to-work voucher pro-
gram. If HUD grants such approval, ad-
mission of that portion of WTW fami-
lies is not counted in the base number
of families admitted to a PHA’s tenant-
based voucher program during the fis-
cal year for purposes of income tar-
geting.
(iv) Admission of families as de-
scribed in paragraphs (b)(1)(ii) or
(b)(1)(v) of this section is not subject to
targeting under paragraph (b)(2)(i) of
this section.
(v) If the jurisdictions of two or more
PHAs that administer the HCV pro-
gram cover an identical geographic
area, such PHAs may elect to be treat-
ed as a single PHA for purposes of tar-
geting under paragraph (b)(2)(i) of this
section. In such a case, the PHAs shall
cooperate to assure that aggregate ad-
missions by such PHAs comply with
the targeting requirement. If such
PHAs do not have a single fiscal year,
HUD will determine which PHA’s fiscal
year is used for this purpose.
(vi) If a family initially leases a unit
outside the PHA jurisdiction under
portability procedures at admission to
the HCV program, such admission shall
be counted against the targeting obli-
gation of the initial PHA (unless the
receiving PHA absorbs the portable
family into the receiving PHA’s HCV
program from the point of admission).
(3) The annual income (gross income)
of an applicant family is used both for
determination of income-eligibility
under paragraph (b)(1) of this section
and for targeting under paragraph
(b)(2)(i) of this section. In determining
annual income of an applicant family
that includes a person with disabilities,
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Asst. Secry., for Public and Indian Housing, HUD § 982.202 the determination must include the
disallowance of increase in annual in-
come as provided in 24 CFR 5.617, if ap-
plicable.
(4) The applicable income limit for
issuance of a voucher when a family is
selected for the program is the highest
income limit (for the family size) for
areas in the PHA jurisdiction. The ap-
plicable income limit for admission to
the program is the income limit for the
area where the family is initially as-
sisted in the program. At admission,
the family may only use the voucher to
rent a unit in an area where the family
is income eligible.
(c) Family composition. See definition
of ‘‘family’’ in 24 CFR 5.403.
(d) Continuously assisted. (1) An appli-
cant is continuously assisted under the
1937 Housing Act if the family is al-
ready receiving assistance under any
1937 Housing Act program when the
family is admitted to the voucher pro-
gram.
(2) The PHA must establish policies
concerning whether and to what extent
a brief interruption between assistance
under one of these programs and ad-
mission to the voucher program will be
considered to break continuity of as-
sistance under the 1937 Housing Act.
(e) When PHA verifies that applicant is
eligible. The PHA must receive informa-
tion verifying that an applicant is eli-
gible within the period of 60 days be-
fore the PHA issues a voucher to the
applicant.
(f) Decision to deny assistance —(1) No-
tice to applicant. The PHA must give an
applicant prompt written notice of a
decision denying admission to the pro-
gram (including a decision that the ap-
plicant is not eligible, or denying as-
sistance for other reasons). The notice
must give a brief statement of the rea-
sons for the decision. The notice must
also state that the applicant may re-
quest an informal review of the deci-
sion, and state how to arrange for the
informal review.
(2) For description of the grounds for
denying assistance because of action or
inaction by the applicant, see
§ 982.552(b) and (c) (requirement and au-
thority to deny admission) and
§ 982.553(a) (crime by family members).
[59 FR 36682, July 18, 1994, as amended at 60
FR 34717, July 3, 1995; 61 FR 13627, Mar. 27,
1996; 64 FR 26642, May 14, 1999; 64 FR 49658,
Sept. 14, 1999; 64 FR 56911, Oct. 21, 1999; 66 FR
6226, Jan. 19, 2001; 66 FR 8174, Jan. 30, 2001; 67
FR 6820, Feb. 13, 2002; 70 FR 77744, Dec. 30,
2005; 73 FR 72344, Nov. 28, 2008; 75 FR 66263,
Oct. 27, 2010; 77 FR 5676, Feb. 3, 2012; 80 FR
8246, Feb. 17, 2015; 81 FR 80816, Nov. 16, 2016]
§ 982.202 How applicants are selected:

General requirements.
(a) Waiting list admissions and special
admissions. The PHA may admit an ap-
plicant for participation in the pro-
gram either:
(1) As a special admission (see
§ 982.203).
(2) As a waiting list admission (see
§ 982.204 through § 982.210).
(b) Prohibited admission criteria —(1)
Where family lives. Admission to the
program may not be based on where
the family lives before admission to
the program. However, the PHA may
target assistance for families who live
in public housing or other federally as-
sisted housing, or may adopt a resi-
dency preference (see § 982.207).
(2) Where family will live. Admission
to the program may not be based on
where the family will live with assist-
ance under the program.
(3) Family characteristics. The PHA
preference system may provide a pref-
erence for admission of families with
certain characteristics from the PHA
waiting list. However, admission to the
program may not be based on:
(i) Discrimination because members
of the family are unwed parents, recipi-
ents of public assistance, or children
born out of wedlock;
(ii) Discrimination because a family
includes children (familial status dis-
crimination);
(iii) Discrimination because of age,
race, color, religion, sex, or national
origin;
(iv) Discrimination because of dis-
ability; or
(v) Whether a family decides to par-
ticipate in a family self-sufficiency
program.
(c) Applicant status. An applicant does
not have any right or entitlement to be
listed on the PHA waiting list, to any
particular position on the waiting list,
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24 CFR Ch. IX (4–1–21 Edition) § 982.203
or to admission to the programs. The
preceding sentence does not affect or
prejudice any right, independent of this
rule, to bring a judicial action chal-
lenging an PHA violation of a constitu-
tional or statutory requirement.
(d) Admission policy. The PHA must
admit applicants for participation in
accordance with HUD regulations and
other requirements, including, but not
limited to, 24 CFR part 5, subpart L
(Protection for Victims of Domestic
Violence, Dating Violence, Sexual As-
sault, or Stalking), and with PHA poli-
cies stated in the PHA administrative
plan and the PHA plan. The PHA ad-
mission policy must state the system
of admission preferences that the PHA
uses to select applicants from the wait-
ing list, including any residency pref-
erence or other local preference.
[59 FR 36682, July 18, 1994, as amended at 60
FR 34717, July 3, 1995; 61 FR 9048, Mar. 6, 1996;
61 FR 27163, May 30, 1996; 64 FR 26643, May 14,
1999; 65 FR 16821, Mar. 30, 2000; 73 FR 72344,
Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 81 FR
80816, Nov. 16, 2016]
§ 982.203 Special admission (non-wait-
ing list): Assistance targeted by
HUD.
(a) If HUD awards a PHA program
funding that is targeted for families
living in specified units:
(1) The PHA must use the assistance
for the families living in these units.
(2) The PHA may admit a family that
is not on the PHA waiting list, or with-
out considering the family’s waiting
list position. The PHA must maintain
records showing that the family was
admitted with HUD-targeted assist-
ance.
(b) The following are examples of
types of program funding that may be
targeted for a family living in a speci-
fied unit:
(1) A family displaced because of
demolition or disposition of a public
housing project;
(2) A family residing in a multifamily
rental housing project when HUD sells,
forecloses or demolishes the project;
(3) For housing covered by the Low
Income Housing Preservation and Resi-
dent Homeownership Act of 1990 (41
U.S.C. 4101 et seq.):
(i) A non-purchasing family residing
in a project subject to a homeowner-
ship program (under 24 CFR 248.173); or
(ii) A family displaced because of
mortgage prepayment or voluntary ter-
mination of a mortgage insurance con-
tract (as provided in 24 CFR 248.165);
(4) A family residing in a project cov-
ered by a project-based Section 8 HAP
contract at or near the end of the HAP
contract term; and
(5) A non-purchasing family residing
in a HOPE 1 or HOPE 2 project.
[59 FR 36682, July 18, 1994, as amended at 64
FR 26643, May 14, 1999]
§ 982.204 Waiting list: Administration
of waiting list.
(a) Admission from waiting list. Except
for special admissions, participants
must be selected from the PHA waiting
list. The PHA must select participants
from the waiting list in accordance
with admission policies in the PHA ad-
ministrative plan.
(b) Organization of waiting list. The
PHA must maintain information that
permits the PHA to select participants
from the waiting list in accordance
with the PHA admission policies. The
waiting list must contain the following
information for each applicant listed:
(1) Applicant name;
(2) Family unit size (number of bed-
rooms for which family qualifies under
PHA occupancy standards);
(3) Date and time of application;
(4) Qualification for any local pref-
erence;
(5) Racial or ethnic designation of
the head of household.
(c) Removing applicant names from the
waiting list. (1) The PHA administrative
plan must state PHA policy on when
applicant names may be removed from
the waiting list. The policy may pro-
vide that the PHA will remove names
of applicants who do not respond to
PHA requests for information or up-
dates.
(2) An PHA decision to withdraw
from the waiting list the name of an
applicant family that includes a person
with disabilities is subject to reason-
able accommodation in accordance
with 24 CFR part 8. If the applicant did
not respond to the PHA request for in-
formation or updates because of the
family member’s disability, the PHA
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Asst. Secry., for Public and Indian Housing, HUD § 982.206 must reinstate the applicant in the
family’s former position on the waiting
list.
(d) Family size. (1) The order of admis-
sion from the waiting list may not be
based on family size, or on the family
unit size for which the family qualifies
under the PHA occupancy policy.
(2) If the PHA does not have suffi-
cient funds to subsidize the family unit
size of the family at the top of the
waiting list, the PHA may not skip the
top family to admit an applicant with
a smaller family unit size. Instead, the
family at the top of the waiting list
will be admitted when sufficient funds
are available.
(e) Funding for specified category of
waiting list families. When HUD awards
an PHA program funding for a specified
category of families on the waiting
list, the PHA must select applicant
families in the specified category.
(f) Number of waiting lists. A PHA
must use a single waiting list for ad-
mission to its Section 8 tenant-based
assistance program. However, the PHA
may use a separate single waiting list
for such admissions for a county or
municipality.
(Approved by the Office of Management and
Budget under OMB control number 2577–0169)
[59 FR 36682, July 18, 1994, as amended at 60
FR 34717, July 3, 1995; 63 FR 23860, Apr. 30,
1998; 64 FR 26643, May 14, 1999; 65 FR 16821,
Mar. 30, 2000]
§ 982.205 Waiting list: Different pro-
grams.
(a) Merger and cross-listing—(1) Merged
waiting list. A PHA may merge the
waiting list for tenant-based assistance
with the PHA waiting list for admis-
sion to another assisted housing pro-
gram, including a federal or local pro-
gram. In admission from the merged
waiting list, admission for each federal
program is subject to federal regula-
tions and requirements for the par-
ticular program.
(2) Non-merged waiting list: Cross-list-
ing. If the PHA decides not to merge
the waiting list for tenant-based assist-
ance with the waiting list for the
PHA’s public housing program, project-
based voucher program or moderate re-
habilitation program:
(i) If the PHA’s waiting list for ten-
ant-based assistance is open when an
applicant is placed on the waiting list
for the PHA’s public housing program,
project-based voucher program or mod-
erate rehabilitation program, the PHA
must offer to place the applicant on its
waiting list for tenant-based assist-
ance.
(ii) If the PHA’s waiting list for its
public housing program, project-based
voucher program or moderate rehabili-
tation program is open when an appli-
cant is placed on the waiting list for its
tenant-based program, and if the other
program includes units suitable for the
applicant, the PHA must offer to place
the applicant on its waiting list for the
other program.
(b) Other housing assistance: Effect of
application for, receipt or refusal. (1) For
purposes of this section, ‘‘other hous-
ing subsidy’’ means a housing subsidy
other than assistance under the vouch-
er program. Housing subsidy includes
subsidy assistance under a federal
housing program (including public
housing), a State housing program, or
a local housing program.
(2) The PHA may not take any of the
following actions because an applicant
has applied for, received, or refused
other housing assistance:
(i) Refuse to list the applicant on the
PHA waiting list for tenant-based as-
sistance;
(ii) Deny any admission preference
for which the applicant is currently
qualified;
(iii) Change the applicant’s place on
the waiting list based on preference,
date and time of application, or other
factors affecting selection under the
PHA selection policy; or
(iv) Remove the applicant from the
waiting list.
[59 FR 36682, July 18, 1994, as amended at 61
FR 27163, May 30, 1996; 63 FR 23860, Apr. 30,
1998; 64 FR 26643, May 14, 1999; 65 FR 16821,
Mar. 30, 2000; 80 FR 8246, Feb. 17, 2015]
§ 982.206 Waiting list: Opening and
closing; public notice.
(a) Public notice. (1) When the PHA
opens a waiting list, the PHA must
give public notice that families may
apply for tenant-based assistance. The
public notice must state where and
when to apply.

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24 CFR Ch. IX (4–1–21 Edition) § 982.207
(2) The PHA must give the public no-
tice by publication in a local news-
paper of general circulation, and also
by minority media and other suitable
means. The notice must comply with
HUD fair housing requirements.
(3) The public notice must state any
limitations on who may apply for
available slots in the program.
(b) Criteria defining what families may
apply. (1) The PHA may adopt criteria
defining what families may apply for
assistance under a public notice.
(2) If the waiting list is open, the
PHA must accept applications from
families for whom the list is open un-
less there is good cause for not accept-
ing the application (such as denial of
assistance because of action or inac-
tion by members of the family) for the
grounds stated in §§ 982.552 and 982.553.
(c) Closing waiting list. If the PHA de-
termines that the existing waiting list
contains an adequate pool for use of
available program funding, the PHA
may stop accepting new applications,
or may accept only applications meet-
ing criteria adopted by the PHA.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[59 FR 36682, July 18, 1994, as amended at 60
FR 34717, July 3, 1995; 60 FR 45661, Sept. 1,
1995; 63 FR 23860, Apr. 30, 1998; 64 FR 26643,
May 14, 1999]
§ 982.207 Waiting list: Local pref-
erences in admission to program.
(a) Establishment of PHA local pref-
erences. (1) The PHA may establish a
system of local preferences for selec-
tion of families admitted to the pro-
gram. PHA selection preferences must
be described in the PHA administrative
plan.
(2) The PHA system of local pref-
erences must be based on local housing
needs and priorities, as determined by
the PHA. In determining such needs
and priorities, the PHA shall use gen-
erally accepted data sources. The PHA
shall consider public comment on the
proposed public housing agency plan
(as received pursuant to § 903.17 of this
chapter) and on the consolidated plan
for the relevant jurisdiction (as re-
ceived pursuant to part 91 of this title).
(3) The PHA may limit the number of
applicants that may qualify for any
local preference.
(4) The PHA shall not deny a local
preference, nor otherwise exclude or
penalize a family in admission to the
program, solely because the family re-
sides in a public housing project. The
PHA may establish a preference for
families residing in public housing who
are victims of a crime of violence (as
defined in 18 U.S.C. 16).
(b) Particular local preferences —(1)
Residency requirements or preferences. (i)
Residency requirements are prohibited.

Although a PHA is not prohibited from
adopting a residency preference, the
PHA may only adopt or implement
residency preferences in accordance
with non-discrimination and equal op-
portunity requirements listed at
§ 5.105(a) of this title.
(ii) A residency preference is a pref-
erence for admission of persons who re-
side in a specified geographic area
(‘‘residency preference area’’). A coun-
ty or municipality may be used as a
residency preference area. An area
smaller than a county or municipality
may not be used as a residency pref-
erence area.
(iii) Any PHA residency preferences
must be included in the statement of
PHA policies that govern eligibility,
selection and admission to the pro-
gram, which is included in the PHA an-
nual plan (or supporting documents)
pursuant to part 903 of this title. Such
policies must specify that use of a resi-
dency preference will not have the pur-
pose or effect of delaying or otherwise
denying admission to the program
based on the race, color, ethnic origin,
gender, religion, disability, or age of
any member of an applicant family.
(iv) A residency preference must not
be based on how long an applicant has
resided or worked in a residency pref-
erence area.
(v) Applicants who are working or
who have been notified that they are
hired to work in a residency preference
area must be treated as residents of the
residency preference area. The PHA
may treat graduates of, or active par-
ticipants in, education and training
programs in a residency preference
area as residents of the residency pref-
erence area if the education or training
program is designed to prepare individ-
uals for the job market.

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Asst. Secry., for Public and Indian Housing, HUD § 982.301 (2) Preference for working families. The
PHA may adopt a preference for admis-
sion of working families (families
where the head, spouse or sole member
is employed). However, an applicant
shall be given the benefit of the work-
ing family preference if the head and
spouse, or sole member is age 62 or
older, or is a person with disabilities.
(3) Preference for person with disabil-
ities. The PHA may adopt a preference
for admission of families that include a
person with disabilities. However, the
PHA may not adopt a preference for
admission of persons with a specific
disability.
(4) Preference for victims of domestic vi-
olence, dating violence, sexual assault, or
stalking. The PHA should consider
whether to adopt a local preference for
admission of families that include vic-
tims of domestic violence, dating vio-
lence, sexual assault, or stalking.
(5) Preference for single persons who
are elderly, displaced, homeless, or per-
sons with disabilities. The PHA may
adopt a preference for admission of sin-
gle persons who are age 62 or older, dis-
placed, homeless, or persons with dis-
abilities over other single persons.
(c) Selection among families with pref-
erence. The PHA system of preferences
may use either of the following to se-
lect among applicants on the waiting
list with the same preference status:
(1) Date and time of application; or
(2) A drawing or other random choice
technique.
(d) Preference for higher-income fami-
lies. The PHA must not select families
for admission to the program in an
order different from the order on the
waiting list for the purpose of selecting
higher income families for admission
to the program.
(e) Verification of selection method. The
method for selecting applicants from a
preference category must leave a clear
audit trail that can be used to verify
that each applicant has been selected
in accordance with the method speci-
fied in the administrative plan.
[64 FR 26643, May 14, 1999, as amended at 64
FR 56912, Oct. 21, 1999; 65 FR 16821, Mar. 30,
2000; 81 FR 80816, Nov. 16, 2016]
Subpart F [Reserved]
Subpart G—Leasing a Unit
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.301 Information when family is
selected.
(a) PHA briefing of family. (1) When
the PHA selects a family to participate
in a tenant-based program, the PHA
must give the family an oral briefing.

The briefing must include information
on the following subjects:
(i) A description of how the program
works;
(ii) Family and owner responsibil-
ities; and
(iii) Where the family may lease a
unit, including renting a dwelling unit
inside or outside the PHA jurisdiction,
and any information on selecting a
unit that HUD provides.
(2) An explanation of how portability
works. The PHA may not discourage
the family from choosing to live any-
where in the PHA jurisdiction, or out-
side the PHA jurisdiction under port-
ability procedures, unless otherwise ex-
pressly authorized by statute, regula-
tion, PIH Notice, or court order. The
family must be informed of how port-
ability may affect the family’s assist-
ance through screening, subsidy stand-
ards, payment standards, and any other
elements of the portability process
which may affect the family’s assist-
ance.
(3) The briefing must also explain the
advantages of areas that do not have a
high concentration of low-income fami-
lies.
(4) In briefing a family that includes
any disabled person, the PHA must
take appropriate steps to ensure effec-
tive communication in accordance
with 24 CFR 8.6.
(5) In briefing a welfare-to-work fam-
ily, the PHA must include specification
of any local obligations of a welfare-to-
work family and an explanation that
failure to meet these obligations is
grounds for PHA denial of admission or
termination of assistance.
(b) Information packet. When a family
is selected to participate in the pro-
gram, the PHA must give the family a
packet that includes information on
the following subjects:

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24 CFR Ch. IX (4–1–21 Edition) § 982.302
(1) The term of the voucher, voucher
suspensions, and PHA policy on any ex-
tensions of the term. If the PHA allows
extensions, the packet must explain
how the family can request an exten-
sion;
(2) How the PHA determines the
amount of the housing assistance pay-
ment for a family, including:
(i) How the PHA determines the pay-
ment standard for a family; and
(ii) How the PHA determines the
total tenant payment for a family.
(3) How the PHA determines the max-
imum rent for an assisted unit;
(4) Where the family may lease a unit
and an explanation of how portability
works, including information on how
portability may affect the family’s as-
sistance through screening, subsidy
standards, payment standards, and any
other elements of the portability proc-
ess which may affect the family’s as-
sistance.
(5) The HUD-required ‘‘tenancy ad-
dendum’’ that must be included in the
lease;
(6) The form that the family uses to
request PHA approval of the assisted
tenancy, and an explanation of how to
request such approval;
(7) A statement of the PHA policy on
providing information about a family
to prospective owners;
(8) PHA subsidy standards, including
when the PHA will consider granting
exceptions to the standards;
(9) Materials ( e.g., brochures) on how
to select a unit and any additional in-
formation on selecting a unit that HUD
provides.
(10) Information on federal, State and
local equal opportunity laws, and a
copy of the housing discrimination
complaint form;
(11) A list of landlords known to the
PHA who may be willing to lease a unit
to the family or other resources ( e.g.,
newspapers, organizations, online
search tools) known to the PHA that
may assist the family in locating a
unit. PHAs must ensure that the list of
landlords or other resources covers
areas outside of poverty or minority
concentration.
(12) Notice that if the family includes
a disabled person, the family may re-
quest a current listing of accessible
units known to the PHA that may be
available;
(13) Family obligations under the
program;
(14) Family obligations under the
program, including any obligations of a
welfare-to-work family.
(15) The advantages of areas that do
not have a high concentration of low-
income families.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 27163, May 30,
1996; 64 FR 26644, May 14, 1999; 64 FR 50229,
Sept. 15, 1999; 64 FR 56912, Oct. 21, 1999; 80 FR
50572, Aug. 20, 2015; 80 FR 52619, Sept. 1, 2015]
§ 982.302 Issuance of voucher; Re-
questing PHA approval of assisted
tenancy.
(a) When a family is selected, or
when a participant family wants to
move to another unit, the PHA issues a
voucher to the family. The family may
search for a unit.
(b) If the family finds a unit, and the
owner is willing to lease the unit under
the program, the family may request
PHA approval of the tenancy. The PHA
has the discretion whether to permit
the family to submit more than one re-
quest at a time.
(c) The family must submit to the
PHA a request for approval of the ten-
ancy and a copy of the lease, including
the HUD-prescribed tenancy addendum.

The request must be submitted during
the term of the voucher.
(d) The PHA specifies the procedure
for requesting approval of the tenancy.

The family must submit the request for
approval of the tenancy in the form
and manner required by the PHA.
[64 FR 26644, May 14, 1999]
§ 982.303 Term of voucher.
(a) Initial term. The initial term of a
voucher must be at least 60 calendar
days. The initial term must be stated
on the voucher.
(b) Extensions of term. (1) At its dis-
cretion, the PHA may grant a family
one or more extensions of the initial
voucher term in accordance with PHA
policy as described in the PHA admin-
istrative plan. Any extension of the
term is granted by PHA notice to the
family.

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Asst. Secry., for Public and Indian Housing, HUD § 982.305 (2) If the family needs and requests
an extension of the initial voucher
term as a reasonable accommodation,
in accordance with part 8 of this title,
to make the program accessible to a
family member who is a person with
disabilities, the PHA must extend the
voucher term up to the term reason-
ably required for that purpose.
(c) Suspension of term. The PHA must
provide for suspension of the initial or
any extended term of the voucher from
the date that the family submits a re-
quest for PHA approval of the tenancy
until the date the PHA notifies the
family in writing whether the request
has been approved or denied.
(d) Progress report by family to the
PHA. During the initial or any ex-
tended term of a voucher, the PHA
may require the family to report
progress in leasing a unit. Such reports
may be required at such intervals or
times as determined by the PHA.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 63 FR 23860, Apr. 30,
1998; 64 FR 26644, May 14, 1999; 64 FR 56913,
Oct. 21, 1999; 80 FR 50573, Aug. 20, 2015]
§ 982.304 Illegal discrimination: PHA
assistance to family.

A family may claim that illegal dis-
crimination because of race, color, reli-
gion, sex, national origin, age, familial
status or disability prevents the family
from finding or leasing a suitable unit
with assistance under the program.

The PHA must give the family infor-
mation on how to fill out and file a
housing discrimination complaint.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995]
§ 982.305 PHA approval of assisted ten-
ancy.
(a) Program requirements. The PHA
may not give approval for the family of
the assisted tenancy, or execute a HAP
contract, until the PHA has deter-
mined that all the following meet pro-
gram requirements:
(1) The unit is eligible;
(2) The unit has been inspected by
the PHA and passes HQS;
(3) The lease includes the tenancy ad-
dendum;
(4) The rent to owner is reasonable;
and
(5) At the time a family initially re-
ceives tenant-based assistance for oc-
cupancy of a dwelling unit, and where
the gross rent of the unit exceeds the
applicable payment standard for the
family, the family share does not ex-
ceed 40 percent of the family’s monthly
adjusted income.
(b) Actions before lease term. (1) All of
the following must always be com-
pleted before the beginning of the ini-
tial term of the lease for a unit:
(i) The PHA has inspected the unit
and has determined that the unit satis-
fies the HQS;
(ii) The landlord and the tenant have
executed the lease (including the HUD-
prescribed tenancy addendum, and the
lead-based paint disclosure information
as required in § 35.92(b) of this title);
and
(iii) The PHA has approved leasing of
the unit in accordance with program
requirements.
(2)(i) The PHA must inspect the unit,
determine whether the unit satisfies
the HQS, and notify the family and
owner of the determination:
(A) In the case of a PHA with up to
1250 budgeted units in its tenant-based
program, within fifteen days after the
family and the owner submit a request
for approval of the tenancy.
(B) In the case of a PHA with more
than 1250 budgeted units in its tenant-
based program, within a reasonable
time after the family submits a request
for approval of the tenancy. To the ex-
tent practicable, such inspection and
determination must be completed
within fifteen days after the family and
the owner submit a request for ap-
proval of the tenancy.
(ii) The fifteen day clock (under para-
graph (b)(2)(i)(A) or paragraph
(b)(2)(i)(B) of this section) is suspended
during any period when the unit is not
available for inspection.
(3) In the case of a unit subject to a
lease-purchase agreement, the PHA
must provide written notice to the
family of the environmental require-
ments that must be met before com-
mencing homeownership assistance for
the family (see § 982.626(c)).

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24 CFR Ch. IX (4–1–21 Edition) § 982.306
(c) When HAP contract is executed. (1)
The PHA must use best efforts to exe-
cute the HAP contract before the be-
ginning of the lease term. The HAP
contract must be executed no later
than 60 calendar days from the begin-
ning of the lease term.
(2) The PHA may not pay any hous-
ing assistance payment to the owner
until the HAP contract has been exe-
cuted.
(3) If the HAP contract is executed
during the period of 60 calendar days
from the beginning of the lease term,
the PHA will pay housing assistance
payments after execution of the HAP
contract (in accordance with the terms
of the HAP contract), to cover the por-
tion of the lease term before execution
of the HAP contract (a maximum of 60
days).
(4) Any HAP contract executed after
the 60 day period is void, and the PHA
may not pay any housing assistance
payment to the owner.
(d) Notice to family and owner. After
receiving the family’s request for ap-
proval of the assisted tenancy, the
PHA must promptly notify the family
and owner whether the assisted ten-
ancy is approved.
(e) Procedure after PHA approval. If
the PHA has given approval for the
family of the assisted tenancy, the
owner and the PHA execute the HAP
contract.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26644, May 14,
1999; 64 FR 56913, Oct. 21, 1999; 64 FR 59622,
Nov. 3, 1999; 65 FR 16818, Mar. 30, 2000; 65 FR
55161, Sept. 12, 2000; 69 FR 34276, June 21, 2004;
80 FR 8246, Feb. 17, 2015]
§ 982.306 PHA disapproval of owner.
(a) The PHA must not approve an as-
sisted tenancy if the PHA has been in-
formed (by HUD or otherwise) that the
owner is debarred, suspended, or sub-
ject to a limited denial of participation
under 2 CFR part 2424.
(b) When directed by HUD, the PHA
must not approve an assisted tenancy
if:
(1) The federal government has insti-
tuted an administrative or judicial ac-
tion against the owner for violation of
the Fair Housing Act or other federal
equal opportunity requirements, and
such action is pending; or
(2) A court or administrative agency
has determined that the owner violated
the Fair Housing Act or other federal
equal opportunity requirements.
(c) In its administrative discretion,
the PHA may deny approval of an as-
sisted tenancy for any of the following
reasons:
(1) The owner has violated obliga-
tions under a HAP contract under Sec-
tion 8 of the 1937 Act (42 U.S.C. 1437f);
(2) The owner has committed fraud,
bribery or any other corrupt or crimi-
nal act in connection with any federal
housing program;
(3) The owner has engaged in any
drug-related criminal activity or any
violent criminal activity;
(4) The owner has a history or prac-
tice of non-compliance with the HQS
for units leased under the tenant-based
programs, or with applicable housing
standards for units leased with project-
based Section 8 assistance or leased
under any other federal housing pro-
gram;
(5) The owner has a history or prac-
tice of failing to terminate tenancy of
tenants of units assisted under Section
8 or any other federally assisted hous-
ing program for activity engaged in by
the tenant, any member of the house-
hold, a guest or another person under
the control of any member of the
household that:
(i) Threatens the right to peaceful
enjoyment of the premises by other
residents;
(ii) Threatens the health or safety of
other residents, of employees of the
PHA, or of owner employees or other
persons engaged in management of the
housing;
(iii) Threatens the health or safety
of, or the right to peaceful enjoyment
of their residences, by persons residing
in the immediate vicinity of the prem-
ises; or
(iv) Is drug-related criminal activity
or violent criminal activity; or
(6) The owner has a history or prac-
tice of renting units that fail to meet
State or local housing codes; or
(7) The owner has not paid State or
local real estate taxes, fines or assess-
ments.

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Asst. Secry., for Public and Indian Housing, HUD § 982.308 (d) The PHA must not approve a unit
if the owner is the parent, child, grand-
parent, grandchild, sister, or brother of
any member of the family, unless the
PHA determines that approving the
unit would provide reasonable accom-
modation for a family member who is a
person with disabilities. This restric-
tion against PHA approval of a unit
only applies at the time a family ini-
tially receives tenant-based assistance
for occupancy of a particular unit, but
does not apply to PHA approval of a
new tenancy with continued tenant-
based assistance in the same unit.
(e) Nothing in this rule is intended to
give any owner any right to participate
in the program.
(f) For purposes of this section,
‘‘owner’’ includes a principal or other
interested party.
[60 FR 34695, July 3, 1995, as amended at 63
FR 27437, May 18, 1998; 64 FR 26644, May 14,
1999; 64 FR 56913, Oct. 21, 1999; 65 FR 16821,
Mar. 30, 2000; 72 FR 73496, Dec. 27, 2007]
§ 982.307 Tenant screening.
(a) PHA option and owner responsi-
bility. (1) The PHA has no liability or
responsibility to the owner or other
persons for the family’s behavior or
suitability for tenancy. However, the
PHA may opt to screen applicants for
family behavior or suitability for ten-
ancy. The PHA must conduct any such
screening of applicants in accordance
with policies stated in the PHA admin-
istrative plan.
(2) The owner is responsible for
screening and selection of the family
to occupy the owner’s unit. At or be-
fore PHA approval of the tenancy, the
PHA must inform the owner that
screening and selection for tenancy is
the responsibility of the owner.
(3) The owner is responsible for
screening of families on the basis of
their tenancy histories. An owner may
consider a family’s background with
respect to such factors as:
(i) Payment of rent and utility bills;
(ii) Caring for a unit and premises;
(iii) Respecting the rights of other
residents to the peaceful enjoyment of
their housing;
(iv) Drug-related criminal activity or
other criminal activity that is a threat
to the health, safety or property of
others; and
(v) Compliance with other essential
conditions of tenancy.
(b) PHA information about tenant. (1)
The PHA must give the owner:
(i) The family’s current and prior ad-
dress (as shown in the PHA records);
and
(ii) The name and address (if known
to the PHA) of the landlord at the fam-
ily’s current and prior address.
(2) When a family wants to lease a
dwelling unit, the PHA may offer the
owner other information in the PHA
possession, about the family, including
information about the tenancy history
of family members, or about drug-traf-
ficking by family members.
(3) The PHA must give the family a
statement of the PHA policy on pro-
viding information to owners. The
statement must be included in the in-
formation packet that is given to a
family selected to participate in the
program. The PHA policy must provide
that the PHA will give the same types
of information to all families and to all
owners.
(4) In cases involving a victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, 24 CFR part 5,
subpart L (Protection for Victims of
Domestic Violence, Dating Violence,
Sexual Assault, or Stalking) applies.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 27163, May 30,
1996; 64 FR 26645, May 14, 1999; 64 FR 49658,
Sept. 14, 1999; 73 FR 72344, Nov. 28, 2008; 75 FR
66263, Oct. 27, 2010; 81 FR 80816, Nov. 16, 2016]
§ 982.308 Lease and tenancy.
(a) Tenant’s legal capacity. The tenant
must have legal capacity to enter 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.
(b) Form of lease. (1) The tenant and
the owner must enter a written lease
for the unit. The lease must be exe-
cuted by the owner and the tenant.
(2) If the owner uses a standard lease
form for rental to unassisted tenants in
the locality or the premises, the lease
must be in such standard form (plus
the HUD-prescribed tenancy adden-
dum). If the owner does not use a
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24 CFR Ch. IX (4–1–21 Edition) § 982.309
standard lease form for rental to unas-
sisted tenants, the owner may use an-
other form of lease, such as a PHA
model lease (including the HUD-pre-
scribed tenancy addendum). The HAP
contract prescribed by HUD will con-
tain the owner’s certification that if
the owner uses a standard lease form
for rental to unassisted tenants, the
lease is in such standard form.
(c) State and local law. The PHA may
review the lease to determine if the
lease complies with State and local
law. The PHA may decline to approve
the tenancy if the PHA determines
that the lease does not comply with
State or local law.
(d) Required information. The lease
must specify all of the following:
(1) The names of the owner and the
tenant;
(2) The unit rented (address, apart-
ment number, and any other informa-
tion needed to identify the contract
unit);
(3) The term of the lease (initial term
and any provisions for renewal);
(4) The amount of the monthly rent
to owner; and
(5) A specification of what utilities
and appliances are to be supplied by
the owner, and what utilities and appli-
ances are to be supplied by the family.
(e) Reasonable rent. The rent to owner
must be reasonable (see § 982.507).
(f) Tenancy addendum. (1) The HAP
contract form required by HUD shall
include an addendum (the ‘‘tenancy ad-
dendum’’), that sets forth:
(i) The tenancy requirements for the
program (in accordance with this sec-
tion and §§ 982.309 and 982.310); and
(ii) The composition of the household
as approved by the PHA (family mem-
bers and any PHA-approved live-in
aide).
(2) All provisions in the HUD-re-
quired tenancy addendum must be
added word-for-word to the owner’s
standard form lease that is used by the
owner for unassisted tenants. The ten-
ant shall have the right to enforce the
tenancy addendum against the owner,
and the terms of the tenancy adden-
dum shall prevail over any other provi-
sions of the lease.
(g) Changes in lease or rent. (1) If the
tenant and the owner agree to any
changes in the lease, such changes
must be in writing, and the owner must
immediately give the PHA a copy of
such changes. The lease, including any
changes, must be in accordance with
the requirements of this section.
(2) In the following cases, tenant-
based assistance shall not be continued
unless the PHA has approved a new
tenancy in accordance with program
requirements and has executed a new
HAP contract with the owner:
(i) If there are any changes in lease
requirements governing tenant or
owner responsibilities for utilities or
appliances;
(ii) If there are any changes in lease
provisions governing the term of the
lease;
(iii) If the family moves to a new
unit, even if the unit is in the same
building or complex.
(3) PHA approval of the tenancy, and
execution of a new HAP contract, are
not required for changes in the lease
other than as specified in paragraph
(g)(2) of this section.
(4) The owner must notify the PHA of
any changes in the amount of the rent
to owner at least sixty days before any
such changes go into effect, and any
such changes shall be subject to rent
reasonableness requirements (see
§ 982.503).
[64 FR 26645, May 14, 1999, as amended at 64
FR 56913, Oct. 21, 1999]
§ 982.309 Term of assisted tenancy.
(a) Initial term of lease. (1) Except as
provided in paragraph (a)(2) of this sec-
tion, the initial lease term must be for
at least one year.
(2) The PHA may approve a shorter
initial lease term if the PHA deter-
mines that:
(i) Such shorter term would improve
housing opportunities for the tenant;
and
(ii) Such shorter term is the pre-
vailing local market practice.
(3) During the initial term of the
lease, the owner may not raise the rent
to owner.
(4) The PHA may execute the HAP
contract even if there is less than one
year remaining from the beginning of
the initial lease term to the end of the
last expiring funding increment under
the consolidated ACC.

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Asst. Secry., for Public and Indian Housing, HUD § 982.310 (b) Term of HAP contract. (1) The term
of the HAP contract begins on the first
day of the lease term and ends on the
last day of the lease term.
(2) The HAP contract terminates if
any of the following occurs:
(i) The lease is terminated by the
owner or the tenant;
(ii) The PHA terminates the HAP
contract; or
(iii) The PHA terminates assistance
for the family.
(c) Family responsibility. (1) If the fam-
ily terminates the lease on notice to
the owner, the family must give the
PHA a copy of the notice of termi-
nation at the same time. Failure to do
this is a breach of family obligations
under the program.
(2) The family must notify the PHA
and the owner before the family moves
out of the unit. Failure to do this is a
breach of family obligations under the
program.
[64 FR 26645, May 14, 1999]
§ 982.310 Owner termination of ten-
ancy.
(a) Grounds. During the term of the
lease, the owner may not terminate the
tenancy except on the following
grounds:
(1) Serious violation (including but
not limited to failure to pay rent or
other amounts due under the lease) or
repeated violation of the terms and
conditions of the lease;
(2) Violation of federal, State, or
local law that imposes obligations on
the tenant in connection with the oc-
cupancy or use of the premises; or
(3) Other good cause.
(b) Nonpayment by PHA: Not grounds
for termination of tenancy. (1) The fam-
ily is not responsible for payment of
the portion of the rent to owner cov-
ered by the housing assistance pay-
ment under the HAP contract between
the owner and the PHA.
(2) The PHA failure to pay the hous-
ing assistance payment to the owner is
not a violation of the lease between the
tenant and the owner. During the term
of the lease the owner may not termi-
nate the tenancy of the family for non-
payment of the PHA housing assist-
ance payment.
(c) Criminal activity—(1) Evicting drug
criminals due to drug crime on or near the
premises. The lease must provide that
drug-related criminal activity engaged
in, on or near the premises by any ten-
ant, household member, or guest, or
such activity engaged in on the prem-
ises by any other person under the ten-
ant’s control, is grounds for the owner
to terminate tenancy. In addition, the
lease must provide that the owner may
evict a family when the owner deter-
mines that a household member is ille-
gally using a drug or when the owner
determines that a pattern of illegal use
of a drug interferes with the health,
safety, or right to peaceful enjoyment
of the premises by other residents.
(2) Evicting other criminals. (i) Threat
to other residents. The lease must pro-
vide that the owner may terminate
tenancy for any of the following types
of criminal activity by a covered per-
son:
(A) Any criminal activity that
threatens the health, safety, or right
to peaceful enjoyment of the premises
by other residents (including property
management staff residing on the
premises);
(B) Any criminal activity that
threatens the health, safety, or right
to peaceful enjoyment of their resi-
dences by persons residing in the im-
mediate vicinity of the premises; or
(C) Any violent criminal activity on
or near the premises by a tenant,
household member, or guest, or any
such activity on the premises by any
other person under the tenant’s con-
trol.
(ii) Fugitive felon or parole violator.

The lease must provide that the owner
may terminate the tenancy if a tenant
is:
(A) Fleeing to avoid prosecution, or
custody or confinement after convic-
tion, for a crime, or attempt to commit
a crime, that is a felony under the laws
of the place from which the individual
flees, or that, in the case of the State
of New Jersey, is a high misdemeanor;
or
(B) Violating a condition of proba-
tion or parole imposed under Federal
or State law.
(3) Evidence of criminal activity. The
owner may terminate tenancy and
evict by judicial action a family for
criminal activity by a covered person
in accordance with this section if the
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24 CFR Ch. IX (4–1–21 Edition) § 982.310
owner determines that the covered per-
son has engaged in the criminal activ-
ity, regardless of whether the covered
person has been arrested or convicted
for such activity and without satis-
fying the standard of proof used for a
criminal conviction. (See part 5, sub-
part J, of this title for provisions con-
cerning access to criminal records.)
(d) Other good cause. (1) ‘‘Other good
cause’’ for termination of tenancy by
the owner may include, but is not lim-
ited to, any of the following examples:
(i) Failure by the family to accept
the offer of a new lease or revision;
(ii) A family history of disturbance of
neighbors or destruction of property,
or of living or housekeeping habits re-
sulting in damage to the unit or prem-
ises;
(iii) The owner’s desire to use the
unit for personal or family use, or for a
purpose other than as a residential
rental unit; or
(iv) A business or economic reason
for termination of the tenancy (such as
sale of the property, renovation of the
unit, or desire to lease the unit at a
higher rental).
(2) During the initial lease term, the
owner may not terminate the tenancy
for ‘‘other good cause’’, unless the
owner is terminating the tenancy be-
cause of something the family did or
failed to do. For example, during this
period, the owner may not terminate
the tenancy for ‘‘other good cause’’
based on any of the following grounds:
failure by the family to accept the
offer of a new lease or revision; the
owner’s desire to use the unit for per-
sonal or family use, or for a purpose
other than as a residential rental unit;
or a business or economic reason for
termination of the tenancy (see para-
graph (d)(1)(iv) of this section).
(e) Owner notice—(1) Notice of grounds.
(i) The owner must give the tenant a
written notice that specifies the
grounds for termination of tenancy
during the term of the lease. The ten-
ancy does not terminate before the
owner has given this notice, and the
notice must be given at or before com-
mencement of the eviction action.
(ii) The notice of grounds may be in-
cluded in, or may be combined with,
any owner eviction notice to the ten-
ant.
(2) Eviction notice. (i) Owner eviction
notice means a notice to vacate, or a
complaint or other initial pleading
used under State or local law to com-
mence an eviction action.
(ii) The owner must give the PHA a
copy of any owner eviction notice to
the tenant.
(f) Eviction by court action. The owner
may only evict the tenant from the
unit by instituting a court action.
(g) Regulations not applicable. 24 CFR
part 247 (concerning evictions from cer-
tain subsidized and HUD-owned
projects) does not apply to a tenancy
assisted under this part 982.
(h) Termination of tenancy decisions —
(1) General. If the law and regulation
permit the owner to take an action but
do not require action to be taken, the
owner may take or not take the action
in accordance with the owner’s stand-
ards for eviction. The owner may con-
sider all of the circumstances relevant
to a particular eviction case, such as:
(i) The seriousness of the offending
action;
(ii) The effect on the community of
denial or termination or the failure of
the owner to take such action;
(iii) The extent of participation by
the leaseholder in the offending action;
(iv) The effect of denial of admission
or termination of tenancy on house-
hold members not involved in the of-
fending activity;
(v) The demand for assisted housing
by families who will adhere to lease re-
sponsibilities;
(vi) The extent to which the lease-
holder has shown personal responsi-
bility and taken all reasonable steps to
prevent or mitigate the offending ac-
tion;
(vii) The effect of the owner’s action
on the integrity of the program.
(2) Exclusion of culpable household
member. The owner may require a ten-
ant to exclude a household member in
order to continue to reside in the as-
sisted unit, where that household mem-
ber has participated in or been culpable
for action or failure to act that war-
rants termination.
(3) Consideration of rehabilitation. In
determining whether to terminate ten-
ancy for illegal use of drugs or alcohol
abuse by a household member who is
no longer engaged in such behavior, the
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Asst. Secry., for Public and Indian Housing, HUD § 982.312 owner may consider whether such
household member is participating in
or has successfully completed a super-
vised drug or alcohol rehabilitation
program, or has otherwise been reha-
bilitated successfully (42 U.S.C. 13661).

For this purpose, the owner may re-
quire the tenant to submit evidence of
the household member’s current par-
ticipation in, or successful completion
of, a supervised drug or alcohol reha-
bilitation program or evidence of oth-
erwise having been rehabilitated suc-
cessfully.
(4) Nondiscrimination limitation and
protection for victims of domestic violence,
dating violence, sexual assault, or stalk-
ing. The owner’s termination of ten-
ancy actions must be consistent with
the fair housing and equal opportunity
provisions of 24 CFR 5.105, and with the
provisions for protection of victims of
domestic violence, dating violence, sex-
ual assault, or stalking in 24 CFR part
5, subpart L (Protection for Victims of
Domestic Violence, Dating Violence,
Sexual Assault, or Stalking).
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26645, May 14,
1999; 64 FR 56913, Oct. 21, 1999; 66 FR 28804,
May 24, 2001; 73 FR 72344, Nov. 28, 2008; 75 FR
66263, Oct. 27, 2010; 81 FR 80816, Nov. 16, 2016]
§ 982.311 When assistance is paid.
(a) Payments under HAP contract.

Housing assistance payments are paid
to the owner in accordance with the
terms of the HAP contract. Housing as-
sistance payments may only be paid to
the owner during the lease term, and
while the family is residing in the unit.
(b) Termination of payment: When
owner terminates the lease. Housing as-
sistance payments terminate when the
lease is terminated by the owner in ac-
cordance with the lease. However, if
the owner has commenced the process
to evict the tenant, and if the family
continues to reside in the unit, the
PHA must continue to make housing
assistance payments to the owner in
accordance with the HAP contract
until the owner has obtained a court
judgment or other process allowing the
owner to evict the tenant. The PHA
may continue such payments until the
family moves from or is evicted from
the unit.
(c) Termination of payment: Other rea-
sons for termination. Housing assistance
payments terminate if:
(1) The lease terminates;
(2) The HAP contract terminates; or
(3) The PHA terminates assistance
for the family.
(d) Family move-out. (1) If the family
moves out of the unit, the PHA may
not make any housing assistance pay-
ment to the owner for any month after
the month when the family moves out.

The owner may keep the housing as-
sistance payment for the month when
the family moves out of the unit.
(2) If a participant family moves
from an assisted unit with continued
tenant-based assistance, the term of
the assisted lease for the new assisted
unit may begin during the month the
family moves out of the first assisted
unit. Overlap of the last housing assist-
ance payment (for the month when the
family moves out of the old unit) and
the first assistance payment for the
new unit, is not considered to con-
stitute a duplicative housing subsidy.
[60 FR 34695, July 3, 1995, as amended at 80
FR 8246, Feb. 17, 2015]
§ 982.312 Absence from unit.
(a) The family may be absent from
the unit for brief periods. For longer
absences, the PHA administrative plan
establishes the PHA policy on how long
the family may be absent from the as-
sisted unit. However, the family may
not be absent from the unit for a period
of more than 180 consecutive calendar
days in any circumstance, or for any
reason. At its discretion, the PHA may
allow absence for a lesser period in ac-
cordance with PHA policy.
(b) Housing assistance payments ter-
minate if the family is absent for
longer than the maximum period per-
mitted. The term of the HAP contract
and assisted lease also terminate.
(The owner must reimburse the PHA
for any housing assistance payment for
the period after the termination.)
(c) Absence means that no member of
the family is residing in the unit.
(d)(1) The family must supply any in-
formation or certification requested by
the PHA to verify that the family is re-
siding in the unit, or relating to family
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24 CFR Ch. IX (4–1–21 Edition) § 982.313
absence from the unit. The family
must cooperate with the PHA for this
purpose. The family must promptly no-
tify the PHA of absence from the unit,
including any information requested on
the purposes of family absences.
(2) The PHA may adopt appropriate
techniques to verify family occupancy
or absence, including letters to the
family at the unit, phone calls, visits
or questions to the landlord or neigh-
bors.
(e) The PHA administrative plan
must state the PHA policies on family
absence from the dwelling unit. The
PHA absence policy includes:
(1) How the PHA determines whether
or when the family may be absent, and
for how long. For example, the PHA
may establish policies on absences be-
cause of vacation, hospitalization or
imprisonment; and
(2) Any provision for resumption of
assistance after an absence, including
readmission or resumption of assist-
ance to the family.
§ 982.313 Security deposit: Amounts
owed by tenant.
(a) The owner may collect a security
deposit from the tenant.
(b) The PHA may prohibit security
deposits in excess of private market
practice, or in excess of amounts
charged by the owner to unassisted
tenants.
(c) When the tenant moves out of the
dwelling unit, the owner, subject to
State or local law, may use the secu-
rity deposit, including any interest on
the deposit, in accordance with the
lease, as reimbursement for any unpaid
rent payable by the tenant, damages to
the unit or for other amounts the ten-
ant owes under the lease.
(d) 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, if any, used to reimburse
the owner, the owner must refund
promptly the full amount of the unused
balance to the tenant.
(e) If the security deposit is not suffi-
cient to cover amounts the tenant owes
under the lease, the owner may seek to
collect the balance from the tenant.
§ 982.315 Family break-up.
(a)(1) The PHA has discretion to de-
termine which members of an assisted
family continue to receive assistance
in the program if the family breaks up.

The PHA administrative plan must
state PHA policies on how to decide
who remains in the program if the fam-
ily breaks up.
(2) If the family break-up results
from an occurrence of domestic vio-
lence, dating violence, sexual assault,
or stalking as provided in 24 CFR part
5, subpart L (Protection for Victims of
Domestic Violence, Dating Violence,
Sexual Assault, or Stalking), the PHA
must ensure that the victim retains as-
sistance.
(b) The factors to be considered in
making this decision under the PHA
policy may include:
(1) Whether the assistance should re-
main with family members remaining
in the original assisted unit.
(2) The interest of minor children or
of ill, elderly, or disabled family mem-
bers.
(3) Whether family members are
forced to leave the unit as a result of
actual or threatened domestic vio-
lence, dating violence, sexual assault,
or stalking.
(4) Whether any of the family mem-
bers are receiving protection as vic-
tims of domestic violence, dating vio-
lence, sexual assault, or stalking, as
provided in 24 CFR part 5, subpart L,
and whether the abuser is still in the
household.
(5) Other factors specified by the
PHA.
(c) If a court determines the disposi-
tion of property between members of
the assisted family in a divorce or sep-
aration under a settlement or judicial
decree, the PHA is bound by the court’s
determination of which family mem-
bers continue to receive assistance in
the program.
[60 FR 34695, July 3, 1995, as amended at 75
FR 66264, Oct. 27, 2010; 80 FR 8246, Feb. 17,
2015; 81 FR 80816, Nov. 16, 2016]
§ 982.316 Live-in aide.
(a) A family that consists of one or
more elderly, near-elderly or disabled
persons may request that the PHA ap-
prove a live-in aide to reside in the
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Asst. Secry., for Public and Indian Housing, HUD § 982.352 unit and provide necessary supportive
services for a family member who is a
person with disabilities. The PHA must
approve a live-in aide if needed as a
reasonable accommodation in accord-
ance with 24 CFR part 8 to make the
program accessible to and usable by
the family member with a disability.
(See § 982.402(b)(6) concerning effect of
live-in aide on family unit size.)
(b) At any time, the PHA may refuse
to approve a particular person as a
live-in aide, or may withdraw such ap-
proval, if:
(1) The person commits fraud, bribery
or any other corrupt or criminal act in
connection with any federal housing
program;
(2) The person commits drug-related
criminal activity or violent criminal
activity; or
(3) The person currently owes rent or
other amounts to the PHA or to an-
other PHA in connection with Section
8 or public housing assistance under
the 1937 Act.
[63 FR 23860, Apr. 30, 1998; 63 FR 31625, June
10, 1998]
§ 982.317 Lease-purchase agreements.
(a) A family leasing a unit with as-
sistance under the program may enter
into an agreement with an owner to
purchase the unit. So long as the fam-
ily is receiving such rental assistance,
all requirements applicable to families
otherwise leasing units under the ten-
ant-based program apply. Any home-
ownership premium (e.g., increment of
value attributable to the value of the
lease-purchase right or agreement such
as an extra monthly payment to accu-
mulate a downpayment or reduce the
purchase price) included in the rent to
the owner that would result in a higher
subsidy amount than would otherwise
be paid by the PHA must be absorbed
by the family.
(b) In determining whether the rent
to owner for a unit subject to a lease-
purchase agreement is a reasonable
amount in accordance with § 982.503,
any homeownership premium paid by
the family to the owner must be ex-
cluded when the PHA determines rent
reasonableness.
[65 FR 55162, Sept. 12, 2000]
Subpart H—Where Family Can
Live and Move
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.351 Overview.

This subpart describes what kind of
housing is eligible for leasing, and the
areas where a family can live with ten-
ant-based assistance. The subpart cov-
ers:
(a) Assistance for a family that rents
a dwelling unit in the jurisdiction of
the PHA that originally selected the
family for tenant-based assistance.
(b) ‘‘Portability’’ assistance for a
family PHA rents a unit outside the ju-
risdiction of the initial PHA.
§ 982.352 Eligible housing.
(a) Ineligible housing. The following
types of housing may not be assisted
by a PHA in the tenant-based pro-
grams:
(1) A public housing or Indian hous-
ing unit;
(2) A unit receiving project-based as-
sistance under section 8 of the 1937 Act
(42 U.S.C. 1437f);
(3) Nursing homes, board and care
homes, or facilities providing continual
psychiatric, medical, or nursing serv-
ices;
(4) College or other school dor-
mitories;
(5) Units on the grounds of penal, re-
formatory, medical, mental, and simi-
lar public or private institutions;
(6) A unit occupied by its owner or by
a person with any interest in the unit.
(7) For provisions on PHA dis-
approval of an owner, see § 982.306.
(b) PHA-owned housing. (1) A unit
that is owned by the PHA that admin-
isters the assistance under the consoli-
dated ACC (including a unit owned by
an entity substantially controlled by
the PHA) may only be assisted under
the tenant-based program if all the fol-
lowing conditions are satisfied:
(i) The PHA must inform the family,
both orally and in writing, that the
family has the right to select any eligi-
ble unit available for lease, and a PHA-
owned unit is freely selected by the
family, without PHA pressure or steer-
ing.
(ii) The unit is not ineligible housing.

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24 CFR Ch. IX (4–1–21 Edition) § 982.353
(iii) During assisted occupancy, the
family may not benefit from any form
of housing subsidy that is prohibited
under paragraph (c) of this section.
(iv)(A) The PHA must obtain the
services of an independent entity to
perform the following PHA functions
as required under the program rule:
(1) To determine rent reasonableness
in accordance with § 982.507. The inde-
pendent agency shall communicate the
rent reasonableness determination to
the family and the PHA.
(2) To assist the family negotiate the
rent to owner in accordance with
§ 982.506.
(3) To inspect the unit for compliance
with the HQS in accordance with
§ 982.305(a) and § 982.405 (except that
§ 982.405(e) is not applicable). The inde-
pendent agency shall communicate the
results of each such inspection to the
family and the PHA.
(B) The independent agency used to
perform these functions must be ap-
proved by HUD. The independent agen-
cy 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 may be an-
other HUD-approved independent agen-
cy.
(C) The PHA may compensate the
independent agency from PHA ongoing
administrative fee income for the serv-
ices performed by the independent
agency. The PHA may not use other
program receipts to compensate the
independent agency for such services.

The PHA and the independent agency
may not charge the family any fee or
charge for the services provided by the
independent agency.
(c) Prohibition against other housing
subsidy. A family may not receive the
benefit of tenant-based assistance
while receiving the benefit of any of
the following forms of other housing
subsidy, for the same unit or for a dif-
ferent unit:
(1) Public or Indian housing assist-
ance;
(2) Other Section 8 assistance (includ-
ing other tenant-based assistance);
(3) Assistance under former Section
23 of the United States Housing Act of
1937 (before amendment by the Housing
and Community Development Act of
1974);
(4) Section 101 rent supplements;
(5) Section 236 rental assistance pay-
ments;
(6) Tenant-based assistance under the
HOME Program;
(7) Rental assistance payments under
Section 521 of the Housing Act of 1949
(a program of the Rural Development
Administration);
(8) Any local or State rent subsidy;
(9) Section 202 supportive housing for
the elderly;
(10) Section 811 supportive housing
for persons with disabilities;
(11) Section 202 projects for non-el-
derly persons with disabilities (Section
162 assistance); or
(12) Any other duplicative federal,
State, or local housing subsidy, as de-
termined by HUD. For this purpose,
‘‘housing subsidy’’ does not include the
housing component of a welfare pay-
ment, a social security payment re-
ceived by the family, or a rent reduc-
tion because of a tax credit.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 63 FR 23860, Apr. 30,
1998; 64 FR 13057, Mar. 16, 1999; 64 FR 26645,
May 14, 1999; 65 FR 55162, Sept. 12, 2000]
§ 982.353 Where family can lease a unit
with tenant-based assistance.
(a) Assistance in the initial PHA juris-
diction. The family may receive tenant-
based assistance to lease a unit located
anywhere in the jurisdiction (as deter-
mined by State and local law) of the
initial PHA. HUD may nevertheless re-
strict the family’s right to lease such a
unit anywhere in such jurisdiction if
HUD determines that limitations on a
family’s opportunity to select among
available units in that jurisdiction are
appropriate to achieve desegregation
goals in accordance with obligations
generated by a court order or consent
decree.
(b) Portability: Assistance outside the
initial PHA jurisdiction. Subject to para-
graph (c) of this section, and to § 982.552
and § 982.553, a voucher-holder or par-
ticipant family has the right to receive
tenant-based voucher assistance, in ac-
cordance with requirements of this
part, to lease a unit outside the initial
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Asst. Secry., for Public and Indian Housing, HUD § 982.354 PHA jurisdiction, anywhere in the
United States, in the jurisdiction of a
PHA with a tenant-based program
under this part. The initial PHA must
not provide such portable assistance
for a participant if the family has
moved out of the assisted unit in viola-
tion of the lease except as provided for
in this subsection. If the family moves
out in violation of the lease in order to
protect the health or safety of a person
who is or has been the victim of domes-
tic violence, dating violence, sexual as-
sault, or stalking and who reasonably
believes him- or herself to be threat-
ened with imminent harm from further
violence by remaining in the dwelling
unit (or any family member has been
the victim of a sexual assault that oc-
curred on the premises during the 90-
calendar-day period preceding the fam-
ily’s move or request to move), and has
otherwise complied with all other obli-
gations under the Section 8 program,
the family may receive a voucher from
the initial PHA and move to another
jurisdiction under the Housing Choice
Voucher Program.
(c) Nonresident applicants. (1) This
paragraph (c) applies if neither the
household head nor spouse of an as-
sisted family already had a ‘‘domicile’’
(legal residence) in the jurisdiction of
the initial PHA at the time when the
family first submitted an application
for participation in the program to the
initial PHA.
(2) The following apply during the 12
month period from the time when a
family described in paragraph (c)(1) of
this section is admitted to the pro-
gram:
(i) The family may lease a unit any-
where in the jurisdiction of the initial
PHA;
(ii) The family does not have any
right to portability;
(iii) The initial PHA may choose to
allow portability during this period.
(3) If the initial PHA approves, the
family may lease a unit outside the
PHA jurisdiction under portability pro-
cedures.
(4) Paragraph (c) of this section does
not apply when the family or a member
of the family is or has been the victim
of domestic violence, dating violence,
sexual assault, or stalking, as provided
in 24 CFR part 5, subpart L (Protection
for Victims of Domestic Violence, Dat-
ing Violence, Sexual Assault, or Stalk-
ing), and the move is needed to protect
the health or safety of the family or
family member, or any family member
who has been the victim of a sexual as-
sault that occurred on the premises
during the 90-calendar-day period pre-
ceding the family’s request to move.
(d) Income eligibility. (1) For admis-
sion to the program, a family must be
income eligible in the area where the
family initially leases a unit with as-
sistance under the program.
(2) If a family is a participant in the
initial PHA’s voucher program, income
eligibility is not redetermined when
the family moves to the receiving PHA
program under portability procedures.
(e) Freedom of choice. The PHA may
not directly or indirectly reduce the
family’s opportunity to select among
available units, except as provided in
paragraph (a) of this section, or else-
where in this part 982 (e.g., prohibition
on the use of ineligible housing, hous-
ing not meeting HQS, or housing for
which the rent to owner exceeds a rea-
sonable rent). However, the PHA must
provide families the information re-
quired in § 982.301 for both the oral
briefing and the information packet to
ensure that they have the information
they need to make an informed deci-
sion on their housing choice.
[60 FR 34695, July 3, 1995, as amended at 61
FR 27163, May 30, 1996; 61 FR 42131, Aug. 13,
1996; 64 FR 26646, May 14, 1999; 73 FR 72344,
Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR
50573, Aug. 20, 2015; 81 FR 80816, Nov. 16, 2016]
§ 982.354 Move with continued tenant-
based assistance.
(a) Applicability. This section states
when a participant family may move to
a new unit with continued tenant-
based assistance:
(b) When family may move. A family
may move to a new unit if:
(1) The assisted lease for the old unit
has terminated. This includes a termi-
nation because:
(i) The PHA has terminated the HAP
contract for the owner’s breach; or
(ii) The lease has terminated by mu-
tual agreement of the owner and the
tenant.
(2) The owner has given the tenant a
notice to vacate, or has commenced an
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24 CFR Ch. IX (4–1–21 Edition) § 982.355
action to evict the tenant, or has ob-
tained a court judgment or other proc-
ess allowing the owner to evict the ten-
ant.
(3) The tenant has given notice of
lease termination (if the tenant has a
right to terminate the lease on notice
to the owner, for owner breach, or oth-
erwise).
(4) The family or a member of the
family, is or has been the victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, as provided in
24 CFR part 5, subpart L (Protection
for Victims of Domestic Violence, Dat-
ing Violence, Sexual Assault, or Stalk-
ing), and the move is needed to protect
the health or safety of the family or
family member, or if any family mem-
ber has been the victim of a sexual as-
sault that occurred on the premises
during the 90-calendar-day period pre-
ceding the family’s request to move. A
PHA may not terminate assistance if
the family, with or without prior noti-
fication to the PHA, moves out of a
unit in violation of the lease, if such
move occurs to protect the health or
safety of a family member who is or
has been the victim of domestic vio-
lence, dating violence, sexual assault,
or stalking and who reasonably be-
lieved he or she was threatened with
imminent harm from further violence
if he or she remained in the dwelling
unit. However, any family member
that has been the victim of a sexual as-
sault that occurred on the premises
during the 90-calendar-day period pre-
ceding the family’s move or request to
move is not required to believe that he
or she was threatened with imminent
harm from further violence if he or she
remained in the dwelling unit.
(c) How many moves. (1) A participant
family may move with continued as-
sistance under the program, either in-
side the PHA jurisdiction, or under the
portability procedures (See § 982.353) in
accordance with the PHA’s policies.
(2) Consistent with applicable civil
rights laws and regulations, the PHA
may establish policies that:
(i) Prohibit any move by the family
during the initial lease term;
(ii) Prohibit more than one move by
the family during any one-year period;
and
(iii) The above policies do not apply
when the family or a member of the
family is or has been the victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, as provided in
24 CFR part 5, subpart L, and the move
is needed to protect the health or safe-
ty of the family or family member, or
any family member has been the vic-
tim of a sexual assault that occurred
on the premises during the 90-calendar-
day period preceding the family’s re-
quest to move.
(d) Notice that family wants to move. If
the family wants to move to a new
unit, the family must notify the PHA
and the owner before moving from the
old unit. If the family wants to move
to a new unit that is located outside
the initial PHA jurisdiction, the notice
to the initial PHA must specify the
area where the family wants to move.

See portability procedures in subpart H
of this part.
(e) When the PHA may deny permission
to move. (1) The PHA may deny permis-
sion to move if the PHA does not have
sufficient funding for continued assist-
ance. The PHA must provide written
notification to the local HUD Office
within 10 business days of determining
it is necessary to deny moves to a high-
er-cost unit based on insufficient fund-
ing.
(2) At any time, the PHA may deny
permission to move in accordance with
§ 982.552 (grounds for denial or termi-
nation of assistance).
[60 FR 34695, July 3, 1995, as amended at 64
FR 56913, Oct. 21, 1999; 75 FR 66263, Oct. 27,
2010. Redesignated and amended at 80 FR
50573, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016]
§ 982.355 Portability: Administration
by initial and receiving PHA.
(a) General. When a family moves
under portability (in accordance with
§ 982.353(b)) to an area outside the ini-
tial PHA jurisdiction, the receiving
PHA must administer assistance for
the family if a PHA with a HCV pro-
gram has jurisdiction in the area where
the unit is located.
(b) Requirement to administer assist-
ance. A receiving PHA cannot refuse to
assist incoming portable families or di-
rect them to another neighboring PHA
for assistance. If there is more than
one such PHA, the initial PHA provides
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Asst. Secry., for Public and Indian Housing, HUD § 982.355 the family with the contact informa-
tion for the receiving PHAs that serve
the area, and the family selects the re-
ceiving PHA. The family must inform
the initial PHA which PHA it has se-
lected as the receiving PHA. In cases
where the family prefers not to select
the receiving PHA, the initial PHA se-
lects the receiving PHA on behalf of
the family. HUD may determine in cer-
tain instances that a PHA is not re-
quired to accept incoming portable
families, such as a PHA in a declared
disaster area. However, the PHA must
have approval in writing from HUD be-
fore refusing any incoming portable
families.
(c) Portability procedures. The fol-
lowing portability procedures must be
followed:
(1) When the family decides to use
the voucher outside of the PHA juris-
diction, the family must notify the ini-
tial PHA of its desire to relocate and
must specify the location where it
wants to live.
(2) The initial PHA must determine
the family’s eligibility to move in ac-
cordance with §§ 982.353 and 982.354.
(3) Once the receiving PHA is deter-
mined in accordance with paragraph (b)
of this section, the initial PHA must
contact the receiving PHA, via email
or other confirmed delivery method,
prior to approving the family’s request
to move in order to determine whether
the voucher will be absorbed or billed
by the receiving PHA. The receiving
PHA must advise the initial PHA in
writing, via email or other confirmed
delivery method, of its decision.
(4) If the receiving PHA notifies the
initial PHA that it will absorb the
voucher, the receiving PHA cannot re-
verse its decision at a later date with-
out consent of the initial PHA.
(5) If the receiving PHA will bill the
initial PHA for the portability voucher
and the cost of the HAP will increase
due to the move, the initial PHA may
deny the move if it does not have suffi-
cient funding for continued assistance
in accordance with § 982.354 (e)(1).
(6) If a billing arrangement is ap-
proved by the initial PHA or if the
voucher is to be absorbed by the receiv-
ing PHA, the initial PHA must issue
the family a voucher to move, if it has
not already done so, and advise the
family how to contact and request as-
sistance from the receiving PHA.
(7) The initial PHA must promptly
notify the receiving PHA to expect the
family. The initial PHA must give the
receiving PHA the form HUD–52665, the
most recent form HUD 50058 (Family
Report) for the family, and all related
verification information.
(8) The family must promptly con-
tact the receiving PHA in order to be
informed of the receiving PHA’s proce-
dures for incoming portable families
and comply with these procedures. The
family’s failure to comply may result
in denial or termination of the receiv-
ing PHA’s voucher.
(9) The receiving PHA does not rede-
termine eligibility for a participant
family. However, for a family that was
not already receiving assistance in the
PHA’s HCV program, the initial PHA
must determine whether the family is
eligible for admission to the receiving
PHA’s HCV program. In determining
income eligibility, the receiving PHA’s
income limits are used by the initial
PHA.
(10) When a receiving PHA assists a
family under portability, administra-
tion of the voucher must be in accord-
ance with the receiving PHA’s policies.

This requirement also applies to poli-
cies of Moving to Work agencies. The
receiving PHA procedures and pref-
erences for selection among eligible ap-
plicants do not apply to the family,
and the receiving PHA waiting list is
not used.
(11) If the receiving PHA opts to con-
duct a new reexamination for a current
participant family, the receiving PHA
may not delay issuing the family a
voucher or otherwise delay approval of
a unit.
(12) The receiving PHA must deter-
mine the family unit size for the fam-
ily, and base its determination on the
subsidy standards of the receiving
PHA.
(13) The receiving PHA must issue a
voucher to the family. The term of the
receiving PHA voucher may not expire
before 30 calendar days from the expi-
ration date of the initial PHA voucher.

If the voucher expires before the family
arrives at the receiving PHA, the re-
ceiving PHA must contact the initial
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24 CFR Ch. IX (4–1–21 Edition) § 982.355
PHA to determine if it will extend the
voucher.
(14) Once the receiving PHA issues
the portable family a voucher, the re-
ceiving PHA’s policies on extensions of
the voucher term apply. The receiving
PHA must notify the initial PHA of
any extensions granted to the term of
the voucher.
(15) The family must submit a re-
quest for tenancy approval to the re-
ceiving PHA during the term of the re-
ceiving PHA voucher. As required in
§ 982.303, if the family submits a request
for tenancy approval during the term
of the voucher, the PHA must suspend
the term of that voucher.
(16) The receiving PHA must prompt-
ly notify the initial PHA if the family
has leased an eligible unit under the
program, or if the family fails to sub-
mit a request for tenancy approval for
an eligible unit within the term of the
voucher.
(17) At any time, either the initial
PHA or the receiving PHA may make a
determination to deny or terminate as-
sistance to the family in accordance
with § 982.552 and 982.553.
(d) Absorption by the receiving PHA. (1)
If funding is available under the con-
solidated ACC for the receiving PHA’s
HCV program, the receiving PHA may
absorb the family into the receiving
PHA’s HCV program. After absorption,
the family is assisted with funds avail-
able under the consolidated ACC for
the receiving PHA’s HCV program.
(2) HUD may require that the receiv-
ing PHA absorb all, or a portion of, in-
coming portable families. Under cir-
cumstances described in a notice pub-
lished in the F

EDERAL REGISTER, HUD
may determine that receiving PHAs, or
categories of receiving PHAs, should
absorb all or a portion of incoming
portable families. If HUD makes such a
determination, HUD will provide an op-
portunity for public comment, for a pe-
riod of no less than 60 calendar days, on
such policy and procedures. After con-
sideration of public comments, HUD
will publish a final notice in the F
ED-
ERAL REGISTER advising PHAs and the
public of HUD’s final determination on
the subject of mandatory absorption of
incoming portable families.
(3) HUD may provide financial or
nonfinancial incentives (or both) to
PHAs that absorb portability vouchers.
(e) Portability billing. (1) To cover as-
sistance for a portable family that was
not absorbed in accordance with para-
graph (d) of this section, the receiving
PHA may bill the initial PHA for hous-
ing assistance payments and adminis-
trative fees.
(2) The initial PHA must promptly
reimburse the receiving PHA for the
full amount of the housing assistance
payments made by the receiving PHA
for the portable family. The amount of
the housing assistance payment for a
portable family in the receiving PHA
program is determined in the same
manner as for other families in the re-
ceiving PHA program.
(3) The initial PHA must promptly
reimburse the receiving PHA for the
lesser of 80 percent of the initial PHA
ongoing administrative fee or 100 per-
cent of the receiving PHA’s ongoing ad-
ministrative fee for each program unit
under HAP contract on the first day of
the month for which the receiving PHA
is billing the initial PHA under this
section. If administrative fees are pro-
rated for the HCV program, the prora-
tion will apply to the amount of the
administrative fee for which the re-
ceiving PHA may bill under this sec-
tion (e.g., the receiving PHA may bill
for the lesser of 80 percent of the initial
PHA’s prorated ongoing administrative
fee or 100 percent of the receiving
PHA’s prorated ongoing administrative
fee). If both PHAs agree, the PHAs may
negotiate a different amount of reim-
bursement.
(4) When a portable family moves out
of the HCV program of a receiving PHA
that has not absorbed the family, the
PHA in the new jurisdiction to which
the family moves becomes the receiv-
ing PHA, and the first receiving PHA is
no longer required to provide assist-
ance for the family.
(5) In administration of portability,
the initial PHA and the receiving PHA
must comply with financial procedures
required by HUD, including the use of
HUD-required billing forms. The initial
and receiving PHA must also comply
with billing and payment deadlines
under the financial procedures.

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Asst. Secry., for Public and Indian Housing, HUD § 982.401 (6) A PHA must manage the PHA
HCV program in a manner that ensures
that the PHA has the financial ability
to provide assistance for families that
move out of the PHA’s program under
the portability procedures, and that
have not been absorbed by the receiv-
ing PHA, as well as for families that
remain in the PHA’s program.
(7) HUD may reduce the administra-
tive fee to an initial or receiving PHA
if the PHA does not comply with HUD
portability requirements.
(f) Portability funding. (1) HUD may
transfer units and funds for assistance
to portable families to the receiving
PHA from funds available under the
initial PHA ACC.
(2) HUD may provide additional fund-
ing (e.g., funds for incremental units)
to the initial PHA for funds transferred
to a receiving PHA for portability pur-
poses.
(3) HUD may provide additional fund-
ing (e.g., funds for incremental units)
to the receiving PHA for absorption of
portable families.
(4) HUD may require the receiving
PHA to absorb portable families.
(g) Special purpose vouchers. (1) The
initial PHA must submit the codes
used for special purpose vouchers on
the form HUD–50058, Family Report,
and the receiving PHA must maintain
the codes on the Family Report, as
long as the Receiving PHA chooses to
bill the initial PHA.
(2) Initial and receiving PHAs must
administer special purpose vouchers,
such as the HUD-Veterans Affairs Sup-
portive Housing vouchers, in accord-
ance with HUD-established policy in
cases where HUD has established alter-
native program requirements of such
special purpose vouchers.
[80 FR 50573, Aug. 20, 2015]
Subpart I—Dwelling Unit: Housing
Quality Standards, Subsidy
Standards, Inspection and
Maintenance
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.401 Housing quality standards
(HQS).
(a) Performance and acceptability re-
quirements. (1) This section states the
housing quality standards (HQS) for
housing assisted under the HCV pro-
gram.
(2)(i) The HQS consist of:
(A) Performance requirements; and
(B) Acceptability criteria or HUD ap-
proved variations in the acceptability
criteria.
(ii) This section states performance
and acceptability criteria for these key
aspects of housing quality:
(A) Sanitary facilities;
(B) Food preparation and refuse dis-
posal;
(C) Space and security;
(D) Thermal environment;
(E) Illumination and electricity;
(F) Structure and materials;
(G) Interior air quality;
(H) Water supply;
(I) Lead-based paint;
(J) Access;
(K) Site and neighborhood;
(L) Sanitary condition; and
(M) Smoke detectors.
(3) All program housing must meet
the HQS performance requirements
both at commencement of assisted oc-
cupancy, and throughout the assisted
tenancy.
(4)(i) In addition to meeting HQS per-
formance requirements, the housing
must meet the acceptability criteria
stated in this section, unless variations
are approved by HUD.
(ii) HUD may approve acceptability
criteria variations for the following
purposes:
(A) Variations which apply standards
in local housing codes or other codes
adopted by the PHA; or
(B) Variations because of local cli-
matic or geographic conditions.
(iii) Acceptability criteria variations
may only be approved by HUD pursu-
ant to paragraph (a)(4)(ii) of this sec-
tion if such variations either:
(A) Meet or exceed the performance
requirements; or
(B) Significantly expand affordable
housing opportunities for families as-
sisted under the program.
(iv) HUD will not approve any accept-
ability criteria variation if HUD be-
lieves that such variation is likely to
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24 CFR Ch. IX (4–1–21 Edition) § 982.401
adversely affect the health or safety of
participant families, or severely re-
strict housing choice.
(b) Sanitary facilities —(1) Performance
requirements. The dwelling unit must
include sanitary facilities located in
the unit. The sanitary facilities must
be in proper operating condition, and
adequate for personal cleanliness and
the disposal of human waste. The sani-
tary facilities must be usable in pri-
vacy.
(2) Acceptability criteria. (i) The bath-
room must be located in a separate pri-
vate room and have a flush toilet in
proper operating condition.
(ii) The dwelling unit must have a
fixed basin in proper operating condi-
tion, with a sink trap and hot and cold
running water.
(iii) The dwelling unit must have a
shower or a tub in proper operating
condition with hot and cold running
water.
(iv) The facilities must utilize an ap-
provable public or private disposal sys-
tem (including a locally approvable
septic system).
(c) Food preparation and refuse dis-
posal—(1) Performance requirement. (i)
The dwelling unit must have suitable
space and equipment to store, prepare,
and serve foods in a sanitary manner.
(ii) There must be adequate facilities
and services for the sanitary disposal
of food wastes and refuse, including fa-
cilities for temporary storage where
necessary (e.g., garbage cans).
(2) Acceptability criteria. (i) The dwell-
ing unit must have an oven, and a
stove or range, and a refrigerator of ap-
propriate size for the family. All of the
equipment must be in proper operating
condition. The equipment may be sup-
plied by either the owner or the family.

A microwave oven may be substituted
for a tenant-supplied oven and stove or
range. A microwave oven may be sub-
stituted for an owner-supplied oven and
stove or range if the tenant agrees and
microwave ovens are furnished instead
of an oven and stove or range to both
subsidized and unsubsidized tenants in
the building or premises.
(ii) The dwelling unit must have a
kitchen sink in proper operating condi-
tion, with a sink trap and hot and cold
running water. The sink must drain
into an approvable public or private
system.
(iii) The dwelling unit must have
space for the storage, preparation, and
serving of food.
(iv) There must be facilities and serv-
ices for the sanitary disposal of food
waste and refuse, including temporary
storage facilities where necessary (e.g.,
garbage cans).
(d) Space and security—(1) Performance
requirement. The dwelling unit must
provide adequate space and security for
the family.
(2) Acceptability criteria. (i) At a min-
imum, the dwelling unit must have a
living room, a kitchen area, and a
bathroom.
(ii) The dwelling unit must have at
least one bedroom or living/sleeping
room for each two persons. Children of
opposite sex, other than very young
children, may not be required to oc-
cupy the same bedroom or living/sleep-
ing room.
(iii) Dwelling unit windows that are
accessible from the outside, such as
basement, first floor, and fire escape
windows, must be lockable (such as
window units with sash pins or sash
locks, and combination windows with
latches). Windows that are nailed shut
are acceptable only if these windows
are not needed for ventilation or as an
alternate exit in case of fire.
(iv) The exterior doors of the dwell-
ing unit must be lockable. Exterior
doors are doors by which someone can
enter or exit the dwelling unit.
(e) Thermal environment —(1) Perform-
ance requirement. The dwelling unit
must have and be capable of maintain-
ing a thermal environment healthy for
the human body.
(2) Acceptability criteria. (i) There
must be a safe system for heating the
dwelling unit (and a safe cooling sys-
tem, where present). The system must
be in proper operating condition. The
system must be able to provide ade-
quate heat (and cooling, if applicable),
either directly or indirectly, to each
room, in order to assure a healthy liv-
ing environment appropriate to the cli-
mate.
(ii) The dwelling unit must not con-
tain unvented room heaters that burn
gas, oil, or kerosene. Electric heaters
are acceptable.

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Asst. Secry., for Public and Indian Housing, HUD § 982.401 (f) Illumination and electricity—(1) Per-
formance requirement. Each room must
have adequate natural or artificial illu-
mination to permit normal indoor ac-
tivities and to support the health and
safety of occupants. The dwelling unit
must have sufficient electrical sources
so occupants can use essential elec-
trical appliances. The electrical fix-
tures and wiring must ensure safety
from fire.
(2) Acceptability criteria. (i) There
must be at least one window in the liv-
ing room and in each sleeping room.
(ii) The kitchen area and the bath-
room must have a permanent ceiling or
wall light fixture in proper operating
condition. The kitchen area must also
have at least one electrical outlet in
proper operating condition.
(iii) The living room and each bed-
room must have at least two electrical
outlets in proper operating condition.

Permanent overhead or wall-mounted
light fixtures may count as one of the
required electrical outlets.
(g) Structure and materials —(1) Per-
formance requirement. The dwelling unit
must be structurally sound. The struc-
ture must not present any threat to
the health and safety of the occupants
and must protect the occupants from
the environment.
(2) Acceptability criteria. (i) Ceilings,
walls, and floors must not have any se-
rious defects such as severe bulging or
leaning, large holes, loose surface ma-
terials, severe buckling, missing parts,
or other serious damage.
(ii) The roof must be structurally
sound and weathertight.
(iii) The exterior wall structure and
surface must not have any serious de-
fects such as serious leaning, buckling,
sagging, large holes, or defects that
may result in air infiltration or vermin
infestation.
(iv) The condition and equipment of
interior and exterior stairs, halls,
porches, walkways, etc., must not
present a danger of tripping and fall-
ing. For example, broken or missing
steps or loose boards are unacceptable.
(v) Elevators must be working and
safe.
(h) Interior air quality—(1) Performance
requirement. The dwelling unit must be
free of pollutants in the air at levels
that threaten the health of the occu-
pants.
(2) Acceptability criteria. (i) The dwell-
ing unit must be free from dangerous
levels of air pollution from carbon
monoxide, sewer gas, fuel gas, dust,
and other harmful pollutants.
(ii) There must be adequate air cir-
culation in the dwelling unit.
(iii) Bathroom areas must have one
openable window or other adequate ex-
haust ventilation.
(iv) Any room used for sleeping must
have at least one window. If the win-
dow is designed to be openable, the
window must work.
(i) Water supply —(1) Performance re-
quirement. The water supply must be
free from contamination.
(2) Acceptability criteria. The dwelling
unit must be served by an approvable
public or private water supply that is
sanitary and free from contamination.
(j) Lead-based paint performance re-
quirement. The Lead-Based Paint Poi-
soning 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 regula-
tions at part 35, subparts A, B, M, and
R of this title apply to units assisted
under this part.
(k) Access performance requirement.

The dwelling unit must be able to be
used and maintained without unau-
thorized use of other private prop-
erties. The building must provide an al-
ternate means of exit in case of fire
(such as fire stairs or egress through
windows).
(l) Site and Neighborhood—(1) Perform-
ance requirement. The site and neigh-
borhood must be reasonably free from
disturbing noises and reverberations
and other dangers to the health, safety,
and general welfare of the occupants.
(2) Acceptability criteria. The site and
neighborhood may not be subject to se-
rious adverse environmental condi-
tions, natural or manmade, such as
dangerous walks or steps; instability;
flooding, poor drainage, septic tank
back-ups or sewage hazards; mudslides;
abnormal air pollution, smoke or dust;
excessive noise, vibration or vehicular
traffic; excessive accumulations of
trash; vermin or rodent infestation; or
fire hazards.

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24 CFR Ch. IX (4–1–21 Edition) § 982.402
(m) Sanitary condition —(1) Perform-
ance requirement. The dwelling unit and
its equipment must be in sanitary con-
dition.
(2) Acceptability criteria. The dwelling
unit and its equipment must be free of
vermin and rodent infestation.
(n) Smoke detectors performance re-
quirement—(1) Except as provided in
paragraph (n)(2) of this section, each
dwelling unit must have at least one
battery-operated or hard-wired smoke
detector, in proper operating condition,
on each level of the dwelling unit, in-
cluding basements but excepting crawl
spaces and unfinished attics. Smoke
detectors must be installed in accord-
ance with and meet the requirements
of the National Fire Protection Asso-
ciation Standard (NFPA) 74 (or its suc-
cessor standards). If the dwelling unit
is occupied by any hearing-impaired
person, smoke detectors must have an
alarm system, designed for hearing-im-
paired persons as specified in NFPA 74
(or successor standards).
(2) For units assisted prior to April
24, 1993, owners who installed battery-
operated or hard-wired smoke detec-
tors prior to April 24, 1993 in compli-
ance with HUD’s smoke detector re-
quirements, including the regulations
published on July 30, 1992, (57 FR 33846),
will not be required subsequently to
comply with any additional require-
ments mandated by NFPA 74 (i.e., the
owner would not be required to install
a smoke detector in a basement not
used for living purposes, nor would the
owner be required to change the loca-
tion of the smoke detectors that have
already been installed on the other
floors of the unit).
[60 FR 34695, July 3, 1995, as amended at 61
FR 27163, May 30, 1996; 63 FR 23861, Apr. 30,
1998; 64 FR 26646, May 14, 1999; 64 FR 49658,
Sept. 14, 1999; 64 FR 50230, Sept. 15, 1999; 80
FR 8246, Feb. 17, 2015]
§ 982.402 Subsidy standards.
(a) Purpose. (1) The PHA must estab-
lish subsidy standards that determine
the number of bedrooms needed for
families of different sizes and composi-
tions.
(2) For each family, the PHA deter-
mines the appropriate number of bed-
rooms under the PHA subsidy stand-
ards (family unit size).
(3) The family unit size number is en-
tered on the voucher issued to the fam-
ily. The PHA issues the family a
voucher for the family unit size when a
family is selected for participation in
the program.
(b) Determining family unit size. The
following requirements apply when the
PHA determines family unit size under
the PHA subsidy standards:
(1) The subsidy standards must pro-
vide for the smallest number of bed-
rooms needed to house a family with-
out overcrowding.
(2) The subsidy standards must be
consistent with space requirements
under the housing quality standards
(See § 982.401(d)).
(3) The subsidy standards must be ap-
plied consistently for all families of
like size and composition.
(4) A child who is temporarily away
from the home because of placement in
foster care is considered a member of
the family in determining the family
unit size.
(5) A family that consists of a preg-
nant woman (with no other persons)
must be treated as a two-person fam-
ily.
(6) Any live-in aide (approved by the
PHA to reside in the unit to care for a
family member who is disabled or is at
least 50 years of age) must be counted
in determining the family unit size;
(7) Unless a live-in-aide resides with
the family, the family unit size for any
family consisting of a single person
must be either a zero or one-bedroom
unit, as determined under the PHA
subsidy standards.
(8) In determining family unit size
for a particular family, the PHA may
grant an exception to its established
subsidy standards if the PHA deter-
mines that the exception is justified by
the age, sex, health, handicap, or rela-
tionship of family members or other
personal circumstances. (For a single
person other than a disabled or elderly
person or remaining family member,
such PHA exception may not override
the limitation in paragraph (b)(7) of
this section.)
(c) Effect of family unit size-maximum
subsidy in voucher program. The family
unit size as determined for a family
under the PHA subsidy standard is used
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Asst. Secry., for Public and Indian Housing, HUD § 982.404 to determine the maximum rent sub-
sidy for a family assisted in the vouch-
er program. For a voucher tenancy, the
PHA establishes payment standards by
number of bedrooms. The payment
standard for a family shall be the lower
of:
(1) The payment standard amount for
the family unit size; or
(2) The payment standard amount for
the unit size of the unit rented by the
family.
(3) Voucher program. For a voucher
tenancy, the PHA establishes payment
standards by number of bedrooms. The
payment standards for the family must
be the lower of:
(i) The payment standards for the
family unit size; or
(ii) The payment standard for the
unit size rented by the family.
(d) Size of unit occupied by family. (1)
The family may lease an otherwise ac-
ceptable dwelling unit with fewer bed-
rooms than the family unit size. How-
ever, the dwelling unit must meet the
applicable HQS space requirements.
(2) The family may lease an other-
wise acceptable dwelling unit with
more bedrooms than the family unit
size. However, utility allowances must
follow § 982.517(d).
[60 FR 34695, July 3, 1995, as amended at 63
FR 23861, Apr. 30, 1998; 64 FR 26646, May 14,
1999; 81 FR 12375, Mar. 8, 2016]
§ 982.403 Terminating HAP contract
when unit is too small.
(a) Violation of HQS space standards.
(1) If the PHA determines that a unit
does not meet the HQS space standards
because of an increase in family size or
a change in family composition, the
PHA must issue the family a new
voucher, and the family and PHA must
try to find an acceptable unit as soon
as possible.
(2) If an acceptable unit is available
for rental by the family, the PHA must
terminate the HAP contract in accord-
ance with its terms.
(b) Termination. When the PHA termi-
nates the HAP contract under para-
graph (a) of this section:
(1) The PHA must notify the family
and the owner of the termination; and
(2) The HAP contract terminates at
the end of the calendar month that fol-
lows the calendar month in which the
PHA gives such notice to the owner.
(3) The family may move to a new
unit in accordance with § 982.354.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26647, May 14,
1999; 80 FR 8246, Feb. 17, 2015; 80 FR 50575,
Aug. 20, 2015]
§ 982.404 Maintenance: Owner and
family responsibility; PHA rem-
edies.
(a) Owner obligation. (1) The owner
must maintain the unit in accordance
with HQS.
(2) If the owner fails to maintain the
dwelling unit in accordance with HQS,
the PHA must take prompt and vig-
orous action to enforce the owner obli-
gations. PHA remedies for such breach
of the HQS include termination, sus-
pension or reduction of housing assist-
ance payments and termination of the
HAP contract.
(3) The PHA must not make any
housing assistance payments for a
dwelling unit that fails to meet the
HQS, unless the owner corrects the de-
fect within the period specified by the
PHA and the PHA verifies the correc-
tion. If a defect is life threatening, the
owner must correct the defect within
no more than 24 hours. For other de-
fects, the owner must correct the de-
fect within no more than 30 calendar
days (or any PHA-approved extension).
(4) The owner is not responsible for a
breach of the HQS that is not caused by
the owner, and for which the family is
responsible (as provided in § 982.404(b)
and § 982.551(c)). (However, the PHA
may terminate assistance to a family
because of HQS breach caused by the
family.)
(b) Family obligation. (1) The family is
responsible for a breach of the HQS
that is caused by any of the following:
(i) The family fails to pay for any
utilities that the owner is not required
to pay for, but which are to be paid by
the tenant;
(ii) The family fails to provide and
maintain any appliances that the
owner is not required to provide, but
which are to be provided by the tenant;
or
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24 CFR Ch. IX (4–1–21 Edition) § 982.405
(iii) Any member of the household or
guest damages the dwelling unit or
premises (damages beyond ordinary
wear and tear).
(2) If an HQS breach caused by the
family is life threatening, the family
must correct the defect within no more
than 24 hours. For other family-caused
defects, the family must correct the
defect within no more than 30 calendar
days (or any PHA-approved extension).
(3) If the family has caused a breach
of the HQS, the PHA must take prompt
and vigorous action to enforce the fam-
ily obligations. The PHA may termi-
nate assistance for the family in ac-
cordance with § 982.552.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995]
§ 982.405 PHA initial and periodic unit
inspection.
(a) The PHA must inspect the unit
leased to a family prior to the initial
term of the lease, at least biennially
during assisted occupancy, and at
other times as needed, to determine if
the unit meets the HQS. (See
§ 982.305(b)(2) concerning timing of ini-
tial inspection by the PHA.)
(b) The PHA must conduct super-
visory quality control HQS inspections.
(c) In scheduling inspections, the
PHA must consider complaints and any
other information brought to the at-
tention of the PHA.
(d) The PHA must notify the owner
of defects shown by the inspection.
(e) The PHA may not charge the fam-
ily for an initial inspection or reinspec-
tion of the unit.
(f) The PHA may not charge the
owner for the inspection of the unit
prior to the initial term of the lease or
for a first inspection during assisted
occupancy of the unit. The PHA may
establish a reasonable fee to owners for
a reinspection if an owner notifies the
PHA that a repair has been made or
the allotted time for repairs has
elapsed and a reinspection reveals that
any deficiency cited in the previous in-
spection that the owner is responsible
for repairing pursuant to § 982.404(a)
was not corrected. The owner may not
pass this fee along to the family. Fees
collected under this paragraph will be
included in a PHA’s administrative fee
reserve and may be used only for ac-
tivities related to the provision of Sec-
tion 8 Tenant-Based Rental Assistance.
(g) If a participant family or govern-
ment official reports a condition that
is life-threatening ( i.e., the PHA would
require the owner to make the repair
within no more than 24 hours in ac-
cordance with § 982.404(a)(3)), then the
PHA must inspect the housing unit
within 24 hours of when the PHA re-
ceived the notification. If the reported
condition is not life-threatening ( i.e.,
the PHA would require the owner to
make the repair within no more than
30 calendar days in accordance with
§ 982.404(a)(3)), then the PHA must in-
spect the unit within 15 days of when
the PHA received the notification. In
the event of extraordinary cir-
cumstances, such as if a unit is within
a Presidentially declared disaster area,
HUD may waive the 24-hour or the 15-
day inspection requirement until such
time as an inspection is feasible.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26647, May 14, 1999; 64 FR 56914, Oct. 21,
1999; 81 FR 12375, Mar. 8, 2016]
§ 982.406 Use of alternative inspec-
tions.
(a) In general. (1) A PHA may comply
with the inspection requirement in
§ 982.405(a) by relying on an alternative
inspection ( i.e., an inspection con-
ducted for another housing assistance
program) only if the PHA is able to ob-
tain the results of the alternative in-
spection.
(2) If an alternative inspection meth-
od employs sampling, then a PHA may
rely on such alternative inspection
method to comply with the require-
ment in § 982.405(a) only if HCV units
are included in the population of units
forming the basis of the sample.
(3) Units in properties that are
mixed-finance properties assisted with
project-based vouchers may be in-
spected at least triennially pursuant to
24 CFR 983.103(g).
(b) Administrative plans. A PHA rely-
ing on an alternative inspection to ful-
fill the requirement in § 982.405(a) must
identify the alternative inspection
method being used in the PHA’s admin-
istrative plan. Such a change may be a
significant amendment to the plan, in
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Asst. Secry., for Public and Indian Housing, HUD § 982.407 which case the PHA must follow its
plan amendment and public notice re-
quirements, in addition to meeting the
requirements in § 982.406(c)(2), if appli-
cable, before using the alternative in-
spection method.
(c) Eligible inspection methods. (1) A
PHA may rely upon inspections of
housing assisted under the HOME In-
vestment Partnerships (HOME) pro-
gram or housing financed using Low-
Income Housing Tax Credits (LIHTCs),
or inspections performed by HUD, with
no action other than amending its ad-
ministrative plan.
(2) If a PHA wishes to rely on an in-
spection method other than a method
listed in paragraph (c)(1) of this sec-
tion, then, prior to amending its ad-
ministrative plan, the PHA must sub-
mit to the Real Estate Assessment
Center (REAC) a copy of the inspection
method it wishes to use, along with its
analysis of the inspection method that
shows that the method ‘‘provides the
same or greater protection to occu-
pants of dwelling units’’ as would HQS.
(i) A PHA may rely upon such alter-
native inspection method only upon re-
ceiving approval from REAC to do so.
(ii) A PHA that uses an alternative
inspection method approved under this
paragraph must monitor changes to
the standards and requirements appli-
cable to such method. If any change is
made to the alternative inspection
method, then the PHA must submit to
REAC a copy of the revised standards
and requirements, along with a revised
comparison to HQS. If the PHA or
REAC determines that the revision
would cause the alternative inspection
to no longer meet or exceed HQS, then
the PHA may no longer rely upon the
alternative inspection method to com-
ply with the inspection requirement at
§ 982.405(a).
(d) Results of alternative inspection. (1)
In order for a PHA to rely upon the re-
sults of an alternative inspection to
comply with the requirement at
§ 982.405(a), a property inspected pursu-
ant to such method must meet the
standards or requirements regarding
housing quality or safety applicable to
properties assisted under the program
using the alternative inspection meth-
od. To make the determination of
whether such standards or require-
ments are met, the PHA must adhere
to the following procedures:
(i) If a property is inspected under an
alternative inspection method, and the
property receives a ‘‘pass’’ score, then
the PHA may rely on that inspection
to demonstrate compliance with the in-
spection requirement at § 982.405(a).
(ii) If a property is inspected under
an alternative inspection method, and
the property receives a ‘‘fail’’ score,
then the PHA may not rely on that in-
spection to demonstrate compliance
with the inspection requirement at
§ 982.405(a).
(iii) If a property is inspected under
an alternative inspection method that
does not employ a pass/fail determina-
tion—for example, in the case of a pro-
gram where deficiencies are simply
identified—then the PHA must review
the list of deficiencies to determine
whether any cited deficiency would
have resulted in a ‘‘fail’’ score under
HQS. If no such deficiency exists, then
the PHA may rely on the inspection to
demonstrate compliance with the in-
spection requirement at § 982.405(a); if
such a deficiency does exist, then the
PHA may not rely on the inspection to
demonstrate such compliance.
(2) Under any circumstance described
above in which a PHA is prohibited
from relying on an alternative inspec-
tion method for a property, the PHA
must, within a reasonable period of
time, conduct an HQS inspection of
any units in the property occupied by
voucher program participants and fol-
low HQS procedures to remedy any
identified deficiencies.
(e) Records retention. As with all other
inspection reports, and as required by
§ 982.158(f)(4), reports for inspections
conducted pursuant to an alternative
inspection method must be obtained by
the PHA. Such reports must be avail-
able for HUD inspection for at least
three years from the date of the latest
inspection.
[81 FR 12375, Mar. 8, 2016]
§ 982.407 Enforcement of HQS.

Part 982 does not create any right of
the family, or any party other than
HUD or the PHA, to require enforce-
ment of the HQS requirements by HUD
or the PHA, or to assert any claim
against HUD or the PHA, for damages,
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24 CFR Ch. IX (4–1–21 Edition) § 982.451
injunction or other relief, for alleged
failure to enforce the HQS.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 80 FR 8246, Feb. 17,
2015. Redesignated at 81 FR 12375, Mar. 8,
2016]
Subpart J—Housing Assistance
Payments Contract and
Owner Responsibility
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.451 Housing assistance payments
contract.
(a)(1) The HAP contract must be in
the form required by HUD.
(2) The term of the HAP contract is
the same as the term of the lease.
(b)(1) The amount of the monthly
housing assistance payment by the
PHA to the owner is determined by the
PHA in accordance with HUD regula-
tions and other requirements. The
amount of the housing assistance pay-
ment is subject to change during the
HAP contract term.
(2) The monthly housing assistance
payment by the PHA is credited toward
the monthly rent to owner under the
family’s lease.
(3) The total of rent paid by the ten-
ant plus the PHA housing assistance
payment to the owner may not be more
than the rent to owner. The owner
must immediately return any excess
payment to the PHA.
(4)(i) The part of the rent to owner
which is paid by the tenant may not be
more than:
(A) The rent to owner; minus
(B) The PHA housing assistance pay-
ment to the owner.
(ii) The owner may not demand or ac-
cept any rent payment from the tenant
in excess of this maximum, and must
immediately return any excess rent
payment to the tenant.
(iii) The family is not responsible for
payment of the portion of rent to
owner covered by the housing assist-
ance payment under the HAP contract
between the owner and the PHA. See
§ 982.310(b).
(5)(i) The PHA must pay the housing
assistance payment promptly when due
to the owner in accordance with the
HAP contract.
(ii)(A) The HAP contract shall pro-
vide for penalties against the PHA for
late payment of housing assistance
payments due to the owner if all the
following circumstances apply:
(1) Such penalties are in accordance
with generally accepted practices and
law, as applicable in the local housing
market, governing penalties for late
payment of rent by a tenant;
(2) It is the owner’s practice to
charge such penalties for assisted and
unassisted tenants; and
(3) The owner also charges such pen-
alties against the tenant for late pay-
ment of family rent to owner.
(B) The PHA is not obligated to pay
any late payment penalty if HUD de-
termines that late payment by the
PHA is due to factors beyond the
PHA’s control. The PHA may add HAP
contract provisions which define when
the housing assistance payment by the
PHA is deemed received by the owner
(e.g., upon mailing by the PHA or ac-
tual receipt by the owner).
(iii) The PHA may only use the fol-
lowing sources to pay a late payment
penalty from program receipts under
the consolidated ACC: administrative
fee income for the program; or the ad-
ministrative fee reserve for the pro-
gram. The PHA may not use other pro-
gram receipts for this purpose.
[60 FR 34695, July 3, 1995, as amended at 61
FR 27163, May 30, 1996; 63 FR 23861, Apr. 30,
1998; 64 FR 26647, May 14, 1999; 64 FR 56914,
Oct. 21, 1999]
§ 982.452 Owner responsibilities.
(a) The owner is responsible for per-
forming all of the owner’s obligations
under the HAP contract and the lease.
(b) The owner is responsible for:
(1) Performing all management and
rental functions for the assisted unit,
including selecting a voucher-holder to
lease the unit, and deciding if the fam-
ily is suitable for tenancy of the unit.

The fact that an applicant is or has
been a victim of domestic violence,
dating violence, sexual assault, or
stalking is not an appropriate basis for
denial of tenancy if the applicant oth-
erwise qualifies for tenancy.

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Asst. Secry., for Public and Indian Housing, HUD § 982.456 (2) Maintaining the unit in accord-
ance with HQS, including performance
of ordinary and extraordinary mainte-
nance. For provisions on family main-
tenance responsibilities, see
§ 982.404(a)(4).
(3) Complying with equal opportunity
requirements.
(4) Preparing and furnishing to the
PHA information required under the
HAP contract.
(5) Collecting from the family:
(i) Any security deposit.
(ii) The tenant contribution (the part
of rent to owner not covered by the
housing assistance payment).
(iii) Any charges for unit damage by
the family.
(6) Enforcing tenant obligations
under the lease.
(7) Paying for utilities and services
(unless paid by the family under the
lease).
(c) For provisions on modifications to
a dwelling unit occupied or to be occu-
pied by a disabled person, see 24 CFR
100.203.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 63 FR 23861, Apr. 30,
1998; 64 FR 26647, May 14, 1999; 73 FR 72345,
Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR
8246, Feb. 17, 2015; 81 FR 80817, Nov. 16, 2016]
§ 982.453 Owner breach of contract.
(a) Any of the following actions by
the owner (including a principal or
other interested party) is a breach of
the HAP contract by the owner:
(1) If the owner has violated any obli-
gation under the HAP contract for the
dwelling unit, including the owner’s
obligation to maintain the unit in ac-
cordance with the HQS.
(2) If the owner has violated any obli-
gation under any other HAP contract
under Section 8 of the 1937 Act (42
U.S.C. 1437f).
(3) If the owner has committed fraud,
bribery or any other corrupt or crimi-
nal act in connection with any federal
housing program.
(4) For projects with mortgages in-
sured by HUD or loans made by HUD, if
the owner has failed to comply with
the regulations for the applicable
mortgage insurance or loan program,
with the mortgage or mortgage note,
or with the regulatory agreement; or if
the owner has committed fraud, brib-
ery or any other corrupt or criminal
act in connection with the mortgage or
loan.
(5) If the owner has engaged in drug-
related criminal activity.
(6) If the owner has committed any
violent criminal activity.
(b) The PHA rights and remedies
against the owner under the HAP con-
tract include recovery of overpay-
ments, abatement or other reduction of
housing assistance payments, termi-
nation of housing assistance payments,
and termination of the HAP contract.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26647, May 14, 1999; 64 FR 56914, Oct. 21,
1999; 65 FR 16821, Mar. 30, 2000]
§ 982.454 Termination of HAP contract:

Insufficient funding.

The PHA may terminate the HAP
contract if the PHA determines, in ac-
cordance with HUD requirements, that
funding under the consolidated ACC is
insufficient to support continued as-
sistance for families in the program.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26647, May 14, 1999]
§ 982.455 Automatic termination of
HAP contract.

The HAP contract terminates auto-
matically 180 calendar days after the
last housing assistance payment to the
owner.
[64 FR 26647, May 14, 1999]
§ 982.456 Third parties.
(a) Even if the family continues to
occupy the unit, the PHA may exercise
any rights and remedies against the
owner under the HAP contract.
(b)(1) The family is not a party to or
third party beneficiary of the HAP con-
tract. Except as provided in paragraph
(b)(2) of this section, the family may
not exercise any right or remedy
against the owner under the HAP con-
tract.
(2) The tenant may exercise any right
or remedy against the owner under the
lease between the tenant and the
owner, including enforcement of the
owner’s obligations under the tenancy
addendum (which is included both in
the HAP contract between the PHA
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24 CFR Ch. IX (4–1–21 Edition) § 982.501
and the owner; and in the lease be-
tween the tenant and the owner.)
(c) The HAP contract shall not be
construed as creating any right of the
family or other third party (other than
HUD) to enforce any provision of the
HAP contract, or to assert any claim
against HUD, the PHA or the owner
under the HAP contract.
[60 FR 34695, July 3, 1995, as amended at 64
FR 26647, May 14, 1999]
Subpart K—Rent and Housing
Assistance Payment
SOURCE: 63 FR 23861, Apr. 30, 1998, unless
otherwise noted.
§ 982.501 Overview.

This subpart describes program re-
quirements concerning the housing as-
sistance payment and rent to owner
under the HCV program.
[80 FR 8246, Feb. 17, 2015]
§ 982.503 Payment standard amount
and schedule.
(a) Payment standard schedule. (1)
HUD publishes the fair market rents
for each market area in the United
States (see part 888 of this title). The
PHA must adopt a payment standard
schedule that establishes voucher pay-
ment standard amounts for each FMR
area in the PHA jurisdiction. For each
FMR area, the PHA must establish
payment standard amounts for each
‘‘unit size.’’ Unit size is measured by
number of bedrooms (zero-bedroom,
one-bedroom, and so on).
(2) The payment standard amounts
on the PHA schedule are used to cal-
culate the monthly housing assistance
payment for a family (§ 982.505).
(3) The PHA voucher payment stand-
ard schedule shall establish a single
payment standard amount for each
unit size. For each unit size, the PHA
may establish a single payment stand-
ard amount for the whole FMR area, or
may establish a separate payment
standard amount for each designated
part of the FMR area.
(b) Establishing payment standard
amounts. (1)(i) The PHA may establish
the payment standard amount for a
unit size at any level between 90 per-
cent and 110 percent of the published
FMR for that unit size. HUD approval
is not required to establish a payment
standard amount in that range (‘‘basic
range’’). The PHA must revise the pay-
ment standard amount no later than 3
months following the effective date of
the published FMR if a change is nec-
essary to stay within the basic range.
(ii) The PHA may establish a sepa-
rate payment standard amount within
the basic range for a designated part of
an FMR area.
(iii) A PHA that is not in a des-
ignated Small Area FMR area or has
not opted to voluntarily implement
Small Area FMRs under 24 CFR
888.113(c)(3) may establish exception
payment standards for a ZIP code area
above the basic range for the metro-
politan FMR based on the HUD pub-
lished Small Area FMRs. The PHA may
establish an exception payment stand-
ard up to 110 percent of the HUD pub-
lished Small Area FMR for that ZIP
code area. The PHA must notify HUD if
it establishes an exception payment
standard based on the Small Area
FMR. The exception payment standard
must apply to the entire ZIP code area.
(iv) At the request of a PHA admin-
istering the HCV program under Small
Area FMRs under § 888.113(c)(3), HUD
may approve an exception payment
standard for a Small Area FMR area
above the 110 percent of the published
FMR in accordance with conditions set
forth by Notice in the F

EDERAL REG-
ISTER. The requirements of paragraph
(c) of this section do not apply to these
exception payment standard requests
and approvals.
(v) The PHA may establish an excep-
tion payment standard of not more
than 120 percent of the published FMR
if required as a reasonable accommoda-
tion in accordance with 24 CFR part 8
for a family that includes a person
with a disability. Any unit approved
under an exception payment standard
must still meet the reasonable rent re-
quirements found at § 982.507.
(vi) The PHA may establish an excep-
tion payment standard of more than
120 percent of the published FMR if re-
quired as a reasonable accommodation
in accordance with 24 CFR part 8 for a
family that includes a person with a
disability after approval from HUD.

Any unit approved under an exception
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Asst. Secry., for Public and Indian Housing, HUD § 982.503 payment standard must still meet the
reasonable rent requirements found at
§ 982.507.
(2) Except as described in paragraphs
(b)(1)(iii) through (v) of this section,
the PHA must request HUD approval to
establish a payment standard amount
that is higher or lower than the basic
range. HUD has sole discretion to grant
or deny approval of a higher or lower
payment standard amount. Paragraphs
(c) and (e) of this section describe the
requirements for approval of a higher
payment standard amount (‘‘exception
payment standard amount’’).
(c) HUD approval of exception payment
standard amount—(1) HUD discretion. At
HUD’s sole discretion, HUD may ap-
prove a payment standard amount that
is higher than the basic range for a des-
ignated part of the fair market rent
area (called an ‘‘exception area’’). HUD
may approve an exception payment
standard amount in accordance with
this paragraph (c) of this section for all
units, or for all units of a given unit
size, leased by program families in the
exception area. Any PHA with jurisdic-
tion in the exception area may use the
HUD-approved exception payment
standard amount.
(2) Above 110 percent of FMR to 120 per-
cent of published FMR. The HUD Field
Office may approve an exception pay-
ment standard amount from above 110
percent of the published FMR to 120
percent of the published FMR (upper
range) if the HUD Field Office deter-
mines that approval is justified by the
median rent method or the 40th per-
centile rent or the Small Area FMR
method as described in paragraph
(c)(2)(ii) of this section (and that such
approval is also supported by an appro-
priate program justification in accord-
ance with paragraph (c)(4) of this sec-
tion).
(i) Median rent method. In the median
rent method, HUD determines the ex-
ception payment standard amount by
multiplying the FMR times a fraction
of which the numerator is the median
gross rent of the exception area and
the denominator is the median gross
rent of the entire FMR area. In this
method, HUD uses median gross rent
data from the most recent decennial
United States census, and the excep-
tion area may be any geographic entity
within the FMR area (or any combina-
tion of such entities) for which median
gross rent data is provided in decennial
census products.
(ii) 40th percentile rent or Small Area
FMR method. In this method, HUD de-
termines that the area exception pay-
ment standard amount equals applica-
tion of the 40th percentile of rents for
standard quality rental housing in the
exception area or the Small Area FMR.

HUD determines whether the 40th per-
centile rent or Small Area FMR applies
in accordance with the methodology
described in 24 CFR 888.113 for deter-
mining FMRs. A PHA must present
statistically representative rental
housing survey data to justify HUD ap-
proval.
(3) Above 120 percent of FMR. (i) At
the request of a PHA, the Assistant
Secretary for Public and Indian Hous-
ing may approve an exception payment
standard amount for the total area of a
county, PHA jurisdiction, or place if
the Assistant Secretary determines
that:
(A) Such approval is necessary to
prevent financial hardship for families;
(B) Such approval is supported by
statistically representative rental
housing survey data to justify HUD ap-
proval in accordance with the method-
ology described in § 888.113 of this title;
and
(C) Such approval is also supported
by an appropriate program justifica-
tion in accordance with paragraph
(c)(4) of this section.
(ii) For purposes of paragraph (c)(3)
of this section, the term ‘‘place’’ is an
incorporated place or a U.S. Census
designated place. An incorporated
place is established by State law and
includes cities, boroughs, towns, and
villages. A U.S. Census designated
place is the statistical counterpart of
an incorporated place.
(4) Program justification. (i) HUD will
only approve an exception payment
standard amount (pursuant to para-
graph (c)(2) or paragraph (c)(3) of this
section) if HUD determines that ap-
proval of such higher amount is needed
either:
(A) To help families find housing out-
side areas of high poverty, or
(B) Because voucher holders have
trouble finding housing for lease under
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24 CFR Ch. IX (4–1–21 Edition) § 982.503
the program within the term of the
voucher.
(ii) HUD will only approve an excep-
tion payment standard amount (pursu-
ant to paragraph (c)(3) of this section)
after six months from the date of HUD
approval of an exception payment
standard pursuant to paragraph (c)(2)
of this section for the area.
(5) Population. The total population
of HUD-approved exception areas in an
FMR area may not include more than
50 percent of the population of the
FMR area, except when applying Small
Area FMR exception areas under para-
graph (b)(1)(iii) of this section.
(6) Withdrawal or modification. At any
time, HUD may withdraw or modify ap-
proval to use an exception payment
standard amount.
(d) HUD approval of payment standard
amount below the basic range. HUD may
consider a PHA request for approval to
establish a payment standard amount
that is lower than the basic range. At
HUD’s sole discretion, HUD may ap-
prove PHA establishment of a payment
standard lower than the basic range. In
determining whether to approve the
PHA request, HUD will consider appro-
priate factors, including rent burden of
families assisted under the program.

HUD will not approve a lower payment
standard if the family share for more
than 40 percent of participants in the
PHA’s voucher program exceeds 30 per-
cent of adjusted monthly income. Such
determination may be based on the
most recent examinations of family in-
come.
(e) HUD approval of success rate pay-
ment standard amounts. In order to in-
crease the number of voucher holders
who become participants, HUD may ap-
prove requests from PHAs whose FMRs
are computed at the 40th percentile
rent to establish higher, success rate
payment standard amounts. A success
rate payment standard amount is de-
fined as any amount between 90 per-
cent and 110 percent of the 50th per-
centile rent, calculated in accordance
with the methodology described in
§ 888.113 of this title.
(1) A PHA may obtain HUD Field Of-
fice approval of success rate payment
standard amounts provided the PHA
demonstrates to HUD that it meets the
following criteria:
(i) Fewer than 75 percent of the fami-
lies to whom the PHA issued rental
vouchers during the most recent 6
month period for which there is success
rate data available have become par-
ticipants in the voucher program;
(ii) The PHA has established pay-
ment standard amounts for all unit
sizes in the entire PHA jurisdiction
within the FMR area at 110 percent of
the published FMR for at least the 6
month period referenced in paragraph
(e)(1)(i) of this section and up to the
time the request is made to HUD; and
(iii) The PHA has a policy of granting
automatic extensions of voucher terms
to at least 90 days to provide a family
who has made sustained efforts to lo-
cate suitable housing with additional
search time.
(2) In determining whether to ap-
prove the PHA request to establish suc-
cess rate payment standard amounts,
HUD will consider whether the PHA
has a SEMAP overall performance rat-
ing of ‘‘troubled’’. If a PHA does not
yet have a SEMAP rating, HUD will
consider the PHA’s SEMAP certifi-
cation.
(3) HUD approval of success rate pay-
ment standard amounts shall be for all
unit sizes in the FMR area. A PHA may
opt to establish a success rate payment
standard amount for one or more unit
sizes in all or a designated part of the
PHA jurisdiction within the FMR area.
(f) Payment standard protection for
PHAs that meet deconcentration objec-
tives. Paragraph (f) of this section ap-
plies only to a PHA with jurisdiction in
an FMR area where the FMR had pre-
viously been set at the 50th percentile
rent to provide a broad range of hous-
ing opportunities throughout a metro-
politan area, pursuant to § 888.113(i)(3),
but is now set at the 40th percentile
rent.
(1) Such a PHA may obtain HUD
Field Office approval of a payment
standard amount based on the 50th per-
centile rent if the PHA scored the max-
imum number of points on the
deconcentration bonus indicator in
§ 985.3(h) in the prior year, or in two of
the last three years.
(2) HUD approval of payment stand-
ard amounts based on the 50th per-
centile rent shall be for all unit sizes in
the FMR area that had previously been
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Asst. Secry., for Public and Indian Housing, HUD § 982.505 set at the 50th percentile rent pursuant
to § 888.113(i)(3). A PHA may opt to es-
tablish a payment standard amount
based on the 50th percentile rent for
one or more unit sizes in all or a des-
ignated part of the PHA jurisdiction
within the FMR area.
(g) HUD review of PHA payment stand-
ard schedules. (1) HUD will monitor
rent burdens of families assisted in a
PHA’s voucher program. HUD will re-
view the PHA’s payment standard for a
particular unit size if HUD finds that
40 percent or more of such families oc-
cupying units of that unit size cur-
rently pay more than 30 percent of ad-
justed monthly income as the family
share. Such determination may be
based on the most recent examinations
of family income.
(2) After such review, HUD may, at
its discretion, require the PHA to mod-
ify payment standard amounts for any
unit size on the PHA payment standard
schedule. HUD may require the PHA to
establish an increased payment stand-
ard amount within the basic range.
[64 FR 26648, May 14, 1999; 64 FR 49658, Sept.
14, 1999, as amended at 64 FR 56914, Oct. 21,
1999; 65 FR 16822, Mar. 30, 2000; 65 FR 58874,
Oct. 2, 2000; 66 FR 30568, June 6, 2001; 67 FR
56688, Sept. 4, 2002; 80 FR 8246, Feb. 17, 2015;
81 FR 12376, Mar. 8, 2016; 81 FR 80582, Nov. 16,
2016]
§ 982.504 Payment standard for family
in restructured subsidized multi-
family project.
(a) This section applies to HCV as-
sistance if all the following conditions
are applicable:
(1) Such HCV assistance is provided
to a family pursuant to 24 CFR 401.421
when HUD has approved a restruc-
turing plan, and the participating ad-
ministrative entity has approved the
use of tenant-based assistance to pro-
vide continued assistance for such fam-
ilies. Such tenant-based voucher assist-
ance is provided for a family previously
receiving project-based assistance in
an eligible project (as defined in § 401.2
of this title) at the time when the
project-based assistance terminates.
(2) The family chooses to remain in
the restructured project with HCV as-
sistance under the program and leases
a unit that does not exceed the family
unit size;
(3) The lease for such assisted ten-
ancy commences during the first year
after the project-based assistance ter-
minates.
(b) The initial payment standard for
the family under such initial lease is
the sum of the reasonable rent to
owner for the unit plus the utility al-
lowance for tenant-paid utilities. (De-
termination of such initial payment
standard for the family is not subject
to paragraphs (c)(1) and (c)(2) of
§ 982.505. Except for determination of
the initial payment standard as specifi-
cally provided in paragraph (b) of this
section, the payment standard and
housing assistance payment for the
family during the HAP contract term
shall be determined in accordance with
§ 982.505.)
[64 FR 26649, May 14, 1999, as amended at 80
FR 8247, Feb. 17, 2015]
§ 982.505 How to calculate housing as-
sistance payment.
(a) Use of payment standard. A pay-
ment standard is used to calculate the
monthly housing assistance payment
for a family. The ‘‘payment standard’’
is the maximum monthly subsidy pay-
ment.
(b) Amount of monthly housing assist-
ance payment. The PHA shall pay a
monthly housing assistance payment
on behalf of the family that is equal to
the lower of:
(1) The payment standard for the
family minus the total tenant pay-
ment; or
(2) The gross rent minus the total
tenant payment.
(c) Payment standard for family. (1)
The payment standard for the family is
the lower of:
(i) The payment standard amount for
the family unit size; or
(ii) The payment standard amount
for the size of the dwelling unit rented
by the family.
(2) If the PHA has established a sepa-
rate payment standard amount for a
designated part of an FMR area in ac-
cordance with § 982.503 (including an ex-
ception payment standard amount as
determined in accordance with
§ 982.503(b)(2) and § 982.503(c)), and the
dwelling unit is located in such des-
ignated part, the PHA must use the ap-
propriate payment standard amount
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24 CFR Ch. IX (4–1–21 Edition) § 982.505
for such designated part to calculate
the payment standard for the family.

The payment standard for the family
shall be calculated in accordance with
this paragraph and paragraph (c)(1) of
this section.
(3) Decrease in the payment standard
amount during the HAP contract term. If
the amount on the payment standard
schedule is decreased during the term
of the HAP contract, the PHA is not re-
quired to reduce the payment standard
amount used to calculate the subsidy
for the families under HAP contract for
as long as the HAP contract remains in
effect.
(i) If the PHA chooses to reduce the
payment standard for the families cur-
rently under HAP contract during the
HAP contract term in accordance with
their administrative plan, the initial
reduction to the payment standard
amount used to calculate the monthly
housing assistance payment for the
family may not be applied any earlier
than the effective date of the family’s
second regular reexamination fol-
lowing the effective date of the de-
crease in the payment standard
amount.
(ii) The PHA may choose to reduce
the payment standard amount for fam-
ilies that remain under HAP contract
to the current payment standard
amount in effect on the PHA voucher
payment standard schedule, or may re-
duce the payment standard amount to
an amount that is higher than the nor-
mally applicable payment standard
amount on the PHA voucher payment
standard schedule. The PHA may fur-
ther reduce the payment standard
amount for the families during the
term of the HAP contract, provided the
subsequent reductions continue to re-
sult in a payment standard amount
that meets or exceeds the normally ap-
plicable payment standard amount on
the PHA voucher payment standard
schedule.
(iii) The PHA must provide the fam-
ily with at least 12 months’ notice that
the payment standard is being reduced
during the term of the HAP contract
before the effective date of the change.
(iv) The PHA shall administer de-
creases in the payment standard
amount during the term of the HAP
contract in accordance with the PHA
policy as described in the PHA admin-
istrative plan. The PHA may establish
different policies for designated areas
within their jurisdiction ( e.g., for dif-
ferent zip code areas), but the PHA ad-
ministrative policy on decreases to
payment standards during the term of
the HAP contract applies to all fami-
lies under HAP contract at the time of
the effective date of decrease in the
payment standard within that des-
ignated area. The PHA may not limit
or otherwise establish different protec-
tions or policies for certain families
under HAP contract.
(4) Increase in the payment standard
amount during the HAP contract term. If
the payment standard amount is in-
creased during the term of the HAP
contract, the increased payment stand-
ard amount shall be used to calculate
the monthly housing assistance pay-
ment for the family beginning at the
effective date of the family’s first reg-
ular reexamination on or after the ef-
fective date of the increase in the pay-
ment standard amount.
(5) Change in family unit size during
the HAP contract term. Irrespective of
any increase or decrease in the pay-
ment standard amount, if the family
unit size increases or decreases during
the HAP contract term, the new family
unit size must be used to determine the
payment standard amount for the fam-
ily beginning at the family’s first reg-
ular reexamination following the
change in family unit size.
(d) PHA approval of higher payment
standard for the family as a reasonable
accommodation. If the family includes a
person with disabilities and requires a
payment standard above the basic
range, as a reasonable accommodation
for such person, in accordance with
part 8 of this title, the PHA may estab-
lish a payment standard for the family
of not more than 120 percent of the
FMR. A PHA may establish a payment
standard greater than 120 percent of
the FMR by submitting a request to
HUD.
[64 FR 26649, May 14, 1999, as amended at 64
FR 56914, Oct. 21, 1999; 65 FR 16822, Mar. 30,
2000; 65 FR 42509, July 10, 2000; 66 FR 30568,
June 6, 2001; 67 FR 56689, Sept. 4, 2002; 80 FR
8247, Feb. 17, 2014; 81 FR 12376, Mar. 8, 2016; 81
FR 80582, Nov. 16, 2016]
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Asst. Secry., for Public and Indian Housing, HUD § 982.509 § 982.506 Negotiating rent to owner.

The owner and the family negotiate
the rent to owner. At the family’s re-
quest, the PHA must help the family
negotiate the rent to owner.
[63 FR 23861, Apr. 30, 1998. Redesignated at 64
FR 26648, May 14, 1999]
§ 982.507 Rent to owner: Reasonable
rent.
(a) PHA determination. (1) Except as
provided in paragraph (c) of this sec-
tion, the PHA may not approve a lease
until the PHA determines that the ini-
tial rent to owner is a reasonable rent.
(2) The PHA must redetermine the
reasonable rent:
(i) Before any increase in the rent to
owner;
(ii) If there is a 10 percent decrease in
the published FMR in effect 60 days be-
fore the contract anniversary (for the
unit size rented by the family) as com-
pared with the FMR in effect 1 year be-
fore the contract anniversary.
(iii) If directed by HUD.
(3) The PHA may also redetermine
the reasonable rent at any other time.
(4) At all times during the assisted
tenancy, the rent to owner may not ex-
ceed the reasonable rent as most re-
cently determined or redetermined by
the PHA.
(b) Comparability. The PHA must de-
termine whether the rent to owner is a
reasonable rent in comparison to rent
for other comparable unassisted units.

To make this determination, the PHA
must consider:
(1) The location, quality, size, unit
type, and age of the contract unit; and
(2) Any amenities, housing services,
maintenance and utilities to be pro-
vided by the owner in accordance with
the lease.
(c) Units assisted by low-income hous-
ing tax credits or assistance under HUD’s
HOME Investment Partnerships (HOME)
program. (1) General. For a unit receiv-
ing low-income housing tax credits
(LIHTCs) pursuant to section 42 of the
Internal Revenue Code of 1986 or re-
ceiving assistance under HUD’s HOME
Program (for which the regulations are
found in 24 CFR part 92), a rent com-
parison with unassisted units is not re-
quired if the voucher rent does not ex-
ceed the rent for other LIHTC- or
HOME-assisted units in the project
that are not occupied by families with
tenant-based assistance.
(2) LIHTC. If the rent requested by
the owner exceeds the LIHTC rents for
non-voucher families, the PHA must
perform a rent comparability study in
accordance with program regulations
and the rent shall not exceed the lesser
of the:
(i) Reasonable rent as determined
pursuant to a rent comparability
study; and
(ii) The payment standard estab-
lished by the PHA for the unit size in-
volved.
(3) HOME Program. [Reserved]
(d) Owner certification of rents charged
for other units. By accepting each
monthly housing assistance payment
from the PHA, the owner certifies that
the rent to owner is not more than rent
charged by the owner for comparable
unassisted units in the premises. The
owner must give the PHA information
requested by the PHA on rents charged
by the owner for other units in the
premises or elsewhere.
[63 FR 23861, Apr. 30, 1998. Redesignated at 64
FR 26648, May 14, 1999; 79 FR 36164, June 25,
2014; 81 FR 80583, Nov. 16, 2016]
§ 982.508 Maximum family share at ini-
tial occupancy.

At the time the PHA approves a ten-
ancy for initial occupancy of a dwell-
ing unit by a family with tenant-based
assistance under the program, and
where the gross rent of the unit ex-
ceeds the applicable payment standard
for the family, the family share must
not exceed 40 percent of the family’s
adjusted monthly income. The deter-
mination of adjusted monthly income
must be based on verification informa-
tion received by the PHA no earlier
than 60 days before the PHA issues a
voucher to the family.
[64 FR 59622, Nov. 3, 1999]
§ 982.509 Rent to owner: Effect of rent
control.

In addition to the rent reasonable-
ness limit under this subpart, the
amount of rent to owner also may be
subject to rent control limits under
State or local law.
[63 FR 23861, Apr. 30, 1998. Redesignated and
amended at 64 FR 26648, May 14, 1999]
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24 CFR Ch. IX (4–1–21 Edition) § 982.510
§ 982.510 Other fees and charges.
(a) The cost of meals or supportive
services may not be included in the
rent to owner, and the value of meals
or supportive services may not be in-
cluded in the calculation of reasonable
rent.
(b) The lease may not require the
tenant or family members to pay
charges for meals or supportive serv-
ices. Non-payment of such charges is
not grounds for termination of ten-
ancy.
(c) The owner may not charge the
tenant extra amounts for items cus-
tomarily included in rent in the local-
ity, or provided at no additional cost to
unsubsidized tenants in the premises.
[63 FR 23861, Apr. 30, 1998. Redesignated at 64
FR 26648, May 14, 1999]
§ 982.514 Distribution of housing as-
sistance payment.

The monthly housing assistance pay-
ment is distributed as follows:
(a) The PHA pays the owner the less-
er of the housing assistance payment
or the rent to owner.
(b) If the housing assistance payment
exceeds the rent to owner, the PHA
may pay the balance of the housing as-
sistance payment (‘‘utility reimburse-
ment’’) either to the family or directly
to the utility supplier to pay the util-
ity bill on behalf of the family. If the
PHA elects to pay the utility supplier
directly, the PHA must notify the fam-
ily of the amount paid to the utility
supplier.
(c) The PHA may elect to establish
policies regarding the frequency of
utility reimbursement payments for
payments made to the family.
(1) The PHA will have the option of
making utility reimbursement pay-
ments not less than once per calendar-
year quarter, for reimbursements to-
taling $45 or less per quarter. In the
event a family leaves the program in
advance of its next quarterly reim-
bursement, the PHA would be required
to reimburse the family for a prorated
share of the applicable reimbursement.

PHAs exercising this option must have
a hardship policy in place for tenants.
(2) If the PHA elects to pay the util-
ity supplier directly, the PHA must no-
tify the family of the amount paid to
the utility supplier.
[63 FR 23861, Apr. 30, 1998, as amended at 64
FR 56914, Oct. 21, 1999; 65 FR 16822, Mar. 30,
2000; 81 FR 12376, Mar. 8, 2016]
§ 982.515 Family share: Family respon-
sibility.
(a) The family share is calculated by
subtracting the amount of the housing
assistance payment from the gross
rent.
(b) The family rent to owner is cal-
culated by subtracting the amount of
the housing assistance payment to the
owner from the rent to owner.
(c) The PHA may not use housing as-
sistance payments or other program
funds (including any administrative fee
reserve) to pay any part of the family
share, including the family rent to
owner. Payment of the whole family
share is the responsibility of the fam-
ily.
[63 FR 23861, Apr. 30, 1998, as amended at 64
FR 56915, Oct. 21, 1999]
§ 982.516 Family income and composi-
tion: Annual and interim examina-
tions.
(a) PHA responsibility for reexamina-
tion and verification. (1) The PHA must
conduct a reexamination of family in-
come and composition at least annu-
ally.
(2) Except as provided in paragraph
(a)(3) of this section, the PHA must ob-
tain and document in the tenant file
third-party verification of the fol-
lowing factors, or must document in
the tenant file why third-party
verification was not available:
(i) Reported family annual income;
(ii) The value of assets;
(iii) Expenses related to deductions
from annual income; and
(iv) Other factors that affect the de-
termination of adjusted income.
(3) For a family with net assets equal
to or less than $5,000, a PHA may ac-
cept a family’s declaration that it has
net assets equal to or less than $5,000,
without taking additional steps to
verify the accuracy of the declaration.
(i) The declaration must state the
amount of income the family expects
to receive from such assets; this
amount must be included in the fam-
ily’s income.

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Asst. Secry., for Public and Indian Housing, HUD § 982.516 (ii) A PHA must obtain third-party
verification of all family assets every 3
years.
(b) Streamlined income determination —
(1) General. A PHA may elect to apply
a streamlined income determination to
families receiving fixed income as de-
scribed in paragraph (b)(3) of this sec-
tion.
(2) Definition of ‘‘fixed income’’. For
purposes of this section, ‘‘fixed in-
come’’ means periodic payments at
reasonably predictable levels from one
or more of the following sources:
(i) Social Security, Supplemental Se-
curity Income, Supplemental Dis-
ability Insurance.
(ii) Federal, state, local, or private
pension plans.
(iii) Annuities or other retirement
benefit programs, insurance policies,
disability or death benefits, or other
similar types of periodic receipts.
(iv) Any other source of income sub-
ject to adjustment by a verifiable
COLA or current rate of interest.
(3) Method of streamlined income deter-
mination. A PHA using the streamlined
income determination must adjust a
family’s income according to the per-
centage of a family’s unadjusted in-
come that is from fixed income.
(i) When 90 percent or more of a fam-
ily’s unadjusted income consists of
fixed income, PHAs using streamlined
income determinations must apply a
COLA or COLAs to the family’s fixed-
income sources, provided that the fam-
ily certifies both that 90 percent or
more of their unadjusted income is
fixed income and that their sources of
fixed income have not changed from
the previous year. For non-fixed in-
come, the PHA is not required to make
adjustments pursuant to paragraph (a)
of this section.
(ii) When less than 90 percent of a
family’s unadjusted income consists of
fixed income, PHAs using streamlined
income determinations must apply a
COLA to each of the family’s sources of
fixed income individually. The PHA
must determine all other income pur-
suant to paragraph (a) of this section.
(4) COLA rate applied by PHAs. PHAs
using streamlined income determina-
tions must adjust a family’s fixed in-
come using a COLA or current interest
rate that applies to each specific
source of fixed income and is available
from a public source or through ten-
ant-provided, third-party-generated
documentation. If no public
verification or tenant-provided docu-
mentation is available, then the owner
must obtain third-party verification of
the income amounts in order to cal-
culate the change in income for the
source.
(5) Triennial verification. For any in-
come determined pursuant to a stream-
lined income determination, a PHA
must obtain third-party verification of
all income amounts every 3 years.
(c) Interim reexaminations. (1) At any
time, the PHA may conduct an interim
reexamination of family income and
composition.
(2) At any time, the family may re-
quest an interim determination of fam-
ily income or composition because of
any changes since the last determina-
tion. The PHA must make the interim
determination within a reasonable
time after the family request.
(3) Interim examinations must be
conducted in accordance with policies
in the PHA administrative plan.
(d) Family reporting of change. The
PHA must adopt policies prescribing
when and under what conditions the
family must report a change in family
income or composition.
(e) Effective date of reexamination. (1)
The PHA must adopt policies pre-
scribing how to determine the effective
date of a change in the housing assist-
ance payment resulting from an in-
terim redetermination.
(2) At the effective date of a regular
or interim reexamination, the PHA
must make appropriate adjustments in
the housing assistance payment in ac-
cordance with § 982.505.
(f) Accuracy of family income data. The
PHA must establish procedures that
are appropriate and necessary to assure
that income data provided by applicant
or participant families is complete and
accurate.
(g) Execution of release and consent. (1)
As a condition of admission to or con-
tinued assistance under the program,
the PHA shall require the family head,
and such other family members as the
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24 CFR Ch. IX (4–1–21 Edition) § 982.517
PHA designates, to execute a HUD-ap-
proved release and consent form (in-
cluding any release and consent as re-
quired under § 5.230 of this title) au-
thorizing any depository or private
source of income, or any Federal, State
or local agency, to furnish or release to
the PHA or HUD such information as
the PHA or HUD determines to be nec-
essary.
(2) The PHA and HUD must limit the
use or disclosure of information ob-
tained from a family or from another
source pursuant to this release and
consent to purposes directly in connec-
tion with administration of the pro-
gram.
(Information collection requirements con-
tained in this section have been approved by
the Office of Management and Budget under
control number 2577–0169.)
[63 FR 23861, Apr. 30, 1998, as amended at 64
FR 13057, Mar. 16, 1999; 64 FR 26649, May 14,
1999; 64 FR 56915, Oct. 21, 1999; 65 FR 16822,
Mar. 30, 2000; 80 FR 8247, Feb. 17, 2015; 81 FR
12376, Mar. 8, 2016; 82 FR 58341, Dec. 12, 2017;
85 FR 27139, May 7, 2020]
E
DITORIAL NOTE: At 64 FR 26649, May 14,
1999, § 982.516 was amended in paragraph (e)
by removing the reference to ‘‘and family
unit size’’; however paragraph (e) does not
contain this phrase.
§ 982.517 Utility allowance schedule.
(a) Maintaining schedule. (1) The PHA
must maintain a utility allowance
schedule for all tenant-paid utilities
(except telephone), for cost of tenant-
supplied refrigerators and ranges, and
for other tenant-paid housing services
(e.g., trash collection (disposal of waste
and refuse)).
(2) The PHA must give HUD a copy of
the utility allowance schedule. At
HUD’s request, the PHA also must pro-
vide any information or procedures
used in preparation of the schedule.
(b) How allowances are determined. (1)
The utility allowance schedule must be
determined based on the typical cost of
utilities and services paid by energy-
conservative households that occupy
housing of similar size and type in the
same locality. In developing the sched-
ule, the PHA must use normal patterns
of consumption for the community as a
whole and current utility rates.
(2)(i) A PHA’s utility allowance
schedule, and the utility allowance for
an individual family, must include the
utilities and services that are nec-
essary in the locality to provide hous-
ing that complies with the housing
quality standards. However, the PHA
may not provide any allowance for
non-essential utility costs, such as
costs of cable or satellite television.
(ii) In the utility allowance schedule,
the PHA must classify utilities and
other housing services according to the
following general categories: space
heating; air conditioning; cooking;
water heating; water; sewer; trash col-
lection (disposal of waste and refuse);
other electric; refrigerator (cost of ten-
ant-supplied refrigerator); range (cost
of tenant-supplied range); and other
specified housing services. The PHA
must provide a utility allowance for
tenant-paid air-conditioning costs if
the majority of housing units in the
market provide centrally air-condi-
tioned units or there is appropriate
wiring for tenant-installed air condi-
tioners.
(3) The cost of each utility and hous-
ing service category must be stated
separately. For each of these cat-
egories, the utility allowance schedule
must take into consideration unit size
(by number of bedrooms), and unit
types (e.g., apartment, row-house, town
house, single-family detached, and
manufactured housing) that are typical
in the community.
(4) The utility allowance schedule
must be prepared and submitted in ac-
cordance with HUD requirements on
the form prescribed by HUD.
(c) Revisions of utility allowance sched-
ule. (1) A PHA must review its schedule
of utility allowances each year, and
must revise its allowance for a utility
category if there has been a change of
10 percent or more in the utility rate
since the last time the utility allow-
ance schedule was revised. The PHA
must maintain information supporting
its annual review of utility allowances
and any revisions made in its utility
allowance schedule.
(2) At HUD’s direction, the PHA must
revise the utility allowance schedule to
correct any errors, or as necessary to
update the schedule.
(d) Use of utility allowance schedule.

The PHA must use the appropriate
utility allowance for the lesser of the
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Asst. Secry., for Public and Indian Housing, HUD § 982.551 size of dwelling unit actually leased by
the family or the family unit size as
determined under the PHA subsidy
standards. In cases where the unit size
leased exceeds the family unit size as
determined under the PHA subsidy
standards as a result of a reasonable
accommodation, the PHA must use the
appropriate utility allowance for the
size of the dwelling unit actually
leased by the family.
(e) Higher utility allowance as reason-
able accommodation for a person with dis-
abilities. On request from a family that
includes a person with disabilities, the
PHA must approve a utility allowance
which is higher than the applicable
amount on the utility allowance sched-
ule if a higher utility allowance is
needed as a reasonable accommodation
in accordance with 24 CFR part 8 to
make the program accessible to and us-
able by the family member with a dis-
ability.
(Information collection requirements con-
tained in this section have been approved by
the Office of Management and Budget under
control number 2577–0169.)
[63 FR 23861, Apr. 30, 1998, as amended at 80
FR 8247, Feb. 17, 2015; 81 FR 12377, Mar. 8,
2016]
§ 982.521 Rent to owner in subsidized
project.
(a) Applicability to subsidized project.

This section applies to a program ten-
ancy in any of the following types of
federally subsidized project:
(1) An insured or non-insured Section
236 project;
(2) A Section 202 project;
(3) A Section 221(d)(3) below market
interest rate (BMIR) project; or
(4) A Section 515 project of the Rural
Development Administration.
(b) How rent to owner is determined.

The rent to owner is the subsidized
rent as determined in accordance with
requirements for the applicable federal
program listed in paragraph (a) of this
section. This determination is not sub-
ject to the prohibition against increas-
ing the rent to owner during the initial
lease term (see § 982.309).
[65 FR 16822, Mar. 30, 2000, as amended at 80
FR 8247, Feb. 17, 2015]
Subpart L—Family Obligations;
Denial and Termination of As-
sistance
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.551 Obligations of participant.
(a) Purpose. This section states the
obligations of a participant family
under the program.
(b) Supplying required information —(1)
The family must supply any informa-
tion that the PHA or HUD determines
is necessary in the administration of
the program, including submission of
required evidence of citizenship or eli-
gible immigration status (as provided
by 24 CFR part 5). ‘‘Information’’ in-
cludes any requested certification, re-
lease or other documentation.
(2) The family must supply any infor-
mation requested by the PHA or HUD
for use in a regularly scheduled reex-
amination or interim reexamination of
family income and composition in ac-
cordance with HUD requirements.
(3) The family must disclose and
verify social security numbers (as pro-
vided by part 5, subpart B, of this title)
and must sign and submit consent
forms for obtaining information in ac-
cordance with part 5, subpart B, of this
title.
(4) Any information supplied by the
family must be true and complete.
(c) HQS breach caused by family. The
family is responsible for an HQS breach
caused by the family as described in
§ 982.404(b).
(d) Allowing PHA inspection. The fam-
ily must allow the PHA to inspect the
unit at reasonable times and after rea-
sonable notice.
(e) Violation of lease. The family may
not commit any serious or repeated
violation of the lease. Under 24 CFR

5.2005(c), an incident or incidents of ac-
tual or threatened domestic violence,
dating violence, sexual assault, or
stalking will not be construed as a seri-
ous or repeated lease violation by the
victim, or threatened victim, of the do-
mestic violence, dating violence, sex-
ual assault, or stalking, or as good
cause to terminate the tenancy, occu-
pancy rights, or assistance of the vic-
tim.

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24 CFR Ch. IX (4–1–21 Edition) § 982.551
(f) Family notice of move or lease termi-
nation. The family must notify the
PHA and the owner before the family
moves out of the unit, or terminates
the lease on notice to the owner. See
§ 982.354(d).
(g) Owner eviction notice. The family
must promptly give the PHA a copy of
any owner eviction notice.
(h) Use and occupancy of unit —(1) The
family must use the assisted unit for
residence by the family. The unit must
be the family’s only residence.
(2) The composition of the assisted
family residing in the unit must be ap-
proved by the PHA. The family must
promptly inform the PHA of the birth,
adoption or court-awarded custody of a
child. The family must request PHA
approval to add any other family mem-
ber as an occupant of the unit. No
other person [i.e., nobody but members
of the assisted family] may reside in
the unit (except for a foster child or
live-in aide as provided in paragraph
(h)(4) of this section).
(3) The family must promptly notify
the PHA if any family member no
longer resides in the unit.
(4) If the PHA has given approval, a
foster child or a live-in-aide may reside
in the unit. The PHA has the discretion
to adopt reasonable policies concerning
residence by a foster child or a live-in-
aide, and defining when PHA consent
may be given or denied.
(5) Members of the household may en-
gage in legal profitmaking activities in
the unit, but only if such activities are
incidental to primary use of the unit
for residence by members of the fam-
ily.
(6) The family must not sublease or
let the unit.
(7) The family must not assign the
lease or transfer the unit.
(i) Absence from unit. The family must
supply any information or certification
requested by the PHA to verify that
the family is living in the unit, or re-
lating to family absence from the unit,
including any PHA-requested informa-
tion or certification on the purposes of
family absences. The family must co-
operate with the PHA for this purpose.

The family must promptly notify the
PHA of absence from the unit.
(j) Interest in unit. The family must
not own or have any interest in the
unit.
(k) Fraud and other program violation.

The members of the family must not
commit fraud, bribery or any other
corrupt or criminal act in connection
with the programs.
(l) Crime by household members. The
members of the household may not en-
gage in drug-related criminal activity
or violent criminal activity or other
criminal activity that threatens the
health, safety, or right to peaceful en-
joyment of other residents and persons
residing in the immediate vicinity of
the premises (see § 982.553). Under 24
CFR 5.2005(b)(2), criminal activity di-
rectly related to domestic violence,
dating violence, sexual assault, or
stalking, engaged in by a member of a
tenant’s household, or any guest or
other person under the tenant’s con-
trol, shall not be cause for termination
of tenancy, occupancy rights, or assist-
ance of the victim, if the tenant or an
affiliated individual of the tenant, as
defined in 24 CFR 5.2003, is the victim.
(m) Alcohol abuse by household mem-
bers. The members of the household
must not abuse alcohol in a way that
threatens the health, safety or right to
peaceful enjoyment of other residents
and persons residing in the immediate
vicinity of the premises.
(n) Other housing assistance. An as-
sisted family, or members of the fam-
ily, may not receive Section 8 tenant-
based assistance while receiving an-
other housing subsidy, for the same
unit or for a different unit, under any
duplicative (as determined by HUD or
in accordance with HUD requirements)
federal, State or local housing assist-
ance program.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 11119, Mar. 18,
1996; 61 FR 13627, Mar. 27, 1996; 61 FR 27163,
May 30, 1996; 64 FR 26650, May 14, 1999; 66 FR
28805, May 24, 2001; 73 FR 72345, Nov. 28, 2008;
75 FR 66264, Oct. 27, 2010; 80 FR 50575, Aug. 20,
2015; 81 FR 80817, Nov. 16, 2016]
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Asst. Secry., for Public and Indian Housing, HUD § 982.552 § 982.552 PHA denial or termination of
assistance for family.
(a) Action or inaction by family. (1) A
PHA may deny assistance for an appli-
cant or terminate assistance for a par-
ticipant under the programs because of
the family’s action or failure to act as
described in this section or § 982.553.

The provisions of this section do not
affect denial or termination of assist-
ance for grounds other than action or
failure to act by the family.
(2) Denial of assistance for an appli-
cant may include any or all of the fol-
lowing: denying listing on the PHA
waiting list, denying or withdrawing a
voucher, refusing to enter into a HAP
contract or approve a lease, and refus-
ing to process or provide assistance
under portability procedures.
(3) Termination of assistance for a
participant may include any or all of
the following: refusing to enter into a
HAP contract or approve a lease, ter-
minating housing assistance payments
under an outstanding HAP contract,
and refusing to process or provide as-
sistance under portability procedures.
(4) This section does not limit or af-
fect exercise of the PHA rights and
remedies against the owner under the
HAP contract, including termination,
suspension or reduction of housing as-
sistance payments, or termination of
the HAP contract.
(b) Requirement to deny admission or
terminate assistance. (1) For provisions
on denial of admission and termination
of assistance for illegal drug use, other
criminal activity, and alcohol abuse
that would threaten other residents,
see § 982.553.
(2) The PHA must terminate program
assistance for a family evicted from
housing assisted under the program for
serious violation of the lease.
(3) The PHA must deny admission to
the program for an applicant, or termi-
nate program assistance for a partici-
pant, if any member of the family fails
to sign and submit consent forms for
obtaining information in accordance
with part 5, subparts B and F of this
title.
(4) The family must submit required
evidence of citizenship or eligible im-
migration status. See part 5 of this
title for a statement of circumstances
in which the PHA must deny admission
or terminate program assistance be-
cause a family member does not estab-
lish citizenship or eligible immigration
status, and the applicable informal
hearing procedures.
(5) The PHA must deny or terminate
assistance if any family member fails
to meet the eligibility requirements
concerning individuals enrolled at an
institution of higher education as spec-
ified in 24 CFR 5.612.
(c) Authority to deny admission or ter-
minate assistance—(1) Grounds for denial
or termination of assistance. The PHA
may at any time deny program assist-
ance for an applicant, or terminate
program assistance for a participant,
for any of the following grounds:
(i) If the family violates any family
obligations under the program (see
§ 982.551). See § 982.553 concerning denial
or termination of assistance for crime
by family members.
(ii) If any member of the family has
been evicted from federally assisted
housing in the last five years;
(iii) If a PHA has ever terminated as-
sistance under the program for any
member of the family.
(iv) If any member of the family has
committed fraud, bribery, or any other
corrupt or criminal act in connection
with any Federal housing program (see
also § 982.553(a)(1));
(v) If the family currently owes rent
or other amounts to the PHA or to an-
other PHA in connection with Section
8 or public housing assistance under
the 1937 Act.
(vi) If the family has not reimbursed
any PHA for amounts paid to an owner
under a HAP contract for rent, dam-
ages to the unit, or other amounts
owed by the family under the lease.
(vii) If the family breaches an agree-
ment with the PHA to pay amounts
owed to a PHA, or amounts paid to an
owner by a PHA. (The PHA, at its dis-
cretion, may offer a family the oppor-
tunity to enter an agreement to pay
amounts owed to a PHA or amounts
paid to an owner by a PHA. The PHA
may prescribe the terms of the agree-
ment.)
(viii) If a family participating in the
FSS program fails to comply, without
good cause, with the family’s FSS con-
tract of participation.

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24 CFR Ch. IX (4–1–21 Edition) § 982.553
(ix) If the family has engaged in or
threatened abusive or violent behavior
toward PHA personnel.
(x) If a welfare-to-work (WTW) fam-
ily fails, willfully and persistently, to
fulfill its obligations under the wel-
fare-to-work voucher program.
(xi) If the family has been engaged in
criminal activity or alcohol abuse as
described in § 982.553.
(2) Consideration of circumstances. In
determining whether to deny or termi-
nate assistance because of action or
failure to act by members of the fam-
ily:
(i) The PHA may consider all rel-
evant circumstances such as the seri-
ousness of the case, the extent of par-
ticipation or culpability of individual
family members, mitigating cir-
cumstances related to the disability of
a family member, and the effects of de-
nial or termination of assistance on
other family members who were not in-
volved in the action or failure.
(ii) The PHA may impose, as a condi-
tion of continued assistance for other
family members, a requirement that
other family members who partici-
pated in or were culpable for the action
or failure will not reside in the unit.

The PHA may permit the other mem-
bers of a participant family to continue
receiving assistance.
(iii) In determining whether to deny
admission or terminate assistance for
illegal use of drugs or alcohol abuse by
a household member who is no longer
engaged in such behavior, the PHA
may consider whether such household
member is participating in or has suc-
cessfully completed a supervised drug
or alcohol rehabilitation program, or
has otherwise been rehabilitated suc-
cessfully (42 U.S.C. 13661). For this pur-
pose, the PHA may require the appli-
cant or tenant to submit evidence of
the household member’s current par-
ticipation in, or successful completion
of, a supervised drug or alcohol reha-
bilitation program or evidence of oth-
erwise having been rehabilitated suc-
cessfully.
(iv) If the family includes a person
with disabilities, the PHA decision con-
cerning such action is subject to con-
sideration of reasonable accommoda-
tion in accordance with part 8 of this
title.
(v) Nondiscrimination limitation and
protection for victims of domestic violence,
dating violence, sexual assault, or stalk-
ing. The PHA’s admission and termi-
nation actions must be consistent with
fair housing and equal opportunity pro-
visions of 24 CFR 5.105, and with the re-
quirements of 24 CFR part 5, subpart L
(Protection for Victims of Domestic
Violence, Dating Violence, Sexual As-
sault, or Stalking).
(d) Information for family. The PHA
must give the family a written descrip-
tion of:
(1) Family obligations under the pro-
gram.
(2) The grounds on which the PHA
may deny or terminate assistance be-
cause of family action or failure to act.
(3) The PHA informal hearing proce-
dures.
(e) Applicant screening. The PHA may
at any time deny program assistance
for an applicant in accordance with the
PHA policy, as stated in the PHA ad-
ministrative plan, on screening of ap-
plicants for family behavior or suit-
ability for tenancy.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27,
1996; 63 FR 23865, Apr. 30, 1998; 64 FR 26650,
May 14, 1999; 64 FR 49659, Sept. 14, 1999; 64 FR
56915, Oct. 21, 1999; 65 FR 16823, Mar. 30, 2000;
66 FR 28805, May 24, 2001; 70 FR 77744, Dec. 30,
2005; 73 FR 72345, Nov. 28, 2008; 75 FR 66264,
Oct. 27, 2010; 80 FR 8247, Feb. 17, 2015; 81 FR
80817, Nov. 16, 2016]
§ 982.553 Denial of admission and ter-
mination of assistance for criminals
and alcohol abusers.
(a) Denial of admission—(1) Prohibiting
admission of drug criminals. (i) The PHA
must prohibit admission to the program
of an applicant for three years from the
date of eviction if a household member
has been evicted from federally as-
sisted housing for drug-related crimi-
nal activity. However, the PHA may
admit the household if the PHA deter-
mines:
(A) That the evicted household mem-
ber who engaged in drug-related crimi-
nal activity has successfully completed
a supervised drug rehabilitation pro-
gram approved by the PHA; or
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Asst. Secry., for Public and Indian Housing, HUD § 982.553 (B) That the circumstances leading
to eviction no longer exist (for exam-
ple, the criminal household member
has died or is imprisoned).
(ii) The PHA must establish stand-
ards that prohibit admission if:
(A) The PHA determines that any
household member is currently engag-
ing in illegal use of a drug;
(B) The PHA determines that it has
reasonable cause to believe that a
household member’s illegal drug use or
a pattern of illegal drug use may
threaten the health, safety, or right to
peaceful enjoyment of the premises by
other residents; or
(C) 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.
(2) Prohibiting admission of other crimi-
nals—(i) Mandatory prohibition. The
PHA must establish standards that pro-
hibit admission to the program if any
member of the household is subject to
a lifetime registration requirement
under a State sex offender registration
program. In this screening of appli-
cants, the PHA must perform criminal
history background checks necessary
to determine whether any household
member is subject to a lifetime sex of-
fender registration requirement in the
State where the housing is located and
in other States where the household
members are known to have resided.
(ii) Permissive prohibitions. (A) The
PHA may prohibit admission of a
household to the program if the PHA
determines that any household member
is currently engaged in, or has engaged
in during a reasonable time before the
admission:
(1) Drug-related criminal activity;
(2) Violent criminal activity;
(3) Other criminal activity which
may threaten the health, safety, or
right to peaceful enjoyment of the
premises by other residents or persons
residing in the immediate vicinity; or
(4) Other criminal activity which
may threaten the health or safety of
the owner, property management staff,
or persons performing a contract ad-
ministration function or responsibility
on behalf of the PHA (including a PHA
employee or a PHA contractor, subcon-
tractor or agent).
(B) The PHA may establish a period
before the admission decision during
which an applicant must not have en-
gaged in the activities specified in
paragraph (a)(2)(i) of this section
(‘‘reasonable time’’).
(C) If the PHA previously denied ad-
mission to an applicant because a
member of the household engaged in
criminal activity, the PHA may recon-
sider the applicant if the PHA has suf-
ficient evidence that the members of
the household are not currently en-
gaged in, and have not engaged in, such
criminal activity during a reasonable
period, as determined by the PHA, be-
fore the admission decision.
(1) The PHA would have ‘‘sufficient
evidence’’ if the household member
submitted a certification that she or he
is not currently engaged in and has not
engaged in such criminal activity dur-
ing the specified period and provided
supporting information from such
sources as a probation officer, a land-
lord, neighbors, social service agency
workers and criminal records, which
the PHA verified.
(2) For purposes of this section, a
household member is ‘‘currently en-
gaged in’’ criminal activity if the per-
son has engaged in the behavior re-
cently enough to justify a reasonable
belief that the behavior is current.
(3) Prohibiting admission of alcohol
abusers. The PHA must establish stand-
ards that prohibit admission to the
program if the PHA determines that it
has reasonable cause to believe that a
household member’s abuse or pattern
of abuse of alcohol may threaten the
health, safety, or right to peaceful en-
joyment of the premises by other resi-
dents.
(b) Terminating assistance —(1) Termi-
nating assistance for drug criminals. (i)
The PHA must establish standards that
allow the PHA to terminate assistance
for a family under the program if the
PHA determines that:
(A) Any household member is cur-
rently engaged in any illegal use of a
drug; or
(B) A pattern of illegal use of a drug
by any household member interferes
with the health, safety, or right to
peaceful enjoyment of the premises by
other residents.

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24 CFR Ch. IX (4–1–21 Edition) § 982.554
(ii) The PHA must immediately ter-
minate assistance for a family under
the program if the PHA determines
that any member of the household has
ever been convicted of drug-related
criminal activity for manufacture or
production of methamphetamine on
the premises of federally assisted hous-
ing.
(iii) The PHA must establish stand-
ards that allow the PHA to terminate
assistance under the program for a
family if the PHA determines that any
family member has violated the fam-
ily’s obligation under § 982.551 not to
engage in any drug-related criminal ac-
tivity.
(2) Terminating assistance for other
criminals. The PHA must establish
standards that allow the PHA to termi-
nate assistance under the program for
a family if the PHA determines that
any household member has violated the
family’s obligation under § 982.551 not
to engage in violent criminal activity.
(3) Terminating assistance for alcohol
abusers. The PHA must establish stand-
ards that allow termination of assist-
ance for a family if the PHA deter-
mines that a household member’s
abuse or pattern of abuse of alcohol
may threaten the health, safety, or
right to peaceful enjoyment of the
premises by other residents.
(c) Evidence of criminal activity. The
PHA may terminate assistance for
criminal activity by a household mem-
ber as authorized in this section if the
PHA determines, based on a preponder-
ance of the evidence, that the house-
hold member has engaged in the activ-
ity, regardless of whether the house-
hold member has been arrested or con-
victed for such activity.
(d) Use of criminal record—(1) Denial. If
a PHA proposes to deny admission for
criminal activity as shown by a crimi-
nal record, the PHA must provide the
subject of the record and the applicant
with a copy of the criminal record. The
PHA must give the family an oppor-
tunity to dispute the accuracy and rel-
evance of that record, in the informal
review process in accordance with
§ 982.554. (See part 5, subpart J for pro-
vision concerning access to criminal
records.)
(2) Termination of assistance. If a PHA
proposes to terminate assistance for
criminal activity as shown by a crimi-
nal record, the PHA must notify the
household of the proposed action to be
based on the information and must pro-
vide the subject of the record and the
tenant with a copy of the criminal
record. The PHA must give the family
an opportunity to dispute the accuracy
and relevance of that record in accord-
ance with § 982.555.
(3) Cost of obtaining criminal record.

The PHA may not pass along to the
tenant the costs of a criminal records
check.
(e) The requirements in 24 CFR part
5, subpart L (Protection for Victims of
Domestic Violence, Dating Violence,
Sexual Assault, or Stalking) apply to
this section.
[66 FR 28805, May 24, 2001, as amended at 73
FR 72345, Nov. 28, 2008; 75 FR 66264, Oct. 27,
2010; 80 FR 8247, Feb. 17, 2015; 81 FR 80817,
Nov. 16, 2016]
§ 982.554 Informal review for appli-
cant.
(a) Notice to applicant. The PHA must
give an applicant for participation
prompt notice of a decision denying as-
sistance to the applicant. The notice
must contain a brief statement of the
reasons for the PHA decision. The no-
tice must also state that the applicant
may request an informal review of the
decision and must describe how to ob-
tain the informal review.
(b) Informal review process. The PHA
must give an applicant an opportunity
for an informal review of the PHA deci-
sion denying assistance to the appli-
cant. The administrative plan must
state the PHA procedures for con-
ducting an informal review. The PHA
review procedures must comply with
the following:
(1) The review may be conducted by
any person or persons designated by
the PHA, other than a person who
made or approved the decision under
review or a subordinate of this person.
(2) The applicant must be given an
opportunity to present written or oral
objections to the PHA decision.
(3) The PHA must notify the appli-
cant of the PHA final decision after the
informal review, including a brief
statement of the reasons for the final
decision.

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Asst. Secry., for Public and Indian Housing, HUD § 982.555 (c) When informal review is not re-
quired. The PHA is not required to pro-
vide the applicant an opportunity for
an informal review for any of the fol-
lowing:
(1) Discretionary administrative de-
terminations by the PHA.
(2) General policy issues or class
grievances.
(3) A determination of the family
unit size under the PHA subsidy stand-
ards.
(4) A PHA determination not to ap-
prove an extension of the voucher
term.
(5) A PHA determination not to grant
approval of the tenancy.
(6) An PHA determination that a unit
selected by the applicant is not in com-
pliance with HQS.
(7) An PHA determination that the
unit is not in accordance with HQS be-
cause of the family size or composi-
tion.
(d) Restrictions on assistance for non-
citizens. The informal hearing provi-
sions for the denial of assistance on the
basis of ineligible immigration status
are contained in 24 CFR part 5.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27,
1996; 64 FR 26650, May 14, 1999; 80 FR 50575,
Aug. 20, 2015]
§ 982.555 Informal hearing for partici-
pant.
(a) When hearing is required. (1) A
PHA must give a participant family an
opportunity for an informal hearing to
consider whether the following PHA
decisions relating to the individual cir-
cumstances of a participant family are
in accordance with the law, HUD regu-
lations and PHA policies:
(i) A determination of the family’s
annual or adjusted income, and the use
of such income to compute the housing
assistance payment.
(ii) A determination of the appro-
priate utility allowance (if any) for
tenant-paid utilities from the PHA
utility allowance schedule.
(iii) A determination of the family
unit size under the PHA subsidy stand-
ards.
(iv) A determination to terminate as-
sistance for a participant family be-
cause of the family’s action or failure
to act (see § 982.552).
(v) A determination to terminate as-
sistance because the participant family
has been absent from the assisted unit
for longer than the maximum period
permitted under PHA policy and HUD
rules.
(2) In the cases described in para-
graphs (a)(1) (iv), (v) and (vi) of this
section, the PHA must give the oppor-
tunity for an informal hearing before
the PHA terminates housing assistance
payments for the family under an out-
standing HAP contract.
(b) When hearing is not required. The
PHA is not required to provide a par-
ticipant family an opportunity for an
informal hearing for any of the fol-
lowing:
(1) Discretionary administrative de-
terminations by the PHA.
(2) General policy issues or class
grievances.
(3) Establishment of the PHA sched-
ule of utility allowances for families in
the program.
(4) A PHA determination not to ap-
prove an extension of the voucher
term.
(5) A PHA determination not to ap-
prove a unit or tenancy.
(6) A PHA determination that an as-
sisted unit is not in compliance with
HQS. (However, the PHA must provide
the opportunity for an informal hear-
ing for a decision to terminate assist-
ance for a breach of the HQS caused by
the family as described in § 982.551(c).)
(7) A PHA determination that the
unit is not in accordance with HQS be-
cause of the family size.
(8) A determination by the PHA to
exercise or not to exercise any right or
remedy against the owner under a HAP
contract.
(c) Notice to family. (1) In the cases de-
scribed in paragraphs (a)(1) (i), (ii) and
(iii) of this section, the PHA must no-
tify the family that the family may
ask for an explanation of the basis of
the PHA determination, and that if the
family does not agree with the deter-
mination, the family may request an
informal hearing on the decision.
(2) In the cases described in para-
graphs (a)(1) (iv), (v) and (vi) of this
section, the PHA must give the family
prompt written notice that the family
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24 CFR Ch. IX (4–1–21 Edition) § 982.601
may request a hearing. The notice
must:
(i) Contain a brief statement of rea-
sons for the decision,
(ii) State that if the family does not
agree with the decision, the family
may request an informal hearing on
the decision, and
(iii) State the deadline for the family
to request an informal hearing.
(d) Expeditious hearing process. Where
a hearing for a participant family is re-
quired under this section, the PHA
must proceed with the hearing in a rea-
sonably expeditious manner upon the
request of the family.
(e) Hearing procedures—(1) Administra-
tive plan. The administrative plan must
state the PHA procedures for con-
ducting informal hearings for partici-
pants.
(2) Discovery—(i) By family. The fam-
ily must be given the opportunity to
examine before the PHA hearing any
PHA documents that are directly rel-
evant to the hearing. The family must
be allowed to copy any such document
at the family’s expense. If the PHA
does not make the document available
for examination on request of the fam-
ily, the PHA may not rely on the docu-
ment at the hearing.
(ii) By PHA. The PHA hearing proce-
dures may provide that the PHA must
be given the opportunity to examine at
PHA offices before the PHA hearing
any family documents that are directly
relevant to the hearing. The PHA must
be allowed to copy any such document
at the PHA’s expense. If the family
does not make the document available
for examination on request of the PHA,
the family may not rely on the docu-
ment at the hearing.
(iii) Documents. The term ‘‘docu-
ments’’ includes records and regula-
tions.
(3) Representation of family. At its own
expense, the family may be represented
by a lawyer or other representative.
(4) Hearing officer: Appointment and
authority. (i) The hearing may be con-
ducted by any person or persons des-
ignated by the PHA, other than a per-
son who made or approved the decision
under review or a subordinate of this
person.
(ii) The person who conducts the
hearing may regulate the conduct of
the hearing in accordance with the
PHA hearing procedures.
(5) Evidence. The PHA and the family
must be given the opportunity to
present evidence, and may question
any witnesses. Evidence may be consid-
ered without regard to admissibility
under the rules of evidence applicable
to judicial proceedings.
(6) Issuance of decision. The person
who conducts the hearing must issue a
written decision, stating briefly the
reasons for the decision. Factual deter-
minations relating to the individual
circumstances of the family shall be
based on a preponderance of the evi-
dence presented at the hearing. A copy
of the hearing decision shall be fur-
nished promptly to the family.
(f) Effect of decision. The PHA is not
bound by a hearing decision:
(1) Concerning a matter for which the
PHA is not required to provide an op-
portunity for an informal hearing
under this section, or that otherwise
exceeds the authority of the person
conducting the hearing under the PHA
hearing procedures.
(2) Contrary to HUD regulations or
requirements, or otherwise contrary to
federal, State, or local law.
(3) If the PHA determines that it is
not bound by a hearing decision, the
PHA must promptly notify the family
of the determination, and of the rea-
sons for the determination.
(g) Restrictions on assistance to nonciti-
zens. The informal hearing provisions
for the denial of assistance on the basis
of ineligible immigration status are
contained in 24 CFR part 5.
(Approved by the Office of Management and
Budget under control number 2577–0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27,
1996; 64 FR 26650, May 14, 1999; 65 FR 16823,
Mar. 30, 2000; 80 FR 8247, Feb. 17, 2015; 80 FR
50575, Aug. 20, 2015]
Subpart M—Special Housing
Types
SOURCE: 63 FR 23865, Apr. 30, 1998, unless
otherwise noted.
§ 982.601 Overview.
(a) Special housing types. This subpart
describes program requirements for
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Asst. Secry., for Public and Indian Housing, HUD § 982.604 special housing types. The following
are the special housing types:
(1) Single room occupancy (SRO)
housing;
(2) Congregate housing;
(3) Group home;
(4) Shared housing;
(5) Manufactured home;
(6) Cooperative housing (excluding
families that are not cooperative mem-
bers); and
(7) Homeownership option.
(b) PHA choice to offer special housing
type. (1) The PHA may permit a family
to use any of the following special
housing types in accordance with re-
quirements of the program: single
room occupancy (SRO) housing, con-
gregate housing, group home, shared
housing, manufactured home when the
family owns the home and leases the
manufactured home space, cooperative
housing or homeownership option.
(2) In general, the PHA is not re-
quired to permit families (including
families that move into the PHA pro-
gram under portability procedures) to
use any of these special housing types,
and may limit the number of families
using special housing types.
(3) The PHA must permit use of any
special housing type if needed as a rea-
sonable accommodation so that the
program is readily accessible to and us-
able by persons with disabilities in ac-
cordance with 24 CFR part 8.
(4) For occupancy of a manufactured
home, see § 982.620(a).
(c) Program funding for special housing
types. (1) HUD does not provide any ad-
ditional or designated funding for spe-
cial housing types, or for a specific spe-
cial housing type (e.g., the homeowner-
ship option). Assistance for special
housing types is paid from program
funding available for the PHA’s tenant-
based program under the consolidated
annual contributions contract.
(2) The PHA may not set aside pro-
gram funding or program slots for spe-
cial housing types or for a specific spe-
cial housing type.
(d) Family choice of housing and hous-
ing type. The family chooses whether to
use housing that qualifies as a special
housing type under this subpart, or as
any specific special housing type, or to
use other eligible housing in accord-
ance with requirements of the pro-
gram. The PHA may not restrict the
family’s freedom to choose among
available units in accordance with
§ 982.353.
(e) Applicability of requirements. (1)
Except as modified by this subpart, the
requirements of other subparts of this
part apply to the special housing types.
(2) Provisions in this subpart only
apply to a specific special housing
type. The housing type is noted in the
title of each section.
(3) Housing must meet the require-
ments of this subpart for a single spe-
cial housing type specified by the fam-
ily. Such housing is not subject to re-
quirements for other special housing
types. A single unit cannot be des-
ignated as more than one special hous-
ing type.
[63 FR 23865, Apr. 30, 1998, as amended at 65
FR 55162, Sept. 12, 2000; 67 FR 64493, Oct. 18,
2002; 80 FR 8247, Feb. 17, 2015]

SINGLE ROOM OCCUPANCY (SRO)
§ 982.602 SRO: Who may reside in an
SRO?
A single person may reside in an SRO
housing unit.
[64 FR 26650, May 14, 1999]
§ 982.603 SRO: Lease and HAP con-
tract.

For SRO housing, there is a separate
lease and HAP contract for each as-
sisted person.
§ 982.604 SRO: Voucher housing assist-
ance payment.
(a) For a person residing in SRO
housing, the payment standard is 75
percent of the zero-bedroom payment
standard amount on the PHA payment
standard schedule. For a person resid-
ing in SRO housing in an exception
area, the payment standard is 75 per-
cent of the HUD-approved zero-bed-
room exception payment standard
amount.
(b) The utility allowance for an as-
sisted person residing in SRO housing
is 75 percent of the zero bedroom util-
ity allowance.
[64 FR 26650, May 14, 1999]
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24 CFR Ch. IX (4–1–21 Edition) § 982.605
§ 982.605 SRO: Housing quality stand-
ards.
(a) HQS standards for SRO. The HQS
in § 982.401 apply to SRO housing. How-
ever, the standards in this section
apply in place of § 982.401(b) (sanitary
facilities), § 982.401(c) (food preparation
and refuse disposal), and § 982.401(d)
(space and security). Since the SRO
units will not house children, the hous-
ing quality standards in § 982.401(j),
concerning lead-based paint, do not
apply to SRO housing.
(b) Performance requirements. (1) SRO
housing is subject to the additional
performance requirements in this para-
graph (b).
(2) Sanitary facilities, and space and
security characteristics must meet
local code standards for SRO housing.

In the absence of applicable local code
standards for SRO housing, the fol-
lowing standards apply:
(i) Sanitary facilities. (A) At least one
flush toilet that can be used in privacy,
lavatory basin, and bathtub or shower,
in proper operating condition, must be
supplied for each six persons or fewer
residing in the SRO housing.
(B) If SRO units are leased only to
males, flush urinals may be substituted
for not more than one-half the required
number of flush toilets. However, there
must be at least one flush toilet in the
building.
(C) Every lavatory basin and bathtub
or shower must be supplied at all times
with an adequate quantity of hot and
cold running water.
(D) All of these facilities must be in
proper operating condition, and must
be adequate for personal cleanliness
and the disposal of human waste. The
facilities must utilize an approvable
public or private disposal system.
(E) Sanitary facilities must be rea-
sonably accessible from a common hall
or passageway to all persons sharing
them. These facilities may not be lo-
cated more than one floor above or
below the SRO unit. Sanitary facilities
may not be located below grade unless
the SRO units are located on that
level.
(ii) Space and security. (A) No more
than one person may reside in an SRO
unit.
(B) An SRO unit must contain at
least one hundred ten square feet of
floor space.
(C) An SRO unit must contain at
least four square feet of closet space
for each resident (with an unobstructed
height of at least five feet). If there is
less closet space, space equal to the
amount of the deficiency must be sub-
tracted from the area of the habitable
room space when determining the
amount of floor space in the SRO unit.

The SRO unit must contain at least
one hundred ten square feet of remain-
ing floor space after subtracting the
amount of the deficiency in minimum
closet space.
(D) Exterior doors and windows ac-
cessible from outside an SRO unit must
be lockable.
(3) Access. (i) Access doors to an SRO
unit must have locks for privacy in
proper operating condition.
(ii) An SRO unit must have imme-
diate access to two or more approved
means of exit, appropriately marked,
leading to safe and open space at
ground level, and any means of exit re-
quired by State and local law.
(iii) The resident must be able to ac-
cess an SRO unit without passing
through any other unit.
(4) Sprinkler system. A sprinkler sys-
tem that protects all major spaces,
hard wired smoke detectors, and such
other fire and safety improvements as
State or local law may require must be
installed in each building. The term
‘‘major spaces’’ means hallways, large
common areas, and other areas speci-
fied in local fire, building, or safety
codes.

ONGREGATE HOUSING
§ 982.606 Congregate housing: Who
may reside in congregate housing.
(a) An elderly person or a person with
disabilities may reside in a congregate
housing unit.
(b)(1) If approved by the PHA, a fam-
ily member or live-in aide may reside
with the elderly person or person with
disabilities.
(2) The PHA must approve a live-in
aide if needed as a reasonable accom-
modation so that the program is read-
ily accessible to and usable by persons
with disabilities in accordance with 24
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Asst. Secry., for Public and Indian Housing, HUD § 982.612 CFR part 8. See § 982.316 concerning oc-
cupancy by a live-in aide.
§ 982.607 Congregate housing: Lease
and HAP contract.

For congregate housing, there is a
separate lease and HAP contract for
each assisted family.
§ 982.608 Congregate housing: Voucher
housing assistance payment.
(a) Unless there is a live-in aide:
(1) For a family residing in con-
gregate housing, the payment standard
is the zero-bedroom payment standard
amount on the PHA payment standard
schedule. For a family residing in con-
gregate housing in an exception area,
the payment standard is the HUD-ap-
proved zero-bedroom exception pay-
ment standard amount.
(2) However, if there are two or more
rooms in the unit (not including kitch-
en or sanitary facilities), the payment
standard for a family residing in con-
gregate housing is the one-bedroom
payment standard amount.
(b) If there is a live-in aide, the live-
in aide must be counted in determining
the family unit size.
[63 FR 23865, Apr. 30, 1998, as amended at 64
FR 26650, May 14, 1999]
§ 982.609 Congregate housing: Housing
quality standards.
(a) HQS standards for congregate hous-
ing. The HQS in § 982.401 apply to con-
gregate housing. However, the stand-
ards in this section apply in place of
§ 982.401(c) (food preparation and refuse
disposal). Congregate housing is not
subject to the HQS acceptability re-
quirement in § 982.401(d)(2)(i) that the
dwelling unit must have a kitchen
area.
(b) Food preparation and refuse dis-
posal: Additional performance require-
ments. The following additional per-
formance requirements apply to con-
gregate housing:
(1) The unit must contain a refrig-
erator of appropriate size.
(2) There must be central kitchen and
dining facilities on the premises. These
facilities:
(i) Must be located within the prem-
ises, and accessible to the residents;
(ii) Must contain suitable space and
equipment to store, prepare, and serve
food in a sanitary manner;
(iii) Must be used to provide a food
service that is provided for the resi-
dents, and that is not provided by the
residents; and
(iv) Must be for the primary use of
residents of the congregate units and
be sufficient in size to accommodate
the residents.
(3) There must be adequate facilities
and services for the sanitary disposal
of food waste and refuse, including fa-
cilities for temporary storage where
necessary.

ROUP HOME
§ 982.610 Group home: Who may reside
in a group home.
(a) An elderly person or a person with
disabilities may reside in a State-ap-
proved group home.
(b)(1) If approved by the PHA, a live-
in aide may reside with a person with
disabilities.
(2) The PHA must approve a live-in
aide if needed as a reasonable accom-
modation so that the program is read-
ily accessible to and usable by persons
with disabilities in accordance with 24
CFR part 8. See § 982.316 concerning oc-
cupancy by a live-in aide.
(c) Except for a live-in aide, all resi-
dents of a group home, whether as-
sisted or unassisted, must be elderly
persons or persons with disabilities.
(d) Persons residing in a group home
must not require continual medical or
nursing care.
(e) Persons who are not assisted
under the tenant-based program may
reside in a group home.
(f) No more than 12 persons may re-
side in a group home. This limit covers
all persons who reside in the unit, in-
cluding assisted and unassisted resi-
dents and any live-in aide.
§ 982.611 Group home: Lease and HAP
contract.

For assistance in a group home, there
is a separate HAP contract and lease
for each assisted person.
§ 982.612 Group home: State approval
of group home.

A group home must be licensed, cer-
tified, or otherwise approved in writing
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24 CFR Ch. IX (4–1–21 Edition) § 982.613
by the State (e.g., Department of
Human Resources, Mental Health, Re-
tardation, or Social Services) as a
group home for elderly persons or per-
sons with disabilities.
§ 982.613 Group home: Rent and
voucher housing assistance pay-
ment.
(a) Meaning of pro-rata portion. For a
group home, the term ‘‘pro-rata por-
tion’’ means the ratio derived by divid-
ing the number of persons in the as-
sisted household by the total number
of residents (assisted and unassisted)
residing in the group home. The num-
ber of persons in the assisted household
equals one assisted person plus any
PHA-approved live-in aide.
(b) Rent to owner: Reasonable rent
limit. (1) The rent to owner for an as-
sisted person may not exceed the pro-
rata portion of the reasonable rent for
the group home.
(2) The reasonable rent for a group
home is determined in accordance with
§ 982.507. In determining reasonable
rent for the group home, the PHA must
consider whether sanitary facilities,
and facilities for food preparation and
service, are common facilities or pri-
vate facilities.
(c) Payment standard —(1) Family unit
size. (i) Unless there is a live-in aide,
the family unit size is zero or one bed-
room.
(ii) If there is a live-in aide, the live-
in aide must be counted in determining
the family unit size.
(2) The payment standard for a per-
son who resides in a group home is the
lower of:
(i) The payment standard amount on
the PHA payment standard schedule
for the family unit size; or (ii) The pro-
rata portion of the payment standard
amount on the PHA payment standard
schedule for the group home size.
(iii) If there is a live-in aide, the live-
in aide must be counted in determining
the family unit size.
(d) Utility allowance. The utility al-
lowance for each assisted person resid-
ing in a group home is the pro-rata por-
tion of the utility allowance for the
group home unit size.
[63 FR 23865, Apr. 30, 1998, as amended at 64
FR 26651, May 14, 1999]
§ 982.614 Group home: Housing quality
standards.
(a) Compliance with HQS. The PHA
may not give approval to reside in a
group home unless the unit, including
the portion of the unit available for use
by the assisted person under the lease,
meets the housing quality standards.
(b) Applicable HQS standards. (1) The
HQS in § 982.401 apply to assistance in a
group home. However, the standards in
this section apply in place of § 982.401(b)
(sanitary facilities), § 982.401(c) (food
preparation and refuse disposal),
§ 982.401(d) (space and security),
§ 982.401(g) (structure and materials)
and § 982.401(l) (site and neighborhood).
(2) The entire unit must comply with
the HQS.
(c) Additional performance require-
ments. The following additional per-
formance requirements apply to a
group home:
(1) Sanitary facilities. (i) There must
be a bathroom in the unit. The unit
must contain, and an assisted resident
must have ready access to:
(A) A flush toilet that can be used in
privacy;
(B) A fixed basin with hot and cold
running water; and
(C) A shower or bathtub with hot and
cold running water.
(ii) All of these facilities must be in
proper operating condition, and must
be adequate for personal cleanliness
and the disposal of human waste. The
facilities must utilize an approvable
public or private disposal system.
(iii) The unit may contain private or
common sanitary facilities. However,
the facilities must be sufficient in
number so that they need not be shared
by more than four residents of the
group home.
(iv) Sanitary facilities in the group
home must be readily accessible to and
usable by residents, including persons
with disabilities.
(2) Food preparation and service. (i)
The unit must contain a kitchen and a
dining area. There must be adequate
space to store, prepare, and serve foods
in a sanitary manner.
(ii) Food preparation and service
equipment must be in proper operating
condition. The equipment must be ade-
quate for the number of residents in
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Asst. Secry., for Public and Indian Housing, HUD § 982.616 the group home. The unit must contain
the following equipment:
(A) A stove or range, and oven;
(B) A refrigerator; and
(C) A kitchen sink with hot and cold
running water. The sink must drain
into an approvable public or private
disposal system.
(iii) There must be adequate facili-
ties and services for the sanitary dis-
posal of food waste and refuse, includ-
ing facilities for temporary storage
where necessary.
(iv) The unit may contain private or
common facilities for food preparation
and service.
(3) Space and security. (i) The unit
must provide adequate space and secu-
rity for the assisted person.
(ii) The unit must contain a living
room, kitchen, dining area, bathroom,
and other appropriate social, rec-
reational or community space. The
unit must contain at least one bedroom
of appropriate size for each two per-
sons.
(iii) Doors and windows that are ac-
cessible from outside the unit must be
lockable.
(4) Structure and material. (i) The unit
must be structurally sound to avoid
any threat to the health and safety of
the residents, and to protect the resi-
dents from the environment.
(ii) Ceilings, walls, and floors must
not have any serious defects such as se-
vere bulging or leaning, loose surface
materials, severe buckling or notice-
able movement under walking stress,
missing parts or other significant dam-
age. The roof structure must be firm,
and the roof must be weathertight. The
exterior or wall structure and exterior
wall surface may not have any serious
defects such as serious leaning, buck-
ling, sagging, cracks or large holes,
loose siding, or other serious damage.

The condition and equipment of inte-
rior and exterior stairways, halls,
porches, walkways, etc., must not
present a danger of tripping or falling.

Elevators must be maintained in safe
operating condition.
(iii) The group home must be acces-
sible to and usable by a resident with
disabilities.
(5) Site and neighborhood. The site and
neighborhood must be reasonably free
from disturbing noises and reverbera-
tions and other hazards to the health,
safety, and general welfare of the resi-
dents. The site and neighborhood may
not be subject to serious adverse envi-
ronmental conditions, natural or man-
made, such as dangerous walks or
steps, instability, flooding, poor drain-
age, septic tank back-ups, sewage haz-
ards or mud slides, abnormal air pollu-
tion, smoke or dust, excessive noise, vi-
brations or vehicular traffic, excessive
accumulations of trash, vermin or ro-
dent infestation, or fire hazards. The
unit must be located in a residential
setting.

HARED HOUSING
§ 982.615 Shared housing: Occupancy.
(a) Sharing a unit. An assisted family
may reside in shared housing. In shared
housing, an assisted family shares a
unit with the other resident or resi-
dents of the unit. The unit may be a
house or an apartment.
(b) Who may share a dwelling unit with
assisted family? (1) If approved by the
PHA, a live-in aide may reside with the
family to care for a person with dis-
abilities. The PHA must approve a live-
in aide if needed as a reasonable ac-
commodation so that the program is
readily accessible to and usable by per-
sons with disabilities in accordance
with 24 CFR part 8. See § 982.316 con-
cerning occupancy by a live-in aide.
(2) Other persons who are assisted
under the tenant-based program, or
other persons who are not assisted
under the tenant-based program, may
reside in a shared housing unit.
(3) The owner of a shared housing
unit may reside in the unit. A resident
owner may enter into a HAP contract
with the PHA. However, housing assist-
ance may not be paid on behalf of an
owner. An assisted person may not be
related by blood or marriage to a resi-
dent owner.
[63 FR 23865, Apr. 30, 1998, as amended at 80
FR 8247, Feb. 17, 2015]
§ 982.616 Shared housing: Lease and
HAP contract.

For assistance in a shared housing
unit, there is a separate HAP contract
and lease for each assisted family. VerDate Sep<11>2014 14:49 Dec 15, 2021 Jkt 253086 PO 00000 Frm 00575 Fmt 8010 Sfmt 8010 Y:\SGML\253086.XXX 253086lhorne on DSKJLZT7X2PROD with CFR 87 566
24 CFR Ch. IX (4–1–21 Edition) § 982.617
§ 982.617 Shared housing: Rent and
voucher housing assistance pay-
ment.
(a) Meaning of pro-rata portion. For
shared housing, the term ‘‘pro-rata
portion’’ means the ratio derived by di-
viding the number of bedrooms in the
private space available for occupancy
by a family by the total number of bed-
rooms in the unit. For example, for a
family entitled to occupy three bed-
rooms in a five bedroom unit, the ratio
would be 3/5.
(b) Rent to owner: Reasonable rent. (1)
The rent to owner for the family may
not exceed the pro-rata portion of the
reasonable rent for the shared housing
dwelling unit.
(2) The reasonable rent is determined
in accordance with § 982.507.
(c) Payment standard. The payment
standard for a family that resides in a
shared housing is the lower of:
(1) The payment standard amount on
the PHA payment standard schedule
for the family unit size; or
(2) The pro-rata portion of the pay-
ment standard amount on the PHA
payment standard schedule for the size
of the shared housing unit.
(d) Utility allowance. The utility al-
lowance for an assisted family residing
in shared housing is the pro-rata por-
tion of the utility allowance for the
shared housing unit.
[63 FR 23865, Apr. 30, 1998, as amended at 64
FR 26651, May 14, 1999]
§ 982.618 Shared housing: Housing
quality standards.
(a) Compliance with HQS. The PHA
may not give approval to reside in
shared housing unless the entire unit,
including the portion of the unit avail-
able for use by the assisted family
under its lease, meets the housing
quality standards.
(b) Applicable HQS standards. The
HQS in § 982.401 apply to assistance in
shared housing. However, the HQS
standards in this section apply in place
of § 982.401(d) (space and security).
(c) Facilities available for family. The
facilities available for the use of an as-
sisted family in shared housing under
the family’s lease must include (wheth-
er in the family’s private space or in
the common space) a living room, sani-
tary facilities in accordance with
§ 982.401(b), and food preparation and
refuse disposal facilities in accordance
with § 982.401(c).
(d) Space and security: Performance re-
quirements. (1) The entire unit must
provide adequate space and security for
all its residents (whether assisted or
unassisted).
(2)(i) Each unit must contain private
space for each assisted family, plus
common space for shared use by the
residents of the unit. Common space
must be appropriate for shared use by
the residents.
(ii) The private space for each as-
sisted family must contain at least one
bedroom for each two persons in the
family. The number of bedrooms in the
private space of an assisted family may
not be less than the family unit size.
(iii) A zero or one bedroom unit may
not be used for shared housing.

OOPERATIVE
§ 982.619 Cooperative housing.
(a) Assistance in cooperative housing.

This section applies to rental assist-
ance for a cooperative member residing
in cooperative housing. However, this
section does not apply to:
(1) Assistance for a cooperative mem-
ber under the homeownership option
pursuant to §§ 982.625 through 982.641; or
(2) Rental assistance for a family
that leases a cooperative housing unit
from a cooperative member (such rent-
al assistance is not a special housing
type, and is subject to requirements in
other subparts of this part 982).
(b) Rent to owner. (1) The reasonable
rent for a cooperative unit is deter-
mined in accordance with § 982.507. For
cooperative housing, the rent to owner
is the monthly carrying charge under
the occupancy agreement/lease be-
tween the member and the cooperative.
(2) The carrying charge consists of
the amount assessed to the member by
the cooperative for occupancy of the
housing. The carrying charge includes
the member’s share of the cooperative
debt service, operating expenses, and
necessary payments to cooperative re-
serve funds. However, the carrying
charge does not include down-pay-
ments or other payments to purchase
the cooperative unit, or to amortize a
loan to the family for this purpose.

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Asst. Secry., for Public and Indian Housing, HUD § 982.620 (3) Gross rent is the carrying charge
plus any utility allowance.
(4) Adjustments are applied to the
carrying charge as determined in ac-
cordance with this section.
(5) The occupancy agreement/lease
and other appropriate documents must
provide that the monthly carrying
charge is subject to Section 8 limita-
tions on rent to owner.
(c) Housing assistance payment. The
amount of the housing assistance pay-
ment is determined in accordance with
subpart K of this part.
(d) Maintenance. (1) During the term
of the HAP contract between the PHA
and the cooperative, the dwelling unit
and premises must be maintained in
accordance with the HQS. If the dwell-
ing unit and premises are not main-
tained in accordance with the HQS, the
PHA may exercise all available rem-
edies, regardless of whether the family
or the cooperative is responsible for
such breach of the HQS. PHA remedies
for breach of the HQS include recovery
of overpayments, abatement or other
reduction of housing assistance pay-
ments, termination of housing assist-
ance payments and termination of the
HAP contract.
(2) The PHA may not make any hous-
ing assistance payments if the contract
unit does not meet the HQS, unless any
defect is corrected within the period
specified by the PHA and the PHA
verifies the correction. If a defect is
life-threatening, the defect must be
corrected within no more than 24
hours. For other defects, the defect
must be corrected within the period
specified by the PHA.
(3) The family is responsible for a
breach of the HQS that is caused by
any of the following:
(i) The family fails to perform any
maintenance for which the family is
responsible in accordance with the
terms of the cooperative occupancy
agreement between the cooperative
member and the cooperative;
(ii) The family fails to pay for any
utilities that the cooperative is not re-
quired to pay for, but which are to be
paid by the cooperative member;
(iii) The family fails to provide and
maintain any appliances that the coop-
erative is not required to provide, but
which are to be provided by the cooper-
ative member; or
(iv) Any member of the household or
guest damages the dwelling unit or
premises (damages beyond ordinary
wear and tear).
(4) If the family has caused a breach
of the HQS for which the family is re-
sponsible, the PHA must take prompt
and vigorous action to enforce such
family obligations. The PHA may ter-
minate assistance for violation of fam-
ily obligations in accordance with
§ 982.552.
(5) Section 982.404 does not apply to
assistance for cooperative housing
under this section.
(e) Live-in aide. (1) If approved by the
PHA, a live-in aide may reside with the
family to care for a person with dis-
abilities. The PHA must approve a live-
in aide if needed as a reasonable ac-
commodation so that the program is
readily accessible to and usable by per-
sons with disabilities in accordance
with 24 CFR part 8. See § 982.316 con-
cerning occupancy by a live-in aide.
(2) If there is a live-in aide, the live-
in aide must be counted in determining
the family unit size.
[63 FR 23865, Apr. 30, 1998, as amended at 64
FR 26651, May 14, 1999; 65 FR 55162, Sept. 12,
2000; 80 FR 8247, Feb. 17, 2015]

MANUFACTURED HOME
§ 982.620 Manufactured home: Applica-
bility of requirements.
(a) Assistance for resident of manufac-
tured home. (1) A family may reside in
a manufactured home with assistance
under the program.
(2) The PHA must permit a family to
lease a manufactured home and space
with assistance under the program.
(3) The PHA may provide assistance
for a family that owns the manufac-
tured home and leases only the space.

The PHA is not required to provide
such assistance under the program.
(b) Applicability. (1) The HQS in
§ 982.621 always apply when assistance
is provided to a family occupying a
manufactured home (under paragraph
(a)(2) or (a)(3) of this section).
(2) Sections 982.622 to 982.624 only
apply when assistance is provided to a
manufactured home owner to lease a
manufactured home space.

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24 CFR Ch. IX (4–1–21 Edition) § 982.621
(c) Live-in aide. (1) If approved by the
PHA, a live-in aide may reside with the
family to care for a person with dis-
abilities. The PHA must approve a live-
in aide if needed as a reasonable ac-
commodation so that the program is
readily accessible to and usable by per-
sons with disabilities in accordance
with 24 CFR part 8. See § 982.316 con-
cerning occupancy by a live-in aide.
(2) If there is a live-in aide, the live-
in aide must be counted in determining
the family unit size.
§ 982.621 Manufactured home: Housing
quality standards.

A manufactured home must meet all
the HQS performance requirements and
acceptability criteria in § 982.401. A
manufactured home also must meet
the following requirements:
(a) Performance requirement. A manu-
factured home must be placed on the
site in a stable manner, and must be
free from hazards such as sliding or
wind damage.
(b) Acceptability criteria. A manufac-
tured home must be securely anchored
by a tie-down device that distributes
and transfers the loads imposed by the
unit to appropriate ground anchors to
resist wind overturning and sliding.

ANUFACTURED HOME SPACE RENTAL
§ 982.622 Manufactured home space
rental: Rent to owner.
(a) What is included. (1) Rent to owner
for rental of a manufactured home
space includes payment for mainte-
nance and services that the owner
must provide to the tenant under the
lease for the space.
(2) Rent to owner does not include
the costs of utilities and trash collec-
tion for the manufactured home. How-
ever, the owner may charge the family
a separate fee for the cost of utilities
or trash collection provided by the
owner.
(b) Reasonable rent. (1) During the as-
sisted tenancy, the rent to owner for
the manufactured home space may not
exceed a reasonable rent as determined
in accordance with this section. Sec-
tion 982.503 is not applicable.
(2) The PHA may not approve a lease
for a manufactured home space until
the PHA determines that the initial
rent to owner for the space is a reason-
able rent. At least annually during the
assisted tenancy, the PHA must rede-
termine that the current rent to owner
is a reasonable rent.
(3) The PHA must determine whether
the rent to owner for the manufactured
home space is a reasonable rent in
comparison to rent for other com-
parable manufactured home spaces. To
make this determination, the PHA
must consider the location and size of
the space, and any services and mainte-
nance to be provided by the owner in
accordance with the lease (without a
fee in addition to the rent).
(4) By accepting each monthly hous-
ing assistance payment from the PHA,
the owner of the manufactured home
space certifies that the rent to owner
for the space is not more than rent
charged by the owner for unassisted
rental of comparable spaces in the
same manufactured home park or else-
where. The owner must give the PHA
information, as requested by the PHA,
on rents charged by the owner for other
manufactured home spaces.
§ 982.623 Manufactured home space
rental: Housing assistance payment.
(a) There is a separate fair market
rent for a manufactured home space.

The FMR for a manufactured home
space is determined in accordance with
§ 888.113(e) of this title. The FMR for a
manufactured home space is generally
40 percent of the published FMR for a
two-bedroom unit.
(b) The payment standard shall be de-
termined in accordance with § 982.505.
(c) The PHA shall pay a monthly
housing assistance payment on behalf
of the family that is equal to the lower
of:
(1) The payment standard minus the
total tenant payment; or
(2) The rent paid for rental of the real
property on which the manufactured
home owned by the family is located
(‘‘space rent’’) minus the total tenant
payment.
(d) The space rent is the sum of the
following as determined by the PHA:
(1) Rent to owner for the manufac-
tured home space;
(2) Owner maintenance and manage-
ment charges for the space;
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Asst. Secry., for Public and Indian Housing, HUD § 982.625 (3) The utility allowance for tenant-
paid utilities.
[64 FR 26651, May 14, 1999; 64 FR 49659, Sept.
14, 1999; 64 FR 56915, Oct. 21, 1999; 80 FR 8247,
Feb. 17, 2015]
§ 982.624 Manufactured home space
rental: Utility allowance schedule.

The PHA must establish utility al-
lowances for manufactured home space
rental. For the first twelve months of
the initial lease term only, the allow-
ances must include a reasonable
amount for utility hook-up charges
payable by the family if the family ac-
tually incurs the expenses because of a
move. Allowances for utility hook-up
charges do not apply to a family that
leases a manufactured home space in
place. Utility allowances for manufac-
tured home space must not cover costs
payable by a family to cover the
digging of a well or installation of a
septic system.

OMEOWNERSHIP OPTION
SOURCE: 65 FR 55163, Sept. 12, 2000, unless
otherwise noted.
§ 982.625 Homeownership option: Gen-
eral.
(a) The homeownership option is used
to assist a family residing in a home
purchased and owned by one or more
members of the family.
(b) A family assisted under the home-
ownership option may be a newly ad-
mitted or existing participant in the
program.
(c) Forms of homeownership assistance.
(1) A PHA may provide one of two
forms of homeownership assistance for
a family:
(i) Monthly homeownership assist-
ance payments; or
(ii) A single downpayment assistance
grant.
(2) Prohibition against combining forms
of homeownership assistance. A family
may only receive one form of home-
ownership assistance. Accordingly, a
family that includes a person who was
an adult member of a family that pre-
viously received either of the two
forms of homeownership assistance
may not receive the other form of
homeownership assistance from any
PHA.
(d) PHA choice to offer homeownership
options. (1) The PHA may choose to
offer either or both forms of homeown-
ership assistance under this subpart, or
choose not to offer either form of as-
sistance. However, the PHA must offer
either form of homeownership assist-
ance if necessary as a reasonable ac-
commodation for a person with disabil-
ities in accordance with § 982.601(b)(3).
(2) It is the sole responsibility of the
PHA to determine whether it is reason-
able to implement a homeownership
program as a reasonable accommoda-
tion. The PHA will determine what is
reasonable based on the specific cir-
cumstances and individual needs of the
person with a disability. The PHA may
determine that it is not reasonable to
offer homeownership assistance as a
reasonable accommodation in cases
where the PHA has otherwise opted not
to implement a homeownership pro-
gram.
(e) Family choice. (1) The family
chooses whether to participate in the
homeownership option if offered by the
PHA.
(2) If the PHA offers both forms of
homeownership assistance, the family
chooses which form of homeownership
assistance to receive.
(f) The PHA must approve a live-in
aide if needed as a reasonable accom-
modation so that the program is read-
ily accessible to and useable by persons
with disabilities in accordance with
part 8 of this title. (See § 982.316 con-
cerning occupancy by a live-in aide.)
(g) The PHA must have the capacity
to operate a successful Section 8 home-
ownership program. The PHA has the
required capacity if it satisfies either
paragraph (g)(1), (g)(2), or (g)(3) of this
section.
(1) The PHA establishes a minimum
homeowner downpayment requirement
of at least 3 percent of the purchase
price for participation in its Section 8
homeownership program, and requires
that at least one percent of the pur-
chase price come from the family’s per-
sonal resources;
(2) The PHA requires that financing
for purchase of a home under its Sec-
tion 8 homeownership program:
(i) Be provided, insured, or guaran-
teed by the state or Federal govern-
ment;
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24 CFR Ch. IX (4–1–21 Edition) § 982.626
(ii) Comply with secondary mortgage
market underwriting requirements; or
(iii) Comply with generally accepted
private sector underwriting standards;
or
(3) The PHA otherwise demonstrates
in its Annual Plan that it has the ca-
pacity, or will acquire the capacity, to
successfully operate a Section 8 home-
ownership program.
(h) Recapture of homeownership assist-
ance. A PHA shall not impose or en-
force any requirement for the recap-
ture of voucher homeownership assist-
ance on the sale or refinancing of a
home purchased with assistance under
the homeownership option.
(i) Applicable requirements. The fol-
lowing specify what regulatory provi-
sions (under the heading ‘‘homeowner-
ship option’’) are applicable to either
or both forms of homeownership assist-
ance (except as otherwise specifically
provided):
(1) Common provisions. The following
provisions apply to both forms of
homeownership assistance:
(i) Section 982.625 (General);
(ii) Section 982.626 (Initial require-
ments);
(iii) Section 982.627 (Eligibility re-
quirements for families);
(iv) Section 982.628 (Eligible units);
(v) Section 982.629 (Additional PHA
requirements for family search and
purchase);
(vi) Section 982.630 (Homeownership
counseling);
(vii) Section 982.631 (Home inspec-
tions, contract of sale, and PHA dis-
approval of seller);
(viii) Section 982.632 (Financing pur-
chase of home; affordability of pur-
chase);
(ix) Section 982.636 (Portability);
(x) Section 982.638 (Denial or termi-
nation of assistance for family); and
(xi) Section 982.641 (Applicability of
other requirements).
(2) Monthly homeownership assistance
payments. The following provisions
only apply to homeownership assist-
ance in the form of monthly homeown-
ership assistance payments:
(i) Section 982.633 (Continued assist-
ance requirements; family obligations);
(ii) Section 982.634 (Maximum term of
homeownership assistance);
(iii) Section 982.635 (Amount and dis-
tribution of monthly homeownership
assistance payment);
(iv) Section 982.637 (Move with con-
tinued tenant-based assistance); and
(v) Section 982.639 (Administrative
fees).
(3) Downpayment assistance grant. The
following provision only applies to
homeownership assistance in the form
of a downpayment assistance grant:

Section 982.643 (Downpayment assist-
ance grants).
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17,
2015]
§ 982.626 Homeownership option: Ini-
tial requirements.
(a) List of initial requirements. Before
commencing homeownership assistance
for a family, the PHA must determine
that all of the following initial require-
ments have been satisfied:
(1) The family is qualified to receive
homeownership assistance (see
§ 982.627);
(2) The unit is eligible (see § 982.628);
and
(3) The family has satisfactorily com-
pleted the PHA program of required
pre-assistance homeownership coun-
seling (see § 982.630).
(b) Additional PHA requirements. Un-
less otherwise provided in this part,
the PHA may limit homeownership as-
sistance to families or purposes defined
by the PHA, and may prescribe addi-
tional requirements for commence-
ment of homeownership assistance for
a family. Any such limits or additional
requirements must be described in the
PHA administrative plan.
(c) Environmental requirements. The
PHA is responsible for complying with
the authorities listed in § 58.6 of this
title requiring the purchaser to obtain
and maintain flood insurance for units
in special flood hazard areas, prohib-
iting assistance for acquiring units in
the coastal barrier resources system,
and requiring notification to the pur-
chaser of units in airport runway clear
zones and airfield clear zones. In the
case of units not yet under construc-
tion at the time the family enters into
the contract for sale, the additional en-
vironmental review requirements ref-
erenced in § 982.628(e) of this part also
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Asst. Secry., for Public and Indian Housing, HUD § 982.627 apply, and the PHA shall submit all
relevant environmental information to
the responsible entity or to HUD to as-
sist in completion of those require-
ments.
[63 FR 23865, Apr. 30, 1998, as amended at 72
FR 59938, Oct. 22, 2007]
§ 982.627 Homeownership option: Eli-
gibility requirements for families.
(a) Determination whether family is
qualified. The PHA may not provide
homeownership assistance for a family
unless the PHA determines that the
family satisfies all of the following ini-
tial requirements at commencement of
homeownership assistance for the fam-
ily:
(1) The family has been admitted to
the Section 8 Housing Choice Voucher
program, in accordance with subpart E
of this part.
(2) The family satisfies any first-time
homeowner requirements (described in
paragraph (b) of this section).
(3) The family satisfies the minimum
income requirement (described in para-
graph (c) of this section).
(4) The family satisfies the employ-
ment requirements (described in para-
graph (d) of this section).
(5) The family has not defaulted on a
mortgage securing debt to purchase a
home under the homeownership option
(see paragraph (e) of this section).
(6) Except for cooperative members
who have acquired cooperative mem-
bership shares prior to commencement
of homeownership assistance, no fam-
ily member has a present ownership in-
terest in a residence at the commence-
ment of homeownership assistance for
the purchase of any home.
(7) Except for cooperative members
who have acquired cooperative mem-
bership shares prior to the commence-
ment of homeownership assistance, the
family has entered a contract of sale in
accordance with § 982.631(c).
(8) The family also satisfies any
other initial requirements established
by the PHA (see § 982.626(b)). Any such
additional requirements must be de-
scribed in the PHA administrative
plan.
(b) First-time homeowner requirements.

At commencement of homeownership
assistance for the family, the family
must be any of the following:
(1) A first-time homeowner (defined
at § 982.4);
(2) A cooperative member (defined at
§ 982.4); or
(3) A family of which a family mem-
ber is a person with disabilities, and
use of the homeownership option is
needed as a reasonable accommodation
so that the program is readily acces-
sible to and usable by such person, in
accordance with part 8 of this title.
(c) Minimum income requirements. (1)
At commencement of monthly home-
ownership assistance payments for the
family, or at the time of a downpay-
ment assistance grant for the family,
the family must demonstrate that the
annual income, as determined by the
PHA in accordance with § 5.609 of this
title, of the adult family members who
will own the home at commencement
of homeownership assistance is not less
than:
(i) In the case of a disabled family (as
defined in § 5.403(b) of this title), the
monthly Federal Supplemental Secu-
rity Income (SSI) benefit for an indi-
vidual living alone (or paying his or
her share of food and housing costs)
multiplied by twelve; or
(ii) In the case of other families, the
Federal minimum wage multiplied by
2,000 hours.
(2)(i) Except in the case of an elderly
family or a disabled family (see the
definitions of these terms at § 5.403(b)
of this title), the PHA shall not count
any welfare assistance received by the
family in determining annual income
under this section.
(ii) The disregard of welfare assist-
ance income under paragraph (c)(2)(i)
of this section only affects the deter-
mination of minimum annual income
used to determine if a family initially
qualifies for commencement of home-
ownership assistance in accordance
with this section, but does not affect:
(A) The determination of income-eli-
gibility for admission to the voucher
program;
(B) Calculation of the amount of the
family’s total tenant payment (gross
family contribution); or
(C) Calculation of the amount of
homeownership assistance payments
on behalf of the family.
(iii) In the case of an elderly or dis-
abled family, the PHA shall include
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24 CFR Ch. IX (4–1–21 Edition) § 982.628
welfare assistance for the adult family
members who will own the home in de-
termining if the family meets the min-
imum income requirement.
(3) A PHA may establish a minimum
income standard that is higher than
those described in paragraph (c)(1) of
this section for either or both types of
families. However, a family that meets
the applicable HUD minimum income
requirement described in paragraph
(c)(1) of this section, but not the higher
standard established by the PHA shall
be considered to satisfy the minimum
income requirement if:
(i) The family demonstrates that it
has been pre-qualified or pre-approved
for financing;
(ii) The pre-qualified or pre-approved
financing meets any PHA established
requirements under § 982.632 for financ-
ing the purchase of the home (includ-
ing qualifications of lenders and terms
of financing); and
(iii) The pre-qualified or pre-approved
financing amount is sufficient to pur-
chase housing that meets HQS in the
PHA’s jurisdiction.
(d) Employment requirements. (1) Ex-
cept as provided in paragraph (d)(2) of
this section, the family must dem-
onstrate that one or more adult mem-
bers of the family who will own the
home at commencement of homeown-
ership assistance:
(i) Is currently employed on a full-
time basis (the term ‘‘full-time em-
ployment’’ means not less than an av-
erage of 30 hours per week); and
(ii) Has been continuously so em-
ployed during the year before com-
mencement of homeownership assist-
ance for the family.
(2) The PHA shall have discretion to
determine whether and to what extent
interruptions are considered to break
continuity of employment during the
year. The PHA may count successive
employment during the year. The PHA
may count self-employment in a busi-
ness.
(3) The employment requirement
does not apply to an elderly family or
a disabled family (see the definitions of
these terms at § 5.403(b) of this title).

Furthermore, if a family, other than an
elderly family or a disabled family, in-
cludes a person with disabilities, the
PHA shall grant an exemption from the
employment requirement if the PHA
determines that an exemption is need-
ed as a reasonable accommodation so
that the program is readily accessible
to and usable by persons with disabil-
ities in accordance with part 8 of this
title.
(4) A PHA may not establish an em-
ployment requirement in addition to
the employment standard established
by this paragraph.
(e) Prohibition against assistance to
family that has defaulted. The PHA shall
not commence homeownership assist-
ance for a family that includes an indi-
vidual who was an adult member of a
family at the time when such family
received homeownership assistance and
defaulted on a mortgage securing debt
incurred to purchase the home.
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17,
2015]
§ 982.628 Homeownership option: Eli-
gible units.
(a) Initial requirements applicable to
the unit. The PHA must determine that
the unit satisfies all of the following
requirements:
(1) The unit is eligible. (See § 982.352.

Paragraphs (a)(6), (a)(7) and (b) of
§ 982.352 do not apply.)
(2) The unit is either a one-unit prop-
erty (including a manufactured home)
or a single dwelling unit in a coopera-
tive or condominium.
(3) The unit has been inspected by a
PHA inspector and by an independent
inspector designated by the family (see
§ 982.631).
(4) The unit satisfies the HQS (see
§ 982.401 and § 982.631).
(b) Purchase of home where family will
not own fee title to the real property.

Homeownership assistance may be pro-
vided for the purchase of a home where
the family will not own fee title to the
real property on which the home is lo-
cated, but only if:
(1) The home is located on a perma-
nent foundation; and
(2) The family has the right to oc-
cupy the home site for at least forty
years.
(c) PHA disapproval of seller. The PHA
may not commence homeownership as-
sistance for occupancy of a home if the
PHA has been informed (by HUD or
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Asst. Secry., for Public and Indian Housing, HUD § 982.630 otherwise) that the seller of the home
is debarred, suspended, or subject to a
limited denial of participation under 2
CFR part 2424.
(d) PHA-owned units. Homeownership
assistance may be provided for the pur-
chase of a unit that is owned by the
PHA that administers the assistance
under the consolidated ACC (including
a unit owned by an entity substan-
tially controlled by the PHA), only if
all of the following conditions are sat-
isfied:
(1) The PHA must inform the family,
both orally and in writing, that the
family has the right to purchase any
eligible unit and a PHA-owned unit is
freely selected by the family without
PHA pressure or steering;
(2) The unit is not ineligible housing;
(3) The PHA must obtain the services
of an independent agency, in accord-
ance with § 982.352(b)(1)(iv)(B) and (C),
to perform the following PHA func-
tions:
(i) Inspection of the unit for compli-
ance with the HQS, in accordance with
§ 982.631(a);
(ii) Review of the independent inspec-
tion report, in accordance with
§ 982.631(b)(4);
(iii) Review of the contract of sale, in
accordance with § 982.631(c); and
(iv) Determination of the reasonable-
ness of the sales price and any PHA
provided financing, in accordance with
§ 982.632 and other supplementary guid-
ance established by HUD.
(e) Units not yet under construction.

Families may enter into contracts of
sale for units not yet under construc-
tion at the time the family enters into
the contract for sale. However, the
PHA shall not commence homeowner-
ship assistance for the family for that
unit, unless and until:
(1) Either:
(i) The responsible entity completed
the environmental review procedures
required by 24 CFR part 58, and HUD
approved the environmental certifi-
cation and request for release of funds
prior to commencement of construc-
tion; or
(ii) HUD performed an environmental
review under 24 CFR part 50 and noti-
fied the PHA in writing of environ-
mental approval of the site prior to
commencement of construction;
(2) Construction of the unit has been
completed; and
(3) The unit has passed the required
Housing Quality Standards (HQS) in-
spection (see § 982.631(a)) and inde-
pendent inspection (see § 982.631(b)).
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64494, Oct. 18, 2002; 67 FR 65865, Oct. 28,
2002; 67 FR 67522, Nov. 6, 2002; 72 FR 59938,
Oct. 22, 2007; 72 FR 73496, Dec. 27, 2007]
§ 982.629 Homeownership option: Ad-
ditional PHA requirements for fam-
ily search and purchase.
(a) The PHA may establish the max-
imum time for a family to locate a
home, and to purchase the home.
(b) The PHA may require periodic
family reports on the family’s progress
in finding and purchasing a home.
(c) If the family is unable to purchase
a home within the maximum time es-
tablished by the PHA, the PHA may
issue the family a voucher to lease a
unit or place the family’s name on the
waiting list for a voucher.
§ 982.630 Homeownership option:

Homeownership counseling.
(a) Before commencement of home-
ownership assistance for a family, the
family must attend and satisfactorily
complete the pre-assistance homeown-
ership and housing counseling program
required by the PHA (pre-assistance
counseling).
(b) Suggested topics for the PHA-re-
quired pre-assistance counseling pro-
gram include:
(1) Home maintenance (including
care of the grounds);
(2) Budgeting and money manage-
ment;
(3) Credit counseling;
(4) How to negotiate the purchase
price of a home;
(5) How to obtain homeownership fi-
nancing and loan preapprovals, includ-
ing a description of types of financing
that may be available, and the pros and
cons of different types of financing;
(6) How to find a home, including in-
formation about homeownership oppor-
tunities, schools, and transportation in
the PHA jurisdiction;
(7) Advantages of purchasing a home
in an area that does not have a high
concentration of low-income families
and how to locate homes in such areas;
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24 CFR Ch. IX (4–1–21 Edition) § 982.631
(8) Information on fair housing, in-
cluding fair housing lending and local
fair housing enforcement agencies; and
(9) Information about the Real Estate
Settlement Procedures Act (12 U.S.C.
2601 et seq.) (RESPA), state and Federal
truth-in-lending laws, and how to iden-
tify and avoid loans with oppressive
terms and conditions.
(c) The PHA may adapt the subjects
covered in pre-assistance counseling
(as listed in paragraph (b) of this sec-
tion) to local circumstances and the
needs of individual families.
(d) The PHA may also offer addi-
tional counseling after commencement
of homeownership assistance (ongoing
counseling). If the PHA offers a pro-
gram of ongoing counseling for partici-
pants in the homeownership option,
the PHA shall have discretion to deter-
mine whether the family is required to
participate in the ongoing counseling.
(e) If the PHA is not using a HUD-ap-
proved housing counseling agency to
provide the counseling for families par-
ticipating in the homeownership op-
tion, the PHA should ensure that its
counseling program is consistent with
the homeownership counseling pro-
vided under HUD’s Housing Counseling
program.
§ 982.631 Homeownership option:

Home inspections, contract of sale,
and PHA disapproval of seller.
(a) HQS inspection by PHA. The PHA
may not commence monthly homeown-
ership assistance payments or provide
a downpayment assistance grant for
the family until the PHA has inspected
the unit and has determined that the
unit passes HQS.
(b) Independent inspection. (1) The
unit must also be inspected by an inde-
pendent professional inspector selected
by and paid by the family.
(2) The independent inspection must
cover major building systems and com-
ponents, including foundation and
structure, housing interior and exte-
rior, and the roofing, plumbing, elec-
trical, and heating systems. The inde-
pendent inspector must be qualified to
report on property conditions, includ-
ing major building systems and compo-
nents.
(3) The PHA may not require the
family to use an independent inspector
selected by the PHA. The independent
inspector may not be a PHA employee
or contractor, or other person under
control of the PHA. However, the PHA
may establish standards for qualifica-
tion of inspectors selected by families
under the homeownership option.
(4) The independent inspector must
provide a copy of the inspection report
both to the family and to the PHA. The
PHA may not commence monthly
homeownership assistance payments,
or provide a downpayment assistance
grant for the family, until the PHA has
reviewed the inspection report of the
independent inspector. Even if the unit
otherwise complies with the HQS (and
may qualify for assistance under the
PHA’s tenant-based rental voucher pro-
gram), the PHA shall have discretion
to disapprove the unit for assistance
under the homeownership option be-
cause of information in the inspection
report.
(c) Contract of sale. (1) Before com-
mencement of monthly homeownership
assistance payments or receipt of a
downpayment assistance grant, a mem-
ber or members of the family must
enter into a contract of sale with the
seller of the unit to be acquired by the
family. The family must give the PHA
a copy of the contract of sale (see also
§ 982.627(a)(7)).
(2) The contract of sale must:
(i) Specify the price and other terms
of sale by the seller to the purchaser.
(ii) Provide that the purchaser will
arrange for a pre-purchase inspection
of the dwelling unit by an independent
inspector selected by the purchaser.
(iii) Provide that the purchaser is not
obligated to purchase the unit unless
the inspection is satisfactory to the
purchaser.
(iv) Provide that the purchaser is not
obligated to pay for any necessary re-
pairs.
(3) In addition to the requirements
contained in paragraph (c)(2) of this
section, a contract for the sale of units
not yet under construction at the time
the family is to enter into the contract
for sale must also provide that:
(i) The purchaser is not obligated to
purchase the unit unless an environ-
mental review has been performed and
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Asst. Secry., for Public and Indian Housing, HUD § 982.633 the site has received environmental ap-
proval prior to commencement of con-
struction in accordance with 24 CFR
982.628.
(ii) The construction will not com-
mence until the environmental review
has been completed and the seller has
received written notice from the PHA
that environmental approval has been
obtained. Conduct of the environ-
mental review may not necessarily re-
sult in environmental approval, and en-
vironmental approval may be condi-
tioned on the contracting parties’
agreement to modifications to the unit
design or to mitigation actions.
(iii) Commencement of construction
in violation of paragraph (c)(3)(ii) of
this section voids the purchase con-
tract and renders homeownership as-
sistance under 24 CFR part 982 unavail-
able for purchase of the unit.
(d) PHA disapproval of seller. In its ad-
ministrative discretion, the PHA may
deny approval of a seller for any reason
provided for disapproval of an owner in
§ 982.306(c).
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64494, Oct. 18, 2002; 72 FR 59938, Oct. 22,
2007; 72 FR 73497, Dec. 27, 2007; 80 FR 8247,
Feb. 17, 2015]
§ 982.632 Homeownership option: Fi-
nancing purchase of home; afford-
ability of purchase.
(a) The PHA may establish require-
ments for financing purchase of a home
to be assisted under the homeowner-
ship option. Such PHA requirements
may include requirements concerning
qualification of lenders (for example,
prohibition of seller financing or case-
by-case approval of seller financing), or
concerning terms of financing (for ex-
ample, a prohibition of balloon pay-
ment mortgages, establishment of a
minimum homeowner equity require-
ment from personal resources, or provi-
sions required to protect borrowers
against high cost loans or predatory
loans). A PHA may not require that
families acquire financing from one or
more specified lenders, thereby re-
stricting the family’s ability to secure
favorable financing terms.
(b) If the purchase of the home is fi-
nanced with FHA mortgage insurance,
such financing is subject to FHA mort-
gage insurance requirements.
(c) The PHA may establish require-
ments or other restrictions concerning
debt secured by the home.
(d) The PHA may review lender quali-
fications and the loan terms before au-
thorizing homeownership assistance.

The PHA may disapprove proposed fi-
nancing, refinancing or other debt if
the PHA determines that the debt is
unaffordable, or if the PHA determines
that the lender or the loan terms do
not meet PHA qualifications. In mak-
ing this determination, the PHA may
take into account other family ex-
penses, such as child care, unreim-
bursed medical expenses, homeowner-
ship expenses, and other family ex-
penses as determined by the PHA.
(e) All PHA financing or affordability
requirements must be described in the
PHA administrative plan.
[65 FR 55163, Sept. 12, 2000, as amended at 66
FR 33613, June 22, 2001]
§ 982.633 Homeownership option: Con-
tinued assistance requirements;
Family obligations.
(a) Occupancy of home. Homeowner-
ship assistance may only be paid while
the family is residing in the home. If
the family moves out of the home, the
PHA may not continue homeownership
assistance after the month when the
family moves out. The family or lender
is not required to refund to the PHA
the homeownership assistance for the
month when the family moves out.
(b) Family obligations. The family
must comply with the following obliga-
tions.
(1) Ongoing counseling. To the extent
required by the PHA, the family must
attend and complete ongoing home-
ownership and housing counseling.
(2) Compliance with mortgage. The
family must comply with the terms of
any mortgage securing debt incurred to
purchase the home (or any refinancing
of such debt).
(3) Prohibition against conveyance or
transfer of home. (i) So long as the fam-
ily is receiving homeownership assist-
ance, use and occupancy of the home is
subject to § 982.551(h) and (i).
(ii) The family may grant a mortgage
on the home for debt incurred to fi-
nance purchase of the home or any refi-
nancing of such debt.

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24 CFR Ch. IX (4–1–21 Edition) § 982.634
(iii) Upon death of a family member
who holds, in whole or in part, title to
the home or ownership of cooperative
membership shares for the home,
homeownership assistance may con-
tinue pending settlement of the dece-
dent’s estate, notwithstanding transfer
of title by operation of law to the dece-
dent’s executor or legal representative,
so long as the home is solely occupied
by remaining family members in ac-
cordance with § 982.551(h).
(4) Supplying required information. (i)
The family must supply required infor-
mation to the PHA in accordance with
§ 982.551(b).
(ii) In addition to other required in-
formation, the family must supply any
information as required by the PHA or
HUD concerning:
(A) Any mortgage or other debt in-
curred to purchase the home, and any
refinancing of such debt (including in-
formation needed to determine whether
the family has defaulted on the debt,
and the nature of any such default),
and information on any satisfaction or
payment of the mortgage debt;
(B) Any sale or other transfer of any
interest in the home; or
(C) The family’s homeownership ex-
penses.
(5) Notice of move-out. The family
must notify the PHA before the family
moves out of the home.
(6) Notice of mortgage default. The
family must notify the PHA if the fam-
ily defaults on a mortgage securing
any debt incurred to purchase the
home.
(7) Prohibition on ownership interest on
second residence. During the time the
family receives homeownership assist-
ance under this subpart, no family
member may have any ownership inter-
est in any other residential property.
(8) Additional PHA requirements. The
PHA may establish additional require-
ments for continuation of homeowner-
ship assistance for the family (for ex-
ample, a requirement for post-purchase
homeownership counseling or for peri-
odic unit inspections while the family
is receiving homeownership assist-
ance). The family must comply with
any such requirements.
(9) Other family obligations. The fam-
ily must comply with the obligations
of a participant family described in
§ 982.551. However, the following provi-
sions do not apply to assistance under
the homeownership option: § 982.551(c),
(d), (e), (f), (g) and (j).
(c) Statement of homeowner obligations.

Before commencement of homeowner-
ship assistance, the family must exe-
cute a statement of family obligations
in the form prescribed by HUD. In the
statement, the family agrees to comply
with all family obligations under the
homeownership option.
§ 982.634 Homeownership option: Max-
imum term of homeownership as-
sistance.
(a) Maximum term of assistance. Except
in the case of a family that qualifies as
an elderly or disabled family (see para-
graph (c) of this section), the family
members described in paragraph (b) of
this section shall not receive homeown-
ership assistance for more than:
(1) Fifteen years, if the initial mort-
gage incurred to finance purchase of
the home has a term of 20 years or
longer; or
(2) Ten years, in all other cases.
(b) Applicability of maximum term. The
maximum term described in paragraph
(a) of this section applies to any mem-
ber of the family who:
(1) Has an ownership interest in the
unit during the time that homeowner-
ship payments are made; or
(2) Is the spouse of any member of
the household who has an ownership
interest in the unit during the time
homeownership payments are made.
(c) Exception for elderly and disabled
families. (1) As noted in paragraph (a) of
this section, the maximum term of as-
sistance does not apply to elderly and
disabled families.
(2) In the case of an elderly family,
the exception only applies if the family
qualifies as an elderly family at the
start of homeownership assistance. In
the case of a disabled family, the ex-
ception applies if at any time during
receipt of homeownership assistance
the family qualifies as a disabled fam-
ily.
(3) If, during the course of homeown-
ership assistance, the family ceases to
qualify as a disabled or elderly family,
the maximum term becomes applicable
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Asst. Secry., for Public and Indian Housing, HUD § 982.635 from the date homeownership assist-
ance commenced. However, such a fam-
ily must be provided at least 6 months
of homeownership assistance after the
maximum term becomes applicable
(provided the family is otherwise eligi-
ble to receive homeownership assist-
ance in accordance with this part).
(d) Assistance for different homes or
PHAs. If the family has received such
assistance for different homes, or from
different PHAs, the total of such as-
sistance terms is subject to the max-
imum term described in paragraph (a)
of this section.
§ 982.635 Homeownership option:

Amount and distribution of month-
ly homeownership assistance pay-
ment.
(a) Amount of monthly homeownership
assistance payment. While the family is
residing in the home, the PHA shall
pay a monthly homeownership assist-
ance payment on behalf of the family
that is equal to the lower of:
(1) The payment standard minus the
total tenant payment; or
(2) The family’s monthly homeowner-
ship expenses minus the total tenant
payment.
(b) Payment standard for family. (1)
The payment standard for a family is
the lower of:
(i) The payment standard for the
family unit size; or
(ii) The payment standard for the
size of the home.
(2) If the home is located in an excep-
tion payment standard area, the PHA
must use the appropriate payment
standard for the exception payment
standard area.
(3) The payment standard for a fam-
ily is the greater of:
(i) The payment standard (as deter-
mined in accordance with paragraphs
(b)(1) and (b)(2) of this section) at the
commencement of homeownership as-
sistance for occupancy of the home; or
(ii) The payment standard (as deter-
mined in accordance with paragraphs
(b)(1) and (b)(2) of this section) at the
most recent regular reexamination of
family income and composition since
the commencement of homeownership
assistance for occupancy of the home.
(4) The PHA must use the same pay-
ment standard schedule, payment
standard amounts, and subsidy stand-
ards pursuant to §§ 982.402 and 982.503
for the homeownership option as for
the rental voucher program.
(c) Determination of homeownership ex-
penses. (1) The PHA shall adopt policies
for determining the amount of home-
ownership expenses to be allowed by
the PHA in accordance with HUD re-
quirements.
(2) Homeownership expenses for a
homeowner (other than a cooperative
member) may only include amounts al-
lowed by the PHA to cover:
(i) Principal and interest on initial
mortgage debt, any refinancing of such
debt, and any mortgage insurance pre-
mium incurred to finance purchase of
the home;
(ii) Real estate taxes and public as-
sessments on the home;
(iii) Home insurance;
(iv) The PHA allowance for mainte-
nance expenses;
(v) The PHA allowance for costs of
major repairs and replacements;
(vi) The PHA utility allowance for
the home;
(vii) Principal and interest on mort-
gage debt incurred to finance costs for
major repairs, replacements or im-
provements for the home. If a member
of the family is a person with disabil-
ities, such debt may include debt in-
curred by the family to finance costs
needed to make the home accessible for
such person, if the PHA determines
that allowance of such costs as home-
ownership expenses is needed as a rea-
sonable accommodation so that the
homeownership option is readily acces-
sible to and usable by such person, in
accordance with part 8 of this title; and
(viii) Land lease payments (where a
family does not own fee title to the
real property on which the home is lo-
cated; see § 982.628(b)).
(3) Homeownership expenses for a co-
operative member may only include
amounts allowed by the PHA to cover:
(i) The cooperative charge under the
cooperative occupancy agreement in-
cluding payment for real estate taxes
and public assessments on the home;
(ii) Principal and interest on initial
debt incurred to finance purchase of co-
operative membership shares and any
refinancing of such debt;
(iii) Home insurance;
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24 CFR Ch. IX (4–1–21 Edition) § 982.636
(iv) The PHA allowance for mainte-
nance expenses;
(v) The PHA allowance for costs of
major repairs and replacements;
(vi) The PHA utility allowance for
the home; and
(vii) Principal and interest on debt
incurred to finance major repairs, re-
placements or improvements for the
home. If a member of the family is a
person with disabilities, such debt may
include debt incurred by the family to
finance costs needed to make the home
accessible for such person, if the PHA
determines that allowance of such
costs as homeownership expenses is
needed as a reasonable accommodation
so that the homeownership option is
readily accessible to and usable by
such person, in accordance with part 8
of this title.
(4) If the home is a cooperative or
condominium unit, homeownership ex-
penses may also include cooperative or
condominium operating charges or
maintenance fees assessed by the con-
dominium or cooperative homeowner
association.
(d) Payment to lender or family. The
PHA must pay homeownership assist-
ance payments either:
(1) Directly to the family or;
(2) At the discretion of the PHA, to a
lender on behalf of the family. If the
assistance payment exceeds the
amount due to the lender, the PHA
must pay the excess directly to the
family.
(e) Automatic termination of homeown-
ership assistance. Homeownership as-
sistance for a family terminates auto-
matically 180 calendar days after the
last homeownership assistance pay-
ment on behalf of the family. However,
a PHA has the discretion to grant re-
lief from this requirement in those
cases where automatic termination
would result in extreme hardship for
the family.
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64494, Oct. 18, 2002]
§ 982.636 Homeownership option: Port-
ability.
(a) General. A family may qualify to
move outside the initial PHA jurisdic-
tion with continued homeownership as-
sistance under the voucher program in
accordance with this section.
(b) Portability of homeownership assist-
ance. Subject to § 982.353(b) and (c),
§ 982.552, and § 982.553, a family deter-
mined eligible for homeownership as-
sistance by the initial PHA may pur-
chase a unit outside of the initial
PHA’s jurisdiction, if the receiving
PHA is administering a voucher home-
ownership program and is accepting
new homeownership families.
(c) Applicability of Housing Choice
Voucher program portability procedures.

In general, the portability procedures
described in §§ 982.353 and 982.355 apply
to the homeownership option and the
administrative responsibilities of the
initial and receiving PHA are not al-
tered except that some administrative
functions (e.g., issuance of a voucher or
execution of a tenancy addendum) do
not apply to the homeownership op-
tion.
(d) Family and PHA responsibilities.

The family must attend the briefing
and counseling sessions required by the
receiving PHA. The receiving PHA will
determine whether the financing for,
and the physical condition of the unit,
are acceptable. The receiving PHA
must promptly notify the initial PHA
if the family has purchased an eligible
unit under the program, or if the fam-
ily is unable to purchase a home within
the maximum time established by the
PHA.
(e) Continued assistance under
§ 982.637. Such continued assistance
under portability procedures is subject
to § 982.637.
[65 FR 55163, Sept. 12, 2000, as amended at 80
FR 8247, Feb. 17, 2015]
§ 982.637 Homeownership option: Move
with continued tenant-based assist-
ance.
(a) Move to new unit. (1) A family re-
ceiving homeownership assistance may
move to a new unit with continued ten-
ant-based assistance in accordance
with this section. The family may
move either with voucher rental assist-
ance (in accordance with rental assist-
ance program requirements) or with
voucher homeownership assistance (in
accordance with homeownership option
program requirements).
(2) The PHA may not commence con-
tinued tenant-based assistance for oc-
cupancy of the new unit so long as any
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579
Asst. Secry., for Public and Indian Housing, HUD § 982.638 family member owns any title or other
interest in the prior home. However,
when the family or a member of the
family is or has been the victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, as provided in
24 CFR part 5, subpart L (Protection
for Victims of Domestic Violence, Dat-
ing Violence, Sexual Assault, or Stalk-
ing), and the move is needed to protect
the health or safety of the family or
family member (or any family member
has been the victim of a sexual assault
that occurred on the premises during
the 90-calendar-day period preceding
the family’s request to move), such
family or family member may be as-
sisted with continued tenant-based as-
sistance even if such family or family
member owns any title or other inter-
est in the prior home.
(3) The PHA may establish policies
that prohibit more than one move by
the family during any one-year period.

However, these policies do not apply
when the family or a member of the
family is or has been the victim of do-
mestic violence, dating violence, sex-
ual assault, or stalking, as provided in
24 CFR part 5, subpart L, and the move
is needed to protect the health or safe-
ty of the family or family member, or
any family member has been the vic-
tim of a sexual assault that occurred
on the premises during the 90-calendar-
day period preceding the family’s re-
quest to move.
(b) Requirements for continuation of
homeownership assistance. The PHA
must determine that all initial require-
ments listed in § 982.626 (including the
environmental requirements with re-
spect to a unit not yet under construc-
tion) have been satisfied if a family
that has received homeownership as-
sistance wants to move to such a unit
with continued homeownership assist-
ance. However, the following require-
ments do not apply:
(1) The requirement for pre-assist-
ance counseling (§ 982.630) is not appli-
cable. However, the PHA may require
that the family complete additional
counseling (before or after moving to a
new unit with continued assistance
under the homeownership option).
(2) The requirement that a family
must be a first-time homeowner
(§ 982.627) is not applicable.
(c) When PHA may deny permission to
move with continued assistance. The PHA
may deny permission to move to a new
unit with continued voucher assistance
as follows:
(1) Lack of funding to provide contin-
ued assistance. The PHA may deny per-
mission to move with continued rental
or homeownership assistance if the
PHA determines that it does not have
sufficient funding to provide continued
assistance. The PHA must provide
written notification to the local HUD
Office within 10 business days of deter-
mining it is necessary to deny moves
based on insufficient funding.
(2) Termination or denial of assistance
under § 982.638. At any time, the PHA
may deny permission to move with
continued rental or homeownership as-
sistance in accordance with § 982.638.
[63 FR 23865, Apr. 30, 1998, as amended at 72
FR 59938, Oct. 22, 2007; 80 FR 50575, Aug. 20,
2015; 81 FR 80817, Nov. 16, 2016]
§ 982.638 Homeownership option: De-
nial or termination of assistance for
family.
(a) General. The PHA shall terminate
homeownership assistance for the fam-
ily, and shall deny voucher rental as-
sistance for the family, in accordance
with this section.
(b) Denial or termination of assistance
under basic voucher program. At any
time, the PHA may deny or terminate
homeownership assistance in accord-
ance with § 982.552 (Grounds for denial
or termination of assistance) or
§ 982.553 (Crime by family members).
(c) Failure to comply with family obli-
gations. The PHA may deny or termi-
nate assistance for violation of partici-
pant obligations described in § 982.551
or § 982.633.
(d) Mortgage default. The PHA must
terminate voucher homeownership as-
sistance for any member of family re-
ceiving homeownership assistance that
is dispossessed from the home pursuant
to a judgment or order of foreclosure
on any mortgage (whether FHA-in-
sured or non-FHA) securing debt in-
curred to purchase the home, or any re-
financing of such debt. The PHA, in its
discretion, may permit the family to
move to a new unit with continued
voucher rental assistance. However,
the PHA must deny such permission, if:

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580
24 CFR Ch. IX (4–1–21 Edition) § 982.639
(1) The family defaulted on an FHA-
insured mortgage; and
(2) The family fails to demonstrate
that:
(i) The family has conveyed, or will
convey, title to the home, as required
by HUD, to HUD or HUD’s designee;
and
(ii) The family has moved, or will
move, from the home within the period
established or approved by HUD.
[65 FR 55163, Sept. 12, 2000, as amended at 66
FR 33613, June 22, 2001]
§ 982.639 Homeownership option: Ad-
ministrative fees.

The ongoing administrative fee de-
scribed in § 982.152(b) is paid to the PHA
for each month that homeownership
assistance is paid by the PHA on behalf
of the family.
§ 982.641 Homeownership option: Ap-
plicability of other requirements.
(a) General. The following types of
provisions (located in other subparts of
this part) do not apply to assistance
under the homeownership option:
(1) Any provisions concerning the
Section 8 owner or the HAP contract
between the PHA and owner;
(2) Any provisions concerning the as-
sisted tenancy or the lease between the
family and the owner;
(3) Any provisions concerning PHA
approval of the assisted tenancy;
(4) Any provisions concerning rent to
owner or reasonable rent; and
(5) Any provisions concerning the
issuance or term of voucher.
(b) Subpart G requirements. The fol-
lowing provisions of subpart G of this
part do not apply to assistance under
the homeownership option:
(1) Section 982.302 (Issuance of vouch-
er; Requesting PHA approval of as-
sisted tenancy);
(2) Section 982.303 (Term of voucher);
(3) Section 982.305 (PHA approval of
assisted tenancy);
(4) Section 982.306 (PHA disapproval
of owner) (except that a PHA may dis-
approve a seller for any reason de-
scribed in paragraph (c), see
§ 982.631(d)).
(5) Section 982.307 (Tenant screening);
(6) Section 982.308 (Lease and ten-
ancy);
(7) Section 982.309 (Term of assisted
tenancy);
(8) Section 982.310 (Owner termi-
nation of tenancy);
(9) Section 982.311 (When assistance is
paid) (except that § 982.311(c)(3) is appli-
cable to assistance under the home-
ownership option);
(10) Section 982.313 (Security deposit:

Amounts owed by tenant); and
(11) Section 982.354 (Move with con-
tinued tenant-based assistance).
(c) Subpart H requirements. The fol-
lowing provisions of subpart H of this
part do not apply to assistance under
the homeownership option:
(1) Section 982.352(a)(6) (Prohibition
of owner-occupied assisted unit);
(2) Section 982.352(b) (PHA-owned
housing); and
(3) Those provisions of § 982.353
(Where family can lease a unit with
tenant-based assistance) and § 982.355
(Portability: Administration by receiv-
ing PHA) that are inapplicable per
§ 982.636;
(d) Subpart I requirements. The fol-
lowing provisions of subpart I of this
part do not apply to assistance under
the homeownership option:
(1) Section 982.403 (Terminating HAP
contract when unit is too small);
(2) Section 982.404 (Maintenance:

Owner and family responsibility; PHA
remedies); and
(3) Section 982.405 (PHA initial and
periodic unit inspection).
(e) Subpart J requirements. The re-
quirements of subpart J of this part
(Housing Assistance Payments Con-
tract and Owner Responsibility)
(§§ 982.451–456) do not apply to assist-
ance under the homeownership option.
(f) Subpart K requirements. Except for
those sections listed below, the re-
quirements of subpart K of this part
(Rent and Housing Assistance Pay-
ment) (§§ 982.501–521) do not apply to as-
sistance under the homeownership op-
tion:
(1) Section 982.503 (Voucher tenancy:

Payment standard amount and sched-
ule);
(2) Section 982.516 (Family income
and composition: Regular and interim
reexaminations); and
(3) Section 982.517 (Utility allowance
schedule).

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581
Asst. Secry., for Public and Indian Housing, HUD § 982.642 (g) Subpart L requirements. The fol-
lowing provisions of subpart L of this
part do not apply to assistance under
the homeownership option:
(1) Section 982.551(c) (HQS breach
caused by family);
(2) Section 982.551(d) (Allowing PHA
inspection);
(3) Section 982.551(e) (Violation of
lease);
(4) Section 982.551(g) (Owner eviction
notice); and
(5) Section 982.551(j) (Interest in
unit).
(h) Subpart M requirements. The fol-
lowing provisions of subpart M of this
part do not apply to assistance under
the homeownership option:
(1) Sections 982.602–982.619; and
(2) Sections 982.622–982.624.
[65 FR 55163, Sept. 12, 2000, as amended at 67
FR 64494, Oct. 18, 2002; 80 FR 8247, Feb. 17,
2015; 80 FR 50575, Aug. 20, 2015]
§ 982.642 Homeownership option: Pilot
program for homeownership assist-
ance for disabled families.
(a) General. This section implements
the pilot program authorized by sec-
tion 302 of the American Homeowner-
ship and Economic Opportunity Act of
2000. Under the pilot program, a PHA
may provide homeownership assistance
to a disabled family residing in a home
purchased and owned by one or more
members of the family. A PHA that ad-
ministers tenant-based assistance has
the choice whether to offer homeown-
ership assistance under the pilot pro-
gram (whether or not the PHA has also
decided to offer the homeownership op-
tion).
(b) Applicability of homeownership op-
tion requirements. Except as provided in
this section, all of the regulations ap-
plicable to the homeownership option
(as described in §§ 982.625 through
982.641) are also applicable to the pilot
program.
(c) Initial eligibility requirements. Be-
fore commencing homeownership as-
sistance under the pilot program for a
family, the PHA must determine that
all of the following initial require-
ments have been satisfied:
(1) The family is a disabled family (as
defined in § 5.403 of this title);
(2) The family annual income does
not exceed 99 percent of the median in-
come for the area;
(3) The family is not a current home-
owner;
(4) The family must close on the pur-
chase of the home during the period
starting on July 23, 2001 and ending on
July 23, 2004; and
(5) The family meets the initial re-
quirements described in § 982.626; how-
ever, the following initial requirements
do not apply to a family seeking to
participate in the pilot program:
(i) The income eligibility require-
ments of § 982.201(b)(1);
(ii) The first-time homeowner re-
quirements of § 982.627(b); and
(iii) The mortgage default require-
ments of § 982.627(e), if the PHA deter-
mines that the default is due to cata-
strophic medical reasons or due to the
impact of a federally declared major
disaster or emergency.
(d) Amount and distribution of home-
ownership assistance payments. (1) While
the family is residing in the home, the
PHA shall calculate a monthly home-
ownership assistance payment on be-
half of the family in accordance with
§ 982.635 and this section.
(2) A family that is a low income
family (as defined at 24 CFR 5.603(b)) as
determined by HUD shall receive the
full amount of the monthly homeown-
ership assistance payment calculated
under § 982.635.
(3) A family whose annual income is
greater than the low income family
ceiling but does not exceed 89 percent
of the median income for the area as
determined by HUD shall receive a
monthly homeownership assistance
payment equal to 66 percent of the
amount calculated under § 982.635.
(4) A family whose annual income is
greater than the 89 percent ceiling but
does not exceed 99 percent of the me-
dian income for the area as determined
by HUD shall receive a monthly home-
ownership assistance payment equal to
33 percent of the amount calculated
under § 982.635.
(5) A family whose annual income is
greater than 99 percent of the median
income for the area shall not receive
homeownership assistance under the
pilot program.

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582
24 CFR Ch. IX (4–1–21 Edition) § 982.643
(e) Assistance payments to lender. The
PHA must make homeownership assist-
ance payments to a lender on behalf of
the disabled family. If the assistance
payment exceeds the amount due to
the lender, the PHA must pay the ex-
cess directly to the family. The provi-
sions of § 982.635(d), which permit the
PHA to make monthly homeownership
assistance payments directly to the
family, do not apply to the pilot pro-
gram.
(f) Mortgage defaults. The require-
ments of § 982.638(d) regarding mort-
gage defaults are applicable to the
pilot program. However, notwith-
standing § 982.638(d), the PHA may, in
its discretion, permit a family that has
defaulted on its mortgage to move to a
new unit with continued voucher
homeownership assistance if the PHA
determines that the default is due to
catastrophic medical reasons or due to
the impact of a federally declared
major disaster or emergency. The re-
quirements of §§ 982.627(a)(5) and
982.627(e) do not apply to such a family.
[66 FR 33613, June 22, 2001]
§ 982.643 Homeownership option:

Downpayment assistance grants.
(a) General. (1) A PHA may provide a
single downpayment assistance grant
for a participant that has received ten-
ant-based or project-based rental as-
sistance in the Housing Choice Voucher
Program.
(2) The downpayment assistance
grant must be applied toward the
downpayment required in connection
with the purchase of the home and/or
reasonable and customary closing costs
in connection with the purchase of the
home.
(3) If the PHA permits the downpay-
ment grant to be applied to closing
costs, the PHA must define what fees
and charges constitute reasonable and
customary closing costs. However, if
the purchase of a home is financed with
FHA mortgage insurance, such financ-
ing is subject to FHA mortgage insur-
ance requirements, including any re-
quirements concerning closing costs
(see § 982.632(b) of this part regarding
the applicability of FHA requirements
to voucher homeownership assistance
and § 203.27 of this title regarding al-
lowable fees, charges and discounts for
FHA-insured mortgages).
(b) Maximum downpayment grant. A
downpayment assistance grant may
not exceed twelve times the difference
between the payment standard and the
total tenant payment.
(c) Payment of downpayment grant.

The downpayment assistance grant
shall be paid at the closing of the fam-
ily’s purchase of the home.
(d) Administrative fee. For each down-
payment assistance grant made by the
PHA, HUD will pay the PHA a one-time
administrative fee in accordance with
§ 982.152(a)(1)(iii).
(e) Return to tenant-based assistance. A
family that has received a downpay-
ment assistance grant may apply for
and receive tenant-based rental assist-
ance, in accordance with program re-
quirements and PHA policies. However,
the PHA may not commence tenant-
based rental assistance for occupancy
of the new unit so long as any member
of the family owns any title or other
interest in the home purchased with
homeownership assistance. Further,
eighteen months must have passed
since the family’s receipt of the down-
payment assistance grant.
(f) Implementation of downpayment as-
sistance grants. A PHA may not offer
downpayment assistance under this
paragraph until HUD publishes a notice
in the F
EDERAL REGISTER.
[67 FR 64494, Oct. 18, 2002]
PART 983—PROJECT-BASED

VOUCHER (PBV) PROGRAM
Subpart A—General
Sec.
983.1 When the PBV rule (24 CFR part 983)
applies.
983.2 When the tenant-based voucher rule
(24 CFR part 982) applies.
983.3 PBV definitions.
983.4 Cross-reference to other Federal re-
quirements.
983.5 Description of the PBV program.
983.6 Maximum amount of PBV assistance.
983.7 Uniform Relocation Act.
983.8 Equal opportunity requirements.
983.9 Special housing types.
983.10 Project-based certificate (PBC) pro-
gram.

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U.S. Department of Housing and Urban Development
Office of Public and Indian Housing

Special Attention: NOTICE PIH 2013-15 (HA)

Public Housing Agencies administering the
Housing Choice Voucher and/or Public Issued: June 10, 2013 Housing Programs; Public Housing Field Office
Directors Expires: Effective until amended
superseded, or rescinded
Cross References:

PIH Notice 2012-34 (HA)

Subject: Guidance on housing individuals and families experiencing homelessness through the Public Housing and Housing Choice Voucher programs1

1. Applicability: This Notice applies to public housing agencies (PHAs) that administer the Public Housing and/or Housing Choice Voucher (HCV) programs.

2. Purpose: The purpose of this Notice is to provide strategies that PHAs can pursue to expand housing opportunities for individuals and families experiencing homelessness through the Public Housing and HCV programs. This Notice clarifies the definition of homelessness for the purpose of IMS/PIC reporting, and provides guidance on HUD policies and program regulations related to the following topics: waiting list management and preferences; admissions policies regarding criminal activity, substance use/abuse, and rental history; program termination and eviction policies; and project-basing vouchers for Permanent Supportive Housing (PSH).

3. Background: On June 22, 2010, the United States Interagency Council on Homelessness (USICH) presented the nation’s first comprehensive strategy to prevent and end homelessness titled, Opening Doors: Federal Strategic Plan to Prevent and End Homelessness (Opening Doors), to the Office of the President and Congress. Opening Doors is focused on four key goals:
a. Finish the job of ending chronic homelessness by 2015; b. Prevent and end homelessness among Veterans by 2015; c. Prevent and end homelessness for families, youth, and children by 2020; and d. Set a path to ending all types of homelessness.

1 Throughout this Notice, when referring to people experiencing homelessness, the term ‘individuals and families’ is used to indicate both individual persons who are experiencing homelessness, as well as homeless families, which may include children. When referring to HCV or Public Housing applicants or participants, the following terms are used intentionally based on their definition and the relevant statute, regulation or rule being referenced: 1. Family – A person or group of persons with or without children approved by a PHA to reside in a unit with assistance under the HCV or Public Housing program. The number of family members is used to calculate subsidies and payments. 2. Household – includes everyone who lives in the unit, including foster children/adults and live-in aides. Household members are used to determine unit size. 105
2 The Office of Public and Indian Housing (PIH) is committed to working with our PHA partners to expand opportunities for individuals and families to access quality affordable rental homes, thereby achieving HUD’s goal of utilizing housing as a platform for improving quality of life.

PIH, in cooperation with the Office of Community Planning and Development (CPD) and USICH hosted two national convenings of PHAs and Continuums of Care (CoCs) titled, Opening Doors: Expanding PHA Opportunities to House People Experiencing Homelessness, one in Los Angeles on February 8, 2012, and the other in Washington, DC on May 24, 2012. These convenings allowed participants to: share best practices; identify barriers that PHAs encounter in meeting the needs of this population; and allow PHAs and Continuums of Care to provide feedback and ask questions of HUD.

This Notice builds on the lessons learned from the two convenings and seeks to provide guidance on issues related to serving individuals and families experiencing homelessness.

4. Reporting Homelessness in IMS/PIC: The HUD Form 50058 module in the IMS/PIC data system allows HUD to obtain information about participants in the Public Housing and HCV programs, including the homeless status of persons entering the program. The accuracy and reliability of this information is critical to tracking the collective progress in ending homelessness.

Based on a review of PIC reporting on 4C (homeless at admission), many PHAs are not reporting in this field accurately, or are reporting “no” for all applicants, whether homeless or not. For all new admissions, PHAs must determine whether an individual or family was homeless at admissions. This information must be reported at question 4C on HUD Form 50058. PHAs may need to verify that their IMS/PIC software is compliant with this reporting requirement. The following section provides guidance on how to determine whether an applicant is homeless at the time of admission, including questions that a PHA may ask an applicant in order to determine their homelessness status. For additional information on the Form 50058, please see the Form HUD 50058 Instruction Booklet at http://portal.hud.gov/hudportal/documents/huddoc?id=50058i.pdf

5. Definition of Homeless for the Purpose of Completing Question 4C on Form 50058: The definition of a homeless family currently provided in the Appendix of the Form HUD 50058 Instruction Booklet reflects the original McKinney-Vento Homeless Assistance Act definition.

The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) revised the definition of homeless for HUD’s homeless assistance programs, and on December 5, 2011, HUD published its final rule implementing this definition. This rule applies specifically to the Emergency Solutions Grants program, the Shelter Plus Care program, the Supportive Housing program and was incorporated into the Continuum of Care (CoC) Program interim rule, which HUD published on July 31, 2012; however, PIH is adopting only a portion of this new definition to apply to question 4C of the Form 50058 as well. While the HUD regulations maintain four categories for defining people who are homeless, the PIH definition for IMS-PIC reporting (Form 50058) is narrowed to the following two categories:

Category 1: An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
a. An individual or family with a primary nighttime residence that is 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 or train station, airport, or camping ground; or
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3 b. An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low- income individuals); or
c. An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution;

Category 4: Any individual or family who:
i. Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return to their primary nighttime residence; and
ii. Has no other residence; and
iii. Lacks the resources or support networks, e.g., family, friends, and faith- based or other social networks, to obtain other permanent housing

This definition shall be effective as of this Notice, and the Form HUD 50058 Instruction Booklet will be updated accordingly. Note: A PHA is permitted to adopt an alternative or narrower definition of homeless for the purpose of a waiting list preference based on local need.

PHA’s that do this, however, will still be required to use the definition cited above for purposes of reporting homeless of new admissions on the Form HUD 50058.

In order for PHAs to accurately report a new admission’s homelessness status on line 4c of the Form HUD 50058, the PHA may find the following list of questions helpful in determining the appropriate response. If the answer to any of the following questions is yes, the PHA would mark “Y” for yes in field 4C of the Form HUD 50058 (homeless at admission).

1. Are you currently living in a car, on the street, or another place not meant for human habitation?

2. Are you currently living in a an emergency shelter, transitional housing, Safe Haven2, or a hotel/motel paid for by a charitable organization or by federal, state or local government programs for low-income individuals?

3. Are you exiting an institution, including a hospital, substance abuse or mental health treatment facility, or jail/prison, where you stayed for 90 days or less?If so, were you living in an emergency shelter or place not meant for human habitation immediately before entering that institution?

4. Are you fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or other dangerous or life threatening conditions for you or a family member, including a child, that has either taken place within your family’s primary nighttime residence or has made the you afraid to return to your primary nighttime residence? If yes, do you currently have nowhere else to live and also lack the resources or support networks,

2 A Safe Haven is a form of supportive housing that serves hard-to-reach homeless persons with severe mental illness who are on the street and have been unable or unwilling to participate in housing or supportive services 107
4 including family, friends, faith-based, or other social networks, to obtain other permanent housing?

Example 1: A family that was evicted from the home they owned because they were no longer able to make the mortgage payments and is living in their car would qualify as homeless.

Example 2: An individual that had previously lived in an emergency shelter and was admitted to the hospital for a 5-day stay would qualify as homeless.

Example 3: An individual being released from prison after a 3-year incarceration would not qualify as homeless based on the length of incarceration.

HUD does not require PHAs to collect documentation or third-party verification of any kind in order to verify an applicant’s homelessness status for purposes of reporting in 4C of the 50058.

Verbal self-verification by the applicant that any of the above criteria are true is sufficient.

However, in order to verify homelessness status for a preference, PHAs must follow the verification requirements they establish in their written policies.

6. Waiting List Management: PHAs’ waiting lists can be a barrier to individuals and families experiencing homelessness having access to the Public Housing and HCV programs. When waiting lists are long, an individual or family who lacks stable housing and reliable contact information may not be able to be reached when they come to the top of the waiting list or when waiting lists are purged, especially if it has been months or years after the application was submitted. Also, when PHAs reopen waiting lists for short periods of time, people experiencing homelessness can be left out of the application process due to a lack of information about the opportunity to apply.

PHAs can take a variety of actions to allow homeless populations better access to their programs, including establishing a strong outreach strategy through service providers, strengthening their process for contacting applicants on their waiting list (e.g., contacting applicants via email or phone), establishing flexible intake and briefing schedules (e.g., provide a window of time for appointments), and establishing nondiscriminatory preferences in their admissions policies for persons experiencing homelessness, or a subset of such persons (e.g., chronically homeless, homeless veterans, homeless identified as most vulnerable through community-based assessment strategies, etc.). All actions taken must be in compliance with all applicable fair housing and civil rights laws. See 24 CFR 5.105(a).

7. Homeless Admissions Preference: A PHA’s greatest tool for increasing program access for individuals and families experiencing homelessness is establishing a preference in their admissions policies. This section describes the criteria that may be considered when setting preferences based on local housing needs and priorities, as well as the process for establishing preferences.

a) Assessing local housing needs. A PHA’s system of local preferences must be based on local housing needs and priorities by using generally accepted data sources and information obtained through the PHA Plan public comment process3. HUD encourages PHAs to work collaboratively with health care providers, social service providers,

3 24 CFR 960.206(a)(1) for Public Housing and 24 CFR 982.207 (a)(2) for the HCV program. 108
5 homeless services providers, Continuums of Care (CoCs), and local offices of government and community organizations to establish a system of preferences based on local housing needs collectively identified by the community. HUD recommends that a PHA’s local housing needs assessment specifically include people experiencing homelessness. For example, PHAs may look to their Community Plan to End Homelessness, Consolidated Plans, HIV/AIDs Housing Plan (if available) and/or data from their jurisdiction’s Continuum of Care (CoC) Homeless Management Information Systems (HMIS) and Point in Time (PIT) Counts to identify whether and to what extent there is need for a homeless preference.

b) Applying and limiting preferences. PHAs may apply preferences for admission to the HCV, Project-based Voucher (PBV), and/or Public Housing programs, or to a particular public housing or project-based voucher development (or set number of units within a development). PHAs may limit the number of applicants that may qualify for a particular preference. PHAs must incorporate such a preference into their HCV program Administrative Plan and/or their Public Housing program Admission and Continued Occupancy Policy (ACOP). If adopting the preference constitutes a significant amendment to the PHA Plan as defined by the PHA, the PHA must comply with the amendment provisions of 24 CFR 903.21, including soliciting public comment and consulting with the resident advisory board.

c) Opening waiting lists and public notice. All recipients of public housing or HCV assistance must be selected from the PHA’s waiting list(s). If a PHA does not have enough applicants on its waiting list who qualify for a preference, the PHA may open its waiting list strictly to people to whom the preference applies. When opening a waiting list, PHAs must give public notice. See Section 12 for more information on opening separate waiting lists for project-based voucher units.

Any public notice announcing a waiting list opening and application procedure should be simple, direct, and clear but with sufficient detail to inform applicants of the processes through which they can apply, any limitations on who may apply, and any other information the applicant may need to successfully submit the application. The notification process, as well as the preferences themselves, must also comply with HUD fair housing requirements, such as adopting suitable means to assure that the notice reaches eligible individuals with disabilities and those with limited-English proficiency. HCV program regulations require the public notice to appear in a local newspaper of general circulation, minority media, and other suitable means (24 CFR 982.206).These practices are strongly encouraged in the Public Housing program.

When trying to reach people experiencing homelessness to apply to the program(s), PHAs could consider reaching out to shelters, homeless service providers, agencies that work closely with people experiencing homelessness and homeless consumer advocacy groups to assist with advertising the opening of the waiting list, to seek referrals, and/or to provide assistance with application processes. The CoC Program interim rule requires Continuums of Care to establish and operate a centralized or coordinated assessment system that provides an initial, comprehensive assessment of the needs of individuals and families for housing and services with the intention of matching the homeless individual or family with the most appropriate resources. PHAs are strongly encouraged to participate in the coordinated assessment system that covers the PHA’s geographic location in order to establish a means for referrals once the coordinated assessment has been established.

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6 Once an adequate number of persons experiencing homelessness meeting the preference have been placed on the waiting list, the PHA may choose to close the waiting list. A PHA may leave the waiting list open only for the population qualified for the preference (i.e., continue to accept applications only from applicants that qualify for the preference) , while keeping it closed for all other applicants. HUD recommends the PHAs maintain up-to-date information on the PHA’s website as to whether the waiting list is open or closed, who may currently apply for assistance, and specific information regarding the application process.

d) Identifying preference-qualified applicants currently on the waiting list. When adopting a new preference in the Public Housing program, PHAs must offer the opportunity for current applicants on the waiting list who qualify for the preference to receive the benefit of the preference and move up on the waiting list accordingly. This practice is strongly encouraged in the HCV program. The PHA should specify on any public notice of a waiting list opening that current waiting list applicants will also be given the benefit of the preference. The notice should also include any other information new applicants and current applicants on the waiting list will need to know about how to successfully apply and establish their preference status, including any partnering agencies with whom the PHA may be working to receive referrals or determine preference eligibility. PHAs and partnering referral agencies may consider sharing waiting list data in order to cross-check for eligible applicants, if allowed under applicable program requirements and privacy laws.

e) Limiting preferences to people referred by a partnering organization. PHAs may create a preference or limited preference specifically for people who are referred by a partnering homeless service organization or consortia of organizations (for example, an organization that refers people transitioning out of a shelter, transitional housing program, or rapid re-housing program). The PHA may not limit the source of referrals to an agency, organization, or consortia that denies its services to members of any Federally protected class under fair housing laws, i.e., race, color, religion, national origin, sex, disability, or familial status. See section 12 of this Notice for information on preferences in the PBV program.

A PHA may also have a preference for individuals and families transitioning, or “moving up,” from Permanent Supportive Housing (PSH) units. These are persons that were previously homeless prior to entry into the PSH program but who no longer need that level of supportive services. While these persons would not be considered homeless for reporting purposes on the Form HUD 50058, creating such a “move up” preference will contribute significantly to the community’s overall efforts to end homelessness by freeing up units for currently homeless families and individuals with disabilities who need housing combined with services.

Example of a homeless limited preference process: A PHA limits the number of families that qualify for a homeless preference to 100 families. The PHA administrative plan/ACOP clearly states the criteria to qualify for the preference, including any partnering service agencies from whom the PHA will be taking referrals, and whether the preference is restricted to those referrals. The PHA opens the waiting list and provides public notice, but restricts who can apply to those that meet the preference criteria. Once the PHA is serving 100 families under the preference, and one family leaves the program, the next family on the waiting list who meets the preference criteria will be served. If there is no one on the waiting list that meets the preference criteria, the PHA would issue the voucher to the next family on the waiting list. The PHA reaches out to local partners for referrals, and the waiting list is kept open (or re-opened for applicants that qualify for the preference) in order to accept 110
7 these new referrals. If the PHA has not limited the preference to only people referred by certain organizations or agencies, then the PHA also accepts applications from anyone who self-identifies as qualified to meet the preference criteria.

f) Verifying preference eligibility. If a PHA adopts a preference or limited preference for people experiencing homelessness, or for a particular subset of this population, the PHA may require the individual or family to provide documentation to prove that they qualify for the preference, or may rely on a partnering homeless service organization (for example, the Continuum of Care designated collaborative applicant) to verify that the individual or family qualifies for the preference. When a PHA establishes a partnership for referrals from a homeless service organization, they may allow the partnering organization to verify the individual’s or family’s preference qualification, before the individual or family is referred to the PHA.

g) Ensuring Fair Housing compliance. When adopting a preference or limited preference for people experiencing homelessness, and opening the waiting list only for families and individuals that qualify for the preference, a PHA must ensure that the preference would not have the purpose or effect of excluding other eligible families from the program on the basis of race, color, national origin, religion, sex, disability, or familial status, or would have the effect of creating, increasing, or perpetuating segregation. A PHA must ensure that the adoption of a homeless preference and the opening of the waiting list, including site-based waiting lists, only to homeless families and individuals that qualify for the preference is done in a manner that is consistent with all fair housing and civil rights laws and affirmatively furthers fair housing.

h) Residency preference. PHAs that have a residency preference as allowed under the regulations at 24 CFR 960.206(b) and 24 CFR 982.207(b) may include in their definition of the term, “residence,” shelters and other dwelling places where homeless people may be living or sleeping. PHAs may also consider the circumstances leading to a family’s current dwelling place when defining residency for homeless applicants. For example, in some communities, there may be a lack of suitable shelters in the community covered by the PHA’s residency preference forcing the family or individual to seek shelter in another community. If an applicant family or individual is residing in a shelter located outside of the area covered by the PHA’s residency preference, the PHA may establish policies considering the applicant’s previous residency and circumstances. PHAs with a residency preference may need to change their definition of residency in their Administrative Plan and ACOP for the purpose of allowing such flexibility.

For additional guidance related to waiting list administration, please see Notice PIH 2012-34 Waiting List Administration.

8. Admissions Policies Regarding Criminal Activity, Substance Use/Abuse, and Rental History: Under federal laws and HUD regulations, there are certain policies for admission to a PHA’s HCV or Public Housing program which are mandatory for all PHAs, and other policies which the PHAs have authority/discretion to adopt, but are not required.

The following is a complete list of statutorily mandated prohibitions of admissions regarding criminal activity and substance use/abuse to the HCV and PH programs:

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8 1. Lifetime sex offender registrant. A PHA must prohibit admission for any household that includes a person subject to a lifetime registration requirement under a State sex offender registration program.4

2. Methamphetamine production in federally assisted housing. A PHA must prohibit 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.5

3. Within 3 years of federally assisted housing eviction for drug-related crime. A PHA must prohibit admission for three years from date of eviction if a household member has been evicted from federally assisted housing for drug-related criminal activity (the PHA may admit if the PHA determines the member successfully completed a supervised drug rehabilitation program approved by the PHA, or the circumstances leading to the eviction no longer exist).6

4. Currently engaged in illegal drug use or threatening activity. A PHA must prohibit admission of households with a member who:
a. The PHA determines is currently engaging in illegal use of a drug,7 or b. The PHA determines that it has reasonable cause to believe that a household member’s illegal drug use, pattern of illegal drug use, abuse of alcohol, or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents.8

Where the HCV or public housing applicants’ conduct or activities falls outside the scope of the statutorily mandated prohibitions, PHAs have wide discretion whether to admit or deny admissions to these individuals. Unfortunately, PHAs’ discretionary admissions policies can sometimes be a barrier for vulnerable populations, including people who are homeless, to accessing the programs. For example, a PHA may have strict policies related to criminal backgrounds and previous rental housing history which can have the effect of screening out the most vulnerable people experiencing homelessness who are more likely to have past convictions, past evictions, or previous debts, due to a variety of reasons, including mental illness and substance use disorders.

In June 2011, Secretary Donovan wrote a letter to PHAs9 across the country to encourage more flexible, reasonable admissions policies for people re-entering communities following incarceration. Incarceration and homelessness are highly interrelated as the difficulties in reintegrating into the community increase the risk of homelessness for released prisoners, and homelessness in turn increases the risk for subsequent re-incarceration. PHAs wishing to serve more people experiencing homelessness may consider amending their discretionary admissions policies regarding criminal activity and substance use/abuse to be more inclusive of vulnerable

4 42 U.S.C § 13663 (a); 24 CFR 982.553(a)(2)(i) for HCV, and 960.204(a)(4) for public housing 5 42 U.S.C § 1437n (f)(1); 24 CFR 982.553(a)(1)(ii)(C) for HCV, and 960.204(a)(3) for public housing 6 42 U.S.C § 13661 (a); 24 CFR 982.553(a)(1)(i) for HCV, and 960.204(a)(1) for public housing 7 42 U.S.C § 13661 (b)(1); 24 CFR 982.553(a)(1)(ii)(A) for HCV, and 960.204(a)(2)(i) for public housing 8 42 U.S.C § 13661 (b)(1); 24 CFR 982.553(a)(1)(ii)(B) and 24 CFR 982.553(a)(3) for HCV; 960.204(a)(2)(ii) and 960.204(b) for public housing
9 http://portal.hud.gov/hudportal/documents/huddoc?id=sohudreentryltr.pdf 112
9 populations who may have criminal backgrounds or histories of incarceration. PHAs are encouraged to establish strong partnerships with homeless service providers to ensure that those vulnerable individuals and families admitted to the program are provided the services necessary to remain stably housed and compliant with the family obligations and other requirements of the program.

A PHA wishing to serve more people experiencing homelessness may consider reviewing their discretionary admission policies to determine if any changes can be made to remove barriers. It is important to note that all discretionary admission (and program termination) policies must be applied to all applicants broadly. In other words, a PHA cannot have a certain set of admission/termination policies that apply specifically to a certain population, such as the homeless population, which are different than the admission/termination policies for all other applicants, unless there is express legal authority to do so (e.g. HUD-VASH program).

Therefore, if a PHA is not comfortable or willing to revise its general discretionary policies, the PHA is strongly encouraged to consider relevant circumstances as described in Section 10 of this Notice.

9. Program Termination and Eviction Policies: Federal law and HUD regulations provide only limited instances where a PHA must terminate assistance or evict a family10. Outside of those limited instances, PHAs or owners may terminate program assistance or evict a family only for serious or repeated violations of material terms of the lease. Many of the policies for termination of assistance and eviction are in fact at the discretion of the PHA or owner. A PHA or owner’s discretionary policies for termination of assistance and eviction for lease violations is an important consideration in the effort to prevent homelessness.

HUD encourages PHAs to review their termination and eviction policies in light of their discretionary authority. HUD recommends that PHAs work with homeless service providers to establish discretionary termination and eviction policies best suited to the community and to develop partnerships that can implement effective eviction prevention strategies.

Additionally, PHAs should be aware of protections for victims of domestic violence, dating violence, or stalking to ensure that they do not face eviction because of the lease violations of their abusers. 24 CFR 5.2005 (c) states that an incident of actual or threatened domestic violence, dating violence or stalking will not be construed as a serious or repeated violation of the lease by the victim or threatened victim of the domestic violence, dating violence, or stalking, or as good cause to terminate the tenancy or, occupancy rights of, or assistance to the victim.

As mentioned in Section 7 of this Notice, PHAs are encouraged to establish strong partnerships with healthcare, supportive services, and homeless service providers to make services available to vulnerable individuals and families admitted to the program. PHAs are also strongly encouraged to consider relevant circumstances when considering the termination or eviction of any family, as described in Section 10 of this Notice.

10. Consideration of Circumstances Regarding Admissions and Terminations/Evictions: As discussed in Section 7 of this notice, a PHA cannot establish separate admissions/termination

10 24 CFR 982.553(a)(2)(i), 24 CFR 982.553(b)(1)(ii) and 24 CFR.553(e) for HCV, and 24 CFR 960.204(a)(3) and 960.204(a)(4) for Public Housing
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10 policies for a certain population, such as the homeless population, which are different from the admissions/termination policies for all other applicants, unless there is express legal authority to do so (e.g. HUD-VASH program). However, the public housing regulation at 24 C.F.R. 960.203(a) (Standards for PHA tenant selection criteria) and the HCV program regulation at 24 C.F.R. 982.552(c)(2) (Consideration of circumstances) imply that individual consideration of factors should be a basis for a PHA’s decision to deny or terminate assistance. For example, in the HCV program, in determining whether to deny admission or terminate assistance because of an action of a family member that would normally screen the family out or cause the family to lose their assistance, under the PHA’s policy, the following may be considered:

 All relevant circumstances such as the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action.11

 The PHA may impose, as a condition of admittance or continued assistance for other family members, a requirement that family members who participated in or were culpable for the action will not reside in the unit. The PHA may permit the other members of a participant family to receive or continue receiving assistance.12

In public housing, in the event of receipt of unfavorable information about an applicant, consideration must be given to the time, nature, and extent of the applicant’s conduct (including the seriousness of the offense). Consideration may be given to factors which might indicate a reasonable probability of favorable future conduct, including: evidence of rehabilitation, and applicant’s willingness to participate in social services.13

For both the HCV and Public Housing program, in determining whether to deny admission or terminate assistance for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the PHA may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully.14

For both the HCV and Public Housing program, if the family includes a person with disabilities, the PHA decision regarding denial of admission or termination of assistance is subject to reasonable accommodation requirements in accordance with Section 504 of the Rehabilitation Act of 1973, the Fair Housing Act, Title II of the Americans with Disabilities Act, and their implementing regulations at 24 CFR part 8, 24 CFR part 100, and 28 CFR part 35, respectively.

11. Service Provider as a Resource in Continued Occupancy: Service providers are important resources in ensuring housing stability, including compliance with program and family obligations and other program requirements, for homeless individuals and families newly admitted to the program.

11 24 CFR 982.552(c)(2)(i) for HCV
12 24 CFR 982.552(c)(2)(ii) for HCV, and 960.203(c)(3)(i) for public housing 13 24 CFR 960.203(d)
14 42 U.S.C § 13661 (b)(2); 24 CFR 982.552(c)(2)(iii)
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11 PHAs may establish working relationships or consider service agreements with the service providers to provide greater access to services for tenants. The PHA may consider making available an empty office space or community space for the service provider to offer voluntary services to the residents.

12. Project-Based Vouchers: Under the HCV program, PHAs are allowed to project-base up to 20 percent of their budget authority. Project-based vouchers (PBVs) are a useful tool in the development of affordable housing, because the guaranteed rental income provided by the vouchers helps to finance project operating costs and secure capital investments. PBVs are also important in the development of projects that pair services for people who are formerly homeless with housing assistance. PHAs looking to increase the supply of affordable housing for people experiencing homelessness or other low-income families may consider project- basing. PHAs interested in working with a homeless service provider to develop housing for people experiencing homelessness may also consider project-basing for this purpose.

PHAs must select applicants for PBV units from the waiting list in accordance with the policies in the PHA administrative plan. The PHA may use a separate waiting list for its PBV units, or for PBV units in individual projects or buildings, or for sets of such units. The PHA may also adopt a different set of admissions preferences for each separate waiting list. A PHA that wishes to partner with a homeless service provider to project-base vouchers may consider creating a separate waiting list for this project and adopting a preference for people who are homeless. PHAs may also adopt a preference for services offered for families with disabilities that need services at a particular project. However, such a preference is limited to those individuals and families with disabilities that significantly interfere with their ability to obtain and maintain themselves in housing; who without appropriate supportive services, will not be able to obtain or maintain themselves in housing; and for whom such services cannot be provided in a non-segregated setting. See 24 CFR 983.251(d).

If a PHA opens a site-based waiting list for PBV units, all new applicants and families or individuals currently on the PHA’s tenant-based waiting list must be provided with the option to have their names placed on this list as well. As described in Notice PIH 2011-54, Guidance on the Project-Based Voucher Program, PHAs do not have to notify each family on the tenant- based waiting list by individual notice. A PHA could notify these applicants by the same means it would use in opening its waiting list under 24 CFR 982.206(a), including advertising through local and minority newspapers and the internet, posting at local post offices, libraries, and community center, and outreach to social service organizations, such as homeless shelters.

Normally, PHAs may not provide project-based assistance to more than 25 percent of the number of units (assisted or unassisted) in a project. See 24 CFR 983.56(a). However, a PHA that makes units in a project available specifically to elderly or families with disabilities or families receiving supportive services (“excepted units”) may exceed this 25 percent cap with these excepted units only. In these circumstances a PHA may place project-based vouchers in up to 100 percent of the units in the project.

For units that are excepted because they are made available to elderly or disabled families, the PHA may not require participation in any type of services as a condition of tenancy, although services may be offered. For units that are excepted because they are made available to families receiving supportive services, a PHA may not require participation in medical or disability-related services other than drug and alcohol treatment in the case of current abusers as a condition of living in an excepted unit; however, other supportive services as defined by the PHA, including Family Self- 115
12 Sufficiency (FSS) services, may be required as a condition of tenancy. The PHA Administrative Plan must describe the type of services offered to these families or individuals for a project to qualify for the exception to the 25 percent cap and the extent to which the services will be provided. See 24 CFR 983.56(b).

Note: PHAs are reminded that PBV projects with up to 100 percent of the units committed to people with disabilities continue to be allowed under federal statute at 42 U.S.C. 1437(f)(o)(13)(D)(ii) and the HUD regulations cited above. On the services side, policy direction related to health reform implementation, behavioral health care integration, and state Olmstead planning will shape how services are defined, delivered, and financed for different populations. HUD recommends that PHAs establish strong relationships with state and county Medicaid authorities and health services agencies to discuss how Medicaid services might work in different housing settings and for different population groups going forward.

For more details related to Project-based Vouchers, please see Notice PIH 2011-54, Guidance on the Project Based Voucher Program.

13. Paperwork Reduction Act: The information collection requirements contained in this document have been submitted to the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2577-0083. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number.

14. Information Contact: Inquiries about this Notice should be directed to Ryan Jones at [email protected] for Public Housing or [email protected] for Housing Choice Vouchers.

/s/
Sandra B. Henriquez, Assistant Secretary for
Public and Indian Housing
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What are housing choice vouchers?
Am I eligible?
How do I apply?
Local preferences and waiting list - what are they and how do they affect me? Housing vouchers - how do they function?
The rent subsidy
Can I move and continue to receive housing choice voucher assistance? Roles - the tenant, the landlord, the housing agency and HUD Additional Information and other subsidy programs
What regulations cover this program?
Are you a Landlord or PHA looking to increase landlord participation? Housing Choice Vouchers Fact Sheet
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What are housing choice vouchers?
The housing choice voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.

The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects.

Housing choice vouchers are administered locally by public housing agencies (PHAs). The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program.

A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the program. This unit may include the family's present residence. Rental units must meet minimum standards of health and safety, as determined by the PHA.

A housing subsidy is paid to the landlord directly by the PHA on behalf of the participating family.

The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Under certain circumstances, if authorized by the PHA, a family may use its voucher to purchase a modest home.

Am I eligible?
Eligibility for a housing voucher is determined by the PHA based on the total annual gross income and family size and is limited to US citizens and specified categories of non-citizens who have eligible immigration status. In general, the family's income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. By law, a PHA must provide 75 percent of its voucher to applicants whose incomes do not exceed 30 percent of the area median income. Median income levels are published by HUD and vary by location. The PHA serving your community can provide you with the income limits for your area and family size.

During the application process, the PHA will collect information on family income, assets, and family 118
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If the PHA determines that your family is eligible, the PHA will put your name on a waiting list, unless it is able to assist you immediately. Once your name is reached on the waiting list, the PHA will contact you and issue to you a housing voucher.

How do I apply?
If you are interested in applying for a voucher, contact the local PHA. For further assistance, please contact the HUD Office nearest to you.

Local preferences and waiting list - what are they and how do they affect me?
Since the demand for housing assistance often exceeds the limited resources available to HUD and the local housing agencies, long waiting periods are common. In fact, a PHA may close its waiting list when it has more families on the list than can be assisted in the near future.

PHAs may establish local preferences for selecting applicants from its waiting list. For example, PHAs may give a preference to a family who is (1) homeless or living in substandard housing, (2) paying more than 50% of its income for rent, or (3) involuntarily displaced. Families who qualify for any such local preferences move ahead of other families on the list who do not qualify for any preference. Each PHA has the discretion to establish local preferences to reflect the housing needs and priorities of its particular community.

Housing vouchers - how do they function?
119
Housing Choice Voucher Program Section 8 | HUD.gov / U.S. Department of Housing and Urban Development (HUD) https://www.hud.gov/topics/housing_choice_voucher_program_section_8[3/28/2022 9:19:09 AM] The housing choice voucher program places the choice of housing in the hands of the individual family. A very low-income family is selected by the PHA to participate is encouraged to consider several housing choices to secure the best housing for the family needs. A housing voucher holder is advised of the unit size for which it is eligible based on family size and composition.

The housing unit selected by the family must meet an acceptable level of health and safety before the PHA can approve the unit. When the voucher holder finds a unit that it wishes to occupy and reaches an agreement with the landlord over the lease terms, the PHA must inspect the dwelling and determine that the rent requested is reasonable.

The PHA determines a payment standard that is the amount generally needed to rent a moderately- priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive. However the payment standard does not limit and does not affect the amount of rent a landlord may charge or the family may pay. A family which receives a housing voucher can select a unit with a rent that is below or above the payment standard. The housing voucher family must pay 30% of its monthly adjusted gross income for rent and utilities, and if the unit rent is greater than the payment standard the family is required to pay the additional amount. By law, whenever a family moves to a new unit where the rent exceeds the payment standard, the family may not pay more than 40 percent of its adjusted monthly income for rent.

The rent subsidy
The PHA calculates the maximum amount of housing assistance allowable. The maximum housing assistance is generally the lesser of the payment standard minus 30% of the family's monthly adjusted income or the gross rent for the unit minus 30% of monthly adjusted income.

Can I move and continue to receive housing choice voucher assistance?
A family's housing needs change over time with changes in family size, job locations, and for other reasons. The housing choice voucher program is designed to allow families to move without the loss of housing assistance. Moves are permissible as long as the family notifies the PHA ahead of time, terminates its existing lease within the lease provisions, and finds acceptable alternate housing. 120
Housing Choice Voucher Program Section 8 | HUD.gov / U.S. Department of Housing and Urban Development (HUD) https://www.hud.gov/topics/housing_choice_voucher_program_section_8[3/28/2022 9:19:09 AM] Under the voucher program, new voucher-holders may choose a unit anywhere in the United States if the family lived in the jurisdiction of the PHA issuing the voucher when the family applied for assistance. Those new voucher-holders not living in the jurisdiction of the PHA at the time the family applied for housing assistance must initially lease a unit within that jurisdiction for the first twelve months of assistance. A family that wishes to move to another PHA's jurisdiction must consult with the PHA that currently administers its housing assistance to verify the procedures for moving.

Roles - the tenant, the landlord, the housing agency and HUD Once a PHA approves an eligible family's housing unit, the family and the landlord sign a lease and, at the same time, the landlord and the PHA sign a housing assistance payments contract that runs for the same term as the lease. This means that everyone -- tenant, landlord and PHA -- has obligations and responsibilities under the voucher program.

Tenant's Obligations: When a family selects a housing unit, and the PHA approves the unit and lease, the family signs a lease with the landlord for at least one year. The tenant may be required to pay a security deposit to the landlord. After the first year the landlord may initiate a new lease or allow the family to remain in the unit on a month-to-month lease.

When the family is settled in a new home, the family is expected to comply with the lease and the program requirements, pay its share of rent on time, maintain the unit in good condition and notify the PHA of any changes in income or family composition.

Landlord's Obligations: The role of the landlord in the voucher program is to provide decent, safe, and sanitary housing to a tenant at a reasonable rent. The dwelling unit must pass the program's housing quality standards and be maintained up to those standards as long as the owner receives housing assistance payments. In addition, the landlord is expected to provide the services agreed to as part of the lease signed with the tenant and the contract signed with the PHA.

Housing Authority's Obligations: The PHA administers the voucher program locally. The PHA provides a family with the housing assistance that enables the family to seek out suitable housing and the PHA enters into a contract with the landlord to provide housing assistance payments on behalf of the family. If the landlord fails to meet the owner's obligations under the lease, the PHA has the right to terminate assistance payments. The PHA must reexamine the family's income and composition at least annually and must inspect each unit at least annually to ensure that it meets minimum housing quality standards.

HUD's Role: To cover the cost of the program, HUD provides funds to allow PHAs to make housing assistance payments on behalf of the families. HUD also pays the PHA a fee for the costs of 121
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Additional Information and other subsidy programs
For additional information about the voucher program, contact either the local PHA serving your community or the Office of Public Housing within your local HUD office. There may be a long wait for assistance under the housing voucher program. If the PHA also administers the public housing program, applicants for the housing choice voucher program may also ask to be placed on the waiting list for the public housing program. HUD also administers other subsidized programs and you may obtain a list of programs in your area from the Office of Housing at your local HUD office.

What regulations cover this program?
Regulations are found in 24 CFR Part 982.

Are you a Landlord or PHA looking to increase landlord
participation?
If you are interested in learning more about becoming a landlord, visit HCV Landlord Resources website.

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Resources

U.S. Department of Housing and Urban Development

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Essential Partners in Ending Homelessness
A publication of the Council of Large Public Housing Authorities 124
1 Preface
2 Foreword by the U.S. Interagency Council on Homelessness 3 Increasing Leadership, Collaboration, and Civic Engagement 4 Houston, TX: Housing Houston’s Heroes
6 Fresno, CA: Fresno Madera Continuum of Care
8 San Antonio, TX: Homeless Services Vouchers Program
10 Increasing Access to Stable and Affordable Housing
11 Family Homelessness: Bill & Melinda Gates Foundation 12 Snohomish County, WA: Project-Based Voucher Program for Homeless Families 14 King County, WA: Rapid Rehousing Demonstration
16 Tacoma, WA: Collaboration with the Child Welfare System 17 Increasing Economic Security
18 Santa Clara County, CA: The Opportunity Center
20 Charlotte, NC: Community Based Rental Assistance Program 22 Cuyahoga County, OH: Y-Haven and Open Door
24 Youth Homelessness: National Alliance to End Homelessness 25 Greensboro, NC: Family Unification Program
27 Improving Health and Stability
28 Chronic Homelessness: CSH
29 San Diego, CA: Home Again, Project 25
31 Oakland, CA: Sponsor-Based Housing Assistance Program 33 Senior Homelessness: LeadingAge
34 Los Angeles, CA: Permanent Supportive Housing Program 35 Marin County, CA: Shelter Plus Care Program
37 Retooling the Homeless Crisis Response System
38 Portland, OR: Short-Term Rent Assistance Program
40 Oklahoma City, OK: 100,000 Homes OKC
42 Veteran Homelessness: National Coalition for Homeless Veterans 43 Washington, DC: VASH Plus
Table of Contents
Cover photo: Bruno, Siti, and Juliana, housed at YWCA Family Village in Mountlake Terrace through the Housing Authority of Snohomish County’s project-based voucher program for homeless families 125
1 In 2013, CLPHA’s members—some of the largest and most forward-thinking housing authorities in the country—committed to an effort to reshape the way that the housing system works with other systems at the federal level. It is CLPHA’s view that investing in systems alignment will ultimately improve the delivery of services and will support low-income households by allocating scarce resources more effectively, leveraging other public and private resources, and institutionalizing best practices. Housing authorities’ partnerships and innovation are already challenging rigid, compliance- driven programs and systems to be better aligned and integrated while refocusing on “people outcomes.” In the current budget climate, systems alignment may be the answer to the challenges that housing authorities face in continuing to meet their missions and to serve their communities.

CLPHA members already know, from experience, that when local systems work together, outcomes for families and individuals living in poverty improve. At the heart of every housing authority’s mission is bettering the lives of the families and individuals they serve. For many housing authorities, this means coordinating with the local education, workforce development, health care, transportation, and social services systems to provide supports and opportunities to residents, recognizing that housing quality and stability are inextricably linked to the “people outcomes” of those systems. On any given day, CLPHA members make both affordable housing and vital services available to more than one million low-income households.

Service partnerships enhance housing authorities’ ability to meet the needs of their communities, as evidenced by local-level work on homelessness.

Housing authorities have always assisted households previously experiencing or at risk of experiencing homelessness. By enabling extremely low-income households to afford their homes, housing subsidies serve to prevent and end homelessness as a matter of fact. Increasingly, however, housing authorities are bringing their subsidies into partnerships with the homeless services system. Such partnerships lead to more targeted efforts to address homelessness, such as the development of permanent supportive housing for populations with specific service needs. Those housing authorities with additional flexibility through Moving to Work have developed additional innovative approaches, such as sponsor-based vouchers, and are dedicating resources to evidence-based practices such as rapid rehousing.

Partnerships also enhance our work at CLPHA, and we are grateful to be able to include in this publication contributions from the U.S. Interagency Council on Homelessness, the Bill & Melinda Gates Foundation, the National Alliance to End Homelessness, CSH, LeadingAge, and the National Coalition for Homeless Veterans. We appreciate their sharing of their expertise and their recognition of the importance of housing authority work in this arena. We look forward to expanding our partnerships, on issues related to homelessness and for broader systems alignment, and encourage readers of this publication to contact us with ideas about how we can work together to improve outcomes for those living in poverty.

Thank you for your interest in the work of housing authorities to end homelessness.

Sunia Zaterman
Executive Director, Council of Large Public Housing Authorities Preface
126
2 Grit and ingenuity. These two words capture the unique value that public housing agencies across the country bring to the work of ending homelessness. I’ve had the chance to witness this grit and ingenuity among public housing agency leaders and staff first hand, originally in my work to end homelessness at the community level in Ohio, and now in my role as Executive Director of the United States Interagency Council on Homelessness (USICH). Time and time again, I’ve watched public housing agency leaders make and stand behind bold commitments, tackle bureaucratic and political hurdles, and come up with innovative solutions and partnerships to improve housing opportunities for individuals and families experiencing homelessness.

The qualities of grit and ingenuity are reflected in the Council of Large Public Housing Authorities’ (CLPHA) publication, Housing Authorities:

Essential Partners in Ending Homelessness, through the many examples of how public housing agencies are helping to end homelessness. Now more than ever, we need the grit, ingenuity, and leadership of public housing agencies in our effort to end homelessness in America. This effort is guided by Opening Doors, the first-ever Federal strategic plan to prevent and end homelessness, which is shepherded by USICH in partnership with the 19 Federal agencies that comprise the Council and valued partners like CLPHA. Opening Doors is a roadmap for joint action, providing a reference framework for the allocation of resources and the alignment of programs. It includes 10 objectives and 58 strategies that call upon the Federal government to work in partnership with State and local governments, as well as the private sector, to employ cost-effective, comprehensive solutions to end homelessness. Its objectives are organized according to five themes, which CLPHA has, in turn, used to organize this publication:
increasing leadership, collaboration, and civic engagement; increasing access to stable and affordable housing; increasing economic security; improving health and stability; and retooling the homeless crisis response system. These themes build upon the lesson that mainstream housing, health, education, and human service programs must be fully engaged and coordinated to prevent and end homelessness.

Such engagement and coordination drives the real work of ending homelessness, which happens at the community level, through partnerships between homeless services providers, Continuum of Care leaders, municipal and State governments, philanthropy, community and business leaders, and public housing agencies. In the past three years, we’ve seen how these local partnerships have resulted in significant progress towards achieving the goals of ending chronic homelessness and homelessness among Veterans by 2015, and ending homelessness among families, youth and children by 2020. We’ve seen declines in homelessness overall, while achieving greater declines in homelessness among Veterans and people experiencing chronic homelessness.

But make no mistake: we still have a long way to go and much work ahead of us to reach our goals. And adding to our challenge is the extraordinarily difficult budgetary and political climate in which we now operate. As public housing agencies are well aware, Federal resources for affordable housing—the cornerstone of the Federal strategy to end homelessness—have shrunk due to budget cuts and sequestration. Meanwhile, despite compelling evidence that investing in affordable and supportive housing is cost-effective for low-income households, including people experiencing homelessness, the current political climate is not the most conducive to reasoned, evidence-informed policy arguments.

I remain firm in my conviction that we can achieve the goal of ending homelessness in America. Getting there entails leveraging every available resource—Federal, State, local, and philanthropic—to provide affordable housing and permanent supportive housing to individuals and families experiencing homelessness. It requires the continued leadership and commitment of CLPHA and public housing agency leaders everywhere. It necessitates that those of us in the Federal government support the ability of public housing agencies to adopt the policy changes and programs that increase housing opportunities for people experiencing homelessness, things like limited homelessness preferences, revised admissions policies, project-based vouchers to create permanent supportive housing, and participation in Continuum of Care planning efforts. It also requires more Federal, State, local and philanthropic strategic investments in public housing agencies and their partners to expand the supply of affordable and permanent supportive housing.

Most of all, ending homelessness means learning from the example of public housing agency leaders, who routinely face bureaucratic and political obstacles and must make tough choices about how to allocate scarce resources. By channeling the grit and ingenuity they exhibit, we can ensure that no child, adult, or family will experience homelessness, but instead will have a stable place to call home.

Barbara Poppe
Executive Director, U.S. Interagency Council on Homelessness Foreword
127
3 Despite the traditional division at the federal level between housing and homelessness program
administration, many housing authorities have
strong relationships with their local CoCs, in some
cases playing important leadership roles in the
collaborative approach. Some housing authorities
have been engaged with their CoC since the
beginning, as many administer Shelter Plus Care
vouchers or projects, funded through McKinney-
Vento grants. Others may have become more
involved in the first decade of the 21st century, as
communities began writing local ten-year plans to
end homelessness. Most of those plans include a
strong focus on developing an adequate supply of
affordable housing, and housing authorities can
play an important role in increasing that stock,
whether as part of a development team or by
allocating subsidies to new units to make them
deeply affordable.

The affordable housing that housing authorities
administer has become an increasingly essential
part of local collaborations as more communities
adopt a Housing First approach to address
homelessness. Housing First efforts center on
preventing homelessness and providing people
experiencing homelessness with housing as quickly
as possible, with varying levels of wrap-around
services offered once they are housed, depending
on need. With this approach, households can
focus their attention on addressing the issues
that led to their experience of homelessness
because they have the stability of housing. Housing
authorities provide units, often through set-asides
or admissions preferences, that enable housing to
come first.

Communities need strong leadership and coordination of efforts across all sectors in order to establish, implement, and revise action plans to prevent and end homelessness. These plans must be locally driven and tailored to address the specific conditions of the locality. Since 1995, communities have organized local or regional Continuums of Care (CoC) to take a collaborative funding and planning approach to providing homeless services. Originating in a U.S. Department of Housing and Urban Development (HUD) requirement to submit a single community application for McKinney-Vento Homeless Assistance Grants, the CoC maintains as a central purpose the preparation of that application and the oversight of administration of those grants. The CoC also bears responsibility for developing a long-term strategic plan and managing a year-round planning effort regarding the provision of homeless services. To support their efforts, CoCs gather local data on homelessness, largely carried out through a biennial Point-in-Time (PIT) count of all persons experiencing homelessness and through year-round data collection from homeless assistance providers in a local Homeless Management Information System (HMIS). increasing Leadership,
Collaboration, and Civic
engagement
128
4 Increasing Leadership, Collaboration, and Civic Engagement Houston Housing Authority
Together with its governmental, non-profit, and private sector partners, the Houston Housing Authority (HHA) is well positioned to meet the ambitious goal of ending homelessness in Houston. On May 29, 2013, HHA celebrated the one-year anniversary of Housing Houston’s Heroes, an initiative which successfully housed and provided supportive services to 148 homeless veterans, including 101 chronically homeless veterans, in 100 days. Throughout the first 100 days, HHA provided leadership through organization, engagement, community outreach, and agency performance.

In April 2013, HHA started another ambitious project—the goal this time to house 300 homeless veterans in 100 days. Together, the partnership surpassed this goal and housed 357 homeless veterans, including 195 chronically homeless veterans. Using HHA vouchers, Harris County Housing Authority vouchers, Supportive Services for Veteran Families (SSVF) funds, and other local HUD-funded Continuum of Care (CoC) units, this effort capitalized on an enduring sense of collaboration. HHA attributes its success to the coordinated access and outreach with its community partners. Working with its partners, HHA has hosted briefings that bring the homeless and homeless service providers together, in one room, in order to expedite the process of securing housing and supportive services for homeless individuals.

Currently, Housing Houston’s Heroes has housed over 830 homeless Houstonians. “We do so much more together than we could do on our own,” affirms Mark Thiele, HHA’s Vice President of the Housing Choice Voucher Program, who has been the effort’s Team Leader.

Housing Houston’s Heroes has facilitated many other positive changes, including:
an amended administrative plan allowing for a homeless admissions preference with attached supportive services, creation of a new HHA position focused on homeless and housing initiatives, Houston’s move towards Coordinated Access for units funded by both the U.S. Department of Veterans Affairs (VA) and the CoC, integration of triage tools to assess and place clients in housing with the correct level of care, troubleshooting of system barriers, enabling open dialogue on the definition of chronic homelessness, formation of a subcommittee to address housing retention, increased utilization of the Homeless Management Information System (HMIS) to track those housed, a dramatic shift toward VA implementation of Housing First principles, and HHA’s participation in Houston Registry Week.

Houston Registry Week, the local effort of the national 100,000 Homes Campaign, was a citywide collaborative initiative to create a comprehensive database to identify Houston’s most vulnerable homeless individuals. For three days, volunteers canvassed downtown Houston surveying Houston’s homeless. Identifying and prioritizing the most vulnerable homeless individuals is the first of a three-step process to house 2,500 homeless Houstonians by 2016.

The additional steps include placing the homeless into permanent housing, and providing them with needed services and treatments.
“It makes sense on a moral and financial level to get Houston’s homeless off the streets and into permanent supportive housing,” says HHA President and CEO Tory Gunsolley. “We are committed to working with our partners to make sure that homeless veterans, individuals, and families in Houston get the help that they need.”
“We do so much more
together than we could
do on our own.”
– Mark Thiele, Houston
Housing Authority’s Vice
President of the Housing Choice
Voucher Program
Housing HousTon’s Heroes
129
5 Increasing Leadership, Collaboration, and Civic Engagement The unprecedented collaboration among Houston’s
homeless service providers greatly impacts the lives
of Houston’s homeless veterans, such as Marine
Corps veteran James Adams. James moved into
his new apartment in southwest Houston on May
1, 2013 after being homeless for five years. He
said that his life is now back on track. He is taking
classes to become an electrician and expects to
graduate from Everest Institute in fall 2013. ‘‘I
got my own place, and my self-esteem is coming
back,’’ James says. ‘‘Life has many challenges, and
sometimes it takes people a little longer to get back
up when life knocks them down.’’
Single father Burnell Bemiss is as optimistic as
Adams about his future as a result of help from
Housing Houston’s Heroes. Burnell, an Army veteran,
was living in a shelter with his 15-year-old son
before receiving a voucher. Now, the two live in a
two-bedroom apartment and are both grateful for
the newfound stability in their lives. Burnell’s son is involved in ROTC and is excelling at his high school.

He plans on attending college and then pursuing
a career in the military. Burnell is proud of his son
but also proud of his own accomplishments. He is
currently attending classes to become a barber and
hopes to open his own barber shop. “Taking care
of my son and watching him grow up to become a
responsible adult is important to me,” Burnell says.
“My son and I are in a good place, things are better.”
Veteran James Adams in his new apartment
Agencies participating in Housing Houston’s Heroes include: HUD; VA; City of Houston, Office of the Mayor; Baxter Trust; The Beacon; Career and Recovery Resources, Inc.; Catholic Charities; City of Houston, Housing and Community Development Department; City of Houston, Office of Veterans Affairs; Cloudbreak Communities; Coalition for the Homeless of Houston/Harris County; Compassionate Houston; CSH; Goodwill Industries; Harris County Housing Authority; Harris County, Office of Housing and Community Development; The Housing Corporation; Houston Housing Authority; Houston Food Bank; Houston Police Department – Homeless Outreach Team; Mental Health and Mental Retardation Authority; Neighborhood Centers, Inc.; Salvation Army; SEARCH Homeless Services; U.S. Vets.

Veteran Burnell Bemiss in his new apartment
HHA President and CEO Tory Gunsolley conducting homeless survey with Houston resident Courtesy of Johnny Hanson, Houston Chronicle
130
6 Increasing Leadership, Collaboration, and Civic Engagement Fresno Housing (FH) employs innovative Housing First strategies to end homelessness in Fresno County. Through partnerships in the non-profit, government, and medical arenas, FH offers a plethora of housing options with services to diverse populations. Enhanced work around garnering additional resources for housing the homeless has strengthened the excellent partnerships that FH had previously forged. Homelessness and its solutions are community issues that should be addressed collaboratively, and FH leads its community in doing so, in a number of ways.

As the Collaborative Applicant for the Fresno Madera Continuum of Care (FMCoC), FH is responsible for stewardship of HUD’s extensive Continuum of Care Notice of Funding Availability (NOFA) process for supporting projects that alleviate homelessness, for both Fresno and Madera Counties. In 2012, FH worked closely with all FMCoC members and an outside consultant on a successful Collaborative Application, resulting in funding for all but two new projects.

Currently, resources stand at $5.7 million with 21 projects funded.

In addition, FH serves as the Homeless Management Information Systems (HMIS) Lead Agency, maintaining the system within its information technology purview and training all FMCoC members on superior data collection, quality, and analysis. As HMIS Lead, FH procures and analyzes data for the Annual Homeless Assessment Report and Housing Inventory Chart, which are reported to HUD.

FH embarked on participation in the 100,000 Homes Campaign in 2011. During Fresno’s first registry in July 2011, 100 volunteers administered Health and Housing Surveys to approximately 250 homeless respondents over a three-day period. The resulting Vulnerability Index (VI) informed strategies on collaborative solutions to prioritize housing those most vulnerable. To date, utilizing VI data, Fresno has secured housing for 269 households of the area’s most at-risk residents. In March 2013, Fresno participated in a Rapid Results Boot Camp, delving further into developing housing strategies for those most in need of assistance.

Building on its experience with the VI, FH along with FMCoC partners played an integral role in the 2013 Point-in-Time (PIT) count. With HUD’s encouragement to incorporate the VI into the PIT, the FMCoC seized the opportunity to enhance its knowledge of characteristics of those it aims to serve. Over a three-day period in February 2013, volunteers surveyed the homeless community utilizing the Health and Housing instrument, resulting in the addition of 300 unsheltered individuals to the VI. One of the most important features of the PIT was civic engagement, and volunteers came from every part of the community—faith-based organizations, students, non-profit agencies, and concerned individuals.

Preston Prince, Executive Director and CEO of Fresno Housing notes, “This is all just one part of a collaborative, community-wide effort focused on a long-term strategy to prevent and end homelessness in our area.”
From its leadership position in the FMCoC, FH observed the scant supply of housing resources available to address homelessness, and the staff and Board of Commissioners responded by prioritizing the housing of homeless individuals and families. One of FH’s proudest achievements is the establishment of 118 units of permanent supportive housing in partnership with the Fresno County Department of Behavioral Health (DBH). These “Renaissance” projects utilize a Housing First/Harm Reduction model with behavioral health services offered both on- and off-site. Such a model presents challenges, like dealing with behaviors antithetical to traditional housing models and teaching households that rent payment is the primary priority in maintaining housing. This is why case management is a vital element for success, and partnership with the dedicated professionals of DBH is invaluable. FH has developed the partnerships needed to take on the difficult and rewarding work of ending homelessness in Fresno County. “This is all just one part of a
collaborative, community-wide
effort focused on a long-term
strategy to prevent and end
homelessness in our area.”
– Preston Prince, Executive Director and
CEO of Fresno Housing
Fresno Madera ConTinuuM o F Care
Fresno Housing Authority
131
7 Increasing Leadership, Collaboration, and Civic Engagement After eleven years of homelessness and dealing with
substance abuse issues, Pearl was desperate for
change but unable to make the transition to sobriety.

Past trauma, coupled with life on the streets, was
just too hard. Pearl utilized services at the local soup kitchen, the women’s day center, and sometimes spent
nights at the women’s shelter.

She was fast losing hope of ever getting off the streets when she participated in a 100,000 Homes Health
and Housing Survey. The volunteer performing the
survey remembers Pearl sobbing as she recalled how
long she had been on the streets and the trauma she
faced throughout her life.

Pearl’s luck and life changed when she learned
that she was eligible for a FH permanent housing
program featuring subsidized housing payment and
case management services. “I can’t remember a time
when I have felt so blessed,” states Pearl, her smile
and laugh infectious. Since moving into housing
provided by FH, she has reconnected with her family,
including her children and grandchildren. Today,
Pearl has hope, love, and laughter—all because she
has a place to call home.

Renaissance at Santa Clara
“I haven’t lived on my own for
more than 27 years! I’m scared
but know this is the step I need
to move forward!”
– Jackie (left), moving into Renaissance at
Santa Clara.
132
8 “We know that
our partnership
will continue to be
vital as we work
together to refine the
housing strategy for
people experiencing
homelessness in our
community.”
– Scott Ackerson, Haven
for Hope’s Vice President of
Strategic Relationships
The San Antonio Housing Authority (SAHA) serves 27,000 households through its 6,321 public housing units, 6,879 mixed-income units, and 13,417 Housing Choice Vouchers.

While SAHA maximizes its HUD-funded, low-income housing programs, another 40,000 families are on the agency’s waiting lists for housing assistance, and as many as 3,000 individuals are homeless in San Antonio every day.
“SAHA is committed to reducing homelessness in our community, through programs that provide affordable, quality housing for more than 1,100 homeless individuals and families, while working with local service providers on issues that affect the participants’ quality of life,” says Lourdes Castro Ramírez, SAHA President and CEO.

The agency’s Homeless Services Voucher (HSV) program provides rental vouchers to homeless individuals through a partnership with Haven for Hope, a one-stop center for the homeless that features a multi-acre campus and a recovery-oriented system of care with comprehensive social services provided on-site by community agencies.

Haven for Hope is comprised of two major programs: Prospects Courtyard, a low-barrier, safe sleeping area that offers shelter and basic needs; and the Transformational Campus, a center that offers services and shelter with an emphasis on addressing the root causes of homelessness. The goal at the Transformational Campus is to help homeless individuals or families obtain the resources and support needed to attain permanent housing.

Through a collaborative process under SAHA’s HSV program, Haven for Hope refers Transformational Campus participants to the Housing Authority, which places eligible applicants on the Housing Choice Voucher waiting list. Upon selection from the waiting list and final eligibility screening, an HSV participant is issued a voucher by SAHA and receives continued case management and supportive services from Haven for Hope. “SAHA has been an invaluable partner in our efforts to rehouse families,” says Scott Ackerson, Haven for Hope’s Vice President of Strategic Relationships. “We know that our partnership will continue to be vital as we work together to refine the housing strategy for people experiencing homelessness in our community.”
A total of 400 vouchers have been allotted for the HSV program, and 350 individuals are currently being assisted. Since its inception in July 2010, the program has helped 627 households, who rely on HSV assistance for an average of two years.

SAHA’s other homeless assistance efforts include: 435 Veterans Affairs Supportive Housing (VASH) program vouchers, which combine rental assistance with case management and clinical services provided by the U.S. Department of Veterans Affairs (VA) at VA Medical Centers and community-based outreach clinics; 200 Set-Aside Homeless Voucher Program vouchers, which utilize a collaborative referral process with local supportive service providers including SAMMinistries and the Center for Health Care Services; and 101 Shelter Plus Care (S+C) vouchers, proving rental assistance and supportive services for homeless families and individuals with serious mental illnesses, chronic problems due to alcohol or drug dependencies, and AIDS or related diseases. Additionally, SAHA has engaged CSH to assist in the development of a Permanent Supportive Housing Program.

Ho Meless servi Ces vou CHer PrograM
Increasing Leadership, Collaboration, and Civic Engagement san Antonio Housing Authority
133
9 “After selling everything
I had to keep up with
the bills, my kids and I
showed up to Haven with
just three bags of clothes.”
– Leslie Serna, participant in the
Homeless Services Voucher
Program
Leslie Serna, 35, lost her full-time job as a car dealership service manager and then lost her home— ultimately finding herself at Haven for Hope, along with her five children. “After selling everything I had to keep up with the bills, my kids and I showed up to Haven with just three bags of clothes,” says Leslie.

The following six months, which her family spent at Haven for Hope, required adjustments, especially for her children, who range in age from 11 months to 18 years. “You try to provide your children with as much as you can,” she says. “But the experience helped my children appreciate more what they have.”
After finding a job as a bartender, Leslie was able to save enough money to transition to her own home, upon receiving her voucher from SAHA. She credits the resources, programs, and advice given to her from the Haven for Hope representatives that helped her get back on her feet, provide for her children, and eventually buy a car.

Leslie just signed her second-year lease on her apartment and advises anyone who had a similar situation to take advantage of all that Haven for Hope has to offer. “Don’t be afraid to ask questions about anything. They are here to help, and they want to see you succeed.”
Increasing Leadership, Collaboration, and Civic Engagement Air Force veteran Adele Jamison-Jackson, housed
through SAHA’s VASH program, and her daughters
134
10 According to HUD’s Worst Case Housing Needs report, in 2011 there were only 31 affordable, available, and adequate housing units for every 100 extremely low-income renters. These are households with incomes of no more than 30 percent of their Area Median Income (AMI). As a result of this affordable housing shortage, the number of households with “worst case needs”—very low-income renters (up to 50 percent of AMI) who do not receive housing assistance and either pay at least half of their income for housing or live in severely substandard housing—has been increasing at a record pace for a decade. Between 2001 and 2011, the incidence of worst case needs increased by 69 percent. increasing Access to stable
and Affordable Housing
Families with children make up the greatest share
of worst case needs, accounting for 38.2 percent of
the total. Among very low-income renter families with
children, 42.8 percent have worst case needs, an
increase of 24 percent since 2007. Paying most of
their income for housing, these families are extremely
vulnerable. One study showed that 20 percent of
households with children in the lowest-income quintile
lose more than 50 percent of their income in any given
year, with only about half fully recovering the loss within a one-year period.
1 Without the resources to cushion
themselves from such income shocks, households
may experience serious residential instability, and may become homeless.

Although we have made some progress, as a nation,
we are still challenged by the problem of family
homelessness. As homelessness has decreased overall,
the number of persons in families with children who
are experiencing homelessness has seen only a limited
decline, 3.7 percent since 2007. Between 2011 and
2012, homelessness among persons in families actually
increased by 1.4 percent. During the 2010-2011 school
year, public schools identified 1,065,794 homeless
students, the highest number on record and a 57
percent increase since the 2006-2007 school year.

Aware of the traumatic effects that housing instability and homelessness can have on children—physically,
emotionally, and in terms of their educational
progress—housing authorities have developed specific
efforts to help families regain and maintain stable
and affordable housing. Some families, including
those involved in the child welfare system, may
need long-term support services to achieve stability.

Others may only need short-term assistance to get
back on their feet and may be best served with rapid
rehousing assistance. Rapid rehousing is a Housing
First strategy through which households receive
temporary assistance that allows them to obtain and
retain housing. It can take the form of short-term
rental assistance, security deposit assistance, utility payments, moving cost assistance, or other types of
assistance. For some families, this will be enough to
stabilize their households, while others may need the
long-term rental assistance of the traditional housing
authority programs.
1 Bipartisan Policy Center Housing Commission. Housing America’s Future (2013). 135
11 Increasing Access to Stable and Affordable Housing
Bill & Melinda g aTes Founda Tion
By David Wertheimer, Deputy Director, Pacific Northwest Initiative FAmiLy
HomeLessness
Guided by the belief that every life has equal value, the Bill & Melinda Gates Foundation works to help all people lead healthy, productive lives. In developing countries, it focuses on improving people’s health and giving them the chance to lift themselves out of hunger and extreme poverty. In the United States, it seeks to ensure that all people—especially those with the fewest resources—have access to the opportunities they need to succeed in school and life. Based in Seattle, Washington, the foundation is led by CEO Jeff Raikes and Co-chair William H. Gates Sr., under the direction of Bill and Melinda Gates and Warren Buffett.

Rental markets that put housing out of reach of lower-income workers, unstable employment, domestic violence, uninsured health crises, long-term debt, checkered rental histories and mortgage foreclosures—these are but a few of the reasons families in the United States can face housing instability and homelessness.

There are as many unique stories of family homelessness in America as there are homeless families. In 2012, families represented 37 percent of the overall homeless population in the United States. HUD’s 2012 Point-in-Time homeless count identified more than 230,000 people in families in 77,000 American households. In Washington State, the focus of homelessness work by the Bill & Melinda Gates Foundation, the 2012 count identified 9,231 homeless family members in 2,871 households. Other counts produce even more stark statistics. The 2012 count of kids who are homeless in public schools across Washington, which includes those in doubled-up housing, identified more than 27,000 homeless children across the state.

With numbers like these, it is no surprise that housing authorities in Washington—and elsewhere across the nation—have been such essential partners in the ongoing work of ending homelessness. But, as housing authorities and others know well, successfully stabilizing families in housing frequently requires more than just a roof overhead and pat on the back. Although rapidly housing homeless families is the essential first step towards stability, families may present a range of complex needs that must be addressed on an individualized and tailored basis if their housing tenure is going to be successful over time.

Data from a cohort of more than 350 homeless families being studied as part of our work in King, Pierce, and Snohomish Counties (the central Puget Sound region) provides insights into the range of needs that must be considered by housing providers working with these families. Three quarters of the families are headed by single adults, and many have young children: 66 percent have at least one child under six years old, 38 percent have a child two or younger.

At baseline (shelter entry), 68 percent of the heads of household in these families met the threshold criteria for moderate or severe psychological depression. A history of domestic violence and/or trauma was reported by 61 percent of the families. Unemployment was reported by 65 percent of the potential wage earners in these families; for those employed, the mean hourly wage was $10.77, and families had a mean monthly income of $633. An alarming 84 percent reported significant levels of debt; the mean debt level was $14,117.

A significant number of these families have been or are involved with the child welfare system.

Many of these families would benefit from help from a number of different sources. Yet the existing fragmentation of services and systems often complicates the experiences of these families, placing an even greater burden on shelter and housing providers to assume a coordinating role in service delivery. Working in partnership with housing authorities, housing can become the essential platform on which pathways to stability and success can be built. Pairing housing with the right mix of services—no more and no less than what each family needs—can make the difference between success and failure over time, both for individual families and for the systems that are assisting them.

Using tools like progressive engagement and formal linkages between housing, education, workforce training, employment supports and other services, partnerships with housing authorities have helped to reinforce how resilient families truly can be, and how the goal of stability and independence is within reach for many. In the current environment of limited resources that stretch every system’s capacities to meet at times overwhelming demands, working with families to help them move up and out of subsidized housing supports the larger system goal of “through-put.” That is, it frees up subsidies from the existing, limited pool and increases the number of families who can benefit from those subsidies. Over time, this actually increases the capacity of housing providers to meet the needs of the families whom they have not yet even met.

At the Bill & Melinda Gates Foundation, we rely on housing authority partnerships as critical to the shared goal of ending family homelessness.
136
Increasing Access to Stable and Affordable Housing
12 Housing Authority of
Snohomish County
Project-Based Voucher Program for h omeless f amilies
Of the 9,000
households on
HASCO’s Section 8
waiting list, 45 percent
are homeless.

The Housing Authority of Snohomish County (HASCO) aims to provide housing opportunities that are as affordable as possible and that enhance quality of life for individuals and families of limited financial resources. HASCO owns and manages a portfolio of 5,500 subsidized and affordable units and vouchers, and covers a jurisdiction of 620,000 people and 15 school districts. Of the 9,000 households on HASCO’s Section 8 waiting list, 45 percent are homeless.

HASCO began project-basing vouchers in 2001 as part of a regional initiative aimed at reducing homelessness for families with children. “Matching housing and supportive services for homeless families was a really good idea,” says Bob Davis, HASCO Executive Director, “and we wanted to use our voucher resources to assist in that effort.” HASCO understood that the educational and developmental outcomes of homeless children suffered due to lack of affordable housing and that the cycle of homelessness and poverty would continue without a housing and services intervention.

The agency’s project-based voucher (PBV) program serving homeless families has grown to 243 units. In partnership with non-profit service providers, HASCO has been able to assist 1,055 families in the program since its inception, and among the households currently served by the program are 400 children. The average family in the program consists of a single parent with two children and has a household income of just $750 per month. The average family pays $118 per month to their landlord, and the PBV covers the balance.

HASCO’s service provider partners screen homeless families for the program and provide wrap-around services including case management, mental health counseling, life skills classes, education and employment services, and youth programs. Service providers work closely with school district homeless liaisons to ensure educational needs are met for all children in the program. HASCO and other landlords provide the apartment units, and HASCO provides the rental assistance through PBVs. Once families complete their Supportive Services Housing Plan, they graduate from the program and receive a Housing Choice Voucher (HCV).

A recent evaluation of the program showed that, over a 2.5 year period, 86 percent of the participating families achieved housing stability, meaning they: (1) were still successfully participating in the PBV program, (2) had graduated and were successfully participating in the HCV Program, or (3) became self-sufficient and obtained their own housing. 137
Increasing Access to Stable and Affordable Housing
13 “The collaboration
between the YWCA,
HASCO, and the
Edmonds School District
made it possible for this
family to obtain the stable
home they so desperately
needed in order to
thrive and to achieve
their employment and
educational goals.”
– Maria Bighaus, Director of
Housing Services of YWCA
Snohomish County.

Siti and her two children, Bruno and Juliana, moved into the YWCA shelter in August 2010 after becoming homeless due to a family breakup caused by domestic violence. Siti’s native country is Indonesia, and she has limited English proficiency, making it difficult for her to help her children with their school work. Bruno and Juliana attended homework club at the shelter for support with their school work, and Bruno received help from a YWCA Child Advocate. In addition, Siti attended Edmonds Community College to improve her English skills.

The family’s dream of a safe and affordable home to begin their journey to self-sufficiency became a reality in April 2012, when they moved into their own three-bedroom apartment, a PBV unit at YWCA Family Village in Mountlake Terrace. This stable housing enabled Siti to obtain a job at the University of Washington in the janitorial department. In addition, Bruno and Juliana’s school performance blossomed.

Bruno, age 12, just entered seventh grade and is thriving. Siti will enroll Bruno in Washington State’s College Bound Scholarship Program, which combines with other state financial aid to cover college tuition for low-income seventh and eighth grade students who work hard in school, stay out of legal trouble, and successfully apply to higher education institutions.

Juliana, a 10-year-old in fifth grade, is an excellent reader and has received numerous awards for her reading accomplishments this past year. In addition, Juliana was able to receive McKinney-Vento transportation services from the Edmonds School District, allowing her to continue her education in her school of origin and avoid the school changes that often cause homeless students to fall behind.

Bruno, Juliana, and Siti
138
Increasing Access to Stable and Affordable Housing
14 “Researchers have
demonstrated that
rehousing homeless
children in stable,
affordable housing
allows them to ‘make
up’ the learning and
development they
may have lost while
homeless.”
– Casey Trupin, attorney with
Columbia Legal Services
As homelessness increases among families, teachers and school administrators are witnessing its effects on children and their academic performance. School districts throughout Washington State are wrestling with this growing issue and recognizing its impact on the classroom. In 2012, school districts in King County alone reported more than 5,200 homeless children. This reflects an increase of 53 percent in just three years.

Being homeless affects how children learn. Kids who are sleeping on a relative’s couch can’t do their homework. Kids who change classrooms every two months because their parents don’t have stable housing don’t keep up with the curriculum for their grade.

Homelessness has been shown to affect the behavioral development, interpersonal relationships, and physical and mental health of students. Housing and classroom stability is increasingly associated with on-time grade advancement and graduation rates.

Under the federal McKinney-Vento Act, school districts are required to pay to transport students back to their school of origin, even if they have been forced to find emergency shelter outside the district. The purpose of this requirement is to support homeless students with classroom stability, keeping them connected to their teachers, peers, and a consistent curriculum. With no federal funding for this purpose, school districts must use limited education funds to provide cab fare, bus passes, or other means of transportation for these children. The cost is high and continues to grow: school districts in King County alone spent $5.69 million on homeless student transportation during the 2011-2012 school year.
raPid reHousing d eM onsTra Tion
King County Housing Authority
Back to School Fair for Highline Students in SeaTac
139
15 Increasing Access to Stable and Affordable Housing
While the intention of the McKinney-Vento requirement is laudable— it is well documented that providing a stable classroom setting can reduce the negative impacts of homelessness on children—wouldn’t it be more effective to prevent or limit homelessness in the first place? Shouldn’t available resources be directed to providing housing stability rather than cab fares? The King County Housing Authority (KCHA) is exploring how it can cost-effectively help address these twin challenges.
“Providing long-term stable, affordable housing has the effect of stabilizing the lives of formerly homeless students at home and at school,” says Casey Trupin, attorney with Columbia Legal Services and one of the editors of the study Beds and Buses: How Affordable Housing Can Help Reduce School Transportation Costs, commissioned by the National Law Center on Homelessness and Poverty. “Researchers have demonstrated that rehousing homeless children in stable, affordable housing allows them to ‘make up’ the learning and development they may have lost while homeless.” Working as a partner in the Road Map District Consortium, a network of seven school districts in King County collaborating on educational initiatives under a federal Race to the Top grant, KCHA is developing a program that links schools and housing. A pilot Rapid Rehousing Demonstration with one of these partners, the Highline School District—where 900 students were homeless during the 2012- 2013 school year—is just getting underway. Rapid rehousing is increasingly being seen across the country as an effective strategy for returning homeless families to permanent housing.

Using the flexibility provided under its Moving to Work (MTW) contract, KCHA’s program will provide short-term rental assistance to rapidly rehouse 40 homeless families who have at least one child attending school in the Highline School District. The District’s McKinney-Vento school liaisons will identify and screen eligible families for referral to the pilot program. These families will be connected to rental subsidies, client assistance funds, employment, and other resources. Neighborhood House, a service provider with deep roots in the south King County community, will provide support as needed through housing search assistance, job training, employment, and financial case management. The expectation is that targeted families will only require assistance for a limited period of time (six months or less). The goal is to stably rehouse these families within the catchment areas of their existing schools.

Technical assistance on program design is being provided by CSH.

Building Changes, a local non-profit that supports homeless family initiatives, is providing funds for employment connection services.

Additional client assistance funds from the United Way and other community foundations are expected to expand the reach of the program. If the demonstration program is successful, KCHA hopes to expand the initiative to the other school districts in the Race to the Top consortium.

The initiative is being evaluated by an outside consulting firm. KCHA and the Highline School District will be
looking at four outcomes:
1) Reductions in the length of time families are
homelessness;
2) The success of the program in utilizing short term
assistance to facilitate long term housing stability;
3) Reductions in the use of educational funds for
transportation costs; and
4) Improvements in classroom stability and academic
outcomes for the youth assisted.

The first day of school for students
in the Highline District
Highline’s Kindergarten Jump Start program
140
Increasing Access to Stable and Affordable Housing
16 In Washington State, seventeen housing authorities, four non-profit housing organizations, and the State’s agency for child welfare services, Department of Social and Health Services (DSHS), have signed a Memorandum of Understanding (MOU) establishing a promising and innovative collaboration. They seek to better serve client households that need both housing and supportive services for one of three purposes: (1) to prevent the need for a child’s foster care placement, (2) to shorten the length of a foster care placement, or (3) to allow a young person aging out of foster care to begin his or her adulthood without becoming homeless.

The collaboration aims to supplement and build upon the Family Unification Program (FUP) by committing 249 vouchers and units in addition to 912 FUP vouchers already designated for these purposes, with DSHS providing enhanced social services for as long as the household receives housing under the MOU. The service commitment may encourage a voucher landlord to take a risk on renting to a participating family or youth who may otherwise fail a landlord’s screening, giving that landlord a caseworker to call if problems arise during a tenancy. The collaboration also takes advantage of the flexibility available to the four participating housing authorities with MTW status. For example, the Tacoma Housing Authority will limit the duration of its rental assistance for the non- FUP participants. Once the family is adequately stable and no longer needs the housing assistance to prevent or shorten a child’s placement, DSHS could recycle the rental assistance to the next family who needs it for those purposes.

Along with others, Tacoma Housing Authority’s Executive Director, Michael Mirra, helped develop this partnership as the housing representative on DSHS’s Advisory Committee for fashioning a competitive application to the U.S. Department of Health and Human Services for a Title IV-E Waiver. Such a waiver allows more flexible use of federal foster care dollars. Mirra took the opportunity presented by the application process to move previous discussions forward and formally propose the housing-child welfare collaboration to the leadership of DSHS and to Representative Ruth Kagi, a leader on the issue in Washington’s House of Representatives.

The proposal addressed two related problems. First, the nation’s child welfare systems need housing resources to be effective.

Conservative estimates indicate that, if DSHS child protection and child welfare workers had housing resources available to use when they judged it would work to prevent or shorten a child’s foster care placement, the State could prevent about 5 percent of initial placements and significantly speed up reunification in 15 percent of placement cases. Other estimates suggest that nearly half of youth become homeless within two years of aging out of foster care.

Second, many of these families and youth need more than housing.

They need supportive services to succeed not only as parents or transitioning youth but as tenants. Services may be necessary to help them find and keep housing. Notably, they may need these services beyond the duration of the child welfare services they are receiving. “If these estimates are even partially correct, then the provision of housing resources and supportive services offers several appealing and valuable policy and fiscal benefits,” says Mirra. “It would greatly increase the ability of the child welfare system to prevent or shorten placements that would otherwise be unnecessary. It would better reserve placements for the children whose need for them is unavoidable. It would give youth a better chance at a stable life after care. It would save money in averted foster care costs.” Because of these promising advantages, DSHS and State
Representative Kagi received the proposal very positively. “As Washington State embarks on a major reform of its child welfare system that involves keeping children safely at home whenever possible, and safely returning children home as soon as possible when removal is necessary, the cooperation and support of the public housers is critical to our success,” explains Representative Kagi.

The housing authorities, non-profit housing providers, and DSHS collaborated to develop the MOU, which the State of Washington then included as part of its successful Title IV-E waiver application.

Representative Kagi credits the MOU as an important reason the State was successful in obtaining the waiver. Now, all partners work on implementation, expecting that the enhanced match of housing, child welfare services, and supportive services will make all three more effective and more cost-effective. The MOU provides for an evaluation of these possible outcomes, to be conducted by DSHS.

CollaBora Tion wiTH THe CHild welF are sysTeM
tacoma Housing Authority
141
17 Low-wage workers, for example, often find themselves in precarious housing situations. According to the
National Low Income Housing Coalition’s Out of
Reach 2013 report, with only a handful of exceptions
in states with higher minimum wages, there is no
county in the United States where a one-bedroom
unit priced at the Fair Market Rent is affordable to
someone working full-time at the minimum wage.

As a result of this mismatch between income and
housing costs, low-wage workers must spend
significantly greater percentages of their incomes for
housing than their higher-income counterparts. Over
three quarters of extremely low-income households
spend more than half of their income on housing
costs. This puts them at risk of losing their ability
to pay for their housing as a result of reductions in
working hours, job loss, or stagnating wages that do
not keep pace with rent increases.

Unfortunately, this precariousness means that
employment itself does not protect against
homelessness. A startling number of those
experiencing homelessness are actually employed.

The New York Times recently reported that more than
one out of four families in New York City shelters, 28
percent, include at least one employed adult, and 16
percent of single adults in shelters hold jobs. Hard-
working, responsible people go to work each day, only
to go back to a shelter at night because their wages
are not sufficient to buy or rent adequate housing.

Those who face serious barriers to employment,
such as ex-offenders trying to get back on their
feet as productive community members, face an
even greater risk of homelessness. Youth aging out
of foster care, who are establishing independent
households in the community for the first time
without assets to fall back upon, are particularly
vulnerable. Persons with disabilities who cannot work
and those who have suffered long-term homelessness
may need extra support to achieve economic
and housing stability, including connections with
mainstream assistance programs. These particularly
disadvantaged populations require targeted resources
and services to help bolster their economic security
and prevent them from falling into or returning to
homelessness. Housing authorities are helping to
provide such assistance.

Still, most homelessness is situational, the result of
an acute housing crisis, usually due to a sudden
decrease in financial resources. Households
experiencing situational homelessness spend
relatively short amounts of time in the homeless
assistance system, exit to housing, and rarely return.

Due to their financial circumstances, they may need
rental assistance to secure that housing, and supports
such as case management and job search assistance
to help them maintain it. Housing authorities are
working with partners in their communities to provide
these types of aid to those in need.

It is no surprise that households with the greatest financial insecurity are the most at risk of experiencing homelessness. In a country with 43 million people living in poverty, this fact leaves far too many people just one paycheck away from losing their homes. increasing economic security
142
18 Increasing Economic Security
THe oPPor TuniTy CenTer
Housing Authority of the
County of santa Clara
In the heart of Silicon Valley, where the high cost of living is well beyond the means of many residents, the Housing Authority of the County of Santa Clara (HACSC) administers over 16,000 Section 8 vouchers and has a real estate portfolio of 2,700 tax credit and HUD-funded affordable units. Furthermore, HACSC has housed over 2,000 homeless families and seniors by using MTW funding flexibility to develop housing, and by dedicating new turnover vouchers and project-based vouchers to this population. These efforts are critical in Santa Clara County, where the 2013 Point-in-Time count found that more than 7,600 people are homeless on any given night—an increase of eight percent since 2011.

The Opportunity Center of the Midpensinula, a Housing First facility within HACSC’s real estate portfolio, was built in 2006 to provide permanent housing plus comprehensive services and personalized case management to homeless individuals and families. “The Housing Authority serves as developer, asset manager, and joint owner. We, along with key partners Community Working Group and InnVision Shelter Network, work with a broad coalition of citizens, charities, local governments, and educators,” says Vanessa Cooper, HACSC Director of Real Estate Services. “The mixed-use center combines 88 units of extremely low-income permanent housing with an on-site, drop-in service center for those experiencing or at risk of homelessness.” Numerous non-profit organizations provide services and resources that include case management, medical services, counseling, food distribution, education support, computer access, laundry facilities, showers, and lockers.

Located in downtown Palo Alto and near Stanford University, in one of the wealthiest and yet most unaffordable places to live in the nation, the Opportunity Center provides homeless households with homes of their own and assists many more individuals and families in finding their way back to productive, self-sufficient lives. Personal success stories of Center residents provide support that the Housing First strategy for reducing homelessness is as effective in Palo Alto as it has been in other areas, including New York, Santa Monica, Alameda County, and San Francisco.

Personalized case management is paramount to helping people secure permanent housing and self-sufficiency. Last year, 2,975 case management services were provided to Opportunity Center clients.

The case managers, staff, and specialist volunteers assist clients and residents with a range of issues from housing to substance abuse to financial assistance to the justice system. Currently 130 people, including 23 children, reside at the Center. The tenants’ average stay of four years, with 20 percent of the tenants living at the Center for more than six years, demonstrates that these formerly homeless households have managed to stabilize their lives.

Equally important is the rental subsidy available to those who are unable to be housed due to insufficient or no income. Since its inception in 2006, the Center’s rental subsidy program (provided by a local, community-driven non-profit) has aided 53 tenants, more than half of whom were disabled, chronically homeless, and without income. Funds provided amounted to $485,000. Through intense case management, 45 of the 53 tenants now are receiving benefits, while eight are employed. Data show that on average, current households experience an increase in income of 20 percent during their stay. A further 22 households are assisted by direct subsidy from HACSC, which has contributed $1,398,870 to date.
“The Opportunity Center shows what can be done when a
community and local governments work in partnership to solve homelessness and develop economic self-sufficiency. This strategy is even more important as federal budget cuts continue to deplete funding for social services and affordable housing assistance,” asserts Alex Sanchez, HACSC Executive Director.
“The Opportunity Center
shows what can be done
when a community and
local governments work
in partnership to solve
homelessness and develop
economic self-sufficiency.”
– Alex Sanchez, Executive Director of the
Housing Authority of the County of Santa
Clara
143
19 Increasing Economic Security
Mae Law, 50, has rented an Opportunity Center
apartment for the past five years. She had been
chronically homeless for 30 years, primarily in East
Palo Alto. An InnVision Shelter Network client, Mae
used all of the available services to get to where she
is now—housed and employed. “I’m currently working
as a dishwasher at Stanford University, and I’ve had
that job for seven years this November,” Mae says
proudly. Mae’s two months at the Hotel De Zink rotating emergency shelter, janitorial work with Palo Alto’s
Downtown Streets Team, and the Opportunity Center’s
rehabilitative and medical services all have enabled her to earn an income.
“Mae joins hundreds of Opportunity Center residents
and service center clients who have moved into
permanent housing or are taking huge steps toward
self-sufficiency,” says Dr. Don Barr, Stanford University Professor of Pediatrics and Human Biology, and a
founder of the Community Working Group. “The several
hundred names on the Center’s housing wait list
indicates a powerful need on the Peninsula for other
centers like this one.”
The Opportunity Center
Vanessa and Mae at the Center’s six-year celebration
144
20 Increasing Economic Security
Charlotte Housing Authority
A report by the U.S. Conference of Mayors revealed that Charlotte’s population of homeless families grew by more than 20 percent in 2012. The report predicted that the size of that population would continue to increase in 2013. In addition, with Charlotte’s population expected to double by 2050, there is no doubt that there will be an increased need for affordable housing to assist families across the city. The Charlotte Housing Authority (CHA) continues to use its MTW flexibility to create unique programs to address this growing need.

In 2011, CHA entered into a collaborative partnership with Charlotte Family Housing (CFH), a shelter-to-housing program, through the Housing Authority’s Community Based Rental
Assistance Program (CBRA). Under this 50-unit pilot program, which CHA is able to implement because of its MTW status, CHA provides a flexible housing subsidy of up to $500 per month to 50 homeless families: 10 to 15 families who need employment and 35 to 40 working households. The program targets extremely low-income families who are situationally or transitionally homeless.

CFH submits the initial application packet to the Housing Authority, which then screens the applicant for eligibility requirements and processes the request for admission.

CBRA has requirements and processes similar to CFH’s existing housing program. The goal is to help families achieve self-sufficiency within three to five years by providing comprehensive family development via social work, intensive case management, and access to services while the family is permanently housed in a stable apartment community. CFH established operating procedures, landlord relationships, and administrative staff to deliver wrap-around services. The partnership enables delivery of supportive services at no cost to CHA.
“We have been fortunate to work with partners like Charlotte Family Housing, who share in our mission of providing quality housing in sustainable communities of choice for residents of diverse incomes.

This partnership allows CHA to leverage its resources to assist families beyond their housing needs,” says A. Fulton Meachem, Jr., CHA’s President and CEO.

CBRA participants receive intensive supportive services as a part of CFH’s self-sufficiency program. Families are paired with a clinically trained social worker, who provides counseling and helps them create goals towards self-sufficiency. CFH social workers partner in all aspects of a family’s life to give direction on reaching their goals, especially with financial literacy, vocational counseling, children’s education, and health and wellness. The social worker connects families to resources in the community, such as Goodwill Industries of the Southern Piedmont’s vocational training.

In addition, the self-sufficiency program includes help from social workers and volunteers trained to motivate and transact with families by offering interest-free microloans, interest-free and below-market car loans, matched savings accounts, and more, thereby preserving dignity and self-esteem, increasing personal accountability, and decreasing dependency.

Working families are expected to complete the self-sufficiency program within three years with a one-year extension, and non- working families are given a four-year program requirement with a one-year extension. Currently, 91 percent of the participating families have been successfully housed, graduated from CFH’s program, and are maintaining permanent housing on their own without rental subsidy.
“This partnership with the Charlotte Housing Authority has allowed us to pull families out of their initial trauma and place them in stabilized housing, where they are able to benefit from our supportive services and empowerment-based strategies,” states Darren Ash, founder of CFH.
“This partnership with the
Charlotte Housing Authority
has allowed us to pull families
out of their initial trauma and
place them in stabilized housing,
where they are able to benefit
from our supportive services
and empowerment-based
strategies.”
– Darren Ash, founder of Charlotte
Family Housing
Co MMuniTy Based renT al assisT an Ce PrograM
145
21 Increasing Economic Security
After several bad relationships, Glendora was a 26-year-old single mother with five children living in New York. She decided to move south in 1998, eventually settling in Charlotte. Over the years, Glendora was able to get by on various jobs in retail and restaurants with the help of income from some of her children. Her circumstances changed when her 19-year-old son moved out and knee surgery forced her to stop working for a while. Unable to afford rent at her apartment, Glendora moved in with her oldest daughter and sent her two youngest children to live with their father.

Glendora realized she needed more permanent work and seized a job opportunity when it arose. “They told me I wasn’t qualified, but my spirit was so good that they gave me the job,” says Glendora, who began working at Burlington Coat Factory in 2011. Even with the new income, Glendora could not afford her own place, so she contacted CFH in early 2012. The CBRA program helped her obtain housing, and CFH helped her gain the skills needed to become self-sufficient. “Charlotte Family Housing has taught me a lot.

Respect for money, planning ahead.”
With her social worker, Glendora budgeted and saved for a house. Once she bought her own home, she was able to bring her younger sons back to live with her. She also graduated from Getting Ahead, a program that teaches families the hidden rules of the middle class and evaluates their current resources. Glendora has a new understanding of finances. Every month she puts $25 into savings, and she is saving to buy a car through CFH’s Jumpstart Automobile program.
“I am in poverty, and I need to be on my A game to get out. I don’t want a hand-out—I want a hand up,” Glendora says. “You can take a fall, but as long as you keep your head up, stay focused, be persistent and don’t be ashamed to ask for help, you’ll get to where you need to go.”
Glendora in front of her house
146
22 Increasing Economic Security
Cuyahoga Metropolitan Housing Authority (CMHA) is committed to collaborating with local organizations addressing homelessness, as evidenced by its engagement with the Y-Haven and Open Door programs run by the YMCA of Greater Cleveland.

The Y-Haven program assists homeless men, 18 and older, to become self-sufficient, live free from drugs and alcohol, and achieve permanent housing. The average Y-Haven resident is a 38-year- old male with a seventh grade education. Approximately 99 percent of the clients have substance dependency issues, and nearly 40 percent have history of mental illness. Y-Haven provides transitional housing and a continuum of care beginning with primary treatment for substance dependency. When residents graduate from the primary counseling phase, case managers focus their treatment plan on continuing care, relapse prevention, and appropriate education and training programs.

The final phase of the treatment plan is finding suitable permanent housing for residents. CMHA provides priority permanent housing for all graduates of Y-Haven’s two-year program. To date it, this has resulted in hundreds of housing placements. In 2010, 170 men entered Y-Haven’s residential substance abuse program, and an 85 percent graduated from the 90-day Primary Treatment Phase.

Of the 170 residents, 151 (89 percent) increased their employment readiness skills and income, and 70 percent secured permanent housing through family reunification, home ownership, or subsidized housing. More than 3,000 men have turned to Y-Haven for help since it first opened, and over 70 percent of those who complete the program successfully live drug and alcohol free in permanent housing.
“CMHA is proud of its partnership with Y-Haven, which focuses on helping residents with housing and obtaining the tools to achieve their goals,” says Jeffery K. Patterson, CMHA’s CEO. “The Y-Haven Program continues to have highly successful outcomes in helping the chronically homeless population.”
In 2011, CMHA, the YMCA, the Center for Families and Children, and Cuyahoga County’s Office of Re-entry partnered to establish the Open Door re-entry program. Managed by Y-Haven, Open Door offers formerly incarcerated men comprehensive case management, transitional housing, and permanent housing placement with CMHA. Men at least 18-years-old and released from a correctional institution within the last six months are eligible for the program.

Y-Haven also administers the Green Team Custodial program, a job training and placement program that addresses employment barriers for the homeless by offering participants the training and work experience needed to develop long-term, transferable skills; a consistent work history; and economic self-sufficiency. The ten-week hands-on, comprehensive instructional program teaches janitorial and floor technician skills. Graduates, all of whom obtain recognized industry-certified credentials, have enjoyed an 80 percent job placement rate. The YMCA is one of the major employers of the graduates.

One of the two Y-Haven locations, Open Door, and the Green Team are housed at CMHA’s Carl B.

Stokes Social Service Mall, a one-stop shop for community needs managed by the Housing Authority.

The Mall was formerly an elderly housing building that was redeveloped through a HOPE VI grant to house a full-service medical clinic, a large transitional housing program, a probation center, and additional social services. CMHA provides space, utilities, and security to maintain a drug-free environment, absorbing all capital cost in order to allow Y-Haven funds to pay for its direct services. “CMHA is proud
of its partnership
with Y-Haven,
which focuses on
helping residents
with housing and
obtaining the tools to
achieve their goals.”
– Jeffery K. Patterson
CMHA’s CEO
y-Haven and oPen door
Cuyahoga metropolitan
Housing Authority
Reading at Alcoholics Anonymous
support meeting
147
23 Increasing Economic Security
Bobby Nieves, 48, grew up in a Cleveland household
with a bar as the focal point of family life, and by 13 he was into marijuana, speed, and alcohol. After high
school, he relocated to South Carolina. “I was working
for Coca-Cola first and then took a job in a mortuary.

It was a very sad job, and I would drink away my
sorrow,” he recalls.

Eventually, Bobby’s mom, disabled from diabetes
and unable to care for herself, came to live with him.

Growing stress from caretaking and work eventually
led Bobby to try crack. Though he had been financially
comfortable, he smoked his way through his money,
neglecting his mother and his bills. His mom had to
move back to Cleveland to be with his sister.

Bobby also moved back and eventually lost his
apartment and nearly his life after getting into trouble with dealers. “I was in treatment a few times but then
got addicted to Xanax. I felt helpless and hopeless,”
he says. In an act of absolute desperation, he decided
to rob a bank for drug money, hoping either to be
caught or killed. “I didn’t think they’d give me the
money and let me leave,” he says. But that’s what
happened. And so Bobby smoked up the drugs bought
with the stolen money and then turned himself in to
the Justice Center.

Thirty months later, and after nine months of sobriety, he asked to come to Y-Haven. “Sobriety gave me
enough sense to know what got me to prison in the
first place.” He credits group therapy with turning his life around. He turned the mirror on himself and really looked at who he is and why.

After pursuing career counseling and then community
mental health counseling, Bobby decided to focus on
working in a support capacity. He worked at several
social service agencies. Then his dream job opened up
at Y-Haven. Today, in his role as Y-Haven’s Educational and Vocational Specialist, he helps clients find
educational and employment opportunities. He helps
them to prepare for interviews, write resumes and use
the computer to search for job opportunities.
“People come here come as their last stop,” says
Bobby. “But you can actually see their hopes and
dreams come alive as they progress through the
program. They actually look different. What they learn
here they take with them out the door.”
Y-Haven group session at the Stokes Social Services Mall 148
24 Increasing Economic Security
An estimated 530,000 unaccompanied youth under age 25 are homeless for a week or more each year. Of these, 380,000 are 18 or younger. If they are lucky, homeless youth get a shelter bed or sleep on a friend or family member’s couch. If they are unlucky, they sleep on the streets, in cars, in abandoned buildings; they may ride public transit all night; or they may barter sex for a place to stay.

While most quickly return home, a smaller percentage of youth faces greater challenges and requires more support to reconnect with family or find another living arrangement. Approximately 52,000 youth under the age of 24 have more serious problems: they are disconnected from school and family, homeless repeatedly or for long periods of time, and/or suffering with a disabling condition. The population of homeless youth is sizable compared to the 1.5 million adults and children that are homeless every year.
1 There are a variety of reasons that so many youth become homeless.

Housing affordability is a significant driver, although not as definitively as for homeless adults and families. Many young people become homeless when their families, unable to afford a place to live, split apart. Affordable housing can thus be cost-effective in allowing families to stay together and prevent foster care placement and youth homelessness.

Beyond causes related to housing, youth homelessness is often the result of family breakdown. Youth run away from home, are abandoned by their parents, or are rejected because of their sexual orientation. No matter what the appropriate housing intervention, family counseling and intervention are critical components of solutions to youth homelessness.

There are a number of distinct subpopulations of homeless youth.

LGBTQ youth are over-represented. Youth who have aged out of foster care or “re-entered” from juvenile corrections and those from families with very young parents are at particular risk of homelessness.

Homelessness has serious consequences for young people.

Unaccompanied homeless youth are at a higher risk for physical and sexual assault, abuse, and physical illness. They suffer from anxiety disorders, depression, post-traumatic stress disorder, and risk of suicide because of increased exposure to violence. Homeless youth are highly vulnerable to sexual exploitation and trafficking, and they are more likely to become involved in prostitution, to abuse drugs, and to engage in dangerous and illegal behaviors.

Prevention of homelessness is particularly important for youth.

The provision of affordable housing can help to prevent the family dissolution that can lead to youth homelessness. For youth who are exiting foster care or juvenile corrections, affordable housing is also a critical need, and programs such as the Family Unification Program help achieve stability while youth address the challenges of employment and self-sufficiency.

For youth who have become homeless, family intervention and counseling play a critical role, but housing is also important. They need stable, short-term housing linked to family counseling and intervention to ensure the homeless episode is as short as possible.

For those with more serious disabilities and those who cannot return home, permanent supportive housing may be indicated, although the meaning of “permanent” is often different for youth than it is for adults. Youth may move frequently to be close to employment or support networks of family and friends. As such, non-project-based housing assistance may be a particularly useful tool when assisting this population.

Many young people under age 25 experience homelessness every year, but for most it is a short experience. Housing is an important component of the solution to youth homelessness, but it must be accompanied with developmentally appropriate services and a linkage back to family or to another caring adult.

By Nan Roman, President and CEO, and Samantha Batko, Director, Homelessness Research Institute
naTional allian Ce To end
Ho Melessness
youTH Ho Melessness
youtH
HomeLessness
1 Data on youth homelessness is imperfect at best. This information is from An Emerging Framework for Ending Youth Homelessness (2012), by the National Alliance to End Homelessness.

The National Alliance to End Homelessness is a nonprofit, non-partisan, organization committed to preventing and ending homelessness in the United States. As a leading voice on the issue of homelessness, the Alliance analyzes policy and develops pragmatic, cost-effective policy solutions; works collaboratively with the public, private, and nonprofit sectors to build state and local capacity; and provides data and research to policymakers and elected officials in order to inform policy debates and educate the public and opinion leaders nationwide.
149
25 Increasing Economic Security
FaMily uniFi CaTion PrograM
“I see FUP as a
permanent solution
to a temporary
problem...giving
participants stability
they never had.”
–
Tina Gray, Vice President
of Assisted Housing for
the Greensboro Housing
Authority
According to the U.S. Department of Health and Human Services, over 25,000 youth between the ages of 18 and 21 left foster care in 2012. Housing stability is a key component in helping these youth successfully transition to adulthood and avoid homelessness. Through HUD’s Family Unification Program (FUP), housing authorities and child welfare agencies partner to provide that stability, and the Greensboro Housing Authority (GHA) is among them.

Awarded 100 housing vouchers in 2010 through FUP, GHA quickly leased up the vouchers to families in need of rental assistance in Greensboro, North Carolina. FUP serves youth, ages 18 to 21, who have left foster care and who lack adequate housing. FUP vouchers used by youth are limited to 18 months of housing assistance. The program also serves families for whom the lack of adequate housing is a primary factor in the imminent placement of a child or children in out-of-home care or the delay of the unification of the family from out-of-home care.
“I see FUP as a permanent solution to a temporary problem,” states Tina Gray, Vice President of Assisted Housing for GHA, “giving participants stability they never had.” Though administered by GHA, the program relies on the partnership between the state’s Department of Social Services (DSS) and the Housing Authority to ensure that the vouchers go to eligible families and individuals, who also receive supportive services including money management skills, job preparation, educational counseling, and proper nutrition and meal preparation. This cooperative partnership is the key to the success of the program, which has served over 100 families since its inception. Among these are three young adults leaving foster care, whom GHA and DSS have helped to access stable and affordable housing. greensboro Housing Authority
Though the services for the youth have only been available since October 2010, one young man, Terrance, has shown how successful the program can be. After being part of the program for 18 months, Terrance is now self-sufficient with a full-time job due to his hard work and help through FUP. 150
26 Candace, the second youngest of seven children, was
removed from her home at age two because of abuse
and neglect. All six of her siblings were sent to live
with family members, and Candace was placed in
foster care. She bounced around from one foster home
to another and can’t remember how many homes
she lived in while growing up. “Sometimes a worker
from Department of Social Services would remove me
because the foster parents didn’t know what they were
supposed to do, but sometimes it was because of me,”
states Candice.

At age ten, Candace began running away from her
foster homes. “I had issues of trust, and I wanted to go home—I didn’t understand.” As she grew, life became
more complicated as healthy relationships were hard
to find. Candace dropped out of high school with only
seven credits left for graduation. Though she tried
returning to school at age 19, she felt uncomfortable
because she was older than the other students and felt
she didn’t fit in.

Candace left the foster care program at 18 but
remained connected to her DSS case worker. When
funds became available through GHA’s FUP to assist
with her $425 per month rent, Candace was referred
to GHA to complete the paperwork, attend orientation,
and become a part of the program.

Now 20-years-old and mother of a six-month-old,
Candace loves going to church, singing, going to the
park and seeing animals; things she shares with her
daughter. “Without this program, I would be struggling.

I’m not sure where my daughter and I would be.” FUP
has created stability for both of them. “The program
helps me provide for my daughter and give her a better
home than I had. I’m an overprotective mother and
concerned for my daughter’s well-being and safety. I
want to make things better for her.” Candace describes
herself as independent, responsible, and a good
mother. “Life experiences have made me stronger. I am
very happy,” she says.

Candace is currently looking to earn her GED and
become self-sufficient. From there she plans to pursue
her dreams of becoming a pediatrician or registered
nurse. “My aunt is a pediatrician and has been my role
model. I would like to help people just like she does.” Increasing Economic Security
Candace and her daughter
151
27 At the same time, the experience of homelessness
exacerbates existing health conditions and leaves
people at risk of developing new ones. People
experiencing homelessness struggle to manage
chronic diseases such as diabetes, hypertension, or
asthma, and they have difficulty healing from more
acute conditions, such as infections or injuries. Living on the street or in shelters, individuals experience
emotional trauma and may become victims of violence.

With inadequate hygiene due to their living situation,
they may contract communicable diseases. Though
ever present, these challenges and risks grow more
serious the longer that a person is without stable
housing. Mental health concerns, which affect a
significant percentage of those experiencing long-term
homelessness, can also increase the risk of developing
physical health conditions, as they may cause people
to neglect taking proper care of themselves.

In trying to address their health concerns, individuals experiencing homelessness may repeatedly and
excessively use hospital emergency departments and
inpatient services as their primary source of medical
care. As patients are discharged back to the street or to a shelter, without the stability needed to follow through on a treatment plan, their outcomes remain poor.

Evidence indicates that permanent housing integrated
with health care—both physical and behavioral—
serves as an effective alternative intervention for
homeless persons with serious medical conditions.

Integrating support services such as case management
also helps. For example, the Chicago Housing
for Health Partnership, an 18-month randomized
control trial, showed that providing housing and case
management to adults with chronic illness who are
experiencing homelessness creates housing and health
stability and reduces the need for hospital care.

Since 2007, the number of permanent supportive
housing beds in the United States has increased by
46 percent, or nearly 90,000 beds. These beds help
ensure that their occupants have the stability they
need to focus attention on managing their health and
following medical treatment advice and instructions.

In communities across the nation, housing authorities
have provided subsidies essential to the development
of permanent supportive housing for the most
vulnerable members of their communities. They have
helped to reduce chronic homelessness by more
than 19 percent and to increase the quality of life for thousands of people.

Health and housing stability are closely linked, with the quality and presence of each affecting the other. Poor health and disabling conditions can be precursors to homelessness. Medical events that lead to an inability to work, to personal bankruptcy, and to foreclosure can in turn lead to homelessness, as the affected individual can no longer afford to pay for housing. improving Health and stability
152
28 Improving Health and Stability
CSH transforms how communities use
housing solutions to improve the lives
of the most vulnerable people. We
offer capital, expertise, information
and innovation that allow our partners
to use supportive housing to achieve stability, strength and success for the people in most need. CSH blends over 20 years of experience and dedication with a practical and entrepreneurial spirit, making us the source for housing solutions. CSH is an industry leader with national influence and deep connections in a growing number of local communities. We are headquartered in New York City with staff stationed in more than 20 locations around the country. Visit csh.org to learn how CSH has and can make a difference where you live.

For over twenty years, CSH has been providing housing solutions to communities across the country to meet the needs of the most vulnerable—with a significant focus on the chronically homeless.

We have learned that housing coupled with services is the key to keeping individuals and families with disabilities and long histories of homelessness safe and stably housed, and improving their lives.

Seventeen percent of people who are homeless are experiencing chronic homelessness. An individual or family experiencing chronic homelessness typically has been homeless for more than one year or had multiple episodes of homelessness. Usually they also have one or more diagnosable disabilities such as a serious mental illness, substance use disorder, or a chronic physical health condition. The mortality rate for chronically homeless individuals is four to nine times higher than for the general population. Due to their intense needs, such persons or families often consume a disparate share of the resources in a given community.

Many come to be “frequent users” or “high utilizers” of public services— facing the double jeopardy of having complex health and behavioral health problems but having no coordinated systems of care. This dynamic—coupled with a lack of stable housing—forces them through a revolving door of multiple, costly crisis and institutional settings such as emergency rooms, inpatient care, detox facilities, long-term care facilities, and correctional facilities.

These individuals’ personal crises become public crises as their frequent and persistent encounters with public systems drive up public spending (in such areas as Medicaid, corrections, and homeless services) and contribute to overcrowded jails and overburdened emergency departments. Moreover, these increased expenses do not result in positive health, housing, or community safety outcomes. The clear alternative is a more appropriate, more humane, and less expensive approach to integrated care that includes housing.

Supportive housing, affordable housing combined with services that help people who face the most complex challenges to live with stability, autonomy, and dignity, is thus an effective solution for ending chronic homelessness. It can be particularly cost-effective when made available to people who otherwise spend multiple nights in expensive public institutions such as hospitals and jails. Increasingly sophisticated data collection systems and analyses provide new opportunities to identify frequent users of healthcare, correctional, and emergency systems; show the ripple effect of avoidable public service use across systems; and target interventions to those most in need and most likely to benefit.

Further, a growing body of research has demonstrated that targeted interventions employing cross-system strategies—including care coordination and housing—can interrupt patterns of repeated rounds of institutional and emergency care, thereby improving individual lives and making better use of limited public resources. Supportive housing is a proven solution to the costly and tragic problem of chronic homelessness.

Collectively, by increasing access to supportive housing, we are having an impact. According to HUD’s 2012 Point-in-Time count, the number of persons experiencing long-term or chronic homelessness has declined

6.8 percent (or 7,254 persons) from 2011 and 19.3 percent (or 23,939 persons) since 2007. Housing authorities have played a critical role in this success, providing much needed rental assistance, prioritizing chronically homeless people in their administrative plans, project-basing vouchers for supportive housing, partnering with community behavioral clinics, and so much more.

Housing authorities face significant challenges to playing such a role in ending chronic homelessness, including limited resources. Though supportive housing produces cost savings, it is difficult to harness those savings when they are accruing to another public system.

Because policymakers seeking to reduce the cost of caring for complex beneficiaries of any one of these systems do not control the policies that ultimately affect spending for all systems, comprehensive solutions require broad-based approaches that consider the full range of public services. This requires leadership, vision, and coordination, from housing authorities and from their partners.

The resulting strong partnerships between housing authorities, local Continuums of Care, and supportive housing providers across the country are clearly producing results and improving lives. In the summer of 2013, CSH signed a Memorandum of Understanding with CLPHA to partner on even more efforts to create supportive housing opportunities for the chronically homeless and other extremely vulnerable populations.

Together with its members, CLPHA and CSH are expanding our collective impact, engaging more housing authorities, providing the tools and knowledge to create supportive housing, and developing strategic partnerships. Supportive housing providers are looking for vouchers, for development partners, for project-based rental assistance, and for easier access and lower barriers to existing housing authority-controlled units.

Housing authorities are looking for good relationships with landlords, high utilization rates, and competitive advantages when applying for grants or other forms of capital. Thus, when housing authorities and supportive housing providers collaborate, it is a win-win situation.

Even under adverse conditions, CLPHA members and other housing authorities around the country are helping to lead the way to ending chronic homelessness, providing critical rental assistance but also playing many other key roles in efforts to provide more supportive housing opportunities to the most vulnerable people in our communities. With this leadership, chronic homelessness will continue to decline, until it is ultimately ended.

By Deborah De Santis, President and CEO
CsH
CHroniC
HomeLessness
153
29 Improving Health and Stability
“These vouchers are
making a profound
difference for people
who are struggling not
just to get their lives in
order, but to get a roof
over their heads
as well.”
– Richard C. Gentry, President
and CEO of the San Diego
Housing Commission
The San Diego Housing Commission (SDHC) made a commitment to find solutions toward ending homelessness in the City of San Diego through innovation and partnerships. Both were used to launch the United Way of San Diego County’s (United Way) Home Again, Project 25 (Project 25) campaign targeting 25 homeless individuals who had become the most frequent users of public services.

On July 1, 2010, SDHC became one of the first housing agencies in the nation to receive HUD approval to use federal Sponsor-Based Vouchers to provide long-term housing for chronically homeless individuals. When the United Way approached SDHC in December 2010, seeking help to address the problem of chronic homelessness through Project 25, SDHC was in a position to step in.

With its MTW designation, SDHC has the flexibility to test innovative programs for local housing needs. For Project 25, SDHC awarded Sponsor-Based Vouchers to St. Vincent de Paul Village, a local homeless rehabilitation agency that manages the program for the United Way, to place 25 homeless San Diegans into long-term housing. “These federal housing vouchers have become an essential component in the success of this program and the significant savings it has meant for public services and safety,” says SDHC President and CEO Richard C. Gentry. “These vouchers are making a profound difference for people who are struggling not just to get their lives in order, but to get a roof over their heads as well.”
A three-year pilot program launched in January 2011, Project 25 focuses on adult men and women who account for some of the costliest demands on medical, law enforcement, and emergency services, frequently stemming from mental health or substance abuse issues.

Oxnard City CouncilOctober 18, 2022

Oxnard City Council
October 18, 2022