Agenda packet — Pittsburg City Council, April 15, 2024 (part 2 of 5)

Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR

5.603(b)].

The disability expense deduction is capped by the amount of “earned income received by family members who are 18 years of age or older and who are able to work” because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied.

HACP Policy:

The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family’s request, the HACP will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the Formatted: Line spacing: Multiple 1.15 li
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relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work.

When the HACP determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members’ incomes.

Eligible Disability ExpensesAuxiliary Apparatus [Notice PIH 2023-27] Examples of auxiliary apparatus are provided in the HCV Guidebook as follows:
“Auxiliary apparatus are items such as may include expenses for wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a blind person who is blind or has low vision to read or type, but only if these items are directly related to permitting the disabled person or other family member to work” [HCV GB, p. 5-30].

HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30].

Eligible Auxiliary Apparatus

HACP Policy:

Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself)equipment to assist a person who is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be includeddeaf or hard of hearing.

Eligible Attendant Care [Notice PIH 2023-27]
Examples of attendant care expenses can include teaching a person with disabilities how to perform day-to-day tasks independently like cleaning, bathing, doing laundry, and cooking. Attendant care can be 24-hour care, or care during sporadic periods throughout the day. The family determines the type of attendant care that is appropriate for the person with disabilities.

HACP Policy:

Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in-home or center-based care services, interpreters for persons with hearing impairments, and readers for persons with visual disabilities.

Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general Formatted: Font: Italic
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housekeeping and personal services is not an eligible attendant care expense.

However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible.

If the care attendant also provides other services to the family, the HACP will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care.

Payments to Family Members
No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source.

Necessary and Reasonable Expenses
The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source.

HACP Policy:

The HACP determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, the HACP will collect information from organizations that provide services and support to persons with disabilities. A family may present, and the HACP will consider, the family’s justification for costs that exceed typical costs in the area.

Families That Qualify for Both Health and Medical and Disability Assistance Expenses

HACP Policy:

This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities.

When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, the HACP will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work.

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6-IIIII.F. CHILDCARE EXPENSE DEDUCTION
HUD defines childcare expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for the care of children under 13 years of age (including foster children) during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.”

Clarifying the Meaning of
Child for This Deduction
Childcare expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household [VG, p. 26]. However, childcare expenses for foster children that are living in the assisted family’s household are included when determining the family’s childcare expenses [HCV GB, p. 5-29].

Qualifying for the Deduction
Determining Who Is Enabled to Pursue an Eligible Activity

HACP Policy:

The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a childcare deduction (seeking work, pursuing an education, or being gainfully employed).

In evaluating the family’s request, the HACP will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.

Seeking Work

HACP Policy:

If the childcare expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member’s efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member’s job search efforts are not commensurate with the childcare expense being allowed by the HACP.

Furthering Education

HACP Policy:

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If the childcare expense being claimed is to enable a family member to further his or her education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the childcare claimed.

Being Gainfully Employed

HACP Policy:

If the childcare expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member’s employment during the time that childcare is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated.

Earned Income Limit on
Childcare Expense Deduction
When a family member looks for work or furthers his or her education, there is no cap on the amount that may be deducted for childcare – although the care must still be necessary and reasonable. However, when childcare enables a family member to work, the deduction is capped by “the amount of employment income that is included in annual income” [24 CFR 5.603(b)].

The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied.

When the person who is enabled to work is a person with disabilities who receives the earned income disallowance (EID) or a full-time student whose earned income above $480 is excluded, childcare costs related to enabling a family member to work may not exceed the portion of the person’s earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, childcare expenses are limited to $5,000.

The PHA must not limit the deduction to the least expensive type of childcare. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV GB, p. 5-30].

HACP Policy:

When the childcare expense being claimed is to enable a family member to work, only one family member’s income will be considered for a given period of time.

When more than one family member works during a given period, the HACP generally will limit allowable childcare expenses to the earned income of the lowest-paid member. The family may provide information that supports a request to designate another family member as the person enabled to work.

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Eligible Childcare Expenses
The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the childcare expense deduction because there is an adult family member in the household that may be available to provide childcare [VG, p. 26].

Allowable Childcare Activities

HACP Policy:

For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of childcare.

The costs of general housekeeping and personal services are not eligible.

Likewise, childcare expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for
childcare to relatives who do not live
in the unit are eligible.

If a childcare provider also renders other services to a family or childcare is used to enable a family member to conduct activities that are not eligible for consideration, the HACP will prorate the costs and allow only that portion of the expenses that is attributable to childcare for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the childcare provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care.

Necessary and Reasonable Costs
Childcare expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further his or her education, and (2) the family certifies, and the childcare provider verifies, that the
expenses are not paid or reimbursed by any other source.

HACP Policy:

Childcare expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For childcare that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class.

To establish the reasonableness of childcare costs, the HACP will use the schedule of childcare costs from the local welfare agency. The following website is used as a resource: https://rcscc.adm.dss.ca.gov/https://rcscc.adm.dss.ca.gov/ , CA Department of Education Reimbursement ceilings for subsidized childcare. Families may present, and the HACP will consider, justification for costs that exceed typical costs in the area.

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6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2023-27]
The regulations provide for two types of hardship exemption categories for families that qualify for unreimbursed health and medical care expenses and/or disability assistance expenses. A family will benefit from this hardship exemption only if the family has eligible expenses that can be deducted in excess of five percent of annual income. In order to claim unreimbursed health and medical care expenses, the family must have a head, cohead, or spouse that is elderly or a person with a disability. In order to claim unreimbursed reasonable attendant care and auxiliary apparatus expenses, the family must include a person with a disability, and the expenses must enable any member of the family (including the member who is a person with a disability) to be employed.

Families may be eligible for relief under one of two categories; phased-in relief or general relief, as defined below.

Phased-In Relief
The first category is applicable to all families who received a deduction for unreimbursed health and medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most recent income review. The family must receive phased-in relief if they are determined to be eligible. These families will begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever occurs first.

For these families, the threshold amount is phased-in as follows:
• The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual income for the first 12 months.
• At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their expenses that exceed 7.5 percent of annual income for another 12 months. • At the conclusion of 24 months, the standard threshold amount of 10 percent would be used, unless the family qualifies for relief under the general hardship relief category.
- When an eligible family’s phased-in relief begins at an interim reexamination, the PHA will need to process another transaction one year later to move the family along to the next phase. The transaction can be either an interim reexamination if triggered, or a non-interim reexamination transaction.

Prior to the end of the 24-month period, the family may request a hardship exemption under the second category as described below. If the family is found eligible under the second category, the hardship exemption under the first category ends, and the family’s hardship is administered in accordance with the requirements listed below. Once a Formatted: Indent: Left: 0", Keep with next
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family requests general relief, the family may no longer receive phased-in relief.

PHAs must track the 24-month phase-period for each eligible family, even if a family’s expenses go below the appropriate phase-in percentage, during the first or second 12- month phase-in period. The phase-in must continue for families who move to another public housing unit at the same PHA. When the family is treated as a new admission under a different property/program (e.g., the family moves from public housing to the HCV program), unless the PHA has a written policy to continue the phased-in relief upon admission, the family’s expense deduction will be calculated using the 10-percent threshold unless request for general relief is approved by the PHA. When a family moves with continued assistance or ports to a new PHA, the family must continue to receive the phased-in relief. The family must receive the remaining calendar months of the percentage phase-in. The PHA must use the existing phase-in documentation to determine the remaining calendar months and the percentage phase-in.

HACP Policy:

The HACP does not administer the Public Housing Program aamd will not continue the phased-in relief for families who move from public housing to HCV.

These families will be treated as new admissions and the sum of expenses that exceeds 10 percent of annual income will be used to calculate their adjusted income.

General Relief
The second category is for families that can demonstrate:
• Their health and medical and/or disability assistance expenses increased (other than the transition to the higher threshold); or
• The family’s financial hardship is a result of a change in circumstances (as defined in PHA policy) that would not otherwise trigger an interim reexamination.

The family may request a hardship exemption under the second category regardless of whether the family previously received the health and medical and/or disability assistance deductions or are currently or were previously receiving relief under the phased-in relief category above. HUD requires that PHAs develop policies defining what constitutes a hardship for purposes of this exemption.

The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third- party verification prior to the end of the 90-day hardship exemption period.

HACP Policy:

To qualify for a hardship exemption, a family must submit a request in writing.

The request must show that the family’s health and medical and/or disability assistance expenses have increased (other than the transition to the higher threshold) and that the family’s financial hardship is a result of a change in circumstances. The HACP defines a change in circumstances as a decrease in Formatted: Line spacing: Multiple 1.15 li, Keep with
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income or increase in other expenses that has resulted in the family’s financial hardship but does not, on its own, trigger an interim reexam in accordance with HACP policies.

Examples of circumstances constituting a financial hardship may include the following situations:

The family is awaiting an eligibility determination for a federal, state, or local assistance program, such as a determination for unemployment compensation or disability benefits;

The family’s income decreased because of a loss of employment, death of a family member, or due to a natural or federal/state declared disaster; or Other circumstances as determined by the PHA.

The family must provide third-party verification of the hardship with the request. If third-party verification is not available, the PHA will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90- day hardship exemption period.

The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR

5.611(e)(2)].

HACP Policy:

The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination.

If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request a hearing.

If the family qualifies for an exemption, the PHA will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances.

If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income.

The family’s hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion, extend the relief for one or more additional 90-day periods while the family’s hardship condition continues. PHAs are not limited to a Formatted: Line spacing: Multiple 1.15 li, Keep with
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maximum number of 90-day extensions.

PHAs must establish written policies regarding the types of circumstances that will allow a family to qualify for a financial hardship and when such deductions may be eligible for additional 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable.

HACP Policy:

The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The HACP will extend relief for an additional 90- days if the family demonstrates to the HACP’s satisfaction that the family continues to qualify for the hardship exemption based on circumstances described above. The HACP will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case- by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, the HACP may terminate the hardship exemption if the HACP determines that the family no longer qualifies for the exemption.

Childcare Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2023-27] A family whose eligibility for the childcare expense deduction is ending may request a financial hardship exemption to continue receiving the deduction. If the family demonstrates to the PHA’s satisfaction that the family is unable to pay their rent because of the loss of the childcare expense deduction, and that the childcare expense is still necessary even though the family member is not working, looking for work, or seeking to further their education, the PHA must recalculate the family’s adjusted income and continue the childcare deduction.

The PHA must develop a policy to define what constitutes a hardship, which includes the family’s inability to pay rent. The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90- day hardship exemption period.

HACP Policy:

For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. The PHA defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the childcare expense and such loss would impact the family’s ability to pay their rent.

Some factors to consider when determining if the family is unable to pay rent may include determining that the rent, utility payment, and applicable expenses (childcare expenses or health and medical expenses) are more than 40 percent Formatted: Line spacing: Multiple 1.15 li
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of the family’s adjusted income, or verifying whether the family has experienced unanticipated expenses, such as large medical bills, that have affected their ability to pay their rent.

The family must also demonstrate that the childcare expense is still necessary even though the family member is no longer employed or furthering their education. The PHA will consider qualification under this criterion on a case-by case basis (for example, if the family member who was employed has left their job in order to provide uncompensated care to an elderly friend or family member who is severely ill and lives across town).

The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions.

If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must provide families 30 days’ notice of any increase in rent.

If the PHA approves the request, the notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. The notice must also state the requirement for the family to report to the PHA if the circumstances that made the family eligible for relief are no longer applicable and that the family’s adjusted income and tenant rent will be recalculated upon expiration of the hardship exemption [Notice PIH 2023-27].

HACP Policy:

The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination.

If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request an informal hearing.

If the family qualifies for an exemption, the PHA will include all required information listed above as well as information on how to request a 90-day extension based on family circumstances.

If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income.

maximum number of 90-day extensions.

HACP Policy:

The PHA will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption.

HACP Policy:

For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. The HACP defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the childcare expense and such loss would impact the family’s ability to pay their rent.

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of the family’s adjusted income, or verifying whether the family has experienced unanticipated expenses, such as large medical bills, that have affected their ability to pay their rent.

The family must also demonstrate that the childcare expense is still necessary even though the family member is no longer employed or furthering their education. The HACP will consider qualification under this criterion on a case-by case basis (for example, if the family member who was employed has left their job in order to provide uncompensated care to an elderly friend or family member who is severely ill and lives across town).

The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions.

If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must provide families 30 days’ notice of any increase in rent.

HACP Policy:

The HACP will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination.

If the HACP denies the hardship exemption request, the HACP notice will also state that if the family does not agree with the HACP determination, the family may request an informal hearing.

If the family qualifies for an exemption, the HACP will include all required information listed above as well as information on how to request a 90-day extension based on family circumstances.

If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days.

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periods based on family circumstances and as stated in PHA policies. PHAs are not limited to a maximum number of 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable.

PHAs must promptly notify families in writing if they are denied either an initial hardship exemption or an additional 90-day extension of the exemption. If the PHA denies the request, the notice must specifically state the reason for the denial.

PHAs must notify the family if the hardship exemption is no longer necessary and the hardship exemption will be terminated because the circumstances that made the family eligible for the exemption are no longer applicable. The notice must state the termination date and provide 30 days’ notice of rent increase, if applicable.

HACP Policy:

The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The PHA will extend relief for an additional 90- days if the family demonstrates to the PHA’s satisfaction that the family continues to qualify for the hardship exemption. The PHA will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption.
6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(ii)] The PHA may adopt additional permissive deductions from annual income if they establish a policy in the administrative plan. Permissive deductions are additional, optional deductions that may be applied to annual income. As with mandatory deductions, permissive deductions must be based on need or family circumstance and deductions must be designed to encourage self-sufficiency or other economic purpose.

If the PHA offers permissive deductions, they must be granted to all families that qualify for them and should complement existing income exclusions and deductions [PH Occ GB, p. 128] Permissive deductions may be used to incentivize or encourage self- sufficiency and economic mobility.

A PHA that adopts such deductions must have sufficient funding to cover the increased housing assistance payment cost of the deductions. A PHA will not be eligible for an Formatted: Indent: Left: 0", First line: 0.5", Line
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increase in HCV renewal funding for subsidy costs resulting from such deductions.

HACP Policy:

The HACP has opted not to use permissive deductions.

PART IIIIV: CALCULATING FAMILY SHARE AND PHA SUBSIDY
6-IIIIV.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS
TTP Formula [24 CFR 5.628]
HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar:
• 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II)
• 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided by 12)
• The welfare rent (in as-paid states only)
• A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-III.B.

The amount that a family pays for rent and utilities (the family share) will never be less than the family’s TTP but may be greater than the TTP depending on the rent charged for the unit the family selects.

Welfare Rent [24 CFR 5.628]

HACP Policy:

Welfare rent does not apply in this locality.

Minimum Rent [24 CFR 5.630]

HACP Policy:

The minimum rent for this locality is $50.00 dollars.

Family Share [24 CFR 982.305(a)(5)]
If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant- paid utilities) that exceeds the HACP’s applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy, the HACP may not approve the tenancy if it would require the family share to exceed 40 percent of the family’s monthly adjusted income. The income used for this determination must have been verified no earlier than 60 days before the family’s voucher was issued. (For a discussion of the application of payment standards, see section 6-IIIIV.C.) Formatted: Space Before: 0 pt, Line spacing: Multiple

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PHA Subsidy [24 CFR 982.505(b)]
The HACP will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of (1) the applicable payment standard for the family minus the family’s TTP or (2) the gross rent for the family’s unit minus the TTP. (For a discussion of the application of payment standards, see section 6-IIIIV.C.)

Utility Reimbursement [24 CFR 982.514(b); 982.514(c)]
When the PHA subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider.

HACP Policy:

The HACP has the discretion to make utility reimbursements to the family or the utility provider.

The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar-year quarter and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship.

HACP Policy:

The HACP will issue all utility reimbursements monthly.

6-IIIIV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] HACP Policy:

The financial hardship rules described below do not apply in this jurisdiction because the HACP has established a minimum rent of $50.00 dollars.

Overview
If the PHA
establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship.

The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family’s calculated TTP.

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HUD-Defined Financial Hardship
Financial hardship includes the following situations:
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1896.

HACP Policy:

A hardship will be considered to exist only if the loss of eligibility has an impact on the family’s ability to pay the minimum rent.

For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following: (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances.

(2) The family would be evicted because it is unable to pay the minimum rent.

HACP Policy:

For a family to qualify under this provision, the cause of the potential eviction must be the family’s failure to pay rent to the owner or tenant-paid utilities.

(3) Family income has decreased because of changed family circumstances, including the loss of employment.

(4) A death has occurred in the family.

HACP Policy:

In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral-related expenses or the loss of the family member’s income).

(5) The family has experienced other circumstances determined by the PHA.

HACP Policy:

The HACP has not established any additional hardship criteria.

Implementation of Hardship Exemption

Determination of Hardship
When a family requests a financial hardship exemption, the PHA must suspend the Formatted: Line spacing: 1.5 lines
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minimum rent requirement beginning the first of the month following the family’s request.

The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term.

HACP Policy:

The HACP defines temporary hardship as a hardship expected to last 90 days or less. Long-term hardship is defined as a hardship expected to last more than 90 days.

When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption.

Example: Impact of Minimum Rent Exemption
Assume the PHA has established a minimum rent of $50.

Family Share – No Hardship Family Share – With Hardship $0

$15
N/A
30% of monthly adjusted
income
10% of monthly gross income
Welfare rent
$50 Minimum rent
$0

$15
N/A
30% of monthly adjusted
income
10% of monthly gross income
Welfare rent
$ 50 Minimum rent
Minimum rent applies.

TTP = $50
Hardship exemption granted.

TTP = $15

HACP Policy:

To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent.

The HACP will make the determination of hardship within 30 calendar days.

No Financial Hardship
If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended.

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HACP Policy:

The HACP will require the family to repay the suspended amount within 30 calendar days of the HACP’s notice that a hardship exemption has not been granted.

Temporary Hardship
If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family’s request for a hardship exemption.

At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have recently changed, and the hardship is now a long-term hardship.

HACP Policy:

The HACP will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan.

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Long-Term Hardship
If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family’s request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent.

HACP Policy:

The hardship period ends when any of the following circumstances apply:
(1) At an interim or annual reexamination, the family’s calculated TTP is greater than the minimum rent.
(2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support.
(3) For hardship conditions based upon hardship-related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred.

6-IIIIV.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505; 982.503(b)] Overview
The HACP’s schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the HACP’s payment standards. The establishment and revision of the HACP’s payment standard schedule are covered in Chapter 16.

Payment standard is defined as “the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)” [24 CFR 982.4(b)].

The payment standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the HACP’s subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family.

If the HACP has established an exception payment standard for a designated part of a zip code area or FMR area and a family’s unit is located in the exception area, the PHA must use the appropriate payment standard for the exception area.

The HACP is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of (1) the payment standard for the family minus the family’s TTP or (2) Formatted: Font: Italic
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the gross rent for the family’s unit minus the TTP.

If during the term of the HAP contract for a family’s unit, the owner lowers the rent, the HACP will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV GB, p. 7-8].

Changes in Payment Standards
When the HACP revises its payment standards during the term of the HAP contract for a family’s unit, it will apply the new payment standards in accordance with HUD regulations.

Decreases
If a HACP changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, the HACP is not required to reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect [FR Notice 11/16/16].

However, if the HACP does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than the effective date of the family’s second regular reexamination following the effective date of the decrease in the payment standard amount. At that point, the HACP may either reduce the payment standard to the current amount in effect on the HACP’s payment standard schedule or may reduce the payment standard to another amount that is higher than the normally applicable amount on the schedule. The HACP may also establish different policies for designated areas within their jurisdiction (e.g., different zip code areas).

In any case, the HACP must provide the family with at least 12 months’ notice that the payment standard is being reduced before the effective date of the change. The HACP’s policy on decreases in the payment standard during the term of the HAP contract applyapplies to all families under HAP contract at the time of the effective date of the decrease in the payment standard within the designated area.

HACP Policy:

If a HACP changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, the HACP will not reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect.

The HACP will not establish different policies for decreases in the payment standard for designated areas within their jurisdiction.

Increases
If the payment standard is increased during the term of the HAP contract, the increased payment standard will be used to calculate the monthly housing assistance payment for Formatted: Line spacing: Multiple 1.15 li
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the family beginning on the effective date of the family’s first regular reexamination on or after the effective date of the increase in the payment standard.

Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV GB, p. 7-8].

Changes in Family Unit Size
Irrespective of any increase or decrease in the payment standard, 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 for the family beginning at the family’s first regular reexamination following the change in family unit size.

Reasonable Accommodation
If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR.

6-IIIIV.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517] Overview
A PHA-established utility allowance schedule is used in determining family share and PHA subsidy. A family's utility allowance is determined by the size of dwelling unit leased by a family or the voucher unit size for which the family qualifies using HACP subsidy standards, whichever is the lowest of the two. See Chapter 5 for information on the HACP’s subsidy standards.

For policies on establishing and updating utility allowances, see Chapter 16.

Reasonable Accommodation and Individual Relief
HCV program regulations require a On request from a family that includes a person with disabilities, the PHA tomust approve a utility allowance amountwhich is higher than shown the applicable amount on the HACP’s utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation for a family member with a disability. For example, if ato make the program accessible and usable by the family member with a disability requires such an accommodation, the HACP will approve an allowance[24 CFR 982.517(e)]. (See Chapter 2 for policies regarding the request and approval of reasonable accommodations.) Further, the PHA may grant requests for air- conditioning, even if the HACP has determined that an individual relief from charges in excess of the utility allowance for air-conditioning generally ison reasonable grounds, such as special factors not needed.

In the cases where the unit size leased exceeds the family voucher size, as a reasonable accommodation, HACP may approve a utility allowance for the actual size of the unit leased.

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within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the HACP withPHA an explanation of the need for individual relief and an explanation about the amount of additional allowance required [see HCV GB, p. 18-8].

PHAs should develop criteria for granting individual relief, notify residents about the availability of individual relief, and notify participants about the availability of individual relief programs (sometimes referred to as “Medical Baseline discounts”) offered by the local utility company.

HACP Policy:
the reasonable accommodation andThe family must request the higher allowance and provide the PHA with information about the amount of additional allowance required [HCV GB, p. 18-8]..

The HACP will consider the following criteria as valid reasons for granting individual relief:

The family’s consumption was mistakenly portrayed as excessive due to defects in the meter or errors in the meter reading.

The excessive consumption is caused by a characteristic of the unit or owner-supplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation. The allowance should be adjusted to reflect the higher consumption needs associated with the unit until the situation is remedied. The resident should be granted individual relief until the allowance is adjusted.

The excessive consumption is due to special needs of the family that are beyond their control, such as the need for specialized equipment in the case of a family member who is ill, elderly, or who has a disability.

In determining the amount of the reasonable accommodation or individual relief, the PHA will allow a reasonable measure of additional usage as necessary. To arrive at the amount of additional utility cost of specific equipment, the family may provide information from the manufacturer of the equipment, or the family or PHA may conduct an internet search for an estimate of usage or additional monthly cost.

Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all families at admission as part of the information on payment standards and utility allowances in the briefing packet. The PHA will also provide information on utility relief programs or medical discounts (sometimes referred to as “Medical Baseline discounts”) that may be available through local utility providers.

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allowance at any regular reexamination.

If the excessive consumption is caused by a characteristic of the unit or PHA- supplied equipment that is beyond the family’s control, such as a particularly inefficient refrigerator or inadequate insulation, the individual relief to the resident will cease when the situation is remedied.

Utility Allowance Revisions
At reexamination, the
HACP must use the HACP current utility allowance schedule [24 CFR 982.517(d)(2)].

HACP Policy:

Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination after the most recent allowance adopted.

6-IIIIV.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that actually are eligible. For example, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible, the PHA subsidy would be reduced to $250.

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EXHIBIT 6-1: ANNUAL INCOME INCLUSIONSFULL DEFINITION
24 CFR 5.609

(c(a) Annual income means all amounts,
monetary or not, which:
(1) Go to, or on behalf of,includes, with
respect to the family head or spouse (even
if temporarily absent) or to any other
family member; or:
(2) Are anticipated to be received from a
source outside the family during the 12-
month period following admission or
annual reexamination effective date; and
(3) Which are (1) All amounts, not
specifically excluded in paragraph (cb) of
this section., received from all sources by
each member of the family who is 18
years of age or older or is the head of
household or spouse of the head of
household, plus unearned income by or
on behalf of each dependent who is under
18 years of age, and
(4) Annual income also means amounts
derived (during the 12-month period) from
(2) When the value of net family assets to
exceeds $50,000 (which any member of
the family has access.
(b) Annual income includes, but is not
limited to:
(1) The full amount, before any payroll
deductions, of wages HUD will adjust
annually in accordance with the Consumer
Price Index for Urban Wage Earners and
salaries, overtime pay, commissions, fees,
tipsClerical Workers) and bonuses, and
other compensation for personal services;
(2) The net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of
capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation of assets used
in a business or profession may be
deducted, based on straight line
depreciation, as provided in Internal
Revenue Service regulations. Any
withdrawal of cash or assets from the
operation of a business or profession will
be included in income, except to the
extent the withdrawal is reimbursement of
cash or assets invested in the operation
by the family;
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(3) Interest, dividends, and other net
income of any kind from real or personal
property. Expenditures for amortization of
capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation is permitted
only as authorized in paragraph (b)(2) of
this section. Any withdrawal of cash or
assets from an investment will be included
in income, except to the extent the
withdrawal is reimbursement of cash or
assets invested by the family. Where the
family has net family assets in excess of
$5,000, annual income shall include the
greater of the actual income
derivedreturns from all net family assets or
a percentage ofgiven asset cannot be
calculated, imputed returns on the value of
such assetsasset based on the current
passbook savings rate, as determined by
HUD;.
(4) The full amount of periodic amounts
received from Social Security, annuities,
insurance policies, retirement funds,
pensions, disability or death benefits, and
other similar types of periodic receipts,
including a lump-sum amount or
prospective monthly amounts for the
delayed start of a periodic amount (except
as provided in paragraph (c)(14) of this
section);
(5) Payments in lieu of earnings, such as
unemployment and disability
compensation, worker's compensation
and severance pay (except as provided in
paragraph (c)(3) of this section);
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(6) Welfare assistance payments.
(i) Welfare assistance payments made
under the Temporary Assistance for
Needy Families (TANF) program are
included in annual income only to the
extent such payments:
(A) Qualify as assistance(b)Annual income
does not include the following:
(1) Any imputed return on an asset when
net family assets total $50,000 or less
(which amount HUD will adjust annually in
accordance with the Consumer Price
Index for Urban Wage Earners and
Clerical Workers) and no actual income
from the net family assets can be
determined.
(2) The following types of trust
distributions:
(i) For an irrevocable trust or a revocable
trust outside the control of the family or
household excluded from the definition of
net family assets under § 5.603(b):
(A) Distributions of the principal or corpus
of the trust; and
(B) Distributions of income from the trust
when the distributions are used to pay the
costs of health and medical care expenses
for a minor.
(ii) For a revocable trust under the TANF
program definition at 45 CFR 260.311;
and
(B) Are not otherwise excluded under
paragraph (c) of this section.
(ii) If the welfare assistance payment
includes an amount specifically
designated for shelter and utilities control
of the family or household, any
distributions from the trust; except that is
subject to adjustment any actual income

1 Text of 45 CFR 260.31 follows.
earned by the welfare assistance agency
in accordance with the actual cost of
shelter and utilities, the amounttrust,
regardless of welfare assistance income to
be included as income shall consist of:
(A) The amount of the allowance or grant
exclusive of the amount specifically
designated for shelter or utilities; plus
(B) The maximum amount that the welfare
assistance agency could in fact allow the
family for shelter and utilities. If the
family's welfare assistance is ratably
reduced from the standard of need by
applying a percentage, the amount
calculated under this paragraph shall be
the amount resulting from one application
of the percentage.
(7) Periodic and determinable allowances,
such as alimony and child support
payments, and regular contributions or
gifts received from organizations or from
persons not residing in the dwelling;
(8) All regular pay, special pay and
allowances of a member of the Armed
Forces (except as provided in paragraph
(c)(7) of this section)
(9) For section 8 programs only and as
provided in 24 CFR 5.612, any financial
assistance, in excess of amounts received
for tuition, that an individual receives
under the Higher Education Act of 1865
(20 U.S.C. 1001 et seq.), from private
sources, or from an institution of higher
education (as defined under the Higher
Education Act of 1865 (20 U.S.C.
1002)),whether it is distributed, shall be
considered income to that individual,
except that financial assistance described
in this paragraph is not considered annual
income for persons over the age of 23 with
dependent children. For purposes of this
paragraph, “financial assistance” does not
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include loan proceeds for the purpose of
determining income.the family at the time
it is received by the trust.

HHS DEFINITION OF
"ASSISTANCE"
45 CFR: GENERAL TEMPORARY

ASSISTANCE FOR NEEDY FAMILIES
260.31 What does the term
“assistance” mean?
(a)(1) The term “assistance” includes
cash, payments, vouchers, and other
forms of benefits designed to meet a
family’s ongoing basic needs (i.e., for
food, clothing, shelter, utilities,
household goods, personal care items,
and general incidental expenses).
(2) It includes such benefits even when
they are:
(i) Provided in the form of payments by
a TANF agency, or other agency on its
behalf, to individual recipients; and
(ii) Conditioned on participation in work
experience or community service (or
any other work activity under 261.30 of
this chapter).
(3) Except where excluded under
paragraph (b) of this section, it also
includes supportive services such as
transportation and childcare provided to
families who are not employed.
(b) [The definition of “assistance”]
excludes: (1) Nonrecurrent, short-term
benefits that:
(i) Are designed to deal with a specific
crisis situation or episode of need;
(ii) Are not intended to meet recurrent
or ongoing needs; and
(iii) Will not extend beyond four months.
(2) Work subsidies (i.e., payments to
employers or third parties to help cover
the costs of employee wages, benefits,
supervision, and training);
(3) Supportive services such as
childcare and transportation provided to
families who are employed;
(4) Refundable earnedEarned income
tax credits;
(5) Contributions to, and distributions
from, Individual Development Accounts;
(6) Services such as counseling, case
management, peer support, childcare
information and referral, transitional
services, job retention, job
advancement, and other employment-
related services that do not provide
basic income support; and
(7) Transportation benefits provided
under a Job Access or Reverse
Commute project, pursuant to section
404(k) of [the Social Security] Act, to an
individual who is not otherwise
receiving assistance.

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EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS
24 CFR 5.609
(c) Annual income does not include the
following:
(1) Income from employment of children
(including foster children) under the age of
18 years; of age.
(24) Payments received for the care of
foster children or foster adults (usually
persons with disabilities, unrelated to the
tenant family, who are unable to live
alone);, or State or Tribal kinship or
guardianship care payments.
(3) Lump-sum additions to family assets,
such as inheritances, insurance5)
Insurance payments (and settlements for
personal or property losses, including but
not limited to payments underthrough
health and accidentinsurance, motor
vehicle insurance, and worker'sworkers’
compensation), capital gains and
settlement for personal or property losses
(except as provided in paragraph (b)(5) of
this section);.
(46) Amounts received by the family that
are specifically for, or in reimbursement of,
the cost of health and medical care
expenses for any family member;.
(5) Income (7) Any amounts recovered in
any civil action or settlement based on a
claim of malpractice, negligence, or other
breach of duty owed to a family member
arising out of law, that resulted in a
member of the family becoming disabled.
(8) Income of a live-in aide, foster child, or
foster adult as defined in Sec. §§ 5.403;
and 5.603, respectively.
(6) Subject to paragraph (b)(99) of this
(i) Any assistance that section, 479B of
the full amount of student Higher
Education Act of 1965, as amended (20
U.S.C. 1087uu), requires be excluded
from a family’s income; and
(ii) Student financial assistance for tuition,
books, and supplies (including supplies
and equipment to support students with
learning disabilities or other disabilities),
room and board, and other fees required
and charged to a student by an institution
of higher education (as defined under
Section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002)) and, for a student
who is not the head of household or
spouse, the reasonable and actual costs
of housing while attending the institution of
higher education and not residing in an
assisted unit.
(A) Student financial assistance, for
purposes of this paragraph (9)(ii), means a
grant or scholarship received from— (
1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a
nonprofit under 26 U.S.C. 501(c)(3);
(4) A business entity (such as corporation,
general partnership, limited liability
company, limited partnership, joint
venture, business trust, public benefit
corporation, or nonprofit entity); or
(5) An institution of higher education.
(B) Student financial assistance, for
purposes of this paragraph (9)(ii), does not
include—
(1) Any assistance that is excluded
pursuant to paragraph (b)(9)(i) of this
section;
(2) Financial support provided to the
student in the form of a fee for services
performed (e.g., a work study or teaching
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fellowship that is not excluded pursuant to
paragraph (b)(9)(i) of this section); (
3) Gifts, including gifts from family or
friends; or
4) Any amount of the scholarship or grant
that, either by itself or in combination with
assistance excluded under this paragraph
or paragraph (b)(9)(i), exceeds the actual
covered costs of the student. The actual
covered costs of the student are the actual
costs of tuition, books and supplies
(including supplies and equipment to
support students with learning disabilities
or other disabilities), room and board, or
other fees required and charged to a
student by the education institution, and,
for a student who is not the head of
household or spouse, the reasonable and
actual costs of housing while attending the
institution of higher education and not
residing in an assisted unit. This
calculation is described further in
paragraph (b)(9)(ii) € of this section.
(C) Student financial assistance, for
purposes of this paragraph (b)(9)(ii) must
be:
(1) Expressly for tuition, books, room and
board, or other fees required and charged
to a student by the education institution;
(2) Expressly to assist a student with the
costs of higher education; or
(3) Expressly to assist a student who is
not the head of household or spouse with
the reasonable and actual costs of
housing while attending the education
institution and not residing in an assisted
unit.
(D) Student financial assistance, for
purposes of this paragraph (b)(9)(ii), may
be paid directly to the student or to the
educational institution; on the student’s
behalf. Student financial assistance paid
to the student must be verified by the
responsible entity as student financial
assistance consistent with this paragraph
(b)(9)(ii).
(7) The special(E) When the student is
also receiving assistance excluded under
paragraph (b)(9)(i) of this section, the
amount of student financial assistance
under this paragraph (b)(9)(ii) is
determined as follows:
(1) If the amount of assistance excluded
under paragraph (b)(9)(i) of this section is
equal to or exceeds the actual covered
costs under paragraph (b)(9)(ii)(B)(4) of
this section, none of the assistance
described in this paragraph (b)(9)(ii) of this
section is considered student financial
assistance excluded from income under
this paragraph (b)(9)(ii)(E).
(2) If the amount of assistance excluded
under paragraph (b)(9)(i) of this section is
less than the actual covered costs under
paragraph (b)(9)(ii)(B)(4) of this section,
the amount of assistance described in
paragraph (b)(9)(ii) of this section that is
considered student financial assistance
excluded under this paragraph is the lower
of:
(i) the total amount of student financial
assistance received under this paragraph
(b)(9)(ii) of this section, or
(ii) the amount by which the actual
covered costs under paragraph
(b)(9)(ii)(B)(4) of this section exceeds the
assistance excluded under paragraph
(b)(9)(i) of this section.
(10) Income and distributions from any
Coverdell education savings account
under section 530 of the Internal Revenue
Code of 1986 or any qualified tuition
program under section 529 of such Code;
and income earned by government
contributions to, and distributions from,
“baby bond” accounts created, authorized,
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or funded by Federal, State, or local
government.
(11) The Special pay to a family member
serving in the Armed Forces who is
exposed to hostile fire;.
(8) (i) Amounts received under training
programs funded by HUD;
(ii(12)
(i) Amounts received by a person with a
disability that are disregarded for a limited
time for purposes of Supplemental
Security Income eligibility and benefits
because they are set aside for use under
a Plan to Attain Self-Sufficiency (PASS);
(iiiii) Amounts received by a participant in
other publicly assisted programs which are
specifically for or in reimbursement of out-
of-pocket expenses incurred (e.g., special
equipment, clothing, transportation, child-
carechildcare, etc.) and which are made
solely to allow participation in a specific
program;
(iviii) Amounts received under a resident
service stipend. (not to exceed) $200 per
month. A resident service stipend is a
modest amount (not to exceed $200 per
month) received by a resident for
performing a service for the PHA or
owner, on a part-time basis, that enhances
the quality of life in the development. Such
services may include, but are not limited
to, fire patrol, hall monitoring, lawn
maintenance, resident initiatives
coordination, and serving as a member of
the PHA's governing board. No resident
may receive more than one such stipend
during the same period of time;
(viv) Incremental earnings and benefits
resulting to any family member from
participation in training programs funded
by HUD or in qualifying Federal, State,
Tribal, or local employment training
programs (including training programs not
affiliated with a local government) and
training of a family member as resident
management staff. Amounts excluded by
this provision must be received under
employment training programs with clearly
defined goals and objectives, and are
excluded only for the period during which
the family member participates in the
employment training program; unless
those amounts are excluded under
paragraph (b)(9)(i) of this section.
(9) Temporary, nonrecurring or sporadic
income (including gifts);
(10(13) Reparation payments paid by a
foreign government pursuant to claims
filed under the laws of that government by
persons who were persecuted during the
Nazi era;.
(11) Earnings(14) Earned income of
dependent fulltime students in excess of
$480the amount of the deduction for each
full-time student 18 years old or older
(excluding the head of household and
spouse);a dependent in § 5.611.
(1215) Adoption assistance payments for
a child in excess of $480 per adopted
child;the amount of the deduction for a
dependent in § 5.611.
(13) [Reserved]
(1416) Deferred periodic amounts from
supplemental security income and social
securitySupplemental Security Income
and Social Security benefits that are
received in a lump sum amount or in
prospective monthly amounts, or any
deferred Department of Veterans Affairs
disability benefits that are received in a
lump sum amount or in prospective
monthly amounts.
(15(17) Payments related to aid and
attendance under 38 U.S.C. 1521 to
veterans in need of regular aid and
attendance.

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(18) Amounts received by the family in the
form of refunds or rebates under State or
local law for property taxes paid on the
dwelling unit;.
(16) Amounts paid by a State agency to a
family with a member who has a
developmental disability and is living at
home to offset the cost of services and
equipment needed to keep the
developmentally disabled family member
at home; or
(17) Amounts specifically excluded by any
other Federal statute(19) Payments made
by or authorized by a State Medicaid
agency (including through a managed
care entity) or other State or Federal
agency to a family to enable a family
member who has a disability to reside in
the family’s assisted unit. Authorized
payments may include payments to a
member of the assisted family through the
State Medicaid agency (including through
a managed care entity) or other State or
Federal agency for caregiving services the
family member provides to enable a family
member who has a disability to reside in
the family’s assisted unit.
(20) Loan proceeds (the net amount
disbursed by a lender to or on behalf of a
borrower, under the terms of a loan
agreement) received by the family or a
third party (e.g., proceeds received by the
family from a private loan to enable
attendance at an educational institution or
to finance the purchase of a car).
(21) Payments received by Tribal
members as a result of claims relating to
the mismanagement of assets held in trust
by the United States, to the extent such
payments are also excluded from gross
income under the Internal Revenue Code
or other Federal law.
(22) Amounts that HUD is required by
Federal statute to exclude from
consideration as income for purposes of
determining eligibility or benefits under a
category of assistance programs that
includes assistance under any program to
which the exclusions set forth in 24 CFR

5.609(c)paragraph (b) of this section
apply. AHUD will publish a notice will be
published in the Federal Register and
distributed to PHAs and housing owners
identifyingto identify the benefits that
qualify for this exclusion. Updates will be
published and distributed when
necessary. [See Section 6-I.M. for a list of
benefits that qualify
(23) Replacement housing “gap”
payments made in accordance with 49
CFR part 24 that offset increased out of
pocket costs of displaced persons that
move from one federally subsidized
housing unit to another Federally
subsidized housing unit. Such
replacement housing “gap” payments are
not excluded from annual income if the
increased cost of rent and utilities is
subsequently reduced or eliminated, and
the displaced person retains or continues
to receive the replacement housing “gap”
payments.
(24) Nonrecurring income, which is
income that will not be repeated in the
coming year based on information
provided by the family. Income received
as an independent contractor, day laborer,
or seasonal worker is not excluded from
income under this paragraph, even if the
source, date, or amount of the income
varies. Nonrecurring income includes:
(i) Payments from the U.S. Census
Bureau for this exclusion.]employment
(relating to decennial census or the
American Community Survey) lasting no
longer than 180 days and not culminating
in permanent employment.
(ii) Direct Federal or State payments
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intended for economic stimulus or
recovery.
(iii) Amounts directly received by the
family as a result of State refundable tax
credits or State tax refunds at the time
they are received.
(iv) Amounts directly received by the
family as a result of Federal refundable tax
credits and Federal tax refunds at the time
they are received.
(v) Gifts for holidays, birthdays, or other
significant life events or milestones (e.g.,
wedding gifts, baby showers,
anniversaries).
(vi) Non-monetary, in-kind donations, such
as food, clothing, or toiletries, received
from a food bank or similar organization.
(vii) Lump-sum additions to net family
assets, including but not limited to lottery
or other contest winnings.
(25) Civil rights settlements or judgments,
including settlements or judgments for
back pay.
(26) Income received from any account
under a retirement plan recognized as
such by the Internal Revenue Service,
including individual retirement
arrangements (IRAs), employer retirement
plans, and retirement plans for self-
employed individuals; except that any
distribution of periodic payments from
such accounts shall be income at the time
they are received by the family.
(27) Income earned on amounts placed in
a family’s Family Self Sufficiency Account.
(28) Gross income a family member
receives through self-employment or
operation of a business; except that the
following shall be considered income to a
family member:
(i) Net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of
capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation of assets used
in a business or profession may be
deducted, based on straight line
depreciation, as provided in Internal
Revenue Service regulations; and
(ii) Any withdrawal of cash or assets from
the operation of a business or profession
will be included in income, except to the
extent the withdrawal is reimbursement of
cash or assets invested in the operation
by the family.
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EXHIBIT 6-32: TREATMENT OF FAMILY ASSETS
24 CFR 5.603(b) Net Family Assets

(1) Net family assets is the net cash value
of all assets owned by the family, after
deducting reasonable costs that would be
incurred in disposing of real property,
savings, stocks, bonds, and other forms of
capital investment, excluding interests in
Indian trust land and excluding equity
accounts in HUD homeownership
programs. The value of necessary items of
personal property such as furniture and
automobiles shall be excluded..
(2) In cases where a trust fund has been
established and the trust is not revocable
by, or under the control of, any member of
the family or household, the value of the
trust fund will not be considered an asset
so long as the fund continues to be held in
trust. Any income distributed from the trust
fund shall be counted when determining
annual income under Sec. 5.609.
(3) In determining net family assets, PHAs
or owners, as applicable, shallmust
include the value of any business or family
assets disposed of by an applicant or
tenant for less than fair market value
(including a disposition in trust, but not in a
foreclosure or bankruptcy sale) during the
two years preceding the date of
application for the program or
reexamination, as applicable, in excess of
the consideration received therefor. In the
case of a disposition as part of a
separation or divorce settlement, the
disposition will not be considered to be for
less than fair market value if the applicant
or tenant receives important consideration
not measurable in dollar terms. Negative
equity in real property or other
investments does not prohibit the owner
from selling the property or other
investments, so negative equity alone
would not justify excluding the property or
other investments from family assets.
(3) Excluded from the calculation of net
family assets are: (i) The value of
necessary items of personal property; (ii)
The combined value of all non-necessary
items of personal property if the combined
total value does not exceed $50,000
(which amount will be adjusted by HUD in
accordance with the Consumer Price
Index for Urban Wage Earners and
Clerical Workers); (iii) The value of any
account under a retirement plan
recognized as such by the Internal
Revenue Service, including individual
retirement arrangements (IRAs), employer
retirement plans, and retirement plans for
self-
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EXHIBIT 6-(4) For purposes of
determining annual income under Sec.

5.609, the term "net family assets'' does
not include the value of a home currently
being purchased with assistance under
part 982, subpart M of this title. This
exclusion is limited to the first 10 years
after the purchase date of the home.
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EXHIBIT 6-4: EARNED INCOME DISALLOWANCE FOR PERSONS WITH

DISABILITIES
24 CFR 5.617 Self-sufficiency incentives for persons with disabilities– Disallowance of increase in annual income.
(a) Applicable programs. The disallowance
of earned income provided by this section
is applicable only to the following
programs: HOME Investment Partnerships
Program (24
CFR part 92); Housing Opportunities for
Persons with AIDS (24 CFR part 574);
Supportive Housing Program (24 CFR part
583); and the Housing Choice Voucher
Program (24 CFR part 982).
(b) Definitions. The following definitions
apply for purposes of this section.

Baseline income. The annual income
immediately prior to implementation of the
disallowance described in paragraph (c)(1)
of this section of a person with disabilities
(who is a member of a qualified family).

Disallowance. Exclusion from annual
income.

Previously unemployed includes a person
with disabilities who has earned, in the
twelve months previous to employment,
no more than would be received for 10
hours of work per week for 50 weeks at
the established minimum wage.

Qualified family. A family residing in
housing assisted under one of the
programs listed in paragraph (a) of this
section or receiving tenant-based rental
assistance under one of the programs
listed in paragraph (a) of this section.
(1) Whose annual income increases as a
result of employment of a family member
who is a person with disabilities and who
was previously unemployed for one or
more years prior to employment,
(2) Whose annual income increases as a
result of increased earnings by a family
member who is a person with disabilities
during participation in any economic self-
sufficiency or other job training program;
or
(3) Whose annual income increases, as a
result of new employment or increased
earnings of a family member who is a
person with disabilities, during or within six
months after receiving assistance, benefits
or services under any state program for
temporary assistance for needy families
funded under Part A of Title IV of the
Social Security Act, as determined by the
responsible entity in consultation with the
local agencies administering temporary
assistance for needy families (TANF) and
Welfare-to-Work (WTW) programs. The
TANF program is not limited to monthly
income maintenance, but also includes
such benefits and services as one-time
payments, wage subsidies and
transportation assistance-- provided that
the total amount over a six-month period is
at least $500.
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(c) Disallowance of increase in annual
income—
(1) Initial twelve-month exclusion. During
the 12-month period beginning on the date
a member who is a person with disabilities
of a qualified family is first employed or the
family first experiences an increase in
annual income attributable to employment,
the responsible entity must exclude from
annual income (as defined in the
regulations governing the applicable
program listed in paragraph (a) of this
section) of a qualified family any increase
in income of the family member who is a
person with disabilities as a result of
employment over prior income of that
family member.
(2) Second twelve-month exclusion and
phase-in. Upon expiration of the 12-month
period defined in paragraph (c)(1) of this
section and for the subsequent 12-month
period, the responsible entity must
exclude from annual income of a qualified
family at least 50 percent of any increase
in income of such family member as a
result of employment over the family
member’s baseline income.
(3) Maximum 2-year disallowance. The
disallowance of increased income of an
individual family member who is a person
with disabilities as provided in paragraph
(c)(1) or (c)(2) of this section is limited to a
lifetime 24-month period. The
disallowance applies for a maximum of 12
months for disallowance under paragraph
(c)(1) of this section and a maximum of 12
months for disallowance under paragraph
(c)(2) of this section, during the 24- month
period starting from the initial exclusion
under paragraph (c)(1) of this section.
(4) Effect of changes on currently
participating families. Families eligible for
and participating in the disallowance of
earned income under this section prior to
May 9, 2016 will continue to be governed
by this section in effect as it existed
immediately prior to that date (see 24 CFR
parts 0 to 189, revised as of April 1, 2016).
(d) Inapplicability to admission. The
disallowance of increases in income as a
result of employment of persons with
disabilities under this section does not
apply for purposes of admission to the
program (including the determination of
income eligibility or any income targeting
that may be applicable).

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EXHIBIT 6-53: THE EFFECT OF WELFARE BENEFIT REDUCTION
24 CFR 5.615
Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income.
(a) Applicability. This section applies to covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant-based assistance (part 982 of this title).
(b) Definitions. The following definitions apply for purposes of this section:

Covered families. Families who receive welfare assistance or other public assistance benefits ("welfare benefits'') from a State or other public agency ("welfare agency'') under a program for which Federal, State, or local law requires that a member of the family must participate in an economic self- sufficiency program as a condition for such assistance.

Economic self-sufficiency program. See definition at Sec. 5.603.

Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent.

Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) "Specified welfare benefit reduction'' does not include a reduction or termination of welfare benefits by the welfare agency:
(i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self-sufficiency or work activities requirements; or
(iii) because a family member has not complied with other welfare agency requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the PHA by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609.
(2) At the request of the PHA, the welfare agency will inform the PHA in writing of the amount and term of any specified welfare benefit reduction for a family 283
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member, and the reason for such reduction, and will also inform the PHA of any subsequent changes in the term or amount of such specified welfare benefit reduction. The PHA will use this information to determine the amount of imputed welfare income for a family.
(3) A family's annual income includes imputed welfare income in family annual income, as determined at the PHA's interim or regular reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the PHA by the welfare agency). (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed .
(5) The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of PHA decision.
(1) Public housing. If a public housing tenant claims that the PHA has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the tenant written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. The PHA notice shall also state that if the tenant does not agree with the PHA determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the PHA determination.

The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55(e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the PHA determination.
(2) Section 8 participant. A participant in the Section 8 tenant-based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the PHA determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the family written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the PHA determination, the family may request an informal hearing on the determination under the PHA hearing procedure.
(e) PHA relation with welfare agency.
(1) The PHA must ask welfare agencies to inform the PHA of any specified welfare benefits reduction for a family member, the reason for such reduction, the 284
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term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the PHA written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction.
(2) The PHA is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency and specified in the notice by the welfare agency to the PHA. However, the PHA is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The PHA shall be entitled to rely on the welfare agency notice to the PHA of the welfare agency's determination of a specified welfare benefits reduction.

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Chapter 7

VERIFICATION
[24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2010-182023-27]

INTRODUCTION
The PHA must verify all information that is used to establish the family’s eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family.

The PHA willmust follow the verification guidance provided by HUD in Notice PIH 2010-182023-27 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies.

Part I describes the general verification process.

Part II provides more detailed requirements related to family information.

Part III provides information on income and assets, and

Part IV covers mandatory deductions.

Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies of the PHA.

PART I: GENERAL VERIFICATION REQUIREMENTS
7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516 AND 982.551, 24 CFR 5.230]; and Notice PIH 2023-27]]
Consent Forms
The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 982.551]. All adult family members must sign consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-9886, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information.

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Form HUD-9886 [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5)]; Notice PIH 2023-27
All adult applicants and participants sign form HUD-9886, Authorization for Release of Information. All adult family members (and the head and spouse/cohead, regardless of age) are required to sign the Form HUD-9886 at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886 be signed only once. On or after January 1, 2024 (regardless of the PHA’s HOTMA compliance date), current program participants must sign and submit a new Form HUD-9886 at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886 will not be submitted to the PHA except under the following circumstances:
• When any person 18 years or older becomes a member of the family; • When a current member of the family turns 18; or
• As required by HUD or the PHA in administrative instructions.

The PHA has the discretion to establish policies around when family members must sign consent forms when they turn 18. PHAs must establish these policies stating when family members will be required to sign consent forms at intervals other than at reexamination.

HACP Policy:

Family members turning 18 years of age between annual recertifications will be notified in writing that they are required to sign the required Consent to the Release of Information Form HUD-9886 at the family’s next annual or interim reexamination, whichever is earlier.

Consent Forms
It is required that all adult applicants and participants sign form HUD-9886, Authorization for Release of Information. The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). Adult family members must sign other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance.

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The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant’s or participant’s eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)].

The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent.

Penalties for Failing to Consent [24 CFR 5.232]
If any family member who is required to sign a consent form fails to do so, the PHA will deny admission to applicant and terminate assistance to participant.

The family may request an informal review (applicant) or informal hearing (participant) in accorda
nce with PHA procedures.

However, this does not apply if the applicant, participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family’s executed consent forms.

HACP Policy:

The HACP has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with HACP policy.

In order for a family to revoke their consent, the family must provide written notice to the HACP.

Within 10 business days of the date the family provides written notice, the HACP will send the family a notice acknowledging receipt of the request and explaining that revocation of consent will result in denial or termination of assistance, as applicable. At the same time, the HACP will notify their local HUD office.

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7-I.B. OVERVIEWUSE OF OTHER PROGRAMS’ INCOME DETERMINATIONS [24 CFR 5.609(c)(3) and Notice PIH 2023-27]
PHAs may, but are not required to, determine a family’s annual income, including income from assets, prior to the application of any deductions, based on income determinations made within the previous 12-month period, using income determinations from means-tested federal public assistance programs. PHAs are not required to accept or use determinations of income from other federal means- tested forms of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in policy when they will accept Safe Harbor income determinations and from which programs. PHAs must also create policies that outline the course of action when families present multiple verifications from the same or different acceptable Safe Harbor programs.

Means-tested federal public assistance programs include:

• Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.);
• Medicaid (42 U.S.C. 1396 et seq.);
• Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.);
• Earned Income Tax Credit (EITC) (26 U.S.C. 32);
• Low-Income Housing Credit (LIHTC) program (26 U.S.C. 42); • Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786);
• Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); • Other programs administered by the HUD Secretary;
• Other means-tested forms of federal public assistance for which HUD has established a memorandum of understanding; and
• Other federal benefit determinations made in other forms of means- tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register.

If the PHA elects to use the annual income determination from one of the above- listed forms of means-tested federal public assistance, then they must obtain the income information by means of a third-party verification. The third-party verification must state the family size, must be for the entire family, and must state the amount of the family’s annual income. The annual income need not be broken down by family member or income type. Annual income includes income earned from assets, therefore when using Safe Harbor to verify a family’s Formatted: Font: Not Bold, No underline
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income, PHAs will neither further inquire about a family’s net family assets, nor about the income earned from those assets, except with respect to whether or not the family owns assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of the documentation by the PHA:
• Income determination effective date;
• Program administrator’s signature date;
• Family’s signature date;
• Report effective date; or
• Other report-specific dates that verify the income determination date.

The only information that PHAs are permitted to use to determine income under this method is the total income determination made by the federal means-tested program administrator. Other federal programs may provide additional information about income inclusions and exclusions in their award letters; however, these determinations and any other information must not be considered by the PHA. PHAs are not permitted to mix and match Safe Harbor income determinations and other income verifications.

If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program’s income determination, the PHA must calculate the family’s annual income using traditional methods as outlined in Notice PIH 2023-27 and this chapter.

If the PHA uses a Safe Harbor determination to determine the family’s income, the family is obligated to report changes in income that meet the PHA’s reporting requirement and occur after the effective date of the transaction.

The amounts of unreimbursed reasonable attendant care expenses and child- care expenses deducted from a family’s annual income, except for when a family is approved for a child-care expense hardship exemption, must still be capped by the amount earned by any family member who is enabled to work as a result of the expense. PHAs are therefore required to obtain third-party verification of the applicable employment income and cap the respective expense deductions accordingly.

HACP Policy:

When available and applicable, the HACP will accept other programs’ Safe Harbor determinations of income at annual reexamination to determine the family’s total annual income. The HACP will still require third-party verification of all deductions such as the health and medical Formatted: Line spacing: Multiple 1.15 li
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care expense or childcare expense deductions. Further, if the family is eligible for and claims the disability assistance expense or childcare expense deductions, where applicable, the HACP will obtain third-party verification of the amount of employment income of the individual(s) enabled to work in order to cap the respective expenses as required.

Prior to using any Safe Harbor determination from another program, the HACP will ask the family if they agree with the income amounts listed. If the family disputes the income amounts on the Safe Harbor determination, the HACP will obtain third-party verification of all sources of income and assets (as applicable).

The HACP will not accept other programs’ determinations of income for any new admission or interim reexamination.

With the exception of income determinations made under the Low-Income Housing Tax Credit (LIHTC) program, the HACP will accept Safe Harbor determinations from any of the programs listed above.

In order to be acceptable, the income determination must:
• Be dated within 12 months of the dates listed above;
• State the family size
• Be for the entire family (i.e., the family members listed in the documentation must match the family’s composition in the assisted unit, except for household members); and
• Must state the amount of the family’s annual income.

The determination need not list each source of income individually. If the PHA does not receive any acceptable income determination documentation or is unable to obtain documentation, then the PHA will revert to third-party verification of income for the family.

When families present multiple verifications from the same or different acceptable Safe Harbor programs, the PHA will use the most recent income determination, unless the family presents acceptable evidence that the PHA should consider an alternative verification from a different Safe Harbor source.

When the PHA uses a Safe Harbor income determination from another program, and the family’s income subsequently changes, the family is required to report the change to the PHA. Depending on when the change occurred, the change may or may not impact the PHA’s calculation of the family’s total annual income. Changes that occur between the time the PHA receives the Safe Harbor documentation and the effective date of the 291
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family’s annual reexam will not be considered. If the family has a change in income that occurs after the annual reexam effective date, the PHA will conduct an interim reexam if the change meets the requirements for performing an interim reexamination as outlined in Chapter 11. In this case, the PHA will use third-party verification to verify the change.

7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2023-27]
HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years, the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources.

Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources.

Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources.

When 90 percent or more of a family’s unadjusted income is from fixed sources, the PHA may apply the inflationary adjustment factor to the family’s fixed-income sources, provided that the family certifies both that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have not changed from the previous year.

Sources of non-fixed income are not required to be adjusted and must not be adjusted by a COLA, but PHAs may choose to adjust sources of non-fixed income based on third- party verification. PHAs have the discretion to either adjust the non-fixed income or carry over the calculation of non-fixed income from the first year to years two and three.

When less than 90 percent of a family’s unadjusted income consists of fixed income, PHAs may apply a COLA to each of the family’s sources of fixed income. PHAs must determine all other income using standard verification requirements as outlined in Notice PIH 2023-27.

HACP Policy
When the PHA does not use a Safe Harbor income determination from a federal assistance program to determine the family’s annual income as outlined above, then PHA will use a streamlined income determinations where applicable.

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If 90 percent or more of a family’s unadjusted income is from fixed income sources:
• The PHA will streamline the annual reexamination process by applying the verified inflationary adjustment factor to fixed- income sources.
• The family will be required to sign a self-certification stating that 90 percent or more of their unadjusted income is fixed income and that their sources of fixed income have not changed from the previous year.
• The PHA will document in the file how the determination that a source of income was fixed was made.
• Third-party verification of non-fixed income will be obtained annually regardless of the percentage of family income received from fixed sources.
• If the family’s sources of fixed income have changed from the previous year, the PHA will obtain third-party verification of any new sources of fixed income.

When less than 90 percent of a family’s unadjusted income consists of fixed income:
• The PHA will apply a COLA to each of the family’s sources of fixed income.
• All other income will be verified using third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy.

In the following circumstances, regardless of the percentage of income received from fixed sources, the PHA will obtain third-party verification as outlined in Notice PIH 2023-27 and Chapter 7 of this policy:

• Of all assets when net family assets exceed $50,000;
• Of all deductions and allowances from annual income;
• If a family member with a fixed source of income is added; • If verification of the COLA or rate of interest is not available; • During the intake process and at least once every three years thereafter.

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7-I.D. VERIFICATION REQUIREMENTSHIERARCHY [Notice PIH 2023-27] When the PHA does not use a streamlined determination of income or an income determination from a means-tested federal assistance program, HUD requires the PHA to obtain third-party verification of:
• Reported family annual income;
• The value of net family assets when the net value exceeds $50,000 (as adjusted annually);
• Expenses related to deductions from annual income; and • Other factors that affect the determination of adjusted income.

HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification.HUD’s Verification Hierarchy [Notice PIH 2010-18]

HUD developed a hierarchy that described verification documentation from most acceptable to least acceptable. The PHA must demonstrate efforts to obtain third party verification prior to accepting self-certification except instances when self- certification is explicitly allowed.

In order of priority, the forms of verification that the PHA will use arehierarchy is:

• • Highest: Level 6: Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system
• • Highest: Level 5: Up-front Income Verification (UIV) using a non-HUDEIV system
• • High: Level 4:
- Written Third-Party Verification (may be third-party verification from the source, also known as “family-provided by applicant or participant) verification”
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- • Or EIV plus self-certification
• Medium: Level 3: Written Thirdthird-party Verification Form verification form •Medium: Level 2: Oral Thirdthird-party Verification
• Self-Certification

• Each of the verification methods is discussed in subsequent sections below.

Exhibit 7-1 below contains an excerpt from the notice that provides guidance with respect to how each method may be used.

Exhibit 7-1 HUD’s Verification Hierarchy

Level Verification Technique Ranking
6 Upfront Income Verification
(UIV) using HUD’s Enterprise
Income Verification (EIV)
system (not available for
income verifications of
applicants)
Highest (Mandatory)
5 Upfront Income Verification
(UIV) using non -HUD
system
Highest (Optional)
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4 Written third Party
Verification
High (Mandatory to supplement EIV -
reported income sources and when EIV
has no data; Mandatory for non- EIV
reported income sources; Mandatory
when tenant disputes EIV -reported
employment and income information
and is unable to provide acceptable
documentation to support dispute)
3 Written Third Party
Verification Form Medium-Low (Mandatory if written third party verification documents are not
available or rejected by the PHA; and
when the applicant or tenant is unable
to provide acceptable documentation)
2 Oral Third Party Verification Low (Mandatory if written third party verification is not available)
1 Tenant Declaration Low (Use as a last resort when unable to obtain any type of third party
verification)
• Low: Level 1: Self-certification (not third-party verification)

Each of the verification methods is discussed in subsequent sections below.

File Documentation
The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached.

Requirements for Acceptable Documents

HACP Policy:

Any documents used for verification must be the original (not photocopies) Formatted: Font color: Auto
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and generally must be dated within 60 days of the HACP request. The documents must not be damaged, altered or in any way illegible.

Print-outs from Web pages are considered original documents.

The HACP staff member who views the original document must make a photocopy, annotate the copy with the name of the person who provided the document and the date the original was viewed, and sign the copy.

Any family self-certifications must be made in a format acceptable to the HACP and must be signed in the presence of a HACP representative or HACP notary public.

HACP Policy:

The HACP will document, in the family file, the following:
• Reported family annual income.
• Value of assets
• Expenses related to deductions from annual income.
• Other factors influencing adjusted income.

When the PHA is unable to obtain third-party verification, the PHA will document in the family file the reason that third-party verification was not available [24 CFR 982.516(a)(2); Notice PIH 2010-18].
7-I.C.E. LEVEL 5 AND 6 VERIFICATION: UP-FRONT INCOME VERIFICATION (UIV)
Up-front income verification (UIV) refers to the PHA’s use of the verification tools available from independent sources that maintain computerized information about earnings and benefits for a number of individuals. PHAs may use UIV sources before or during a family reexamination.

UIV will be used to the extent that these systems are available to the PHA.

There may be legitimate differences between the information provided by the family and UIV-generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified Formatted: Font: Times New Roman, 10 pt
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the UIV information and the family has been granted an opportunity to contest any adverse findings through the informal review/hearing process of the PHA. . UIV will be used to the extent that these systems are available to the PHA.

There may be legitimate differences between the information provided by the family and UIV-generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted an opportunity to contest any adverse findings through the informal review/hearing process of the PHA.

See Chapter 6 for the PHA’s policy on the use of UIV/EIV to project annual income.

Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory)

PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and income information during mandatoryannual and streamlined reexaminations or recertifications of family composition and income in accordance with 24 CFR 5.236 and Notice PIH 2023-27.

HUD’sadministrative guidance issued by HUD. The EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families. The following policies apply to the use of HUD’s EIV system.

The income validation tool (IVT) in EIV provides projections of discrepant income for wages, unemployment compensation, and SSA benefits pursuant to HUD’s data sharing agreements with other departments.

The following policies apply to the use of HUD’s EIV system.

EIV Income and IVT Reports
The data shown on income reports is updated quarterly. Data may be between 3 and 6 months old at the time reports are generated.

PHAs are required to obtain an EIV Income and IVT report for each family any time the PHA conducts an annual reexamination. However, PHAs are not required to use the EIV Income and IVT reports:
• At annual reexamination if the PHA used Safe Harbor verification from another means-test federal assistance program to determine the family’s income; or
• During any interim reexaminations.

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admission.

When required to use the EIV Income Report, in order for the report to be considered current, the PHA must pull the report within 120 days of the effective date of the annual reexamination.

The EIV Income Report may be used to verify and calculate income at annual reexamination if the family self-certifies that the amount is accurate and representative of current income. The family must be provided with the information in EIV.

HACP Policy:

The HACP will Except for when Safe Harbor verification from another means-tested federal assistance program is used to determine the family’s annual income, the HACP will obtain EIV income and IVT reports for all annual reexaminations for all families on a monthly basis. The HACP will ensure that all EIV Income Reports will be generated as partare pulled within 120 days of the regular reexamination process.

Income reports will be compared to family-provided information as parteffective date of the annual reexamination process. Income reports may be used in the calculation of annual income, as described in Chapter 6-I.C. Income reports may also .

Income and IVT reports will only be used to meet the regulatory requirement for third party verification, as described above. Policies for resolving discrepancies between income reports and family-provided information will be resolved as described in Chapter 6-I.C. and in this chapter.

Income reports will be used in interim reexaminations to identify any discrepancies between reported income and income shown in the EIV system, if for interim reexaminations as necessary to verify earned income, and to verify and calculate unemployment benefits, Social Security and/or SSI benefits. EIV will also. For example, EIV may be used to verify that families claiming zero income are not receiving income from any of these sources listed in EIV.

Income and IVT reports will be retained in participant files with the applicable annual documents or interim reexamination documents (if applicable) for the duration of the family’s participation.

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corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity.

New Hires Report [Notice PIH 2023-27]
The New Hires Report identifies participant families who have new employment within the last six months. The report is updated monthly.

PHAs must review this information at annual reexamination except when the PHA uses Safe Harbor verification from another means-tested federal assistance program to determine the family’s income.

PHAs that do not require families to undergo interim reexaminations for earned income increases after an interim decrease are not required to review this report between a family’s annual reexamination. If the PHA requires an interim for increases in earned income after an interim decrease, then the PHA must review the report quarterly after the family’s interim decrease.

HACP Policy:

In accordance with HACP policies in Chapter 11, the HACP does not process interim reexaminations for families who have increases in earned income. Except for instances in which the HACP uses Safe Harbor income determinations to determine a family’s annual income, the HACP will only review the New Hires Report at annual reexamination.

No Income Reported by HHS or SSA Report
This report is a tool for PHAs to identify participants who passed the SSA identity test, but no income information was reported by either HHS or SSA records. This scenario does not mean that the participant does not have any income. PHAs obtain written, third-party verification of any income reported by the participant.

The PHA must identify in its policies and procedures when this report will be pulled [Notice PIH 2023-27].

HACP Policy:

The HACP will generate the No Income Reported by HHS or SSA Report quarterly and will retain the report.

The HACP will re-verify the status of participants identified on the report quarterly. Based on the information provided by the family and in EIV, the HACP may require that family members provide verifications or sign release forms in order to obtain additional verification.

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EIV Identity Verification Report
The EIV system verifies tenant identities against SSA records. These records are compared to PICHUD data for a match on social security number, name, and date of birth.

PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2012-102023- 27].

When identity verification for a participant fails, a message will be displayed within the EIV Systemsystem, and no income information will be displayed.

HACP Policy::

The HACP will identify participants whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis.

HACP Policy:

The HACP will identify participants whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis.

The HACP will attempt to resolve PIC/SSA discrepancies by obtaining appropriate documentation from the participant. When the HACPPHA determines that discrepancies exist due toas a result of HACP errors such as spelling errors or incorrect birth dates, it will correct the errors will be corrected promptly.

Deceased Tenants Reports [Notice PIH 2012-4 and Notice PIH 2023-27] The Deceased Tenant Report identifies residents that have been reported by the SSA as deceased. The PHA is required to review the report at least quarterly.

HACP Policy:

The HACP will review the Deceased Tenants Report on a monthly basis.

When the Deceased Tenants Report identifies an individual as being deceased, PHAs must immediately send a letter to the head of household or emergency contact person (if the head of household is deceased and there is no other adult household member) to confirm the death of the listed household member. The PHA must notify the owner in writing of the deceased head of household.

PHAs may list the EOP as the last day of the month in which the death occurred.

The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred.

HACP Policy:

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The HACP will list the EOP as the last day of the month in which the death occurred. The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred.

When the only remaining household member is the live-in aide, the live-in aide is not entitled or eligible for any rental assistance or continued occupancy. The PHA may not designate the live-in aide as the new head of household or change the relation code on the Form HUD-50058.

Other EIV Reports [Notice PIH 2023-27]
The PHA is required to review the Multiple Subsidy Report at least quarterly and the Failed EIV Pre-Screening and Failed Verification (Failed SSA Identity Test) reports at least monthly.

Upfront Income Verification Using Non-HUD Systems (Optional) In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. such as the Work Number and web-based state benefits systems.

HACP Policy:

The HACP will inform all applicants and participants of its use of the following UIV resources during the admission and reexamination process:. • HUD’s EIV system

7-I.D. Fixed Income Sources of Income
7-I.F. LEVEL 4 VERIFICATION [Notice PIH 2023-27]
HUD identifies two types of Level 4 verification: written-third party verification from the source and EIV + self-certification.

EIV +_Self-Certification
EIV may be used as written third-party verification and may be used to calculate income if the family agrees with the information in EIV and self-certifies that the amount is accurate and representative of current income. This practice is known as EIV + self-certification. When calculating income using this method, the PHA may use its discretion to determine which method of calculation is reasonable:
the last four quarters combined or an average of any number of quarters. The family must be provided with the information from EIV.

HACP Policy:

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At annual reexamination, if the HACP is unable to use a determination of income from a means-tested federal assistance program and if there are no reported changes to an income source, the HACP will use EIV + self- certification as verification of employment income, provided the family agrees with the amounts listed in EIV.

The HACP will use an average of the last two quarters of income listed in EIV to determine income from employment. The HACP will provide the family with the information in EIV. The family will be required to sign a self- certification stating that the amount listed in EIV is accurate and representative of current income. If the family disagrees with the amount in EIV, the amount is not reflective of current income, or if less than two quarters are available in EIV, the HACP will use written third-party verification from the source as outlined below.

The HACP will not use this method of verification at new admission since EIV is not available for applicant families or at interim reexamination since the income information in EIV is not current.

Written Third-Party Verification from the Source
Written, third-party verification from the source is also known as “tenant-provided verification.” In order to qualify as written-third party verification from the source, the documents must be original or authentic and (generally) dated within 120 days of the date received by the PHA. For fixed-income sources, a statement dated within
For any family member with a fixed source of income, the PHA shall determine that family member’s income by means of a streamlined income determination. A streamlined income determination must be conducted by applying, for each fixed- income source, the verified cost of living adjustment (COLA) or current rate of interest to the previously verified or adjusted income amount. (1) Family member with a fixed source of income is defined as a family member whose income includes periodic payments at reasonably predictable levels from one or more of the following sources:
(i) Social Security, Supplemental Security Income, Supplemental Disability 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; or
(iv) Any other source of income subject to adjustment by a verifiable COLA or current rate of interest.
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through tenant-provided, third party-generated documentation. If no such verification is available, then the HACP shall obtain third-party verification of income amounts in order to calculate the change in income for the source. (3) For any family member whose income is determined pursuant to a streamlined income determination, the HACP shall obtain third-party verification of all income amounts every 3 years.
7-I.E. THIRD-PARTY WRITTEN AND ORAL VERIFICATION benefit year is acceptable documentation. Documents
HUD’s current verification hierarchy defines two types of written third-party verification. The more preferable form, “written third-party verification,” consists of an original document generated by a third-party source, which may be received directly from a third-party source or provided to the PHA by the family. If written third-party verification is not available, the PHA must attempt to obtain a “written third-party verification form.” This is a standardized form used to collect information from a third party.

Written Third-Party Verification [Notice PIH 2010-18]
Written third-party verification documents must be original and authentic and may be supplied by the family or received from a third-party source.

Examples of acceptable tenant-provided documents include, but are not limited to, pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. Income tax returns with corresponding official tax forms and schedules attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s transmittal receipt, summary of transmittal from online source, etc.) are an acceptable form of written, third-party verification.

The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining annual income from wages. when calculating income using third-party verification from the source. For new income sources or when two pay stubs are not available, the PHA should determine income based on the information from a traditional written, third-party verification form or the best available information.

The PHAWhen the family disputes EIV-reported employment income, the PHA uses written third-party verification.

When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts.

HACP Policy:

In general, the HACP will use third-party verification from the source in the following circumstances:

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• At annual reexamination when EIV + self-certification is not used;
• For all new admissions; and
• For all interim reexaminations.

The HACP will not use this method if the HACP is able to use an income determination from a means-tested federal assistance program or if the HACP uses EIV + self-certification as outlined above.

In general, third-party documents provided by the family or the source must be dated within 120 days of the date received by the HACP.

However, for fixed-income sources, a statement dated within the appropriate benefit year is acceptable documentation.

The HACP may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible.

HACP Policy:

Third-party documents provided by the family must be dated within 60 days of the HACP request date.

If the HACP determines that third-party documents provided by the family are not acceptable, the HACP will explain the reason to the family and request additional documentation from the family or will use a lower form of verification such as a written third-party verification form.

As verification of earned incomeWhen verification of assets held by a banking or financial institution is required, the HACP will obtain one statement that reflects the current balance of the account.

When pay stubs are used, the HACP will require the family to provide the two most current, consecutive pay stubs. At the HACP’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), If additional pay stubs are submitted, HACP will utilize up to four consecutive paystubs provided to calculate anticipated income for the next annual recertification. Where a participant or applicant has recently commenced employment, HACP will utilize however many pay stubs have been received to date and attempt to supplement them with written verification from the employer. At the HACP’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), the PHAHACP may request additional paystubs or a payroll record.

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Where an employer fails to respond to a request for 7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD-PARTY FORM [Notice PIH 2023 -27] This type of verification of wages, HACP shall utilizes The Work Number to verify wages. The Work Number shall only be utilized when there is a lack of pay stubs and/or employment verification available to HACP.

HACP will make two attempts to obtain form developed by the PHA and used uniformly for all families when needed to collect information from a third-party documents provided by the family before attempting other methods of verification.

Written Third-Party Verification Form
When upfront verificationsource. This is not available and the family is unable to provide written third-party documents, the PHA must request a written third-party verification form. HUD’s position is that this known as “traditional third-party verification method presents administrative burdens and risks which may be reduced through the use of family-provided third-party documents. .” PHAs may mail, fax, or e-mail third-party written verificationsend a PHA- developed form requests to third-party sources.

HACP Policy:

The HACP will send third-party verification forms directly to the third party.-party source by mail, fax, or email and the source completes the form by hand (in writing or typeset).

Third-party verification forms will be sent when third-party verification documentsThe PHA may use this method when higher forms are unavailable or are rejected by the HACP.

HACP will make one attempt to obtain verification forms from a third-party before utilizingPHA or when the family is unable to provide acceptable verification. The PHA may skip this level of verification and may instead substitute oral third-party verification methodbefore moving to self-certification.

Oral Third-Party VerificationHACP Policy:

Typically, the HACP will attempt to send written third-party verification forms to the verification source whenever higher forms of verification are unavailable.

However, on a case-by-case basis, the HACP may choose to obtain oral third-party verification without first attempting, and in lieu of, a written-third party verification form.

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7.I.H. LEVEL 2: ORAL THIRD-PARTY VERIFICATION [Notice PIH 2010- 182023-27]

For third
-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person.

Oral third-party verification is mandatory if neither form of written third-party verification is available.

Third-party oral verification may be used when requests for written third-party verification forms have not been returned within a reasonable time—e.g., 10 business days.

PHAs shouldmust document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed.

HACP Policy:

In collecting third-party oral The PHA may skip this level of verification, if they attempted written third-party verification via a form and the source did not respond and move directly to self-certification.

HACP Policy:

In general, the HACP staff will recordattempt to obtain written third-party verification via a form from the verification source. If written third-party verification forms are not returned within 10 business days, the HACP will accept self-certification from the family without attempting to obtain oral third-party verification.

However, if the HACP chooses to obtain oral third-party verification, the HACP will document in the family’s file the date and time of the telephone call or visit, the name and title of the person contacted, the date and time of the conversation (or attempt), the and the telephone number used, and, as well as the facts provided. information confirmed.

When any source responds verbally to the initial written request for verification the HACP will accept the verbal response as oral verification but will also request that the source complete and return any verification Formatted: Space Before: 12 pt, Line spacing: 1.5 lines Formatted: Indent: Left: 0.5", First line: 0", Line
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forms that were provided.

When Third-Party Verification is Not Required [Notice PIH 2010-182023-27] Third-party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment.

HACP Policy:

If the family cannot provide original documents, the HACP will pay the service charge required to obtain third-party verification, unless it is not cost effective in which case a self-certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family.

The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18].

Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth.

Imputed Assets
Third-party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment.

HACP Policy:

The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18].

Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth.

Imputed Assets
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HUD permits PHAs to accept a self-certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28].

HACP Policy:

The HACP will accept a self-certification from a family as verification of assets disposed of for less than fair market value.

Value of Assets and Asset Income [24 CFR 982.516(a)]
For families with net assets totaling $5,000 or less, the PHA may accept the family’s declaration of asset value and anticipated asset income. However, the PHA is required to obtain third
-party verification of all assets regardless of the
amount during the intake process and at least every three years thereafter.

HACP Policy:

For families with net assets totaling $5,000 or less, the HACP will accept the family’s self-certification of the value of family assets and anticipated asset income when applicable. The family’s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family’s declaration.

The HACP will use third-party documentation for assets as part of the intake process, whenever a family member is added to verify the individual’s assets, and every three years thereafter.

7-I.E.7-I.I. LEVEL 1: NON-THIRD-PARTY VERIFICATION TECHNIQUE: SELF- CERTIFICATION [Notice PIH 2023-27]
When HUD requires Non-third-party verification, self-certification consists of a signed statement of reported income and/or “tenant declaration” isexpenses. This verification method should be used as a last resort when the PHA is unable to obtain third-party verificationhas not been successful in obtaining information via all other required verification techniques.

Self-certification, however, is an acceptable form of verification when:
• A source of income is fully excluded.
• Net family assets total $550,000 or less and the PHA has adopted a policy to accept self- certification at annual recertification, when applicable
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• The family declares that they do not have any present ownership in any real property
• A family states that they have non-recurring income that will not be repeated in the coming year; and/or
• The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 11) • The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 11)

When the PHA was required to obtain third-party verification but instead relies on a tenant declaration for verification of income, assets, or expensesself- certification, the family’s file must be documented to explain why third-party verification was not available.

HACP Policy:

HUD does not require that a self-certification be notarized; however, HUD recommends including language on any self-certification to ensure the certifier understands the consequences of knowingly providing false information.

HACP Policy:

When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to the HACPPHA.

The HACP may require a family to certify that a family member does not receive a particular type of income or benefit.

The self-certification must be made in a format acceptable to the HACPPHA and must be signed by the family member whose information or status is being verified. All self-certifications must be signed in the presence of a PHA representative or PHA notary public.

All self-certifications will include the following language:

“I/We, the undersigned, certify under penalty of perjury that the information provided here is true and correct, to the best of my knowledge and recollection. WARNING: Anyone who knowingly submits a false claim or Formatted: Font: Not Bold, No underline
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knowingly makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties (18 U.S.C. 287, 1001, 1010, 1012; 31 U.S.C. 3279, 3802).”

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PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY

HACP Policy:

The HACP will require families to furnish verification of legal identity for each household member.

Verification of Legal Identity for Adults Verification of Legal Identity for Children
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Birth certificate, naturalization papers
Church issued baptismal certificate
Current, valid driver's license or Department of Motor
Vehicles identification card
U.S. military discharge (DD 214)
Current U.S. passport
Current employer identification card
Current government employer identification card with
picture
An unexpired foreign passport with an I-551 stamp, or
with Form I-94 attached which indicates an unexpired
employment authorization
A Permanent Resident Card (often called a “green
card”) or Alien Registration Receipt Card with
photograph
An unexpired Temporary Resident Card
An unexpired Employment Authorization Card
An unexpired Employment Authorization Document
issued by the Dept. of Homeland Security that includes
a photograph (Form I-766)
Federal or state ID card provided it contains a
photograph and identifying information such as name,
date of birth, gender, height, eye color and address.

School ID with photograph
Voter Registration Card
US Coast Guard Merchant Mariner Card
Native American tribal document
• Birth certificate
• Adoption papers
• Custody agreement
• Health and Human
Services ID
• Certified school
records
• Student Identification
card
• Clinic, doctor or
hospital record
• Day care or nursery
school record

If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required.

If none of these documents can be provided, and at the HACP’s discretion, a third party who knows the person may attest to the person’s identity. The certification must be provided in a format acceptable to the HACP and must be signed verified in the presence of a HACP representative or HACP notary public by the family member whose information or status is being considered

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Legal identity will be verified for all applicants at the time of eligibility determination and in cases where the HACP has reason to doubt the identity of a person representing him or herself to be a participant.

7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2012- 102023-27]
The family must provide documentation of a valid social security numberSocial Security Number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. Exemptions also include existing program participants who were at least 62 years of age as of January 31, 2010 and had not previously disclosed an SSN.

Note that an individual who previously declared to have eligible immigration status may not change his or her declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose.

The PHA must accept the following documentation as acceptable evidence of the social security number:
• An original SSN card issued by the Social Security Administration (SSA)
• An original SSA-issued document, which contains the name and SSN of the individual.
• An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual.

While PHAs must attempt to gather third-party verification of SSNs prior to admission as listed above, PHAs also have the option of accepting a self- certification and a third-party document (such as a bank statement, utility or cell phone bill, or benefit letter) with the applicant’s name printed on it to satisfy the SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required documentation. If verifying an individual’s SSN using this method, the PHA must document why the other SSN documentation was not available.

If the tenant’s SSN becomes verified in EIV, then no further verification is required. If the tenant’s SSN fails the SSA identity match, then the PHA must obtain a valid SSN card issued by the SSA or an original document issued by a Formatted: Line spacing: 1.5 lines
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federal or state government agency that contains the name of the individual and the SSN of the individual, along with other identifying information of the individual. The tenant’s assistance must be terminated if they fail to provide the required documentation.

HACP Policy:

The HACP will verify an individual’s SSN in the situations described above using the method described above as a last resort when no other forms of verification of the individual’s SSN are available.

The PHA may only reject documentation of an SSN provided by an applicant or participant if the document is not an original document or if the original document has been altered, mutilated, is illegible, or appears to be forged.

HACP Policy:

The HACP will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to the HACP within 90 days.

In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90-day extension if it determines that the applicant’s failure to comply was due to circumstances that were beyond the applicant’s control and could not have been reasonably foreseen.

HACP Policy:

The HACP will grant one additional 90-day extension if needed for reasons beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. If the individual fails to comply with SSN disclosure and documentation requirements upon expiration of the provided time period, the HACP will terminate the applicant or participant’s assistance.

If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of voucher issuance, an otherwise eligible family may be admitted to the program and the family must provide documentation of the ch
ild’s SSN within 90 days of the effective date of
the initial HAP contract. A 90-day extension will be granted if the PHA determines that the participant’s failure to comply was due to unforeseen circumstances and was outside of the participant’s control.

HACP Policy:

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The HACP will grant one additional 90-day extension if needed for reasons beyond the applicant’s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency.

When a participant requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the participant must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided.

When a participant requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90-day extension will be granted if the PHA determines that the participant’s failure to comply was due to unforeseen circumstances and was outside of the participant’s control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household.

HACP Policy:

Social security numbers must be verified only once during a continuously assisted occupancy.

HACP Policy:

The HACP will verify each disclosed SSN by:
- Obtaining documentation from applicants and participants that is

acceptable as evidence of social security numbers,
- m aking a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder.

Once the individual’s verification status is classified as “verified,” the HACP may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN.

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HACP Policy:

Once an individual’s status is classified as “verified” in HUD’s EIV system, the HACP will remove and destroy copies of documentation accepted as evidence of social security numbers.

7-II.C. DOCUMENTATION OF AGE
A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptab
le.

HACP Policy:

If an official record of birth or evidence of social security retirement benefits cannot be provided, the HACP will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-certification.

Age must be verified only once during a continuously assisted occupancy.

7-II.D. FAMILY RELATIONSHIPS
Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter.

HACP Policy:

Family relationships are verified only to the extent necessary to determine a family’s eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships.

Marriage
HACP Policy:

Certification by the head of household is normally sufficient verification. If the HACP has reasonable doubts about a marital relationship, the HACP will require the family to document the marriage.

A marriage certificate generally is required to verify that a couple is married.

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In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns).

Separation or Divorce
HACP Policy:

Certification by the head of household is normally sufficient verification. If the HACP has reasonable doubts about a separation or divorce, the HACP will require the family to provide documentation of the divorce or separation.

A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is
divorced.

A copy of a court-ordered maintenance or other court record is required to document a separation.

If no court document is available, documentation from a community-based agency will be accepted.

Absence of Adult Member

HACP Policy:

If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill).

Foster Children and Foster Adults
HACP Policy:

HACP Policy:

Third-party verification from the state or local government agency responsible for the placement of the individual with the family is required.

7-II.E. VERIFICATION OF STUDENT STATUS
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General Requirements

HACP Policy:

The HACP requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if:
- The family reports full-time student status for an adult other than the head, spouse, or cohead.
- The family reports child
-care expenses to enable a family member
to further his or her education.
- The family includes a student enrolled in an institution of higher education.

Restrictions on Assistance to Students Enrolled in Institutions of Higher Education
This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance.

HACP Policy:

In accordance with the verification hierarchy described in section 7-1. B, the HACP will determine whether the student is exempt from the restrictions in 24 CFR 5.612 by verifying any one of the following exemption criteria:
•
The student is enrolled at an educational institution that does not meet the definition of institution of higher education in the Higher Education Act of 1865 (see section Exhibit 3-2).
• The student is at least 24 years old.
• The student is a veteran, as defined in section 3-II.E. • The student is married.
• The student has at least one dependent child, as defined in section 3- II.E.
• The student is a person with disabilities, as defined in section 3-II. E, and was receiving assistance prior to November 30, 2005.

If the PHA cannot verify at least one of these exemption criteria, the PHA will conclude that the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to verifying the student’s income eligibility, the PHA will then proceed to verify either the student’s parents’ income Formatted: Line spacing: Multiple 1.15 li
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eligibility (see section 7-III.J) or the student’s independence from his/her parents (see below).

Independent Student

HACP Policy:

The HACP will verify a student’s independence from his/her parents to determine that the student’s parents’ income is not relevant for determining the student’s eligibility by doing all of the following:

Either reviewing and verifying previous address information to determine whether the student has established a household separate from his/her parents for at least one year, or reviewing and verifying documentation relevant to determining whether the stude
nt meets the U.S. Department of Education’s definition of independent student (see section 3-II. E)

Reviewing the student’s prior year income tax returns to verify the student is independent or verifying the student meets the U.S.

Department of Education’s definition of independent student (see section 3-II. E)

Requesting and obtaining written certification directly from the student’s parents identifying the amount of support they will be providing to the student, even if the amount of support is $0, except in cases in which the HACP determines that the student is a vulnerable youth (see section 3-II. E)

7-II.F. DOCUMENTATION OF DISABILITY
The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ website at http://www.hhs.gov/ocr/privacy/.

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inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]:
• Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy.
• Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability.
• Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability.
• Inquiry whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance.
• Inquiry whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance.

Family Members Receiving SSA Disability Benefits
Verification of the receipt of disability benefits from the Social Security Administration (SSA) is sufficient verification of disability for the purpose of qualifying for waiting list preferences (if applicable) or certain income disallowances and deductions [VG, p. 23].

HACP Policy:

For family members claiming disability who receive disability benefits from the SSA, the HACP will attempt to obtain information about disability benefits through the HUD Enterprise Income Verification (EIV) system. If documentation from HUD’s EIV System is not available, the HACP will request a current (dated within the last 60 days) SSA benefit verification letter from each family member claiming disability status. If the family is

unable to provide the document(s), the HACP will ask the family to request a benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it from www.ssa.gov.www.ssa.gov. Once the applicant or participant receives the benefit-verification letter, he/she will be required to provide it to the HACP.

Family Members Not Receiving SSA Disability Benefits
Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of disability in 24 CFR 5.403.

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HACP Policy:

For family members claiming disability who do not receive disability benefits from the SSA, a knowledgeable professional must provide third- party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition.

7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible personspeople. A detailed discussion of eligibility requirements is in the Eligibility chapter. This verifications chapter discusses HUD and PHA verification requirements related to citizenship status.

The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during a continuously assisted occupancy. [24 CFR 5.508(g)(5)]

U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors.

The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation.

HACP Policy:

Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless the HACP receives information indicating that an individual’s declaration may not be accurate.

Eligible Immigrants Documents Required
Documents Required

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All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals.

The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide.

PHA Verification [HCV GB, pp. 5-3 and 5-7]
For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this plan. No further verification of eligible immigration status is required.

For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the United States Citizenship and Immigration Services (USCIS).

The PHA will follow all USCIS protocols for verification of eligible immigration status.

7-II.H. VERIFICATION OF PREFERENCE STATUS
The PHA must verify any preferences claimed by an applicant that determined placement on the waiting list.

HACP Policy:

The HACP will offer a preference to any family that has been terminated from its HCV program due to insufficient program funding. The HACP will verify this preference using the HACP’s termination records.

The HACP also offers a preference for victims of domestic violence, dating violence, sexual assault, or stalking, or human trafficking as described in Section 4-III.C. To verify that applicants qualify for the preference, the HACP will follow documentation requirements outlined in Section 16-IX.D.

PART III: VERIFYING INCOME AND ASSETS
Chapter 6, Part I of this plan describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any assets and income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter.

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HACP Policy:

The following policies do not apply when the HACP uses a safe harbor income determination from a means-tested federal assistance program.

7-III.A. EARNED INCOME
Tips
HACP Policy:

Unless tip income is included in a family member’s W-2 by the employer, or in UIV verification sources, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the prior year andor tips anticipated to be received in the coming year.

Wages

HACP Policy:

ForWhen the PHA requires third-party verification of wages for wages other than tips, the family must provide originals of the two most current, consecutive pay stubs.

7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME

The PHA must obtain written, third-party verification when the income type is not available in EIV. This includes income from self-employment.

HACP Policy:

Business owners and self-employed persons will be required to provide:

- All available income information as well as a self- certification of projected income that they expect to receive over the next 12 months.

- If a family member has been self-employed for less than three (3) months, the PHA will accept a Self-Certification projecting the income from self- employment that the family expects to receive over the next 12 months. The family must schedule an Interim recertification in three (3) months if they are not able to provide documents other than the Self-Certification.

- If the family is able to provide documentation of income/ expenses, (copies of gross receipts, bank statements, cash receipts, payment logs, etc.) and those documents support the Self- Certified projection, the family is not required to Formatted: Line spacing: 1.5 lines
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schedule an Interim Recertification in three months. Interim Recertification would be required if the only verification of earnings provided was Self- Certification An audited financial statement for the previous fiscal year if an audit was conducted.

- If a family member has been self-employed for three (3) months to twelve (12) months, the PHA will accept a Self-Certification projecting the income from self-employment that the family expects to receive over the next 12 months along with documentation of income/ expenses (copies of gross receipts, bank statements, cash receipts, payment logs etc.). If available, the family must provide schedules completed for filing federal and local taxes in the preceding year (Schedule C).

- If a family member has been self-employed for twelve (12) or more months, the PHA will accept a Self-Certification projecting the income from self- employment that the family expects to receive over the next 12 months along with documentation of income/ expenses (copies of gross receipts, bank statements, cash receipts, payment logs etc.) along with schedules completed for filing federal and local taxes in the preceding year (Schedule C).
- HACP may request any additional documentation that supports calculations found in tax returns.

- Income tax returns with corresponding official tax forms and schedules attached and including third-party receipt of transmission for income tax return filed (i.e., tax preparer’s transmittal receipt, summary of transmittal from online source, etc.).
- If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight- line depreciation rules.
- For self-employed individuals who claim they do not to file tax returns, The PHA will obtain a completed copy of IRS Form 4506-T to verify that no return has been filed.
- For those employed in “gig employment” (i.e., those in formal agreements with on-demand companies such as Uber, Lyft, or DoorDash), the PHA will provide a format for the individual to declare their income and expenses. The PHA will also review the printed statement of monthly income from the applicable app for all hours worked and pay received as well as the Schedule C of the individual’s tax return and the corresponding IRS Form 1099 or 1099k.

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The PHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self-employed person will be required to submit the information requested and to certify its accuracy at all future reexaminations.

At any reexamination the HACPPHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements.

If a family member has been self-employed less than three (3) months, the PHA will accept the family member's certified estimate of income and schedule an interim reexamination in three (3) months. If the family member has been self-employed for three (3) to twelve (12) months the PHA will require the family to provide documentation of income and expenses for this period and use that information to project income.

7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 11.

Social Security/ SSI Benefits [Notice PIH 2023-27]
Verification requirements for Social Security (SS)/) and Supplemental Security Income (SSI) Benefits

HACP Policy:

To verify the SS/SSI benefits ofdiffer for applicants, the HACP will request a and participants.

For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to provide a copy of their current SS and/or SSI benefit letter (dated within the last 60120 calendar days) SSA benefit verification letter fromfor each family member that receives social security SS and/or SSI benefits.

If the family is unable to provide the document(s), the HACP will help or documents, the PHA should help the applicant request a benefit verification letter from SSA’s Web sitewebsite at www.ssa.govwww.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. Once The PHA must obtain the original benefit letter from the applicant has received the benefit-verification letter, he/she will be required to provide it, make a photocopy of the document for the file, and return the original to the HACPfamily.

To verify the SS/SSI benefits ofFor participants, the HACP willPHA must obtain information about SS/SSI benefits through the HUD EIV System,system and confirm with the participant(s)participants that the current listed benefit amount is Formatted: Don't keep lines together
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correct.
• If the participant agrees with the amount reported in EIV, the PHA must use the EIV-reported gross benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV- reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the participant disputes the amount.
• If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in HUD systemsEIV, the HACP willPHA must request a current SSA benefit verification letter (dated within the last 120 calendar days) from each family member that receives social securitySS and/or SSI benefits. If the family is unable to provide the document(s) the HACP will help or documents, the PHA should help the participant request a benefit verification letter from SSA’s Web sitewebsite at www.ssa.govwww.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. Once the participant has received the benefit-verification letter, he/she will be required to provide it to the HACPThe PHA must obtain the original benefit letter from the participant, make a photocopy of the document for the file, and return the original to the family.

Photocopies of social security checks or bank statements are not acceptable forms of verification for SS/SSI benefits.

7-III.D. ALIMONY OR CHILD SUPPORT [Notice PIH 2023-27]

Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. For example, a family’s child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders. A copy of a court order or other written payment agreement alone may not be sufficient verification of amounts received by a family.

HACP Policy:

The methods the HACP will use to verify alimony and child support payments differ depending on whether the family declares that it receives regular payments.

If the family declares that it receives regular payments, verification will be obtained in the following order of priority:

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1. Copies of the receipts and/or payment stubs for the 60 days12 months prior to HACP request

2. Third-party verification form from the state or local child support enforcement agency

3. Third-party verification form from the person paying the support.

4. Family's self-certification of amount received.

If the family declares that it receives irregular or no payments, in addition to the verification process listed above, the family must provide evidence that it has taken all reasonable efforts to collect amounts due.

This may include:

1. A statement from any agency responsible for enforcing payment that shows the family has requested enforcement and is
cooperating with all enforcement efforts.

2. If the family has made independent efforts at collection, a written statement from the attorney or other collection entity that has assisted the family in these efforts

Note: Families are not required to undertake independent enforcement action.

7-III.E. NONRECURRING INCOME [Notice PIH 2023-27]
Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date of the certification), based on information provided by the family, is considered nonrecurring income and is excluded from annual income. PHAs may accept a self-certification from the family stating that the income will not be repeated in the coming year.

HACP Policy:

The HACP will accept self-certification from the family stating that income will not be repeated in the coming year. However, the HACP may choose, on a case-by-case basis, to require third-party verification that income sources will not be repeated in the coming year.

7-III.E. ASSETS AND INCOME FROM ASSETS

Net Family Assets Declared to be less than $5000.00[24 CFR 5.603] At admission and reexam, for families with net assets totaling $50,000 or less (adjusted annually), the PHA may, but is not required to, accept the family’s self- Formatted: Font color: Blue
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certification that the family’s assets do not exceed $50,000 without taking any additional steps to verify the accuracy of the declaration. The declaration must include the amount of income the family expects to receive from assets which must be included in the family’s income. This includes declaring income from checking and savings accounts which, although excluded from the calculation of net family assets (because the combined value of non-necessary personal property does not exceed $50,000), may generate asset income. PHAs must clarify during the self-certification process which assets are included/excluded from net family assets.

For PHAs that choose to accept self-certification, the PHA is required to obtain third-party verification of all assets, regardless of the amount, at least once every three years.

PHAs who choose not to accept self-certifications of assets must verify all families’ assets on an annual basis.

When net family assets have a total value over $50,000, the PHA may not rely on the family’s self-certification. Third-party verification of assets is required when net family assets exceed $50,000, adjusted annually by HUD.

When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts.

HACP Policy:

For families with net assets totaling $50,000 or less, the HACP will accept the family’s self-certification of the value of family assets and anticipated asset income. The family’s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family’s declaration. The HACP reserves the right to require additional verification in situations where the accuracy of the declaration is in question. Any income the family expects to receive from assets will be included in the family’s annual income. The family will be required to provide third-party verification of net family assets every three years.

When verification is required, in determining the value of checking or savings accounts, the PHA will use the current balance.

In determining the anticipated income from an interest-bearing checking or savings account when verification is required and the rate of return is known, the HACP will multiply the current balance of the account by the current rate of interest paid on the account. If a checking account does not bear interest, the anticipated income from the account is zero.

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In accordance with PIH Notice 2013-3, HACP has elected to allow households to self-certify assets with a total household value of less than $5000 and will not require third party verification of these assets. Households will be required to declare the value of all assets on the Personal Declaration and this declaration will serve as self-certification for assets with a cumulative total of less than $5000. All assets with a cumulative declared value greater than $5000 must be verified through the verification hierarchy described in this Chapter

Assets Disposed of for Less than Fair Market Value
TheSelf-Certification of Real Property Ownership [24 CFR 5.618(b)(2)] The PHA must determine whether a family has present ownership in real property that is suitable for occupancy for purposes of determining whether the family is compliant with the asset limitation described in Chapters 3 and 12. At admission and reexam, the PHA may accept a self-certification from the family that the family does not have any present ownership in any real property that is suitable for occupancy. If the family declares they have present ownership in real property, the PHA must obtain third-party verification.

HACP Policy:

Both at admission and reexam, the PHA will accept self-certification from the family that the family does not have any present ownership in any real property. The certification will state that the family does not have any present ownership interest in any real property and must be signed by all family members 18 years of age and older. The PHA reserves the right to require additional verification in situations where the accuracy of the declaration is in question.

If the family declares they have a present ownership in real property, the PHA will obtain third-party verification of the following factors: whether the family has the legal right to reside in the property; whether the family has effective legal authority to sell the property; and whether the property is suitable for occupancy by the family as a residence. However, in cases where a family member is a victim of domestic violence, dating violence, sexual assault, or stalking, the PHA will comply with confidentiality requirements under 24 CFR 5.2007 and will accept a self-certification.

7-III.G. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUEThe family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. HUD permits PHAs to accept a self- certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28]. The PHA needs to verify only those certifications that warrant documentation [HCV GB, p. 5-28].

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HACP Policy:

The HACP will accept a self-certification from a family as verification of assets disposed of for less than fair market value.

The HACP will verify the value of assets disposed of only if:
o• The HACPPHA does not already have a reasonable
estimation of its value from previously collected information, or
o• The amount reported by the family in the certification appears to beobviously in error.

Example 1: An elderly participant reported a $10,000 certificate of deposit at the last annual reexamination and the HACPPHA verified this amount.

Now the person reports that she has given this $10,000 to her son. The HACPPHA has a reasonable estimate of the value of the asset; therefore, reverification of the value of the asset is not necessary.

Example 2: A family member has disposed of its 1/4 share of real property located in a desirable area and has valued theher share at approximately $5,000. Based upon market conditions, this declaration does not seem realistic. Therefore, the HACPPHA will verify the value of this asset.

7-III.FH. NET INCOME FROM RENTAL PROPERTY

HACP Policy:

The family must provide:
o• A current executed lease for the property that shows the rental amount or certification from the current tenant. • A self-certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with
Schedule E (Rental Income).

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o• If schedule E was not prepared, the HACPPHA will require the family members involved in the rental of property to provide a self-certification of income and expenses for the previous year and may request documentation to support the statement including the following: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense.

7-III.GI. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS [Notice PIH 2023-27]
PHAs are not required to verify the amount of the family’s federal tax refund or refundable tax credit(s) if the family’s net assets are equal to or below $50,000 (adjusted annually for inflation), even in years when full verification of assets is required or if the PHA does not accept self-certification of assets. PHAs must verify the amount of the family’s federal tax refund or refundable tax credits if the family’s net assets are greater than $50,000.

7-III.J. RETIREMENT ACCOUNTS

HACP Policy:

The HACP will accept written third-party documents supplied by the family as evidence of the status of retirement accounts.

The type of original document that will be accepted depends upon the family member’s retirement status.
o Before retirement, the HACP will accept an original document from the entity holding the account with a date that shows it is the most recently scheduled statement for the account but in no case earlier than 6 months from the effective date of the examination.

o Upon retirement, the HACP will accept an original document from the entity holding the account that reflects any distributions of the account balance, any lump sums taken and any regular payments.

o After retirement, the HACPThe PHA will accept an original document from the entity holding the account dated no earlier than 12 months before that reflects any distributions of the account balance, any lump sums taken, and any regular payments.

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7-III.HK. INCOME FROM EXCLUDED SOURCES [Notice PIH 2023-27] A detailed discussion of excluded income is provided in Chapter 6, Part I.

HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded.

For fully excluded income, the PHA is not required to follow the verification hierarchy, document why third-party verification is not available, or report the income on the 50058. Fully excluded income is defined as income that is entirelywhere the entire amount qualifies to be excluded from the annual income determination in accordance with 24 CFR 5.609(b) and any Federal Register notice on mandatory exclusions issued by HUD (for example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04].).

PHAs may accept a family’s signed application or reexamination form as self- certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification.

For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058.

Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student, or income excluded under the earned income disallowance).

HACP Policy:

The HACP will accept the family’s self-certification as verification of fully excluded income. The HACP may request additional documentation if needed to document the income source.

The HACP will verify the source and amount of partially excluded income as described in Part 1 of this chapter.

7-III.IL. ZERO ANNUAL INCOME STATUS REVIEWS [Notice PIH 2023-27]

A zero income review is an assessment, sometimes periodic, performed by the PHA of the income of a family who claims that they do not receive income from any source, including from assets. During such reviews, it is common for PHAs to Formatted: Line spacing: 1.5 lines
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request that families complete and sign a worksheet explaining how they pay for the household’s expenses. HUD does not require PHAs to conduct periodic zero income reviews. In calculating annual income, PHAs must not assign monetary value to nonmonetary in-kind donations from a food bank or similar organization received by the family [24 CFR § 5.609(b)(24)(vi)]. PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms.

Families who begin receiving income which does not trigger an interim reexamination should no longer be considered zero income even though the family’s income is not reflected on the Form HUD-50058
HACP Policy:

The HACP will check UIV sources and/or may request information from third-party sources to verify that certain forms of income such as unemployment benefits, TANF, SS, SSI, and earningsearned income, child support, etc., are not being received by families claiming to have zero annual income.

The PHA will also require that each family member who claims zero income status complete a zero-income form. If any sources of income are identified on the form, the PHA will verify the income in accordance with the policies in this chapter prior to including the income in the family’s annual income.

The PHA will only conduct interims in accordance with PHA policy in Chapter 11.

7-III.JM. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] Any The regulations under HOTMA distinguish between two categories of student financial assistance, in excess of paid to both full-time and part-time students. Any assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Any other grant-in-aid, scholarship, or other assistance amounts received an individual receives for tuition, that a person attending an institutionthe actual covered costs charged by the institute of higher education receives under the Higher Education Act of 1865, from private sources, or from an institution of higher education must be considered income unless the student is over the age of 23 with dependent children or is residing with parents who are seeking or receiving HCV assistance [24 CFR 5.609(b)(9) and FR 4/10/06].

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financial assistance is excluded from annual income [24 CFR 5.609(c)(6)]. The full amount of student financial assistance is also not otherwise excluded for students attending schools that do not qualify as institutions of higher education (as defined in Exhibit 3-2). Excluded amounts are verified only if, without verification, the PHA would not be able to determine whether or to what extent the income is to be by the federally mandated income exclusions are excluded (see section 7-III.H).

[HACP Policy:

For a student subject to having a portion of his/her student financial assistance included in annual income in accordance with 24 CFR 5.609(b)(9), the)(ii)].

HACP Policy:

The HACP will request written third-party verification of both the source and the amount of student financial assistance. Family-provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student.

In addition, unless the student’s only source of assistance is assistance under Title IV of the HEA, the HACP will request written verification of the cost of the student’s tuition amount, books, supplies, room and board, and other required fees and charges to the student from the educational institution.

If the HACP is unable to obtain third-party written verification of the requested information, the HACP will pursue other forms of verification following the verification hierarchy in section 7-I.B.

7-III.KN. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY

RESTRICTIONS
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the income of the student’s parents must be considered when determining income eligibility, unless the student is determined independent from his or her parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612, FR Notice 4/10/06, p. 18146, and FR Notice 9/21/16].

This provision does not apply to students residing with parents who are seeking or receiving HCV assistance. It is limited to students who are seeking or receiving assistance on their own, separately from their parents.

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HACP Policy:

If the HACP is required to determine the income eligibility of a student’s parents, the HACP will request an income declaration and certification of income from the appropriate parent(s) (as determined in section 3-II.E).

The HACP will send the request directly to the parents, who will be required to certify their income under penalty of perjury. The parents will be required to submit the information directly to the HACP. The required information must be submitted (postmarked) within 10 business days of the date of the HACP’s request or within any extended timeframe approved by the HACP.

The HACP reserves the right to request and review supporting documentation at any time if it questions the declaration or certification.

Supporting documentation may include, but is not limited to, Internal Revenue Service (IRS) tax returns, consecutive and origin al pay stubs,
bank statements, pension benefit statements, benefit award letters, and other official and authentic documents from a federal, state, or local agency.

PART IV: VERIFYING MANDATORY DEDUCTIONS
7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required.

Dependent Deduction
See Chapter 6 (6-II.B.) for a full discussion of this deduction. The PHA must verify that:
• Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or cohead of the family and is not a foster child. •
Any person aged 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide and is a person with a disability or a full-time student.

Elderly/Disabled Family Deduction
See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (6-II.C.) for a discussion of the deduction. The PHA must verify that the head, spouse, or cohead is 62 years of age or older or a person with disabilities.

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7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION
Policies related to medical expenses are found in Chapter 6-II.D. The amount of the deduction will be verified following the standard verification procedures described in Part I.

The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub.

L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed health and medical care expenses. The PHA may not request documentation beyond what is sufficient to determine anticipated health and medical care costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23].

Amount of Expense

HACP Policy:

Medical expenses will be verified through:
•
Written third-party documents provided by the family, such as pharmacy printouts or receipts.
• TheWhen income is projected at new admission or interim, the HACP will make a best effort to determine what expenses from the past are likely to continue to occur in the future. The HACP will also accept evidence of monthly payments or total payments that will be due for medical expenses during the upcoming 12 months. • Written third-party verification forms, if the family is unable to provide acceptable documentation.
• IfWhen income is projected at new admission or interim, if third- party or document review is not possible, written family certification as to costs anticipated to be incurred during the upcoming 12 months.

Before placing bills and documentation in the tenant file, the PHA will redact all personally identifiable information.

If the PHA receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, the PHA will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to be disposed of, the PHA will note in the individual’s file that verification was received, the date received, and the Formatted: Line spacing: 1.5 lines
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name and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26].

In addition, the HACP must verify that:
• The household is eligible for the deduction.
• The costs to be deducted are qualified health and medical care expenses. • The expenses are not paid for or reimbursed by any other source. •
Costs incurred in past years are counted only once.

Eligible Household
The health and medical care expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62, or a person with disabilities.

The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7-IV.A.) of this plan.

Qualified Expenses
To be eligible for the health and medical-expenses care expense deduction, the costs must qualify as medical expenses. See Chapter 6 (6-II.D.) for the PHA’s policy on what counts as a medical expense.

Unreimbursed Expenses
To be eligible for the health and medical-expenses care expense deduction, the costs must not be reimbursed by another source.

HACP Policy:

The family will be required to certify that the medical expenses are not paid or reimbursed to the family from any source. If expenses are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source.

Expenses Incurred in Past Years

HACP Policy:

WhenAt new admission and interim reexam, when anticipated costs are related to on-going payment of medical bills incurred in past years, the HACP will verify:
• The anticipated repayment schedule,
•
The amounts paid in the past, and
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• Whether the amounts to be repaid have been deducted from the family’s annual income in past years

7-IV.C. DISABILITY ASSISTANCE EXPENSES
Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I.

The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub.

L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed auxiliary apparatus or attendance care costs. The PHA may not request documentation beyond what is sufficient to determine anticipated reasonable attendant care and auxiliary apparatus costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23].

Amount of Expense

Attendant Care

HACP Policy:::

The HACP will accept written third-party documents provided by the family. If family-provided documents are not available, the HACP will provide a third-party verification form directly to the care provider requesting the needed information.

Expenses for attendant care will be verified through:
• Written third-party documents provided by the family, such as receipts or cancelled checks.
• Third-party verification form signed by the provider, if family- provided documents are not available.
• IfWhen income is projected at new admission or interim, if third-party verification is not possible, written family certification as to costs anticipated to be incurred for the upcoming 12 months.

Before placing bills and documentation in the tenant file, the PHA will redact all personally identifiable information.

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If the PHA receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, the PHA will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to disposed of, the PHA will note in the individual’s file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26].

Auxiliary Apparatus

HACP Policy:

Expenses for auxiliary apparatus will be verified through:
•
Written third-party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months.
• Third-party verification form signed by the provider, if family-provided documents are not available.
• If third-party verification is not possible, written family certification of estimated apparatus costs for the upcoming 12 months.

In addition, the HACP must verify that:
• The family member for whom the expense is incurred is a person with disabilities (as described in 7-II. F above).
• The expense permits a family member, or members, to work (as described in Chapter 6-II.E.).).
• The expense is not reimbursed from another source (as described in Chapter 6-II.E.).).

Family Member is a Person with Disabilities
To be eligible for the
disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.F.).

Family Member(s) Permitted to Work
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The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work.

HACP Policy:

The HACP will request third-party verification from a rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family.

If third-party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance) to work.

Unreimbursed Expenses
To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source.

HACP Policy:

The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source.

7-IV.D. CHILDCARE EXPENSES
Policies related to childcare expenses are found in Chapter 6 (6-II. F).. The amount of the deduction will be verified following the standard verification procedures described in Part I of this chapter. In addition, the PHA must verify that:
• The child is eligible for care (12 or younger).
•
The costs claimed are not reimbursed.
• The costs enable a family member to work, actively seek work, or further their education.
• The costs are for an allowable type of child-carechildcare. • The costs are reasonable.

Eligible Child
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of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.).

Unreimbursed Expense
To be eligible for the child-care deduction, the costs must not be reimbursed by another source.

HACP Policy:

The family (and the care provider) will be required to certify that the child- care expenses are not paid or reimbursed to the family from any source.

Pursuing an Eligible Activity
The PHA must verify that the family member(s) the family has identified as being enabled to
seek work, pursue education, or be gainfully employed, are actually pursuing those activities.

HACP Policy:

Information to be gathered:

The HACP will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.

Seeking Work

Whenever possible, the HACP will use documentation from a state or local agency that monitors work-related requirements (e.g., welfare or unemployment). In such cases, the HACP will request family-provided verification from the agency of the member’s job seeking efforts to date and require the family to submit to the HACP any reports provided to the other agency.

In the event third-party verification is not available, the HACP will provide the family with a form on which the family member must record job search efforts. The HACP will review this information at each subsequent reexamination for which this deduction is claimed.

Furthering Education
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The HACP will request third-party documentation to verify that the person permitted to further his or her education by the child-carechildcare is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family.

Gainful Employment

The HACP will seek third-party verification of the work schedule of the person who is permitted to work by the child-care. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified.

The documentation may be
provided by the family.

Allowable Type of Childcare
The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6.

HACP Policy:

The HACP will verify that the type of childcare selected by the family is allowable, as described in Chapter 6 (6-II. F)..

The HACP will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible family members).

The HACP will verify that the child-care provider is not an assisted family member. Verification will be made through the head of household’s declaration of family members who are expected to reside in the unit.

Reasonableness of Expenses
Only reasonable child-care costs can be deducted.

HACP Policy:

The actual costs the family incurs will be compared with the HACP’s established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable.

If the family presents a justification for costs that exceed typical costs in the area, the HACP will request additional documentation, as required, to support a determination that the higher cost is appropriate.

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See Exhibit 7-1 on next page:

EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS
FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-10]
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• All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA.
• Except for persons 62 or older, all noncitizens must sign a verification consent form.
• Additional documents are required based upon the person's status.

Elderly Noncitizens
• A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old-age benefits.

All other Noncitizens
• Noncitizens that claim eligible immigration status also must present the applicable USCIS document. Acceptable USCIS documents are listed below. • Form I-551 Alien Registration Receipt
Card (for permanent resident aliens)
•
Form I-94 Arrival-Departure Record
annotated with one of the following:
• “Admitted as a Refugee Pursuant
to Section 207”
• “Section 208” or “Asylum”
• “Section 243(h)” or “Deportation
stayed by Attorney General”
• “Paroled Pursuant to Section 221
(d)(5) of the USCIS”
• Form I-94 Arrival-Departure
Record with no annotation
accompanied by:
• A final court decision granting
asylum (but only if no appeal is
taken);
• A letter from a USCIS asylum
officer granting asylum (if
application is filed on or after
10/1/90) or from a USCIS
district director granting asylum
(application filed before
10/1/90);
• A court decision granting
withholding of deportation; or
• A letter from an asylum officer
granting withholding or
deportation (if application filed
on or after 10/1/90).
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• Form I-688 Temporary Resident Card
annotated “Section 245A” or Section
210”.

Form I-688B Employment
Authorization Card annotated
“Provision of Law 274a. 12(11)” or
“Provision of Law 274a.12”.
• A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant’s entitlement to the document has been verified; or •
Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register
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Chapter 8

HOUSING QUALITYNATIONAL STANDARDS FOR THE PHYSICAL

INSPECTION OF REAL ESTATE AND RENT REASONABLENESS

DETERMINATIONS
Notice PIH 2023-28]

STANDARDS AND RENT REASONABLENESS DETERMINATIONS
[24 CFR 982 Subpart I and 24 CFR 982.507]

INTRODUCTION
HUD requires that all units occupied by families receiving Housing Choice Voucher (HCV) assistance meet HUD's Housing Quality Standards (HQS) and permits the PHA to establish additional requirements. The use of the term "HQS" in this plan refers to the combination of both HUD and PHA-established requirements. National Standards for the Physical Inspection of Real Estate (NSPIRE) regulations and standards no later than October 1, 2024. The inspection performance standards and procedures for conducting NSPIRE inspections must be included in the administrative plan [Notice PIH 2023-28].

All units must pass an HQSNSPIRE inspection prior to the approval of a lease (with some exceptions) and at least once every 24 months (or 36 months for small rural PHAs) during the term of the HAP contract, and at other times as needed, to determine that the unit meets HQSNSPIRE standards. HUD also requires PHAs to determine that rents for units under the program are reasonable when compared to comparable unassisted units in the market area.

Provided they meet certain requirements, HUD permits PHAs to establish some additional local requirements in their administrative plans. The use of the term NSPIRE in this plan refers to the combination of both HUD and PHA-established requirements. However, state and local codes, compliance is not part of the determination of whether a unit passes the NSPIRE standards.

This chapter explains HUD and PHA requirements related to housing qualityphysical inspections and rent reasonableness as follows:

Part I. Physical Standards. This part discusses the physicalNSPIRE standards required of units occupied by HCV and PBV-assisted families and identifies decisions about the acceptability of the unit that may be made by the family based upon the family's preference.. It also identifies affirmative habitability requirements for all units and life-threatening conditions that must be addressed on an expedited basiscorrected in 24 hours.

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Part II. The Inspection Process. This part describes the types of inspections the PHA will make and the steps that will be taken when units do not meet HQS.NSPIRE standards.

Part III. Rent Reasonableness Determinations. This part discusses the policies the PHA will use to make rent reasonableness determinations.

Special HQSNSPIRE standards requirements for homeownership, manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. Special requirements for the PBV and RAD PBV programs (if applicable) are discussed in Chapters 17 and 18, respectively.

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PART I: PHYSICALNSPIRE STANDARDS
NSPIRE standards are published on HUD’s NSPIRE website as well as in the NSPIRE Final Rule [FR Notice 5/1//2023].

8-I.A. GENERAL HUDINSPECTABLE AREAS [24 CFR 5.703(a)(1) and 24 CFR

5.705(a)(2)]
NSPIRE defines the inspectable areas for inspection under the standards as inside, outside and unit. However, the inspection requirement for the HCV and PBV programs only applies to units occupied or to be occupied by HCV or PBV participants and common areas and exterior areas which either service or are associated with such units.

8-I.B. AFFIRMATIVE HABITABILITY REQUIREMENTS [24 CFR 5.703(b), (c), and (d)]
HUD Performance and Acceptability Standards
HUD's performance and acceptability standards for HCV-assisted housing are provided in 24 CFR 982.401. These standards cover the following areas:
• Sanitary facilities
• Food preparation and refuse disposal.
• Space and Security
• Thermal Environment
• Illumination and electricity
• Structure and materials
• Interior Air Quality
• Water Supply
• Lead-based paint
• Access
• Site and neighborhood
• Sanitary condition
• Smoke Detectors
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guidance on these requirements is found in the following HUD resources:
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00)
• HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1873; the Americans with Disabilities Act of 1890; the Architectural Barriers Act of 1868 and the Fair Housing Act of 1888.

Tenant Preference Items
HUD requires the PHA to enforce minimum HQS but also recognizes that certain judgments about the acceptability of the unit are left to the family. For example,

the PHA must ensure that the unit contains the required sanitary facilities, but the family decides whether the cosmetic appearance of the facilities is acceptable.

Exhibit NSPIRE provides for minimum, or affirmative, habitability requirements for each area (unit, inside, outside). These areas must meet these requirements for habitability, which are listed in Exhibit 8-1.

The inside, outside and unit must be free of health and safety hazards that pose a danger to residents. Types of health and safety concerns include, but are not limited to carbon monoxide, electrical hazards, extreme temperature, flammable materials or other fire hazards, garbage and debris, handrail hazards, infestation, lead-based paint, mold, and structural soundness [24 CFR 5.703(e).

The NSPIRE Smoke Alarm Standard does not require that smoke alarms have a sealed battery; however, upon the effective date of the Public and Federally Assisted Housing Fire Safety Act of 2022 on December 29, 2024, sealed batteries will be required.

8-2 summarizes those items that are considered tenant preferences.

I.C. Modifications to Provide Accessibility [24 CFR 100.203; Notice 2003-31; and Notice PIH 2014-02]
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modifications to the unit. if such modification is necessary to afford the person with a disability full enjoyment of the premises. Such modifications are at the family's expense. The owner may, where it is reasonable to do so, require restoration of the unit to its original condition (reasonable wear and tear excepted) if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary, to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest-bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31].

Modifications to units to provide access for a person with a disability must meet all applicable HQSNSPIRE requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the American Disabilities Act Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003-31] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities.

HACP Policy:

Any owner that intends to negotiate a restoration agreement or require an escrow account must submit the agreement(s) to the HACP for review.

8-I.BD. ADDITIONAL LOCAL REQUIREMENTS [24 CFR 5.705(a)(3) and Notice PIH 2023-28]
The PHA may impose variations to the HQSNSPIRE standards as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to the HQS. HUD approval is not required if the variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)].to NSPIRE standards and approved variations must be added to the administrative plan.

HUD may approve inspection criteria variations if the variations apply standards in local housing codes or other codes adopted by the PHA or because of local climatic or geographic conditions. Acceptability criteria variations may only be approved by HUD if such variations either meet or exceed the performance requirements or significantly expand affordable housing opportunities for families assisted under the program.

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HACP Policy:

The HACP has requested the additional local requirements for HUD- approved variations to NSPIRE standards.

Thermal Environment [HCV GB p.10-7]
HACP must define a “healthy living environment” for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate.

HACP Policy:

The heating system must be in working condition and be capable of maintaining an interior temperature of 68 degrees Fahrenheit between October 1 and May 31.

When present, air conditioners must function properly, and control knobs must be functioning and readable. Grates or covers must also be present.

HACP Policy:

Detectors

Carbon Monoxide (CO2) detectors must be installed in accordance with California law (SB-183 - Carbon Monoxide Poisoning Prevention Act).

A. Carbon Monoxide devices must be installed in the following locations:

1. Outside each separate sleeping area in the immediate vicinity of the bedroom(s) in the dwelling unit,

2. On every level including the basement within which fuel-fired appliances are installed,

3. In dwelling units (single
-family dwelling, duplex, condominium, or
dwelling unit in a multiple-unit dwelling unit building) that have attached garages.

B. The Carbon Monoxide Detector must be operational at the time the tenant takes possession of the unit.

Smoke Detectors must be installed in accordance with the requirements of California Residential Building Code (R314).

A. Smoke alarms are to be installed in the following locations:

1. In each sleeping room.

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2. Outside each separate sleeping area in the immediate vicinity of the bedrooms. One alarm in the hallway outside each cluster of bedrooms is acceptable.

3. On each additional story of the dwelling, including basements and habitable attics but not including crawl spaces and uninhabitable attics. In dwellings or dwelling units with split levels and without an intervening door between the adjacent levels, a smoke alarm installed on the upper level shall suffice for the adjacent lower level provided that the lower level is less than one full story below the upper level.

B. Effective July 1, 2015, all battery-operated smoke alarms MUST contain a non- removable battery that is rated to last 10 years. Owners should indicate the install date on the smoke alarm unit. If no date has been entered on the smoke alarm unit, then the date of manufacture indicated on the smoke alarm unit shall be used to determine if the unit is compliant.

Landlords cannot make the tenant responsible for testing or maintaining the smoke alarm. It is the tenant's responsibility to notify the owner if a smoke alarm or Carbon Monoxide Detector is deficient or inoperable.

Garages and Storage Areas
Either attached or detached, the garage must be a part of the rental agreement.

Owners are not permitted to store their belongings or rent the space unless the garage has been properly converted into a separate dwelling unit as defined in the lease or rental agreement. Existing HAP contracts wherein owners were allowed to store their items in detached garages or other storage structures will be grandfathered into compliance. New contracts effective after January 1, 2014 will be governed by this policy.

Additional Plumbing Requirements
Water Heaters must meet the following State requirements:

California Health and Safety Code, Section 18211(a): Water heaters shall be braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion. At a minimum, any water heater shall be secured in accordance with the California Plumbing Code pursuant to 17958.5.

Uniform Plumbing Code (UPC) 510.5: Water heaterheaters must be strapped with two seismic straps: one located within the top third of the water heater and one at the bottom third. The strap must be located at least 4" away from the water heater controls.

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Utilities
In units where the tenant must pay for utilities, each unit must have separate metering device(s) for measuring utility consumption and direct billing by the utility service provider. The owner must be responsible for paying the utilities for units with centralized shared utility meters for their units. The owner is not permitted to request or require the tenant to reimburse them for utility use in units with centralized utility meters.

Apartment communities that have centralized utility meters and have a Consumption Calculation Plan or Third -Party Billing Contract must provide the HACP a copy of the plan at the time of the initial process or when a request for change is submitted following the initial term or the lease.

Clarifications of HUD Requirements
HACP Policy:

As permitted by HUD, the HACP has adopted the following specific requirements that elaborate on HUD standards.

Walls
In areas where plaster or drywall is sagging, severely cracked, or otherwise damaged, it must be repaired or replaced.

Appliances
The oven heating elements and controls must work and all burners on the stove range must also work. All stove or range knobs must be present with readable temperature markings.

The family may choose to accept a microwave oven in place of a conventional oven, stove or range if the oven/stove/range are tenant supplied or if microwaves are furnished in both subsidized and unsubsidized units in the building or premises.

The family may choose to supply their own refrigerator, but it must be in proper working order per HQS Standards.

Any owner-supplied appliances in the unit at initial inspection shall be maintained in proper working order by the owner throughout the tenancy. Should an owner-supplied appliance malfunction, the Formatted: Line spacing: 1.5 lines
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owner has the right to either repair the appliance or remove the defective item. If the owner refuses to repair an appliance but rather chooses to remove the appliance, this shall constitute a reduction in services and result in a reduction in the unit rent comparable to the annual utility allowance for a comparable tenant-provided appliance.

Bedrooms
Defined as a room used for sleeping (regardless of the type of room). At least one window is required. If the windows in the sleeping rooms are designed to be opened, at least one window must be openable and must be in proper working order.

Also required in a bedroom:
• Two working outlets or one working outlet and one
permanently installed light fixture.
• A permanent or removable closet is required in all rooms considered bedrooms.

Bedrooms in basements or attics are not permitted unless they meet local code requirements (unit meets
bedroom/bathroom definition from Contra Costa County Tax Assessors Office) as well as HQS Standards. They must have adequate ventilation with emergency exit capability.

Windows
Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced.

Windows must be weather-stripped as needed to ensure a
weather-tight seal.

Window screens must be in good condition (applies only if screens are present).

Doors
All exterior doors must be weather-tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold. All door jambs must be intact. Door jambs must have metal striker plates installed to maintain the integrity of the jam and function of the local mechanism. Each main swinging entry door of dwelling unit must have an operable single cylinder dead bolt lock.

These doors include any exterior that will allow access to the unit (front door, door off a kitchen to rear yard, the door from the unit to a garage and any doors that allow direct access to the unit). 355
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Double key deadbolt locks are prohibited on any door in the unit. Egress doors shall be readily openable without the use of a key or special knowledge or effort.

All interior doors must have no holes, have all trim intact, and be openable without the use of a key.

Floors
All wood floors must be sanded to a smooth surface and sealed.

Any loose or warped boards must be re-secured and made level. If they cannot be leveled, they must be replaced.

All floors must be in a finished state. Raw wood or unsealed concrete is not permitted.

All floors should have some type of base shoe, trim, or sealing for a "finished look." Vinyl base shoe is permitted.

Sinks
All sinks and commode water lines must have shut off valves, unless faucets are wall mounted.

All sinks must have functioning stoppers.

Toilets
All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly.

Unit Exterior
All rental units must have a street number and unit number or letter clearly labeled and visible from the street.

Each rental unit must have its own properly labeled official mailbox where the U.S. Postal Service officially delivers mail. The exclusive use of the mailing address of the unit is for the family and approved family members as described in Chapter

3.l.J - Guests.

Exterior fences: Owners may be requested to install, repair or remove a fence if a safety or security hazard is present and/or an area of the property must be separated for security reasons.

Security
If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system. 356
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8-I.CE. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a); FR DEFICIENCIES [Notice 1/18/17PIH 2023-28]
HUD requirespreviously required the PHA to define life-threatening conditions and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct in the administrative plan. The NSPIRE standards now describe those conditions which are considered life- threatening conditions and must be corrected within 24 hours of PHA notification. .

The following are a list of life-threatening deficiencies under NSPIRE:

Inspectable Item Deficiency
Call-for-Aid System System is blocked, or pull cord is higher than 6 inches off the floor.

System does not function properly
Carbon Monoxide
Alarm
Carbon monoxide alarm is missing, not installed, or
not installed in a proper location.

Carbon monoxide alarm is obstructed.

Carbon monoxide alarm does not produce an audio or
visual alarm when tested.

Chimney A visually accessible chimney, flue, or firebox connected to a fireplace or wood-burning appliance is
incomplete or damaged such that it may not safely
contain fire and convey smoke and combustion gases
to the exterior.

Chimney exhibits signs of structural failure.

Clothes Dryer
Exhaust Ventilation
Electric dryer transition duct is detached or missing.

Gas dryer transition duct is detached or missing.

Electric dryer exhaust ventilation system has restricted airflow.

Dryer transition duct is constructed of unsuitable
material.

Gas dryer exhaust ventilation system has restricted
airflow.

Dorr – Entry Entry door is missing.

Door – Fire Labeled Fire labeled door is missing.

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Inspectable Item Deficiency
Egress Obstructed means of egress.

Sleeping room is located on the third floor or below
and has an obstructed rescue opening.

Fire escape is obstructed.

Electrical –
Conductor, Outlet,
and Switch
Outlet or switch is damaged.

Exposed electrical conductor.

Water is currently in contact with an electrical
conductor.

Electrical – Service
Panel
The overcurrent protection device is damaged.

Exit Sign Exit sign is damaged, missing, obstructed, or not adequately illuminated.

Fire Escape Fire extinguisher is damaged or missing.

Fire Extinguisher Fire extinguisher pressure gauge reads over or under- charged.

Fire extinguisher service tag is missing, illegible, or expired.

Fire extinguisher is damaged or missing.

Flammable and
Combustible Items
Flammable or combustible item is on or within 3 feet of an appliance that provides heat for thermal comfort or
a fuel-burning water heater; OR
Improperly stored chemicals.

Guardrail Guardrail is missing or not installed.

Guardrail is not functionally adequate.

Heating, Ventilation,
and Air Conditioning
(HVAC)
The inspection date is on or between October 1 and
March 31 and the permanently installed heating
source is not working or the permanently installed
heating source is working and the interior temperature
is below 64 degrees Fahrenheit.

Unvented space heater that burns gas, oil, or
kerosene is present.

Combustion chamber cover or gas shutoff valve is
missing from a fuel burning heating appliance.

Fuel burning heating system or device exhaust vent is
misaligned, blocked, disconnected, improperly
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Inspectable Item Deficiency
connected, damaged, or missing.

Leak – Gas or Oil Natural gas, propane, or oil leak.

Mold-like Substance Presence of mold-like substance at extremely high levels is observed visually.

Smoke Alarm Smoke alarm is not installed where required.

Smoke alarm is obstructed.

Smoke alarm does not produce an audio or visual
alarm when tested.

Sprinkler Assembly Sprinkler head assembly is encased or obstructed by an item or object that is within 18 inches of the
sprinkler head.

Sprinkler assembly component is damaged,
inoperable, or missing and it is detrimental to
performance.

Sprinkler assembly has evidence of corrosion.

Sprinkler assembly has evidence of foreign material
that is detrimental to performance.

Structural System Structural system exhibits signs of serious failure.

Toilet Only 1 toilet was installed, and it is missing.

Water Heater Chimney or flue piping is blocked, misaligned, or missing.

Gas shutoff valve is damaged, missing, or not
installed.

However, PHAs may add additional deficiencies which the PHA considers life- threatening provided they are described in the administrative plan.

HACP Policy:

TheHACP Policy:

In addition to those listed under the NSPIRE standards, the following are considered life-threatening conditions:
• Any condition that jeopardizes the security of the unit • Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling.
• Natural or LP gas or fuel oil leaks
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• A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled.
• Any electrical problem or condition that could result in shock or fire.
• A light fixture readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed. • A light fixture is hanging by its wires.
• A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit.
• A receptacle (outlet) or switch is missing or broken, and electrical connections or wires are exposed
• An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses.
• A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there are exposed electrical connections.
• Any nicks, abrasions, or fraying of the insulation that exposes conducting wire.
• Exposed bare wires or electrical connections.
• Any condition that results in openings in electrical panels or electrical control device enclosures
• Water leaking or ponding near any electrical device.
• Any condition that poses a serious risk of electrocution or fire and poses an immediate life-threatening condition.
• Absence of a working heating system when outside temperature is below 60 degrees Fahrenheit between October 1 and May 31st. •o Utilities not in service, including no running hot water. • Conditions that present the imminent possibility of injury. • Obstacles that prevent safe entrance or exit from the unit. • Any components that affect the function of the fire escape are missing or damaged.

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• Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency.
• The building’s emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency. • Absence of a functioning toilet in the unit
• Inoperable or missing smoke detectors
• Missing or inoperable carbon monoxide detector
• Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required)
• Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting • The chimney or venting system on a fuel-fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases.
• A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside. • A fuel-fired space heater is not properly vented or lacks available combustion air.
• A non-vented space heater is present.
• Safety devices on a fuel-fired space heater are missing or damaged.
• The chimney or venting system on a fuel-fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas.
• A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside. • A fuel-fired space heater is not properly vented or lacks available combustion air
• A non-vented space heater is present.
• Safety devices on a fuel-fired space heater are missing or damaged.
• Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit.
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If an owner fails to correct life-threatening conditions as required by the HACP, the HACP will enforce the HQS in accordance with HUD requirements. See 8-II-G.

If a family fails to correct a family-caused life-threatening condition as required by the HACP, the HACP will enforce the family obligations. See 8-II.H.

The owner will be required to repair an inoperable smoke detector unless the HACP determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours.

8-I.DF. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] Family Responsibilities
The family is responsible for correcting the following HQS deficiencies:
• Tenant-paid utilities not in service
• Failure to provide or maintain appliances owned by the family. • Damage to the unit or premises caused by a household member or guest beyond normal wear and tear that results in .

If a breach offamily fails to correct a family-caused life-threatening condition as required by the PHA, the PHA will enforce the family obligations. See 8-II.H.

HACP Policy:
• HQS. "NormalDamages beyond ordinary wear and tear" is defined as items will be considered to be damages which could not be chargedassessed against the tenant's security deposit under state law or in court practice.

Owner Responsibilities
The owner must maintain the unit in accordance with NSPIRE regulations and standards. The owner is not responsible for a breach of the NSPIRE that is not caused by the owner, and for which the family is responsible (as provided in 24 CFR 982.404(b) and 982.551(c)).

HACP Policy:

The owner is responsible for all HQSNSPIRE violations not listed as a family responsibility above, even if the violation is caused by the family'sfamily’s living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family.

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The owner will be required to repair an inoperable smoke detector unless the PHA determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours.

If an owner fails to correct life-threatening conditions as required by the PHA, the PHA will enforce the NSPIRE standards in accordance with HUD requirements.

See 8-II-G.

8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ELEVATED
BLOODG. LEAD LEVEL-BASED PAINT
PHAs and owners must comply with the requirements and timelines in 24 CFR Part 35 Subpart M—Tenant-Based Rental Assistance and Subpart H—Project- Based Assistance. PHAs and owners are reminded that any deteriorated paint in target housing, or other lead-based paint hazard identified through a lead-based paint risk assessment or lead-based paint inspection is considered a violation of NSPIRE standards.

For the HCV program, Subpart M applies to units where a child under age six resides or is expected to reside, common areas that service that unit, and exterior painted surfaces associated with that unit or common areas. For project- based programs, Subpart H applies to assisted units and common areas of the property regardless of whether a child under age six resides or is expected to reside in the unit. NSPIRE does not alter any of the lead-based paint requirements in Part 35 for these programs.

Special Requirements for Children with Elevated Blood Lead Level [24 CFR

35.1225; FR Notice 1/13/17; Notice PIH 2017-13]
If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than 6six years of age, living in an HCV-assisted unit has been identified as having an elevated blood lead level, the PHA must complete an environmental investigation of the dwelling unit within 15 calendar days after being notified by a public health department or other medical health care provider.

The Lead Safe Housing Rule & Lead Disclosure Rule (LSHR) threshold for action pursuant to 24 CFR 35 is as follows:
• Confirmed EBLL >= 5 µg/dL (micrograms/deciliter)
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• Notification by public health department or other medical health care provider
• If reported by family or other source, PHA should attempt to confirm • • Aligned with Centers for Disease Control and Prevention (CDC) reference range of 5 µg/dL.

The risk assessmentenvironmental investigation must be completed in accordance with program requirements, and the result of the risk assessmentenvironmental investigation must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner.

Within 30 days after receiving the risk assessment report from HACP, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead- based paint hazards in accordance with the lead- based paint regulations [24 CFR 35.1325 and 35.1330]. If the owner does not complete the “hazard reduction” as required, the dwelling unit is in violation of HQSNSPIRE and HACP will take action in accordance with Section 8-II.G.

PHA reporting requirements, and data collection and record keeping responsibilities related to children with an elevated blood lead level are discussed in Chapter 16.

8-I.FH. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.401, 24 CFR 982.403]5.703(d)
A dwelling unitUnits assisted under the HCV or PBV programs must:
• Provide adequate space and security for the family.
• Have have at least one bedroom or living/sleeping room for each two persons.

A unit that does not meet these HQS space standards is defined as overcrowded.

A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space [HCV GB p. 10-6]. A bedroom or living/sleeping room must have at least:10-6]. Each habitable room must have two working outlets or one working outlet and a permanent light. HUD defines a habitable room as a room in a building for living, sleeping, eating, or cooking, but excluding bathrooms, toilet rooms, closets, hallways, storage or utility spaces, and similar areas [FR Notice 5/11/23].
• One window
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• Two electrical outlets in proper operating condition (permanent overhead or wall-mounted light fixtures may count as one of the required electrical outlets) If the PHA determines that a unit is overcrowded 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. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms.

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PART II: THE INSPECTION PROCESS
8-II.A. OVERVIEW [24 CFR 982.405]
Types of Inspections
The PHA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow.
• Initial Inspections. The PHA conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program. • Annual/Biennial Inspections. HUD requires the PHA to inspect each unit under lease at least annually or biennially, (or triennially for small rural PHAs as defined in 24 CFR 982.305(b)(2), depending on the PHA’s Policy: To confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separatelyNSPIRE standards.
• Special Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections.
• Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS.NSPIRE standards.

Inspection of PHA-Owned Units [24 CFR 982.352(b)]
The PHA must obtain the services of an independent entity to perform all HQSNSPIRE inspections in cases where an HCV family is receiving assistance in a PHA-owned unit. A PHA-owned unit is defined as a unit in a project that is one of the following categories: (1) Owned by a PHA. (2) Owned owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity whollysubstantially controlled by the PHA. (3) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing Formatted: Line spacing: 1.5 lines
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member or general partner. A ‘‘controlling interest’’ is— (A)Holding 50 percent or more of the stock of any corporation; (B)Having the power to appoint 50 percent or more of the members of the board of directors of a non-stock corporation (such as a non-profit corporation); (C)Where 50 percent or more of the members of the board of directors of any corporation also serve as directors, officers or employees of the PHA; (D)Holding 50 percent or more of all managing member interests in an LLC; (E)Holding 50 percent or more of all general partner interests in a partnership; or (F) Equivalent levels of control in other organizational structures. 8-13 Administrative Plan - HCV Program Revised 12/13/2022 Units in which PHAs have a different ownership interest are no longer considered to be owned by the PHA. In order to be considered a ‘‘PHA-Owned’’ unit as described above, the PHA must have ownership interest in the building itself, not simply the land beneath the building. A PHA-owned unit is defined as a unit in a project that is one of the following categories:
(1) Owned by a PHA.
(2) Owned by an entity wholly controlled by the PHA.
(3) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general partner.

A ‘‘controlling interest’’ is—
(A)Holding 50 percent or more of the stock of any corporation; (B)Having the power to appoint 50 percent or more of the members of the board of directors of a non-stock corporation (such as a non-profit corporation);
(C)Where 50 percent or more of the members of the board of directors of any corporation also serve as directors, officers or employees of the PHA; (D)Holding 50 percent or more of all managing member interests in an LLC;
(E)Holding 50 percent or more of all general partner interests in a partnership; or
(F) Equivalent levels of control in other organizational structures. ). The independent agency must communicate the results of each inspection to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the HACPPHA jurisdiction (unless the HACPPHA is itself the unit of general local government or an agency of such government).

For information on the inspection of PHA-owned units in the PBV program, see Chapters 17 and 18.

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Inspection Costs [Notice PIH 2016-05]; 24 CFR 5.705(d)] The HACP may not charge the family for unit inspections or re-inspections [24 CFR 982.405(e)]. In the case of inspections of PHA-owned units, the HACP may compensate the independent agency from ongoing administrative fee for inspections performed. The HACP and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)].

The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspection

in two situations:
1) When the owner notifies the PHA that a repair has been made but the deficiency has not been corrected, and
2) when the time for repairs has elapsed and the deficiency has not been corrected. Fees may not be imposed for tenant-caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection.

The owner may not pass the cost of a reinspection fee to the family.

Reinspection fees must be added to the PHA’s administrative fee reserves and may only be used for activities related to the provision of tenant-based assistance.

HACP Policy:

The HACP will not charge a fee for failed re-inspections.

Remote Video Inspections (RVIs) [Notice PIH 2020-31]
As an alternative to some or all on-site inspections, the PHA may, but is not required to, perform NSPIRE inspections from a remote location using video streaming technology and a proxy at the inspection site. Since there may be some circumstances in which the application of technology provides insufficient information or evidence to allow the PHA to make appropriate determinations about whether a condition violates NSPIRE standards, Notice PIH 2020-31 requires that if a PHA chooses to implement RVIs, the PHA should have policies and procedures in place to address such limitations.

HACP Policy:

The PHA will not conduct any inspection using RVI.

Notice and Scheduling
The family must allow the HACP to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)].

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HACP Policy:

Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 5:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life- threatening emergency, the PHA will give as much notice as possible, given the nature of the emergency.

Owner and Family Inspection Attendance
HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27].

HACP Policy:

When a family occupies the unit at the time of inspection an adult family member must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required.

At initial inspection of a vacant unit, the
HACP will inspect the unit in the
presence of the owner or owner's representative. The presence of a family representative is permitted but is not required.

8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)]
Initial InspectionsApproving Units [FR Notice 1/18/17; Notice PIH 2017-20; and 24 CFR 982.406]
HUD regulations require that units assisted under the HCV program be inspected to determine that the units meet NSPIRE standards before the PHA approves assisted tenancy. However, while the PHA is required to conduct an inspection prior to approving assisted tenancy, PHAs have two options for bringing units under HAP contract (or, in the case of PBV, approving occupancy and the execution of a lease) more quickly. The PHA may, but is not required to, approve assisted tenancy and start HAP if the unit fails HQS:
• Fails the initial inspection, but only if the no life-threatening deficiencies are identified are non-life threatening. Further, the PHA may, but is not required to, authorize occupancy if a unit passed.
• Passed an alternative inspection in the last 24 months.

Otherwise, if neither of the above provisions are adopted, the PHA must determine that the unit the family selects meets NSPIRE standards prior to approving tenancy.

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HACP Policy:
• The unit must pass the HQSinitial inspection on or before the effective date of the HAP contract.
• The HACPPHA will not rely on alternative inspections and will conduct an HQSinitial inspection for each unit prior to executing a HAP contract with the owner.

Timing of Initial Inspections [24 CFR 982.395(b)(2)(i)] HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQSNSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable, such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)]..

HACP Policy:

The HACP will complete the initial inspection, determine whether the unit satisfies HQSNSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA).

Inspection Results and ReinspectionsRe-inspections
For new units proposed for the HCV program, life-threatening deficiencies must be resolved before the HAP contract is executed and the family moves into the unit.

HACP Policy:

If any HQS violationsdeficiencies are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by the HACP for good cause. The HACP will reinspect the unit within 5 business days of the date the owner notifies the HACP that the required corrections have been made.

Where applicable, HACP may verify that the repair has been completed using alternative methods such as virtual inspection with tenant and owner-signed certification, pictures and other video evidence and/or contractor invoices and receipts of payment that document the work completed,
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reinspection, the HACP will notify the owner and the family that the unit has been rejected and that the family must search for another unit.

The HACP may agree to conduct a second reinspection, for good cause, at the request of the family and owner.

Following a failed reinspection, the family may submit a new RTA after the owner has made repairs, if they are unable to locate another suitable unit.

Utilities
Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying.

HACP Policy:

If utilityUtility service is notmust be available for testing at the time of the initial inspection, the HACP will allow the utilities to be placed in service after the unit has met all other HQS requirements. The HACP will reinspect the unit to confirm that utilities are operational before the HAP contract is executed by the HACP.

Appliances [Form HUD-52580]
HACP Policy:

If the family is responsible for supplying the stove and/or refrigerator, the HACP will allow the stove and refrigerator to be placed in the unit after the unit has met all other HQSNSPIRE requirements. The required appliances must be in place before the HAP contract is executed by the HACP. The HACP will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working. A confirmatory inspection will be scheduled within 30 days of HAP contract approval.

8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [24 CFR 982.405 and 982.406; Notice PIH 2016-05]
HUD requires the PHA to inspect each unit under HAP contract at least biennially (or triennially for small rural PHAs), to confirm that the unit still meets NSPIRE standards. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately.

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HACP Policy:

Each unit under HAP contract must be inspected within 24 months of the last full HQS inspection.

The HACP will not rely on alternative inspection standards.

Scheduling the Inspection
Each unit under HAP contract must be inspected within 24 months of the last full HQS inspection after July 1, 2013. If no inspection is conducted by July 1, 2013, an inspection must be completed within 12 months from the last full HQSNSPIRE inspection. Thereafter, the unit must be inspected no later than 24 months from the last inspection date.

HACP Policy:

If an adult family member cannot be present on the scheduled date, the family should request that the HACP reschedule the inspection. The HACP and family will agree on a new inspection date that generally should take place within 10 business days of the originally scheduled date. The HACP may schedule an inspection more than 10 business days after the original date for good cause.

If the family misses the first scheduled appointment without requesting a new inspection date, the
HACP will automatically schedule a second
inspection. If the family misses two scheduled inspections without approval, the HACP will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12.

8-II.D. SPECIAL INSPECTIONS [24 CFR 982.405(g)]
If a participant family or government official reports a life-threatening condition which the owner would be required to repair within 24 hours, the PHA must inspect the unit within 24 hours of notification. If the reported condition is not life- threatening, the PHA must inspect the unit within 15 days of notification.

HACP Policy:

During a special inspection, the HACP generally will inspect only those deficiencies that were reported writing to the owner and given the owner a reasonable period of time to respond. The HACP Staff may request a copy of the written notice to ensure the landlord has been notified and been given the opportunity to make repairs. The HACP reserves the right to Formatted: Line spacing: Multiple 1.15 li
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waive this requirement when necessary. HACP will complete a special inspection for any reported life-threatening conditions. During the inspection, the inspector will inspect the reported items, however, the inspector will record any additional HQSNSPIRE deficiencies that are observed and will require the responsible party to make the necessary repairs. Pictures may be taken during the inspection.

If the annual inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled the HACP may elect to conduct a full annual inspection.

8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); HCV GB, p. 10-32]
HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the HQSNSPIRE standards.

The unit sample must include only units that have been inspected within the preceding 3 months. The selected sample will include (1) each type of inspection (initial, annual, and special), (2) inspections completed by each inspector, and (3) units from a cross-section of neighborhoods.

8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER

HAP CONTRACT
Correction Timeframes
Each deficiency is identified in the NPSIRE standards as either life-threatening, severe, moderate, or low.

For units under HAP contract, life-threatening deficiencies must be corrected within 24 hours after notice has been provided. All other non-life-threatening deficiencies (severe and moderate) must be corrected within 30 days (or a PHA- approved extension) after notice has been provided. If low deficiencies are present in a unit, these deficiencies result in a pass and would only be noted by the inspector for informational purposes.

Notification of Corrective Actions
The owner and the family will be notified in writing of the results of all inspections.

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When an inspection identifies HQS failuresdeficiencies, the PHA will determine (1) whether or not the failure is a life-threatening condition and (2) whether the family or owner is responsible.

HACP Policy:

When life-threatening conditionsdeficiencies are identified, the HACP will immediately notify both parties by telephone, facsimile, or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of the HACP’s notice.

When failures that are not life-threateningsevere or moderate are identified, the HACP will send the owner and the family a written notification of the inspection results within 5 business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If low deficiencies are identified, these deficiencies will only be noted for informational purposes.

The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life-threatening conditions are not corrected within the specified time frame (or any HACP approved extension), the owner’s HAP will be abated in accordance with HACP Policy:::
(see 8-II.G.). Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any HACP approved extension, if applicable) the family’s assistance will be terminated in accordance with HACP Policy:::
(see Chapter 12).

Extensions
For conditions that are life-threatening deficiencies, the HACP cannot grant an extension to the 24-hour corrective action period. For conditions that are not life-threateningsevere or moderate, the HACP may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate [24 CFR 982.404]..

HACP Policy:

Extensions will be granted in cases where the HACP has determined that the owner has made a good faith effort to correct the deficiencies but has been unable to complete the work within the time frame for reasons beyond the owner’s control. Reasons may include, but are not limited to:

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• A repair cannot be completed because required parts or services are not available.
•
A repair cannot be completed because of weather conditions. • A reasonable accommodation is needed because the family includes a person with disabilities.

The HACP will not grant oral extensions. Requests for extensions must be made in writing, however emails, faxes and letters will be accepted. Must be received no less than 7 calendar days before the scheduled inspection.

The length of the extension will be determined on a case-by-case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions.

In the case of weather conditions, extensions may be continued until the weather has improved sufficiently to make repairs possible. The necessary repairs must be made within 15 calendar days, once the weather conditions have subsided.

Re-inspections
HACP Policy:::

The HACP will conduct a reinspection immediately following the end of the corrective period, or any HACP approved extension.

The family and owner will be given reasonable notice of the reinspection appointment. If the deficiencies have not been corrected by the time of the reinspection, the
HACP will send a notice of abatement to the owner, or in the case of family caused violations, a notice of termination to the family, in accordance with HACP policies. If the HACP is unable to gain entry to the unit in order to conduct the scheduled reinspection, the HACP will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12.

The PHA will not accept self-certification of repairs. However, photos or other documentation of repairs may be accepted in lieu of a reinspection.

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8-II.G. ENFORCING OWNER COMPLIANCE
If the owner fails to maintain the dwelling unit in accordance with HQSNSPIRE standards, the HACP must take prompt and vigorous action to enforce the owner obligations.

HAP Abatement
If an owner fails to correct HQS deficiencies by the time specified by the HACP, HUD requires the HACP to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQS failuresdeficiencies that are the family's responsibility.

HACP Policy:

The HACP will make all HAP abatements effective the first day of the month following the expiration of the HACP specified correction period (including any extension).

The HACP will inspect abated units within 5 business days of the owner's notification that the work has been completed. Payment will resume effective, on the earlier of the daydate the unit passes inspection or the date the correction was reported completed. Where applicable, HACP may verify that the repair has been completed using alternative methods such as virtual inspection with tenant and owner-signed certification, pictures and other video evidence and/or contractor invoices and receipts of payment that document the work completed.

During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction.

HAP Contract Termination
The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] an
d must give the owner reasonable notice of the termination.

The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10.

HACP Policy:

The maximum length of time that HAP may be abated is 90 days.

However, if the owner completes corrections and notifies the HACP before the termination date of the HAP contract, the HACP may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection.

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Reasonable notice of HAP contract termination by the HACP is 30 calendar days.

8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] Families are responsible for correcting any HQS violationsdeficiencies listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family’s assistance, according to the policies described in Chapter 12.

If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair.

PART III: RENT REASONABLENESS [24 CFR 982.507]
8-III.A. OVERVIEW
Except in the case of certain low-income housing tax credits (LIHTC-) and HOME-assisted units, no HAP contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program.

HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit’s rent is reasonable.

PHA-Owned Units [24 CFR 982.352(b)]
In cases where an HCV family is receiving assistance in a PHA-owned unit, the HACP must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA-owned unit is defined as a unit that in a project that is one of the following categories:
(1) Owned by a PHA.
(2) Owned by an entity wholly controlled by the PHA.
(3) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general
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A ‘‘controlling interest’’ is—
(A) Holding 50 percent or more of the stock of any corporation;. (B) Having the power to appoint 50 percent or more of the members of the board of directors of a non-stock corporation (such as a non-profit corporation). (C) Where 50 percent or more of the members of the board of directors of any corporation also serve as directors, officers or employees of the PHA. (D)Holding 50 percent or more of all managing member interests in an LLC. (E) Holding 50 percent or more of all general partner interests in a partnership; or (F) Equivalent levels of control in other organizational structures.

Units in which PHAs have a different ownership interest are no longer considered to be owned by the PHA.

In order to be considered a ‘‘PHA-Owned’’Owned’ unit as described above, the PHA must have ownership interest in the building itself, not simply the land beneath the building.

The independent agency must communicate the results of the rent reasonableness determination to the family and the HACP. The independent agency must be approved by HUD and may be the unit of general local government for the HACP jurisdiction (unless the HACP is itself the unit of general local government or an agency of such government).

8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE

REQUIRED
Owner-Initiated Rent Determinations
The PHA must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment.

The owner and family first negotiate the rent for a unit. The HACP (or independent agency in the case of PHA-owned units) will assist the family with the negotiations upon request. At initial occupancy the HACP must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent HQSNSPIRE inspection have been corrected.

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HACP Policy:

Initial Rents
After the initial occupancy period, the owner may request a rent adjustment in accordance with the owner’s lease. In evaluating the proposed rents in comparison to other units on the premises the HACP
will consider unit size and length of tenancy in the other units.

The HACP will determine whether the requested increase is reasonable within 30 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing.

Rent Increases

For rent increase requests after initial lease-up, the HACP may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units.

The HACP will determine whether the requested increase is reasonable within 30 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. All approved rent adjustments will be effective the first of the month following:

a) 60 calendar days after the postmark date or fax time-date confirmation of the owner’s request or
b) the date the unit passed its latest annual inspection or c) on the date specified by the owner, whichever is later.

If the request is incomplete or incorrect the owner will be notified within 15 calendar days and given an opportunity to resubmit the request. The effective date will be the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owners corrected request, or b) the date the unit passed its latest annual inspection or c) on the date specified by the owner, whichever is later.

All rentsrent adjustments will be effective the first of the month following 60 days after the HACP’s receipt of the owner’s request or on the date specified by the owner, whichever is later.

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HUD requires the HACP to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time.

HACP Policy:

In addition to the instances described above, the HACP will make a determination of rent reasonableness at any time after the initial occupancy period if:
1) the
HACP determines that the initial rent reasonableness determination was in error; or
2) the HACP determines that the information provided by the owner about the unit or other units on the same premises was incorrect. For purposes of determining rent reasonableness, information from the Contra Costa County Tax Assessors office or the City’s GIS system may be used to verify the unit information. The description of the unit listed with the tax assessors' office may be the information used.

If there is a discrepancy, the Owner/Property Manager must contact the Contra Costa County Tax Assessors Office at 925-313-7400 to report inconsistencies or errors in description. Often when properties have had repairs or additions, the normal process involves issuance of permits for completion of work. Upon completion, the permit is forwarded to the County Assessor's office for review, reassessment and correction.

Low Income Housing Tax Credits (LIHTC)- and HOME-Assisted Units [24 CFR 982.507(c)]
For units receiving LIHTCs or units assisted under HUD’s HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME- assisted units in the project that are not occupied by families with tenant-based assistance.

For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non-voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of: 1) the reasonable rent as determined from the rent comparability study; or 2) the payment standard established by the PHA for the unit size involved.
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8-III.C. HOW COMPARABILITY IS ESTABLISHED
Factors to Consider
HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparable units when the units are not identical to the HCV-ass
isted unit.
• Location and age
• Unit size including the number of rooms and square footage of rooms. • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise)
• The quality of the units including the quality of the original construction, maintenance and improvements made.
• Amenities, services, and utilities included in the rent.

Units that Must Not Be Used as Comparables
Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposesimpose rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program-assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent-controlled by local ordinance.

Note: Notice PIH 2011-46, issued August 17, 2011, provides further guidance on the issue of what constitutes an assisted unit.

Rents Charged for Other Units on the Premises

The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units.

By accepting the HACP payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises.

If asked to do so, the owner must give the HACP information regarding rents charged for other units on the premises.

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8-III.D . PHA RENT REASONABLENESS METHODOLOGY
How Market Data Is Collected

HACP Policy:::

HACP contracts with AffordableHousing.com previously known as GoSection 8 to collect and maintain data on market rents in HACP’s jurisdiction. Information sources used by AffordableHousing.com include, but are not limited to, newspapers, internet listing services, realtors, market surveys and inquiries of owners and property managers.

All HUD required comparison factors are maintained in the AffordableHousing.com rent comparable database.

AffordableHousing.com is updated on an ongoing basis and rent information that is more than 12 months old is no longer accessible in the database.

How Rents Are Determined
HACP Policy:::

The AffordableHousing.com Rent Reasonableness Software utilizes a unit-to-unit comparison, similar to real estate appraisal, where a direct comparison is made between the rent for the subject HCV assisted unit and the rent for unassisted comparable units. Comparable units are drawn from a database of current, real-time market data maintained by the vendor. After identifying specific units to use as comparables based on location, unit type and characteristics, AffordableHousing.com provides similarity and credibility scores and market rent data to determine if the rent is supported by the market data.

AffordableHousing.com also employs unit-to-market principles to assist staff in making market-based adjustments to rental values. The blended approach
- identifying comparable units that are the closest possible match to the proposed HCV assisted unit and then adjusting rental values to address any remaining critical differences that impact market rent - ensures the results are grounded in accurate market-based rental values.

The AffordableHousing.com Database will return the three units whose similarity and credibility score most closely matches the subject unit. All comparables used to evaluate the rent must have a similarity rating of 90 % or more and a credibility rating of 70 % or more, when available.

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If three comparables that have similarity ratings of 90% or more and credibility ratings of 70 % or more cannot be found, then the Housing Manager must approve the rent reasonableness certification.

The subject unit rent must be supported by the average of three comparables to be approved.

When a comparable project offers rent concessions (e.g., first month rent- free, or reduced rent) reported monthly rents will be adjusted accordingly.

For example, if a comparable project reports rents of $500/month but new tenants receive the first month's rent free, the actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 months = actual monthly rent of $458.

For properties where the owner has unassisted units at market rent in the same building, the unassisted unit rents will also be considered for rent reasonableness determination. The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable units in the same market area. The HACP may develop a range of prices for comparable units by bedroom size within defined market areas.

The HACP will notify the owner of the rent the PHA can approve based upon its analysis of rents for comparable units. If the comparable rent is lower than that requested by the owner, the owner may be requested to submit information about other comparable units in the market area.

HACP Staff will confirm the accuracy of the information provided and consider this additional information when making rent determinations. The owner must submit any additional information within 5 business days of HACP’s request for information or the owner’s request to submit information.

If the comparable rent is still lower, HACP staff will ask the owner if he or she is willing to accept the comparable rent.

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EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY

STANDARDSAFFIRMATIVE HABITABILITY REQUIREMENTS
Note: This document provides an overview of HQS. For more detailed information see the following documents:
• 24 CFR 982.401, Housing Quality Standards (HQS)
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00)
Sanitary Facilities
The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be usable in privacy and must be in proper operating condition and adequate for personal cleanliness and disposal of human waste.

Food Preparation and Refuse Disposal
The dwelling unit must have space and equipment suitable for the family to store, prepare, and serve food in a sanitary manner.

Space and Security
The dwelling unit must provide adequate space and security for the family. This includes having at least one bedroom or living/sleeping room for each two persons.

Thermal Environment
The unit must have a safe system for heating the dwelling unit. Air conditioning is not required but if provided must be in proper operating condition. The dwelling unit must not contain unvented room heaters that burn gas, oil, or kerosene.

Portable electric room heaters or kitchen stoves with built-in heating units are not acceptable as a primary source of heat for units located in climatic areas where permanent heat systems are required.

Illumination and Electricity
Each room must have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. The dwelling unit must have sufficient electrical sources so occupants can use essential Formatted: Centered, Space After: 6 pt
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electrical appliances. Minimum standards are set for different types of rooms.

Once the minimum standards are met, the number, type and location of electrical sources are a matter of tenant preference.

Structure and Materials
The dwelling unit must be structurally sound. Handrails are required when four or more steps (risers) are present, and protective railings are required when porches, balconies, and stoops are thirty inches or more off the ground. The elevator servicing the unit must be working [if there is one]. Manufactured homes must have proper tie-down devices capable of surviving wind loads common to the area.

Interior Air Quality
The dwelling unit must be free of air pollutant levels that threaten the occupants’ health. There must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable window or other adequate ventilation. Any sleeping room must have at least one window. If a window was designed to be opened, it must be in proper working order.

Water Supply
The dwelling unit must be served by an approved public or private water supply that is sanitary and free from contamination. Plumbing fixtures and pipes must be free of leaks and threats to health and safety.

Lead-Based Paint
Lead-based paint requirements apply to dwelling units built prior to 1878 that are occupied or can be occupied by families with children under six years of age, excluding zero-bedroom dwellings. Owners must:
• Disclose known lead-based paint hazards to prospective tenants before the lease is signed,
• P rovide all prospective families with "Protect Your Family from Lead in Your Home",
• Stabilize deteriorated painted surfaces and conduct hazard reduction activities when identified by the PHA.
• Notify tenants each time such an activity is performed.

Conduct all work in accordance with HUD safe practices. 385
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Affirmative Habitability Requirements: Inside
Must include at least 1 battery-operated or hard-wired smoke detector, in proper working condition, on each level of the property.

Must meet or exceed the carbon monoxide detection standards set by the Secretary through Federal Register notification.

Any outlet installed within 6 feet of a water source must be GFCI protected.

Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.

Must have permanently mounted light fixtures in any kitchens and each bathroom.

May not contain unvented space heaters that burn gas, oil or kerosene.

Affirmative Habitability Requirements: Outside
Any outlet installed within 6 feet of a water source must be GFCI-protected.

Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.

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Affirmative Habitability Requirements: Unit
Must have hot and cold running water in the bathroom and kitchen, including an adequate source of safe drinking water in the bathroom and kitchen.

Must include its own bathroom or sanitary facility that is in proper operating condition and usable in privacy. It must contain a sink, a bathtub or shower, and an interior flushable toilet.

Must have at least one battery-operated or hard-wired smoke detector, in proper working condition, in the following locations:
• On each level of the unit AND
• Inside each bedroom or sleeping area AND
• With 21 feet of any door toa bedroom measured along a path of travel AND • Where a smoke detector is installed outside a bedroom is separated from an adjacent living area by a door, a smoke detector must also be installed in the living area side of the door.

If the unit is occupied by a hearing-impaired person, the smoke detectors must have an alarm system designed for hearing-impaired persons.

Must have a living room and a kitchen area with a sink, cooking appliance, refrigerator, food preparation area and food storage area.

Must have two working outlets or one working outlet and one permanent light fixture within all habitable rooms.

Must have a permanently mounted light fixture in each bathroom and in the kitchen.

Outlets within 6 feet of water source must be GFCI-protected.

Must have permanently installed heating source.

No units may contain unvented space heaters that burn gas, oil or kerosene.

Must have a guard rail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically.

Must have at least one bedroom or living/sleeping room for each two persons.

•
• As part of ongoing maintenance ask each family to report deteriorated paint. • Maintain covered housing without deteriorated paint if there is child under six in the family
For units occupied by elevated blood lead level (lead poisoned) children under six years of age, an environmental investigation must be conducted (paid for by Formatted: Space Before: 0 pt, No bullets or
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the PHA). If lead hazards are identified during the environmental investigation, the owner must complete hazard reduction activities.

See HCV GB p. 10-15 for a detailed description of these requirements. For additional information on lead-based paint requirements see 24 CFR 35, Subparts A, B, M, and R.

Access
Use and maintenance of the unit must be possible without unauthorized use of other private properties. The building must provide an alternate means of exit in case of fire.

Site and Neighborhood
The site and neighborhood must be reasonably free from disturbing noises and reverberations, excessive trash or vermin, or other dangers to the health, safety, and general welfare of the occupants.

Sanitary Condition
The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent infestation. The unit must have adequate barriers to prevent infestation.

Smoke Detectors
Smoke detectors must be installed in accordance with and meet the requirements of the National Fire Protection Association Standard (NFPA) 74 (or its successor standards). If the dwelling unit is occupied by any person with a hearing impairment, smoke detectors must have an appropriate alarm system as specified in NFPA 74 (or successor standards).

Hazards and Heath/Safety
The unit, interior and exterior common areas accessible to the family, the site, and the surrounding neighborhood must be free of hazards to the family's health and safety.

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EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS

RELATED TO HOUSING QUALITY
Note: This document provides an overview of unit and site characteristics and conditions for which the family determines acceptability. For more detailed information see the following documents:
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00)
Provided the minimum housing quality standards have been met, HUD permits the family to determine whether the unit is acceptable with regard to the following characteristics.
• Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the location of the sanitary facilities within the unit; and the adequacy of the water heater.
• Food Preparation and Refuse Disposal. The family selects size and type of equipment it finds acceptable. When the family is responsible for supplying cooking appliances, the family may choose to use a microwave oven in place of a conventional oven, stove, or range. When the owner is responsible for providing cooking appliances, the owner may offer a microwave oven in place of an oven, stove, or range only if other subsidized and unsubsidized units on the premises are furnished with microwave ovens only. The adequacy of the amount and type of storage space, the cosmetic conditions of all equipment, and the size and location of the kitchen are all determined by the family. • Space and Security. The family may determine the adequacy of room sizes and room locations. The family is also responsible for deciding the acceptability of the type of door and window locks.
• Energy conservation items. The family may determine whether the amount of insulation, presence of absence of storm doors and windows and other energy conservation items are acceptable.
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• Illumination and Electricity. The family may determine whether the location and the number of outlets and fixtures (over and above those required to meet HQS standards) are acceptable or if the amount of electrical service is adequate for the use of appliances, computers, or stereo equipment. 390
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(6) Structure and Materials. Families may determine whether minor defects, such as lack of paint, or worn flooring or carpeting will affect the livability of the unit. (7) Indoor Air. Families may determine whether window and door screens, filters, fans, or other devices for proper ventilation are adequate to meet the family’s needs. However, if screens are present, they must be in good condition. (8) Sanitary Conditions. The family determines whether the sanitary conditions in the unit, including minor infestations, are acceptable. (9) Neighborhood conditions. Families may determine whether neighborhood conditions such as the presence of drug activity, commercial enterprises, and convenience to shopping will affect the livability of the unit.

Families have no discretion with respect to lead-based paint standards and smoke detectors.

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Chapter 9

GENERAL LEASING POLICIES

INTRODUCTION
Chapter 9 covers the lease-up process from the family's submission of a Request for Tenancy Approval (RTA) to execution of the HAP contract.

In order for the PHA to assist a family in a particular dwelling unit, or execute a Housing Assistance Payments (HAP) contract with the owner of a dwelling unit, the PHA must determine that all the following program requirements are met:
• The unit itself must qualify as an eligible unit [24 CFR 982.305(a)] • The unit must be inspected by the PHA and meet the Housing QualityNational Standards (HQS)for the Physical Inspection of Real Estate (NSPIRE [24 CFR 982.305(a)]
• The lease offered by the owner must be approvable and must include the required Tenancy Addendum [24 CFR 982.305(a)]
• The rent to be charged by the owner for the unit must be reasonable [24 CFR 982.305(a)]
• The owner must be an eligible owner, approved by the PHA, with no conflicts of interest [24 CFR 982.306]
• For families initially leasing a unit only: Where the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family cannot exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]

9-I.A. TENANT SCREENING
The PHA has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy [24 CFR 982.307(a)(1)].

The PHA may elect to screen applicants for family behavior or suitability for tenancy. See Chapter 3 for a discussion of the PHA’s policies with regard to screening applicant families for program eligibility [24 CFR 982.307(a)(1)].

The owner is responsible for screening and selection of the family to occupy the owner’s unit. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner [24 CFR 982.307(a)(2)]. The PHA must also inform the owner or manager or his/her rights and obligations under the Violence against Women Act of 2013 (VAWA) [24 CFR 5.2005(a)(2)].
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The PHA must provide the owner with the family’s current and prior address (as shown in the PHA records) and the name and address (if known to the PHA) of the landlord at the family’s current and prior address [24 CFR 982.307(b)(1)].

The PHA is permitted, but not required, to offer the owner other information in the PHA’s possession about the tenancy history or drug trafficking of family members [24 CFR 982.307(b)(2)].

The PHA’s policy on providing information to the owner must be included in the family’s briefing packet [24 CFR 982.307(b)(3)].

The PHA may not disclose to the owner any confidential information provided by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, or stalking, or human trafficking except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(b)(4)].

HACP Policy:

The HACP will not screen applicants for family behavior or suitability for tenancy.

The HACP will not provide additional screening information to the owner.

The HACP will screen only for program eligibility &
compliance.

9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517]
After the family is issued a voucher, the family must locate an eligible unit, with an owner or landlord willing to participate in the voucher program. Once a family finds a suitable unit and the owner is willing to lease the unit under the program, the owner and the family must request the PHA to approve the assisted tenancy in the selected unit.

The owner and the family must submit two documents to the PHA:
• Completed RTA – Form HUD-52517
• Copy of the proposed lease, including the HUD-prescribed Tenancy Addendum – Form HUD-52641-A
The RTA contains important information about the rental unit selected by the family, including the unit address, number of bedrooms, structure type, year constructed, utilities included in the rent, and the requested beginning date of the lease, necessary for the PHA to determine whether to approve the assisted tenancy in this unit.

Owners must certify to the most recent amount of rent charged for the unit and provide an explanation for any difference between the prior rent and the proposed rent.

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Owners must certify that they are not the parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has granted a request for reasonable accommodation for a person with disabilities who is a member of the tenant household.

For units constructed prior to 1978, owners must either 1) certify that the unit, common areas, and exterior have been found to be free of lead-based paint by a certified inspector; or 2) attach a lead-based paint disclosure statement.

Both the RTA and the proposed lease must be submitted no later than the expiration date stated on the voucher. [HCV GB p.8-15].

HACP Policy:

The RTA must be signed by both the family and the owner.

The owner may submit the RTA on behalf of the family.

Completed RTA (including the proposed dwelling lease) must be submitted as hard copies, in
-person, by mail, email or by fax.

The family may not submit, and the HACP will not process, more than one (1) RTA per family at a time.

When the family submits the RTA the HACP will review the RTA for completeness.
• If the RTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RTA, the HACP will notify the family and the owner of the deficiencies.
• Missing information and/or missing documents will only be accepted as hard copies, in-person, by mail, by email or by fax.

The HACP will not accept missing information over the phone.

When the family submits the RTA and proposed lease, the HACP will also review the terms of the RTA for consistency with the terms of the proposed lease.
• If the terms of the RTA are not consistent with the terms of the proposed lease, the HACP will notify the family and the owner of the discrepancies.
• Corrections to the terms of the RTA and/or the proposed lease will only be accepted as hard copies, in-person, by mail, by email or by fax. The HACP will not accept corrections by phone.

Because of the time sensitive nature of the tenancy approval process, the HACP will attempt to communicate with the owner and family by phone, fax, or email. The HACP will use mail when the parties cannot be reached by phone, fax, or email.
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9-I.C. OWNER PARTICIPATION
The PHA does not formally approve an owner to participate in the HCV program.

However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. There are also criteria for which the PHA must disapprove an owner. No owner has a right to participate in the HCV program [24 CFR 982.306(e)]
See Chapter 13 for a full discussion of owner qualification to participate in the HCV program.

9-I.D. ELIGIBLE UNITS
There are a number of criteria that a dwelling unit must meet in order to be eligible for assistance under the voucher program. Generally, a voucher-holder family may choose any available rental dwelling unit on the market in the PHA’s jurisdiction. This includes the dwelling unit they are currently occupying.

Ineligible Units [24 CFR 982.352(a)]
The PHA may not assist a unit under the voucher program if the unit is a public housing or Indian housing unit; a unit receiving project-based assistance under section 8 of the 1837 Act (42 U.S.C. 1437f); nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services; college or other school dormitories; units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions; a unit occupied by its owner or by a person with any interest in the unit.

PHA-Owned Units [24 CFR 982.352(b)]
Otherwise, eligible units that are owned or substantially controlled by the PHA issuing the voucher may also be leased in the voucher program. In order for a PHA-owned unit to be leased under the voucher program, the unit must not be ineligible housing and the PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA-owned unit without any pressure or steering by the PHA.

HACP Policy:

The HACP does have eligible HACP-owned units available for leasing under the voucher program. However, in the event such units become available, HACP will disclose unit information to assisted families in the same way as privately owned units is disclosed. In addition, HACP will contract with another Housing Authority or other third party approved by Formatted: Font: Not Bold
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HUD to perform HQSNSPIRE inspections or family re-certifications for families occupying HACP-owned units.

Special Housing Types [24 CFR 982 Subpart M]
HUD regulations permit, but do not generally require, the PHA to permit families to use voucher assistance in a number of special housing types in accordance with the specific requirements applicable to those programs. These special housing types include single room occupancy (SRO) housing, congregate housing, group home, shared housing, manufactured home space (where the family owns the manufactured home and leases only the space), cooperative housing and homeownership option. See Chapter 15 for specific information and policies on any of these housing types that the PHA has chosen to allow.

The regulations do require the PHA to permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities.

Duplicative Assistance [24 CFR 982.352(c)]
A family may not receive the benefit of HCV tenant-based assistance while receiving the benefit of any of the following forms of other housing subsidy, for the same unit or for a different unit:
• Public or Indian housing assistance,
• Other Section 8 assistance (including other tenant-based assistance); • Assistance under former Section 23 of the United States Housing Act of 1837 (before amendment by the Housing and Community Development Act of 1874);
• Section 101 rent supplements,
• Section 236 rental assistance payments,
• Tenant-based assistance under the HOME Program,
• Rental assistance payments under Section 521 of the Housing Act of 1849 (a program of the Rural Development Administration),
• Any local or state rent subsidy,
• Section 202 supportive housing for the elderly,
• Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for non-elderly persons with disabilities (Section 162 assistance); or Formatted: Font: Not Bold
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• Any other duplicative federal, state, or local housing subsidy, as determined by HUD. For this purpose, 'housing subsidy' does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit.

Housing QualityNSPIRE Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401[Notice PIH 2023-28]
In order to be eligible, the dwelling unit must be in decent, safe and sanitaryhabitable condition. This determination is made using HUD’s Housing QualityNational Standards (HQSfor the Physical Inspection of Real Estate (NSPIRE) and/or equivalent state or local standards approved by HUD. See Chapter 8 for a full discussion of the HQSNSPIRE standards, as well as the process for HQS inspection at initial lease-up.

Unit Size
In order to be eligible, the dwelling unit must be appropriate for the number of personspeople in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable HQS space requirements [24 CFR 982.4025.703(d)(5)]. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of subsidy standards.

Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a full discussion of rent reasonableness and the rent reasonableness determination process.

Rent Burden [24 CFR 982.508]
Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the family share cannot exceed 40 percent of the family’s adjusted monthly income. The term “family share” refers to the amoun
t the family pays toward rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP) for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent, the use of payment standards, and calculation of family income, family share of rent and HAP.

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9-I.E. LEASE AND TENANCY ADDENDUM
The family and the owner must execute a written dwelling lease agreement for the assisted unit. This written lease is a contract between the tenant family and the owner; the PHA is not a party to this contract.

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 [24 CFR 982.308(a)] Lease Form and Tenancy Addendum [24 CFR 982.308]
If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. The HAP contract prescribed by HUD contains the owner's certification that if the owner uses a standard lease form for rental to unassisted tenants, the lease for the assisted tenants is in such standard form.

All provisions in the HUD-required Tenancy Addendum must be added word-for- word to the owner's standard lease form. The Tenancy Addendum includes the HUD requirements for the tenancy. Because it is a part of the lease, the tenant shall have the right to enforce the Tenancy Addendum against the owner. If there is a conflict between the owner’s lease and the Tenancy Addendum, the terms of the Tenancy Addendum shall prevail over any other provisions of the lease.

HACP Policy:

The HACP does not provide a model or standard dwelling lease for owners to use in the HCV program.

Lease Information [24 CFR 982.308(d)]
The assisted dwelling lease must contain all of the required information as listed below:
• The names of the owner and the tenant:
• The unit rented (address, apartment number, and any other information needed to identify the contract unit)
• The term of the lease (initial term and any provisions for renewal) • The amount of the monthly rent to owner
• A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family.

Term of Assisted Tenancy
The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309]. The initial lease term is also stated in the HAP contract. 398
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The HUD program regulations permit the PHA to approve a shorter initial lease term if certain conditions are met.

HACP Policy:

Under current market conditions, the HACP may approve an initial lease term of less than one (1) year or more than one (1) year if it is the prevailing local market practice and agreed upon by the landlord and tenant. Due to the administrative burden, no month-to-month leases will be accepted as the initial term for the tenancy.

During the initial term of the lease, the owner may not raise the rent [24 CFR 982.309].

Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms, except that they must be stated in the dwelling lease if they exist.

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. [24 CFR 982.309(b)].

Security Deposit [24 CFR 982.313 (a) and (b)]
The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of
private market practice, or in excess of amounts
charged by the owner to unassisted tenants. However, if the PHA chooses to do so, language to this effect must be added to Part A of the HAP contract [Form HUD-52641].

HACP Policy:

The HACP will allow the owner to collect any security deposit amount the owner determines is appropriate and is in accord with local and state law.

Separate Non-Lease Agreements between Owner and Tenant
Owners may not demand or accept any rent payment from the family in excess of the rent to the owner as approved by the PHA minus the PHA’s housing assistance payments to the owner [24
CFR 982.451(b)(4)].

The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)].

HACP Policy:

The HACP does not permit owners and families to execute separate, Formatted: Font: Bold, Italic 399
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non-lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease.

Any items, appliances, or other services that are customarily provided to unassisted families as part of the dwelling lease with those families or are permanently installed in the dwelling unit must be included in the dwelling lease for the assisted family. These items, appliances or services cannot be placed under a separate non-lease agreement between the owner and family. Side payments for additional rent, or for items, appliances or services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited.

The family is not liable and cannot be held responsible under the terms of the assisted dwelling lease for any charges pursuant to a separate non- lease agreement between the owner and the family. Non-payment of any charges pursuant to a separate non-lease agreement between the owner and the family cannot be a cause for eviction or termination of tenancy under the terms of the assisted dwelling lease.

Separate non-lease agreements that involve additional items, appliances or other services may be considered amenities offered by the owner and may be taken into consideration when determining the reasonableness of the rent for the property.

PHA Review of Lease
The PHA will review the dwelling lease for compliance with all applicable requirements.

HACP Policy:

If the dwelling lease is incomplete or incorrect, the HACP will notify the family and the owner of the deficiencies. Missing and corrected lease information will only be accepted as hard copies, in-person, by mail, email or by fax. The HACP will not accept missing and corrected information over the phone.

Because the initial leasing process is time-sensitive, the HACP will attempt to communicate with the owner and family by phone, fax, or email.

The HACP will use mail when the parties can’t be reached by phone, fax, or email.

The PHA is permitted, but is not required, to review the lease to determine if the lease complies with state and local law and is permitted to decline to approve the tenancy if the PHA determines that the lease does not comply with state or local law [24 CFR 982.308(c)]
HACP Policy:
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The HACP will not review the owner’s lease for compliance with state/local law. If HACP becomes aware that an owner’s lease does not comply with state and local law, then HACP will require the owner to modify the lease in order to comply with state and local law. If the owner does not submit this within 5 business days, then HACP will take any and all actions appropriate under its contract with the owner, including cancellation.

9-I.F. TENANCY APPROVAL [24 CFR 982.305]
After receiving the family's Request for Tenancy Approval, with proposed dwelling lease, the PHA must promptly notify the family and owner whether the assisted tenancy is approved.

Prior to approving the assisted tenancy and execution of a HAP contract, the PHA must ensure that all required actions and determinations, discussed in Part I of this chapter have been completed.

These actions include ensuring that the unit is eligible; the unit has been inspected by the PHA and meets the Housing Quality Standards (HQS);NSPIRE standards; the lease offered by the owner is approvable and includes the required Tenancy Addendum; the rent to be charged by the owner for the unit must is reasonable; where the family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]; the owner is an eligible owner, not disapproved by the PHA, with no conflicts of interest [24 CFR 982.306]; the family and the owner have executed the lease, including the Tenancy Addendum, and the lead-based paint disclosure information [24 CFR 982.305(b)].

HACP Policy:

The HACP will complete its determination within 10 business days of receiving all required information.

If the terms of the RTA/proposed lease are changed for any reason, including but not limited to negotiation with the
HACP, the HACP will
obtain corrected copies of the RTA and proposed lease, signed by the family and the owner.

Corrections to the RTA/proposed lease will only be accepted as hard copies, in-person, by mail, or by fax. The HACP will not accept corrections over the phone.

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reason, the owner and the family will be notified in writing and given the opportunity to address any reasons for disapproval. The HACP will instruct the owner and family of the steps that are necessary to obtain approval of the tenancy.

Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher.

If the tenancy is not approvable due to rent affordability or rent reasonableness, the HACP will attempt to negotiate the rent with the owner. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher.

9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305]
The HAP contract is a written agreement between the PHA and the owner of the dwelling unit. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family, and the owner agrees to comply with all program requirements as stated in the HAP contract.

The HAP contract form is prescribed by HUD.

If the PHA has given approval for the family of the assisted tenancy, the owner and the PHA must execute the HAP contract.

The term of the HAP contract must be the same as the term of the lease [24 CFR 982.451(a)(2)].

The PHA is permitted to execute a HAP contract even if the funding currently available does not extend for the full term of the HAP contract.

The PHA must make a best effort to ensure that the HAP contract is executed before the beginning of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days from the beginning of the lease term.

The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. 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 portion of the lease term before execution of the HAP contract (a maximum of 60 days).

Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner.

HACP Policy:
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Owners who have not previously participated in the HCV program may be invited to attend a meeting with the HACP in which the terms of the Tenancy Addendum and the HAP contract will be explained. The HACP may waive this requirement on a case-by-case basis, if it determines that the owner is sufficiently familiar with the requirements and responsibilities under the HCV program.

The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to the PHA. The HACP will ensure that both the owner and the assisted family receive copies of the dwelling lease.

The owner and the HACP will execute the HAP contract. The HACP will not execute the HAP contract until the owner has submitted IRS form W-9.

The HACP will ensure that the owner receives a copy of the executed HAP contract.

As required under VAWA 2013, once the HAP contract and lease have been executed and the family has been admitted to the program, the HACP will notify families of their rights under VAWA by providing all families with a copy of the domestic violence certification form (HUD-5382) as well as the VAWA notice of occupancy rights (form HUD-5380).

See Chapter 13 for a discussion of the HAP contract and contract provisions.

9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308]
If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the PHA a copy of such changes. The lease, including any changes, must remain in accordance with the requirements of this chapter.

Generally, PHA approval of tenancy and execution of a new HAP contract are not required for changes in the lease. However, under certain circumstances, the execution of a new lease and HAP contract are required. These circumstances include:
• Changes in lease requirements governing tenant or owner responsibilities for utilities or appliances.
• Changes in lease provisions governing the term of the lease. • The family moves to a new unit, even if the unit is in the same building or complex.

In these cases, if the HCV assistance is to continue, the family must submit a new Request for Tenancy Approval (RTA) along with a new dwelling lease containing the proposed changes. A new tenancy must then be approved in accordance with this chapter.
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Where the owner is changing the amount of the rent, the owner must notify the PHA at least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. The PHA will agree to such an increase only if the amount of the rent to owner is considered reasonable according to the rent reasonableness standards discussed in Chapter 8. If the requested rent is not found to be reasonable, the owner must either reduce the requested rent increase, or terminate the tenancy in accordance with the terms of the lease.

No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)]. The rent to owner for a unit must not be increased at the annual anniversary date unless:

(1) The owner requests the adjustment by giving notice to PHA; and (2) During the year before the annual anniversary date, the owner has complied with all requirements of the HAP contract, including compliance with the HQSNSPIRE standards.

HACP Policy:

Where the owner is requesting a rent increase, the HACP will determine whether the requested increase is reasonable within 30 days of prior to the effective date. The owner will be notified of the determination in writing.

Rent increases will go into effect on the first of the month following the 60 Day period after the owner notifies the
HACP of the rent change or on the
date specified by the owner, whichever is later.

If the request is incomplete or incorrect the owner will be notified within 15 calendar days and given an opportunity to resubmit the request. The effective date will be the first of the month following a) 60 calendar days after the postmark date or fax time-date confirmation of the owners corrected request, or b) the date the unit passed its latest annual inspection, or c) on the date specified by the owner, whichever is later.

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Chapter 10

MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY

INTRODUCTION
Freedom of housing choice is a hallmark of the housing choice voucher (HCV) program. In general, HUD regulations impose few restrictions on where families may live or move with HCV assistance. This chapter sets forth HUD regulations and PHA policies governing moves within or outside the PHA’s jurisdiction in two parts:

Part I: Moving with Continued Assistance. This part covers the general rules that apply to all moves by a family assisted under the PHA’s HCV program, whether the family moves to another unit within the PHA’s jurisdiction or to a unit outside the PHA’s jurisdiction under portability.

Part II: Portability. This part covers the special rules that apply to moves by a family under portability, whether the family moves out of or into the PHA’s jurisdiction. This part also covers the special responsibilities that the PHA has under portability regulations and procedures.

PART I: MOVING WITH CONTINUED ASSISTANCE
10 -I.A. ALLOWABLE MOVES
HUD lists six regulatory conditions under which an assisted family is allowed to move to a new unit with continued assistance. Permission to move is subject to the restrictions set forth in section 10-I.B.
• The family has a right to terminate the lease on notice to the owner (for the owner’s breach or otherwise) and has given a notice of termination to the owner in accordance with the lease [24 CFR 982.354(b)(3)]. If the family terminates the lease on notice to the owner, the family must give the PHA a copy of the notice at the same time [24 CFR 982.354(d)(1)]. • The lease for the family’s unit has been terminated by mutual agreement of the owner and the family [24 CFR 982.354(b)(1)(ii)].

HACP Policy:

If the family and the owner mutually agree to terminate the lease for the family’s unit, the family must give the HACP a copy of the termination agreement. HACP's Mutual Agreement to Terminate the Lease form must be submitted to HACP staff before the move can be approved. • If the owner has given the family a notice to vacate, has commenced an action to evict the family, or has obtained a court judgment or other Formatted: Line spacing: Multiple 1.15 li, Tab stops:

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process allowing the owner to evict the family [24 CFR 982.354(b)(2)]. The family must give the HACP a copy of any owner eviction notice [24 CFR 982.551(g)].
• The family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking and the move is needed to protect the health or safety of the family or family member [see 24 CFR 982.354(b)(4)]. This condition applies even when the family has moved out of its unit in violation of the lease, with or without prior notification to the PHA, if the family or family member who is the victim reasonably believed that he or she was imminently threatened by harm from further violence if he or she remained in the unit [24 CFR 982.354(b)(4), 24 CFR 982.353(b)]. The HACP must adopt an emergency transfer plan as required by regulations at 24 CFR 5.2007(e).

HACP Policy:

If a family requests permission to move with continued assistance or for an external transfer to another covered housing program operated by the HACP based on a claim that the move is necessary to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking the HACP will request that the resident request the emergency transfer using form HUD-5383, and the HACP will request documentation in accordance with section 16-IX.D of this plan.

The HACP reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the family or family member will suffice. In such cases the HACP will document the waiver in the family’s file.

The HACP may choose to provide a voucher to facilitate an emergency transfer of the victim without first terminating the assistance of the perpetrator.

Before granting an emergency transfer, the HACP will ensure the victim is eligible to receive continued assistance based on the citizenship or immigration status of the victim.

The HACP has adopted an emergency transfer plan, which is included as Exhibit 16-3 to this plan and discuses external transfers to other covered housing programs.
• The HACP has terminated the HAP contract for the family’s unit for the owner’s breach [24 CFR 982.354(b)(1)(i)].
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composition. In such cases, the HACP must issue the family a new voucher, and the family and HACP must try to find an acceptable unit as soon as possible. If an acceptable unit is available for the family, the HACP must terminate the HAP contract for the family’s old unit in accordance with the HAP contract terms and must notify both the family and the owner of the termination. The HAP contract terminates at the end of the calendar month that follows the calendar month in which the HACP gives notice to the owner. [24 CFR 982.403(a) and (c)]

10-I.B. RESTRICTIONS ON MOVES
A family’s right to move is generally contingent upon the family’s compliance with program requirements [24 CFR 982.1(b)(2)]. HUD specifies two conditions under which a PHA may deny a family permission to move and two ways in which a PHA may restrict moves by a family.

Denial of Moves
HUD regulations permit the PHA to deny a family permission to move under the following conditions:

Insufficient Funding
The PHA may deny a family permission to move either within or outside the PHA’s jurisdiction if the PHA does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)]. However, Notice PIH 2016-09 significantly restricts the ability of PHAs to deny permission to move due to insufficient funding and places further requirements on PHAs regarding moves denied due to lack of funding. The requirements found in this notice are mandatory.

HACP Policy:

The HACP will deny a family permission to move on grounds that the HACP does not have sufficient funding for continued assistance if (a) the move is initiated by the family, not the owner or the PHA; (b) the HACP can demonstrate that the move will, in fact, result in higher subsidy costs (c) the HACP can demonstrate, in accordance with the policies in Part VIII of Chapter 16, that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs; and (d) for portability moves, the receiving HACP is not absorbing the voucher.

If the HACP does not have sufficient funding for continued assistance, but the family must move from their unit (e.g., the unit failed HQSinspection), the family may move to a higher cost unit if the move is within the PHA’s Formatted: Line spacing: 1.5 lines
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jurisdiction. The PHA, however, will not allow the family to move under portability in this situation if the family wishes to move to a higher cost area.

For both moves within the PHA’s jurisdiction and outside under portability, the HACP will not deny a move due to insufficient funding if the HACP previously approved the move and subsequently experienced a funding shortfall if the family cannot remain in their current unit. The HACP will rescind the voucher in this situation if the family will be allowed to remain in their current unit.

The HACP will create a list of families whose moves have been denied due to insufficient funding. The HACP will keep the family’s request open indefinitely, and when funds become available, the families on this list will take precedence over families on the waiting list. The HACP will use the same procedures for notifying families with open requests to move when funds become available as it uses for notifying families on the waiting list (see section 4-III.D).

The HACP will inform the family of its policy regarding moves denied due to insufficient funding in a letter to the family at the time the move is denied.

Pursuant to HUD revisions to the Portability guidance published in the Federal Register on August 20, 2015, HACP shall notify the local HUD office within 10 business days of a determination to deny a portability move based on insufficient funding.

Grounds for Denial or Termination of Assistance
The PHA may deny a family permission to move if it has grounds for denying or terminating the family’s assistance [24 CFR 982.354(e)(2)].

HACP Policy:

If the HACP has grounds for denying or terminating a family’s assistance, the HACP will act on those grounds in accordance with the regulations and policies set forth in Chapters 3 and 12, respectively. In general, it will not deny a family permission to move for this reason; however, it retains the discretion to do so under special circumstances.

Restrictions on Elective Moves [24 CFR 982.354(c)]
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more than one elective move by a participant family during any 12-month period.

However, such prohibitions, if adopted, do 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, or human trafficking and the move is needed to protect the health or safety of the family or family member. (For the policy on documentation of abuse, see section 10-I.A.) In addition, the PHA may not establish a policy permitting moves only at reexamination [Notice PIH 2016-09].

HACP Policy:

The HACP may deny a family permission to make an elective move during the family’s initial lease term. This policy applies to moves within the PHA’s jurisdiction or outside it under portability.

The HACP may also deny a family permission to make more than one elective move during any 12
-month period. This policy applies to all
assisted families residing in the PHA’s jurisdiction.

The HACP will consider exceptions to these policies for the following reasons: to protect the health or safety of a family member (e.g., lead- based paint hazards, domestic violence, witness protection programs), to accommodate a change in family circumstances (e.g., new employment, school attendance in a distant area), or to address an emergency over which a family has no control.

In addition, the HACP will allow exceptions to these policies for purposes of reasonable accommodation of a family member who is a person with disabilities (see Chapter 2).

10-I.C. MOVING PROCESS
Notification
If a family wishes to move to a new unit, the family must notify the PHA and the owner before moving out of the old unit or terminating the lease on notice to the owner [24 CFR 982.354(d)(2)]. If the family wishes to move to a unit outside the PHA’s jurisdiction under portability, the notice to the PHA must specify the area where the family wishes to move [24 CFR 982.354(d)(2)]. The notices must be in writing [24 CFR 982.5].

Approval
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HACP Policy:

Upon receipt of a family’s notification that it wishes to move, the HACP will determine whether the move is approvable in accordance with the regulations and policies set forth in sections 10-I.A and 10-I.B. The HACP will notify the family in writing of its determination within 10 business days following receipt of the family’s notification.

Reexamination of Family Income and Composition

HACP Policy:

For families approved to move to a new unit within the PHA’s jurisdiction, the HACP will perform a new annual reexamination in accordance with the policies set forth in Chapter 11 of this plan.

For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the
HACP will follow the policies set forth in
Part II of this chapter.

Voucher Issuance and Briefing

HACP Policy:

For families approved to move to a new unit within the PHA’s jurisdiction, the HACP will issue a new voucher within 10 business days of the PHA’s written approval to move. No briefing is required for these families. The HACP will follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new unit within the term of the voucher and any extensions, the family may remain in its current unit with continued voucher assistance if the owner agrees and the HACP approves. Otherwise, the family will lose its assistance.

For families moving into or families approved to move out of the PHA’s jurisdiction under portability, the
HACP will follow the policies set forth in
Part II of this chapter.

Housing Assistance Payments [24 CFR 982.311(d)]
When a family moves out of an assisted unit, the PHA may not make any housing assistance payment to the owner for any month after the month the family moves out. The owner may keep the housing assistance payment for the Formatted: Line spacing: Multiple 1.15 li
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month when the family moves out of the unit.

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 assistance 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 constitute a duplicative housing subsidy.

The family must submit evidence that possession of the unit has been returned to the landlord. A Key Return Form must be signed by both the family and the landlord and returned to HACP within 5 days of the tenant vacating the unit AND retuning the keys to the owner. If the tenant fails to return the keys to the prior landlord, transfer of unit possession will not have been documented and the new HAP contract shall be voided.

Under no circumstances will a HAP contract for a new unit be processed without the family submitting HACP's Key Return Form signed by the previous landlord.

10.I.D. ENHANCED VOUCHERS

HUD provides tenant-based rental assistance in order to assist eligible residents that are affected by several different types of owner or HUD actions in HUD’s Office of Multifamily Housing programs (collectively referred to as “Housing conversion actions”).

Depending on the Housing conversion action and subject to the availability of appropriations, eligible families receive either regular voucher assistance or enhanced voucher assistance to mitigate the impact of the conversion action on the family’s rent.

Enhanced vouchers are primarily provided in the case of preservation prepayments and Section 8 project-based contract opt-outs. Enhanced voucher assistance under Section 8(t) of the United States Housing Act of 1937 is calculated differently from regular housing choice voucher assistance if the family remains in the project. A higher “enhanced” payment standard is used to determine the amount of the monthly subsidy in cases where the gross rent of the unit exceeds the normally applicable PHA payment standard. In such instances, the gross rent for the unit is used in the monthly subsidy calculation instead of the normally applicable payment standard.

Voucher Issuance and PHA Determination of the Family’s Over-housed Status.

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Under a Housing conversion action, PHA issues an eligible family an enhanced voucher based on PHA's subsidy standards (see 24 CFR §982.402), not the actual size of the unit the family is currently occupying. PHA must approve requests for a larger bedroom size to permit additional bedrooms if it may be necessary as a reasonable accommodation for a household with a family member with a disability, such as for example, to accommodate the need for a live-in aide or for medical equipment (see 24 CFR part 8).

If the bedroom size of the family’s unit exceeds the number of bedrooms for which the family qualifies under PHA's subsidy standards, the family is an over- housed family unless the family qualifies for a reasonable accommodation because one or more family member(s) need an additional bedroom.

If an over-housed family chooses to move from the project at any time, the normal tenant-based voucher program rules apply to the subsidy calculation for the new unit. In such a case, the payment standard is the lower of the payment standard for the family unit size under PHA's subsidy standards or the payment standard for the actual size of the unit rented by the family (see 24 CFR §982.402(c)).

Availability of Appropriate Size Units in the Project
If an over-housed family wishes to remain at the project, the regular voucher program requirements regarding the payment standard are not applicable and the provisions of PIH Notice
2016-02 apply.

The over-housed family must move to an appropriate size unit in the project if one is available in order to receive enhanced voucher assistance. The family and owner will enter into a lease and PHA will execute a voucher housing assistance payments (HAP) contract on behalf of the family for the appropriate size unit to which the family moves.

The enhanced voucher housing assistance payment calculation is based on the gross rent of the appropriate size unit. If an over-housed enhanced voucher family refuses to move to the appropriate size unit, and one exists and is available for occupancy, PHA will calculate the family’s housing assistance payment for the over-sized unit based on the normally applicable voucher subsidy formula using the applicable payment standard established by PHA for its voucher program (see 24 CFR §982.402(c) and (d)). The family will be responsible for any amount of the gross rent not covered by the housing assistance payment.

Appropriate Size Unit does not Physically Exist in the Project.

If the family wishes to remain at the project with enhanced voucher assistance, and an appropriate size unit does not physically exist at the project, but a Formatted: Line spacing: 1.5 lines
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bedroom size unit is available that is smaller than the family’s current unit but not smaller than the unit size for which the family qualifies under PHA's subsidy standards, the family must move to the smaller bedroom size unit within 30 calendar days unless there are mitigating circumstances that are beyond the family's control and approved by PHA.

The family and owner will enter into a new lease and PHA will execute a new voucher HAP contract with the owner for the smaller bedroom size unit. The enhanced voucher subsidy calculation is based on the gross rent for the smaller bedroom size unit. If an over-housed enhanced voucher family refuses to move to the smaller bedroom size unit, and one exists and is available for occupancy, PHA will calculate the family’s housing assistance payment for the over-sized unit based on the normally applicable voucher subsidy formula using the applicable payment standard established by PHA for its voucher program (see 24 CFR §982.402(c) and (d)). The family will be responsible for any amount of the gross rent not covered by the housing assistance payment.

PHA and Family Actions when Appropriate Size Units Subsequently Become Available in the Project.

When PHA is informed that an appropriate size unit is available, PHA must immediately notify the over-housed family of the availability of the unit and the family must move to the appropriate size unit within 30 calendar days, unless there are mitigating circumstances that are beyond the family's control and approved by PHA, to continue to receive enhanced voucher assistance.

The family and owner will enter into a new lease and PHA will execute a new voucher HAP contract with the owner for the appropriate size unit. The enhanced voucher subsidy calculation is based on the gross rent for the appropriate size unit.

PART II: PORTABILITY
10-II.A. OVERVIEW
Within the limitations of the regulations and this plan, a participant family or an applicant family that has been issued a voucher has the right to use tenant-based voucher assistance to lease a unit anywhere in the United States providing that the unit is located within the jurisdiction of a PHA administering a tenant-based voucher program [24 CFR 982.353(b)]. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. The PHA that issues the voucher is called the initial PHA. The PHA that has jurisdiction in the area to which the family wants to move Formatted: Line spacing: Multiple 1.15 li
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is called the receiving PHA.

The receiving PHA has the option of administering the family’s voucher for the initial PHA or absorbing the family into its own program. Under the first option, the receiving PHA provides all housing services for the family and bills the initial PHA for the family’s housing assistance payments and the fees for administering the family’s voucher. Under the second option, the receiving PHA pays for the family’s assistance with its own program funds, and the initial PHA has no further relationship with the family. The initial PHA must contact the receiving PHA via email or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the initial PHA’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether they will approve or deny the portability request [Notice PIH 2016-09].

PHAs commonly act as both the initial and receiving PHA because families may move into or out of their jurisdiction under portability. Each role involves different responsibilities. The PHA will follow the rules and policies in section 10-II.B when it is acting as the initial PHA for a family. It will follow the rules and policies in section 10-II.C when it is acting as the receiving PHA for a family.

In administering portability, the initial PHA and the receiving PHA must comply with financial procedures required by HUD, including the use of HUD-required forms [24 CFR 982.355(e)(5)].

PHAs must also comply with billing and payment deadlines. HUD may reduce an administrative fee to an initial or receiving PHA if the PHA does not comply with HUD portability requirements [24 CFR 982.355(e)(7)].

10-II.B. INITIAL PHA ROLE
Allowable Moves under Portability
A family may move with voucher assistance only to an area where there is at least one PHA administering a voucher program [24 CFR 982.353(b)]. If there is more than one PHA in the area, the initial PHA provides the family with the contact information for the receiving PHAs that serve the area, and the family selects the receiving PHA. The family must inform the initial PHA which PHA it has selected. If the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family [24 CFR 982.255(b)].

Applicant families that have been issued vouchers as well as participant families may qualify to lease a unit outside the PHA’s jurisdiction under portability. HUD regulations and HACP of the City of Pittsburg Policy determine whether a family qualifies.

Applicant Families
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Under HUD regulations, most applicant families qualify to lease a unit outside the PHA’s jurisdiction under portability. However, HUD gives the PHA discretion to deny a portability move by an applicant family for the same two reasons that it may deny any move by a participant family: insufficient funding and grounds for denial or termination of assistance. If a PHA intends to deny a family permission to move under portability due to insufficient funding, the PHA must notify HUD within 10 business days of the determination to deny the move [24 CFR 982.355(e)].

HACP Policy:

In determining whether or not to deny an applicant family permission to move under portability because the HACP lacks sufficient funding or has grounds for denying assistance to the family, the initial HACP will follow the policies established in section 10-I.B of this chapter. If the HACP does deny the move due to insufficient funding, the HACP will notify HUD in writing within 10 business days of the PHA’s determination to deny the move.

In addition, the PHA may establish a policy denying the right to portability to nonresident applicants during the first 12 months after they are admitted to the program [24 CFR 982.353(c)].

HACP Policy:

If neither the head of household nor the spouse/cohead of an applicant family had a domicile (legal residence) in the PHA’s jurisdiction at the time that the family’s initial application for assistance was submitted, the family must lease a unit within the initial PHA’s jurisdiction for at least 12 months before requesting portability.

The HACP will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, or stalking, or human trafficking.

Participant Families
The initial PHA must not provide portable assistance for a participant if a family has moved out of its assisted unit in violation of the lease [24 CFR 982.353(b)].

The Violence against Women Act of 2013 (VAWA) creates an exception to this prohibition for families who are otherwise in compliance with program obligations but have moved to protect the health or safety of a family member who is or has Formatted: Line spacing: Multiple 1.15 li
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been a victim of domestic violence, dating violence, sexual assault, or stalking, or human trafficking and who reasonably believed he or she was imminently threatened by harm from further violence if he or she remained in the unit [see 24 CFR 982.353(b)].

HACP Policy:

The HACP will determine whether a participant family may move out of the PHA’s jurisdiction with continued assistance in accordance with the regulations and policies set forth here and in sections 10-I.A and 10-I.B of this chapter. The HACP will notify the family of its determination in accordance with the approval policy set forth in section 10-I.C of this chapter.

Determining Income Eligibility
Applicant Families
An applicant family may lease a unit in a particular area under portability only if the family is income eligible for admission to the voucher program in that area [24 CFR 982.353(d)(1)]. The family must specify the area to which the family wishes to move
[24 CFR 982.355(c)(1)].

The initial PHA is responsible for determining whether the family is income eligible in the area to which the family wishes to move [24 CFR 982.353(d)(1), 24 CFR 982.355(9)]. If the applicant family is not income eligible in that area, the PHA must inform the family that it may not move there and receive voucher assistance [Notice PIH 2016-09].

Participant Families
The income eligibility of a participant family is not redetermined if the family moves to a new jurisdiction under portability [24 CFR 982.353(d)(2)].

Reexamination of Family Income and Composition
No new reexamination of family income and composition is required for an applicant family.

HACP Policy:

For a participant family approved to move out of its jurisdiction under portability, the HACP generally will conduct a reexamination of family income and composition only if the family’s annual reexamination must be completed on or before the initial billing deadline specified on form HUD- Formatted: Font color: Blue
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52665, Family Portability Information.

The HACP will make any exceptions to this policy necessary to remain in compliance with HUD regulations.

Briefing
The regulations and policies on briefings set forth in Chapter 5 of this plan require the PHA to provide information on portability to all applicant families that qualify to lease a unit outside the PHA’s jurisdiction under the portability procedures. Therefore, no special briefing is required for these families.

HACP Policy:::

No formal briefing will be required for a participant family wishing to move outside the PHA’s jurisdiction under portability. However, the HACP will provide the family with the same oral and written explanation of portability that it provides to applicant families selected for admission to the program (see Chapter 5).

The HACP will provide the name, address, and phone of the contact for the PHAs in the jurisdiction to which they wish to move. If there is more than one PHA with jurisdiction over the area to which the family wishes to move, the PHA will advise the family that the
family selects the receiving
PHA and notify the initial PHA of which receiving PHA was selected. The HACP will provide the family with contact information for all of the receiving PHAs that serve the area. The HACP will not provide any additional information about receiving PHAs in the area. The HACP will further inform the family that if the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family.

In this case, the HACP will not provide the family with information for all receiving PHAs in the area.

The HACP will advise the family that they will be under the RHA’s policies and procedures, including screening, subsidy standards, voucher extension policies, and payment standards.

Voucher Issuance and Term
An applicant family has no right to portability until after the family has been issued a voucher [24 CFR 982.353(b)]. In issuing vouchers to applicant families, the PHA will follow the regulations and procedures set forth in Chapter 5.

HACP Policy:

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For participating families approved to move under portability, the HACP will issue a new voucher within 10 business days of the PHA’s written approval to move.

The initial term of the voucher will be 12090 days.

Voucher Extensions and Expiration

HACP Policy:

The HACP will approve no extensions to a voucher issued to an applicant or participant family porting out of the PHA’s jurisdiction except under the following circumstances:
(a) the initial term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA,

(b) the family decides to return to the initial PHA’s jurisdiction and search for a unit there, or
(c) the family decides to search for a unit in a third PHA’s jurisdiction. In such cases, the policies on voucher extensions set forth in Chapter 5, section 5-II.E,., of this plan will apply, including the requirement that the family apply for an extension in writing prior to the expiration of the initial voucher term.

To receive or continue receiving assistance under the initial PHA’s voucher program, a family that moves to another PHA’s jurisdiction under portability must be under HAP contract in the receiving PHA’s jurisdiction within 90 days following the expiration date of the initial PHA’s voucher term (including any extensions). (See below under “Initial Billing Deadline” for one exception to this policy.)
Preapproval Contact with the Receiving PHA
Prior to approving a family’s request to move under portability, the initial PHA must contact the receiving PHA via e
-mail or other confirmed delivery method to
determine whether the receiving PHA will administer or absorb the family’s voucher. Based on the receiving PHA’s response, the initial PHA must determine whether it will approve or deny the move [24 CFR 982.355(c)(3)].

HACP Policy:

The HACP will use e-mail, when possible, to contact the receiving PHA regarding whether the receiving PHA will administer or absorb the family’s voucher.

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Initial Notification to the Receiving PHA
After approving a family’s request to move under portability, the initial PHA must promptly notify the receiving PHA via email or other confirmed delivery method to expect the family [24 CFR 982.355(c)(3); 24 CFR 982.355(c)(7)]. The initial PHA must also advise the family how to contact and request assistance from the receiving PHA [24 CFR 982.355(c)(6)].

HACP Policy:::

Because the portability process is time-sensitive, the HACP will notify the receiving PHA by phone, fax, or e-mail to expect the family. The initial PHA will also ask the receiving PHA to provide any information the family may need upon arrival, including the name, fax, e-mail address, and telephone number of the staff person responsible for business with incoming portable families and procedures related to appointments for voucher issuance. The HACP will pass this information along to the family.

The HACP will also ask for the name, address, telephone number, fax and e-mail of the person responsible for processing the billing information.

Sending Documentation to the Receiving PHA
The initial PHA is required to send the receiving PHA the following documents:
•
Form HUD-52665, Family Portability Information, with Part I filled out [Notice PIH 2016-09]
• A copy of the family’s voucher [Notice PIH 2016-09]
• A copy of the family’s most recent form HUD-50058, Family Report, or, if necessary, in the case of an applicant family, family and income information in a format similar to that of form HUD-50058 [24 CFR 982.355(c)(7), Notice PIH 2016-09]
• Copies of the income verifications backing up the form HUD-50058, including a copy of the family’s current EIV data [24 CFR 982.355(c)(7), Notice PIH 2016-09]
HACP Policy:

In addition to these documents, the HACP will provide the following information, if available, to the receiving PHA:

Social security numbers (SSNs)
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Documentation of SSNs for all nonexempt household members whose SSNs have not been verified through the EIV system.

Documentation of legal identity
Documentation of citizenship or eligible immigration status Documentation of participation in the earned income disallowance (EID) benefit
Documentation of participation in a family self-sufficiency (FSS) program
If applicable, information related to the family’s health and medical care and disability assistance expense phased-in hardship exemption, including what stage the family is in and how many months remain in that phase-in stage

The HACP will notify the family in writing regarding any information provided to the receiving PHA [HCV GB, p. 13-3].

Initial Billing Deadline [Notice PIH 2016-09]
The deadline for submission of initial billing is 90 days following the expiration date of the voucher issued to the family by the initial PHA. In cases where suspension of the voucher delays the initial billing submission, the receiving PHA must notify the initial PHA of delayed billing before the billing deadline and document the delay is due to the suspension. In this case, the initial PHA must extend the billing deadline by 30 days.

If the initial PHA does not receive a billing notice by the deadline and does not intend to honor a late billing submission, it must notify the initial PHA in writing.

The initial PHA may report to HUD the receiving PHA’s failure to comply with the deadline.

If the initial PHA will honor the late billing, no action is required.

HACP Policy:

If the HACP has not received an initial billing notice from the receiving PHA within the billing deadline, it will contact the receiving PHA to inform them that it will not honor a late billing submission and will return any subsequent billings that it receives on behalf of the family. The HACP will send the receiving PHA a written confirmation of its decision by mail.

The HACP will allow an exception to this policy if the family includes a person with disabilities and the late billing is a result of a reasonable accommodation granted to the family by the receiving PHA.

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Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2016-09] If the receiving PHA is administering the family’s voucher, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. When reimbursing for administrative fees, the initial PHA must promptly reimburse the receiving PHA for the lesser of 80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill [24 CFR 982.355(e)(2)].

The initial PHA is responsible for making billing payments in a timely manner.

The first billing amount is due within 30 calendar days after the initial PHA receives Part II of form HUD-52665 from the receiving PHA. Subsequent payments must be received by the receiving PHA no later than the fifth business day of each month. The payments must be provided in a form and manner that the receiving PHA is able and willing to accept.

The initial PHA may not terminate or delay making payments under existing portability billing arrangements as a result of over leasing or funding shortfalls.

The PHA must manage its tenant-based program in a manner that ensures that it has the financial ability to provide assistance for families that move out of its jurisdiction under portability and are not absorbed by receiving PHAs as well as for families that remain within its jurisdiction.

HACP Policy:

The initial PHA will utilize direct deposit to ensure that the payment is received by the deadline unless the receiving PHA notifies the initial PHA that direct deposit is not acceptable to them. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher.

Annual Updates of Form HUD-50058
If the initial PHA is being billed on behalf of a portable family, it should receive an updated form HUD-50058 each year from the receiving PHA. If the initial PHA fails to receive an updated 50058 by the family’s annual reexamination date, the Formatted: Line spacing: 1.5 lines
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initial PHA should contact the receiving PHA to verify the status of the family. The initial PHA must continue paying the receiving PHA based on the last form HUD- 50058 received, unless instructed otherwise by HUD. The initial PHA may seek absorption of the vouchers by following steps outlined in Notice PIH 2016-09.

Denial or Termination of Assistance [24 CFR 982.355(c)(17)] At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553. (For PHA policies on denial and termination, see Chapters 3 and 12, respectively.)

10-II.C. RECEIVING PHA ROLE
If a family has a right to lease a unit in the receiving PHA’s jurisdiction under portability, the receiving PHA must provide assistance for the family [24 CFR 982.355(10)]. HUD may determine in certain instances that a PHA is not required to accept incoming portable families, such as a PHA in a declared disaster area.

However, the PHA must have approval in writing from HUD before refusing any incoming portable families [24 CFR 982.355(b)].

Administration of the voucher must be in accordance with the receiving PHA’s policies. This requirement also applies to the policies of Moving to Work agencies. The receiving PHA procedures and preferences for selection among eligible applicants do not apply to the family, and the receiving PHA waiting list is not used [24 CFR 982.355(c)(10)]. The family’s unit, or voucher, size is determined in accordance with the subsidy standards of the receiving PHA [24 CFR 982.355(c)(12)], and the receiving PHA’s policies on extensions of the voucher term apply [24 CFR 982.355(c)(14)].

Responding tot Initial PHA’s Request [24 CFR 982.355(c)] The receiving PHA must respond via e-mail or other confirmed delivery method to the initial PHA’s inquiry to determine whether the family’s voucher will be billed or absorbed [24 CFR 982.355(c)(3)]. If the receiving PHA informs the initial PHA that it will be absorbing the voucher, the receiving PHA cannot reverse its decision at a later date without consent of the initial PHA (24 CFR 982.355(c)(4).

HACP Policy:

The HACP will use e-mail, when possible, to notify the initial PHA whether it will administer or absorb the family’s voucher.

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Initial Contact with Family
When a family moves into the HACP’s jurisdiction under portability, the family is responsible for promptly contacting the PHA and complying with the PHA’s procedures for incoming portable families. The family’s failure to comply may result in denial or termination of the receiving PHA’s voucher [24 CFR 982.355(c)(8)].

If the voucher issued to the family by the initial PHA has expired, the receiving PHA must contact the initial PHA to determine if it will extend the voucher [24 CFR 982.355(c)(13)]. An informal hearing is not required when a voucher has expired without the family leasing a unit.

If for any reason the receiving PHA refuses to process or provide assistance to a family under the portability procedures, the family must be given the opportunity for an informal review or hearing [Notice PIH 2016-09]. (For more on this topic, see later under “Denial or Termination of Assistance.”)

Briefing
HUD allows the receiving PHA to require a briefing for an incoming portable family as long as the requirement does not unduly delay the family’s search [Notice PIH 2016-09].

HACP Policy:

HACP will require the family to participate in a briefing only in the event the family is a first-time participant to the HCV Program. For port-in program participants, the HACP may not require the family to attend a briefing. The HACP will provide the family with a briefing packet (as described in Chapter 5) and in an individual briefing, will orally inform the family about the PHA’s payment and subsidy standards, procedures for requesting approval of a unit, the unit inspection process, and the leasing process. The HACP may suggest that the family attend a full briefing at a later date. The tenant file will be documented with the date and time of the remote briefing and how the briefing packet was provided to them.

Income Eligibility and Reexamination
The receiving PHA does not redetermine eligibility for a portable family that was already receiving assistance in the initial PHA’s voucher program [24 CFR 982.355(c)(9)]. If the receiving PHA opts to conduct 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 [24 CFR 982.355(c)(11)].

HACP Policy:

For any family moving into its jurisdiction under portability, the HACP may conduct a new reexamination of family income and composition. HACP will not conduct a reexamination except in the following instances:
• The reexamination anniversary is within the next 120 days or • A reexamination has not been completed in the last 12 months • New income information has been submitted

• If the information provided is incomplete.

However, the HACP will not delay issuing the family a voucher for this reason. Nor will the HACP delay approving a unit for the family until the reexamination process is complete unless the family is an applicant and the HACP cannot otherwise confirm that the family is income eligible for admission to the program in the area where the unit is located.

The HACP will rely upon any verifications provided by the initial PHA to the extent that they (a) accurately reflect the family’s current circumstances and (b) were obtained within the last 120 days. Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received.

Voucher Issuance
When a family moves into its jurisdiction under portability, the receiving PHA is required to issue the family a voucher [24 CFR 982.355(c)(13)]. The family must submit a request for tenancy approval to the receiving PHA during the term of the receiving PHA’s voucher [24 CFR 982.355(c)(15)].

Timing of Voucher Issuance
HUD expects the receiving PHA to issue the voucher within two weeks after receiving the family’s paperwork from the initial PHA if the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA’s procedures [Notice PIH 2016-09].

HACP Policy:

When a family ports into its jurisdiction, the HACP will issue the family a voucher based on the paperwork provided by the initial PHA unless the family’s paperwork from the initial PHA is incomplete, the family’s voucher Formatted: Line spacing: Multiple 1.15 li
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from the initial PHA has expired or the family does not comply with the PHA’s procedures. The HACP will update the family’s information when verification has been completed.

Voucher Term
The term of the receiving PHA’s voucher may not expire before 30 calendar days from the expiration of the initial PHA’s voucher [24 CFR 982.355(c)(13)]. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher may not expire before 30 days from the new expiration date of the initial PHA’s voucher [Notice PIH 2016-09].

HACP Policy:

The receiving PHA’s voucher will expire 30 calendars days from the expiration date of the initial PHA’s voucher. If the initial PHA extends the term of the voucher, the receiving PHA’s voucher will expire 30 calendar days from the new expiration date of the initial PHA’s voucher.

Voucher Extensions [24 CFR 982.355(c)(14), Notice 2016
-09]
Once the receiving PHA issues the portable family a voucher, the receiving PHA’s policies on extensions of the voucher term apply. The receiving PHA must inform the initial PHA of any extension granted to the term of the voucher. It must also bear in mind the billing deadline provided by the initial PHA. Unless willing and able to absorb the family, the receiving PHA should ensure that any voucher expiration date would leave sufficient time to process a request for tenancy approval, execute a HAP contract, and deliver the initial billing to the initial PHA.

HACP Policy:

The HACP generally will not extend the term of the voucher that it issues to an incoming portable family unless the HACP plans to absorb the family into its own program, in which case it will follow the policies on voucher extension set forth in section 5-II.E.

The HACP will consider an exception to this policy as a reasonable accommodation to a person with disabilities (see Chapter 2).

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If the family submits a request for tenancy approval during the term of the receiving PHA’s voucher, the PHA must suspend the term of that voucher. The term of the voucher stops from the date that the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied [24 CFR 982.4(b)] (see Section 5-II. E).

Notifying the Initial PHA
The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit under the program or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the receiving PHA’s voucher [24 CFR 982.355(c)(16)]. The receiving PHA is required to use Part II of form HUD-52665, Family Portability Information, for this purpose [Notice PIH 2016-09]. (For more on this topic and the deadline for notification, see below under “Administering a Portable Family’s Voucher.”)
If an incoming portable family ultimately decides not to lease in the jurisdiction of the receiving PHA but instead wishes to return to the initial PHA’s jurisdiction or to search in another jurisdiction, the receiving PHA must refer the family back to the initial PHA. In such a case the voucher of record for the family is once again the voucher originally issued by the initial PHA. Any extension of search time provided by the receiving PHA’s voucher is only valid for the family’s search in the receiving PHA’s jurisdiction [Notice PIH 2016-09].

Administering a Portable Family’s Voucher
Portability Billing [24 CFR 982.355(e)]
To cover assistance for a portable family that was not absorbed, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. The amount of the housing assistance payment for a portable family in the receiving PHA’s program is determined in the same manner as for other families in the receiving PHA’s program.

The receiving PHA may bill the initial PHA for the lesser of 80 percent of the initial PHA’s ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA’s prorated ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee).

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If both PHAs agree, the PHAs may negotiate a different amount of reimbursement.

HACP Policy:

Unless the HACP negotiates a different amount of reimbursement with the initial PHA, the HACP will bill the initial PHA the maximum amount of administrative fees allowed, ensuring any administrative fee proration has been properly applied.

Initial Billing Deadline
If a portable family’s search for a unit is successful and the receiving PHA intends to administer the family’s voucher, the receiving PHA must submit its initial billing notice (Part II of form HUD
-52665) in time that the notice will be
received no later than 90 days following the expiration date of the family’s voucher issued by the initial PHA [Notice PIH 2016-09]. This deadline may be extended for 30 additional days if the delay is due to suspension of the voucher’s term (see Initial Billing Section). A copy of the family’s form HUD-50058, Family Report, completed by the receiving PHA must be attached to the initial billing notice. The receiving PHA may send these documents by mail, fax, or e-mail.

HACP Policy:

The HACP will send its initial billing notice by fax or e-mail, if necessary, to meet the billing deadline but will also send the notice by regular mail.

If the receiving PHA fails to send the initial billing by the deadline, it is required to absorb the family into its own program unless (a) the initial PHA is willing to accept the late submission or (b) HUD requires the initial PHA to honor the late submission (e.g., because the receiving PHA is over-leased) [Notice PIH 2016-09].

Ongoing Notification Responsibilities [Notice PIH 2016-09, HUD-52665] Annual Reexamination. The receiving PHA must send the initial PHA a copy of a portable family’s updated form HUD-50058 after each annual reexamination for the duration of time the receiving PHA is billing the initial PHA on behalf of the family, regardless of whether there is a change in the billing amount.

HACP Policy:

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The HACP will send a copy of the updated HUD-50058 by regular mail no later than 10 business days after the effective date of the reexamination.

Change in Billing Amount. The receiving PHA is required to notify the initial PHA, using form HUD-52665, of any change in the billing amount for the family as a result of:
• A change in the HAP amount (because of a reexamination, a change in the applicable payment standard, a move to another unit, etc.) • An abatement or subsequent resumption of the HAP payments • Termination of the HAP contract
• Payment of a damage/vacancy loss claim for the family • Termination of the family from the program
The timing of the notice of the change in the billing amount should correspond with the notification to the owner and the family in order to provide the initial PHA with advance notice of the change. Under no circumstances should the notification be later than 10 business days following the effective date of the change in the billing amount. If the receiving PHA fails to send Form HUD- 52665 within 10 days of effective date of billing changes, the initial PHA is not responsible for any increase prior to notification. If the change resulted in a decrease in the monthly billing amount, the initial PHA will offset future monthly payments until the difference is reconciled.

Late Payments [Notice PIH 2016-09]
If the initial PHA fails to make a monthly payment for a portable family by the fifth business day of the month, the receiving PHA must promptly notify the initial PHA in writing of the deficiency. The notice must identify the family, the amount of the billing payment, the date the billing payment was due, and the date the billing payment was received (if it arrived late). The receiving PHA must send a copy of the notification to the Office of Public Housing (OPH) in the HUD area office with jurisdiction over the receiving PHA. If the initial PHA fails to correct the problem by the second month following the notification, the receiving PHA may request by memorandum to the director of the OPH with jurisdiction over the receiving PHA that HUD transfer the unit in question. A copy of the initial notification and any subsequent correspondence between the PHAs on the matter must be attached. The receiving PHA must send a copy of the memorandum to the initial PHA. If the OPH decides to grant the transfer, the billing arrangement on behalf of the family ceases with the transfer, but the initial PHA is still responsible for any outstanding payments due to the receiving PHA.

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Overpayments [Notice PIH 2016-09]
In all cases where the receiving PHA has received billing payments for billing arrangements no longer in effect, the receiving PHA is responsible for returning the full amount of the overpayment (including the portion provided for administrative fees) to the initial PHA.

In the event that HUD determines billing payments have continued for at least three months because the receiving PHA failed to notify the initial PHA that the billing arrangement was terminated, the receiving PHA must take the following steps:
• Return the full amount of the overpayment, including the portion provided for administrative fees, to the initial PHA.
• Once full payment has been returned, notify the Office of Public Housing in the HUD area office with jurisdiction over the receiving PHA of the date and the amount of reimbursement to the initial PHA.

At HUD’s discretion, the receiving PHA will be subject to the sanctions spelled out in Notice PIH 2016-09.

Denial or Termination of Assistance
At any time, the receiving PHA may make a determination to deny or terminate assistance to a portable family for family action or inaction [24 CFR 982.355(c)(17)].

In the case of a termination, the PHA should provide adequate notice of the effective date to the initial PHA to avoid having to return a payment. In no event should the receiving PHA fail to notify the initial PHA later than 10 business days following the effective date of the termination of the billing arrangement [HUD-52665; Notice PIH 2016-09].

HACP Policy:

If the HACP elects to deny or terminate assistance for a portable family, the HACP will notify the initial PHA within 10 business days after the informal review or hearing if the denial or termination is upheld. The HACP will base its denial or termination decision on the policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing will be held in accordance with the policies in Chapter 16. The receiving PHA will furnish the initial PHA with a copy of the review or hearing decision.

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Absorbing a Portable Family
The receiving PHA may absorb an incoming portable family into its own program when the PHA executes a HAP contract on behalf of the family or at any time thereafter providing that the PHA has funding available under its annual contributions contract (ACC) [24 CFR 982.355(d)(1), Notice PIH 2016-09].

If the receiving PHA absorbs a family from the point of admission, the admission will be counted against the income targeting obligation of the receiving PHA [24 CFR 982.201(b)(2)(vii)].

If the receiving PHA absorbs a family after providing assistance for the family under a billing arrangement with the initial PHA, the receiving PHA must send an updated form HUD-52665 to the initial PHA no later than 10 business days following the effective date of the termination of the billing arrangement [Notice PIH 2016-09].

HACP Policy:

If the HACP decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, the HACP will notify the initial PHA by the initial billing deadline specified on form HUD-52665. The effective date of the HAP contract will be the effective date of the absorption.

If the
HACP decides to absorb a family after that, it will provide the initial PHA with 30 days’ advance notice, but no later than 10 business days following the effective date of the termination of the billing arrangement.

Following the absorption of an incoming portable family, the family is assisted with funds available under the consolidated ACC for the receiving PHA’s voucher program [24 CFR 982.355(d)], and the receiving PHA becomes the initial PHA in any subsequent moves by the family under portability [24 CFR 982.355(e)(4)].

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Chapter 11

REEXAMINATIONS

INTRODUCTION
The PHA is required to reexamine each family’s income and composition at least annually, and to adjust the family’s level of assistance accordingly. Interim reexaminations are also needed in certain situations. This chapter discusses both annual and interim reexaminations, and the recalculation of family share and subsidy that occurs as a result. HUD regulations and PHA policies concerning reexaminations are presented in three parts:

Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations.

Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations.

Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations.

Part IV: Non-Interim Reexamination Transaction. This part describes transactions that do not entail changes to the family’s adjusted income.

Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this plan, apply to both annual and interim reexaminations.

PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516]
11-I.A. OVERVIEW
The PHA must conduct a reexamination of family income and composition at least annually. This includes gathering and verifying current information about family composition, income, and expenses. Based on this updated information, the family’s income and rent must be recalculated. This part discusses the schedule for annual reexaminations, the information to be collected and verified, and annual reexamination effective dates.

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11-I.B STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 982.516(b)]

Unlike when performing an interim reexamination or at intake, at annual reexamination, the PHA must determine the income of the family for the previous 12-month period, except where the PHA uses a streamlined income determination. Income from assets, however, is always anticipated, irrespective of the income examination type [Notice PIH 2023-27]. PHAs also have the option of using a “safe harbor” income verification from another federal means-tested program to verify gross annual income. Chapter 7 contains the PHA’s policies related to streamlined income determinations and the use of safe harbor income verifications.

11-I.BHUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third-party verification of all income, regardless of the source.

Further, upon request of the family, the PHA must perform third-party verification of all income sources.

HACP Policy:

The HACP will streamline the annual reexamination process by applying the verified COLA or interest rate to fixed-income sources. Fixed income sources are incomes with at least 90 % of the income coming from the fixed income source. The HACP will document in the file how the determination that a source of income was fixed was made.

If a family member with a fixed source of income is added, the HACP will use third-party verification of all income amounts for that family member.

If verification of the COLA or rate of interest is not available, the HACP will obtain third-party verification of income amounts.

Third-party verification of fixed sources of income will be obtained during the intake process and at least once every three years thereafter.

Third-party verification of non-fixed income will be obtained annually when the percentage of family income received from fixed sources is less than 90%.

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11-I.C. SCHEDULING ANNUAL REEXAMINATIONS
The PHA must establish a policy to ensure that the annual reexamination for each family is completed within a 12-month period and may require reexaminations more frequently [HCV GB p. 12-1].

HACP Policy:::

The HACP will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, the HACP will schedule annual reexamination effective dates to coincide with the family’s anniversary date.

Anniversary date
is defined as 12 months from the effective date of the
family’s last annual reexamination or, during a family’s first year in the program, from the effective date of the family’s initial examination (admission).

If the family moves to a new unit, the HACP may perform a new annual reexamination.

The HACP also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes.

Notification of and Participation in the Annual Reexamination Process The PHA is required to obtain the information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who were not provided the opportunity the option to complete Form HUD-92006 at this time [Notice PIH 2009-36].

HACP Policy:

Families generally are required to participate in an annual reexamination interview, which must be attended by the head of household, spouse, or cohead. If participation in an in-person interview poses a hardship because of a family member’s disability, the family should contact the HACP to request a reasonable accommodation (see Chapter 2).

Notification of annual reexamination interviews will be sent by first-class mail and will contain the date, time, and location of the interview. In addition, it will inform the family of the information and documentation that must be brought to the interview.

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If the family is unable to attend a scheduled interview, the family should contact the HACP in advance of the interview to schedule a new appointment. If a family does not attend the scheduled interview, the HACP will send a second notification with a new interview date and appointment time.

If a family fails to attend two scheduled interviews without HACP approval, or if the notice is returned by the post office with no forwarding address, a notice of termination (see Chapter 12) will be sent to the family’s address of record, and to any alternate address provided in the family’s file.

An advocate, interpreter, or other assistant may assist the family in the interview process. The family and the HACP must execute a certification attesting to the role and the assistance provided by any such third party.

11-I.D. CONDUCTING ANNUAL REEXAMINATIONS
As part of the annual reexamination process, families are required to provide updated information to the PHA regarding the family’s income, expenses, and composition [24 CFR 982.551(b)]

HACP Policy:

Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment. The required information will include a HACP- designated reexamination form, an Authorization for the Release of Information/Privacy Act Notice, as well as supporting documents or forms related to the family’s income, expenses, and family composition.

Any required documents or information that the family is unable to provide at the time of the interview must be provided within 10 business days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension.

If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of termination (See Chapter 12).

Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state [Notice PIH 2012-28].

HACP Policy:

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At the annual reexamination, the HACP will ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state. The HACP may use the Dru Sjodin National Sex Offender database to verify the information provided by the tenant or an alternative vendor (Tenant Reports) that provides this information.

If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter

12.)

The information provided by the family generally must be verified in accordance with the policies in Chapter 7. Unless the family reports a change, or the PHA has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to be re-verified on an annual basis. These include:
• Legal identity
• Age
• Social security numbers
• A person’s disability status
• Citizenship or immigration status

If adding a new family member to the unit causes overcrowding according to the housing qualityspace standards (HQS) (see Chapter 8), 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. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms [24 CFR 982.403].

11-I.ED. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)]

Section 327 of Public Law 109-115 established new restrictions on the ongoing eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education.

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If a student enrolled in an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student’s eligibility must be reexamined along with the income eligibility of the student’s parents on an annual basis. In these cases, both the student and the student’s parents must be income eligible for the student to continue to receive HCV assistance. If, however, a student in these circumstances is determined independent from his or her parents or is considered a vulnerable youth in accordance with HACP Policy:,, the income of the student’s parents will not be considered in determining the student’s ongoing eligibility.

Students who reside with parents in an HCV assisted unit are not subject to this provision. It is limited to students who are receiving assistance on their own, separately from their parents.

HACP Policy:

During the annual reexamination process, the HACP will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student’s individual income as well as the income of the student’s parents. If the student has been determined “independent” from his/her parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents’ income will not be reviewed.

If the student is no longer income eligible based on his/her own income or the income of his/her parents, the student’s assistance will be terminated in accordance with the policies in Section 12
-I.D.

If the student continues to be income eligible based on his/her own income and the income of his/her parents (if applicable), the HACP will process a reexamination in accordance with the policies in this chapter.

11-I.E. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(c)(2) and Notice PIH 2023-27]
The PHA must determine the income of the family for the previous 12-month period and use this amount as the family income for annual reexaminations, except where the PHA uses a streamlined income determination as indicated in Chapter 7 of this policy. The PHA may also use Safe Harbor income determinations dated within the last 12 months from a means-tested federal public assistance program at annual reexamination as outlined in Chapter 7 of this policy.

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Except when using streamlined or Safe Harbor income determinations, in determining the income of the family for the previous 12-month period, any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination in accordance with PHA policies and 24 CFR 5.657(c) or 960.257(b) must be considered.

Income from assets is always anticipated, irrespective of the income examination type.

A change in income may be a loss of income or the addition of a new source of income. Changing to a different employer in the prior year does not necessarily constitute a change if the income earned from either employer is substantially the same. The PHA should look at the entirety of the family’s unearned income and earned income from the prior year in which earned income may have been one constant job or many different jobs that start and stop.

Cost of Living Adjustments (COLA) to Social Security income and Social Security disability income are always considered changes to income because the COLA is an adjustment that automatically occurs annually by law. See Chapter 6 for PHA policies on when the COLA is applied and Chapter 7 on streamlined determination of income for inflationary adjustments.

Notice PIH 2023-27 lists the following steps to calculate both earned and unearned income at annual reexamination.

Step 1: The PHA determines annual income for the previous 12-month period by reviewing the following information:
• The EIV Income Report pulled within 120 days of the effective date of the annual reexamination;
• The income reported on the most recent HUD–50058; and • The amount of prior-year income reported by the family on the PHA’s annual reexamination paperwork.

Step 2: The PHA takes into consideration any interim reexamination of family income completed since the last annual reexamination.
• If there was an interim reexamination performed, the PHA must use the annual income from the interim to determine the family’s total annual income, provided there are no additional changes.
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• If the PHA did not perform an interim or there have been changes since the last reexamination, the PHA moves to Step 3.

Step 3: If there were changes in annual income not processed by the PHA since the last reexamination, the PHA must use current income. The family will be required to report their income for the prior year and whether there have been permanent changes.

• If there are no reported changes to an income source, the PHA may use documentation of prior-year income to calculate the annual income. For example, the PHA may use the following documentation:
• EIV + self-certification (wages, Supplemental Security Income (SSI), Social Security, and unemployment)
• Current written third-party verification from the source verifying prior-year income that is dated within 120 days of receipt by the PHA, for example:
- Year-end statements
- Paycheck with year-to-date amounts
- Tax forms (Form 1040, W2, 1099, etc.)

If there are reported changes by the family or the PHA notes discrepancies between EIV and what the family reports, the PHA must follow the verification hierarchy (described in Chapter 7) to document and verify income. Exhibit 11-1 provides detailed examples of how the PHA calculates income from different sources at annual reexamination using the above method.

HACP Policy:

When income is calculated using a streamlined income determination or Safe Harbor determination from a means-tested federal public assistance program in accordance with PHA policies in Chapter 7, the above is not applicable. However, where the family disagrees with the PHA or other agency’s determination of income or the PHA has other reason to use third-party verification in these circumstances, then the above will apply.

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11-I.F. EFFECTIVE DATES
The PHA must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516].

HACP Policy:

In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 days in advance.

If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period.

If a family moves to a new unit, the increase will take effect on the effective date of the new lease and HAP contract, and no 30 -day
notice is required.

If the HACP chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the HACP but will always allow for the 30-day notice period.

If the family causes a delay in processing the annual
reexamination, increases will be applied retroactively in the family share of the rent, to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16.

In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family’s anniversary date.

If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract.

If the HACP chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the HACP.

If the family causes a delay in processing the annual
reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing.

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Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by the HACP by the date specified, and this delay prevents the HACP from completing the reexamination as scheduled.

PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] Notice PIH 2023-27] 11-II.A. OVERVIEW
Family circumstances may change between annual reexaminations. HUD and PHA policies dictate what kinds of information about changes in family circumstances must be reported, and under what circumstances the PHA must process interim reexaminations to reflect those changes. HUD regulations also permit the PHA to conduct interim reexaminations of income or family composition at any time. When an interim reexamination is conducted, only those factors that have changed are verified and adjusted [HCV GB, p. 12-10].

In addition to specifying what information the A family must report, HUD regulations permit the family to may request an interim determination if other aspects of the family’sfamily income or composition because of any changes. since the last determination. The PHA must complete theconduct any interim reexamination within a reasonable period of time after the family’sfamily request.

This part includes HUD and or when the PHA policies describing what changes families are required to report, what changes families may choose to report, and howbecomes aware of a change in the family’s adjusted income that must be processed in accordance with HUD regulations. What qualifies as a “reasonable time” may vary based on the amount of time it takes to verify information, but the PHA will process bothgenerally should conduct the interim reexamination not longer than 30 days after the PHA- and family-initiated interim reexaminations becomes aware of changes in income.

Notice PIH 2023-27 changes the conditions under which interim reexaminations must be conducted, codifies when interim reexaminations should be processed and made effective, and requires related changes for annual reexaminations and streamlined income determinations. When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in all aspects of adjusted income.

11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION
ReportingThe family is required
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PHAs must require families to report all changes in familyhousehold composition. changes; however, PHAs determine the timeframe in which reporting happens [Notice PIH 2023-27]. The PHA must adopt policies prescribing when and under what conditions the family must report changes in income and family composition. However, due to family obligations under the program, the PHA has limited discretion in this area.

HACP Policy:

The HACP will conduct interim reexaminations to account for anyAll families must report all changes in family and household composition that occur between annual reexaminations. within 10 business days of the change.

New Family Members Not Requiring PHA Approval
The addition of a family member as a result of birth, adoption, or court-awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR 982.551(h)(2)].

HACP Policy:

The family must inform the HACP of the birth, adoption, or court-awarded custody of a child within 10 business days.

New Family and Household
Members Requiring Approval
With the exception of children who join the family as a result of birth, adoption, or court-awarded custody, a family must request PHA approval to add a new family member [24 CFR 982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)].

Although the PHA must verify aspects of program eligibility when any new family member is added, the Streamlining Final Rule removed the requirement that PHAs conduct a reexamination of income whenever a new family member is added. The PHA may state in policy that an income reexamination will be conducted.

When any new family member is added, the PHA must make appropriate adjustments in the family share of the rent and the HAP payment at the effective date of either the annual or interim reexamination [24 CFR 982.516(e)(2)].

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and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the family’s HAP contract in accordance with its terms [24 CFR 982.403].

HACP Policy:

Families must request HACP approval to add a new family member, live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 15 consecutive days or 45 cumulative days within a 12-month period and therefore no longer qualifies as a “guest.” Requests must be made in writing and approved by the HACP prior to the individual moving into the unit.

HACP will not increase the subsidy size (number of bedrooms) when adding additional family member(s) to an existing tenancy. This does not include adults by marriage, children by birth, adoption or legal guardianship. The family is required to sign a Waiver of Voucher Size Standards declaring that they understand that if they move from the assisted unit, the voucher size will remain the same size as it was prior to the addition of the new family member(s).

The HACP will not approve the addition of a new family or household member unless the individual meets the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II).

In circumstances of adding previous household members, the family will not be permitted to add a dditional family units to t he v oucher unless the ad ult mem ber had b een previously listed on the HUD 50058 in the last three years or is the spouse or co- head of the head of household and is eligible.

The HACP will not approve the addition of a foster child or foster adult if it will cause a violation of HQS space standards. If the HACP determines an individual meets the PHA’s eligibility criteria and documentation requirements, the HACP will provide written approval to the family. If the approval of a new family member or live-in aide will cause overcrowding according to HQSspace standards, the approval letter will explain that the family will be issued a voucher and will be required to move.

If the HACP determines that an individual does not meet the PHA’s eligibility criteria or documentation requirements, the HACP will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial.

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The HACP will make its determination within 10 business days of receiving all information required to verify the individual’s eligibility.

Departure of a Family or Household Member
Families must promptly notify the PHA if any familyhousehold member no longer lives in the unit [24 CFR 982.551(h)(3)]. Because household members are considered when determining the family unit (voucher) size [24 CFR 982.402], the PHA also needs to know when any live-in aide, foster child, or foster adult ceases to reside in the unit. The PHA must process an interim for all decreases in adjusted income when a family member permanently moves out of the unit.

HACP Policy:

If a household member ceases to reside in the unit, the family must inform the HACP within 10 business days. This requirement also applies to a family member who has been considered temporarily absent at the point that the family concludes the individual is permanently absent.

If a live-in aide, foster child, or foster adult no longer resides in the unit, the family must inform the
HACP within 10 business days.

11-II.C. CHANGES AFFECTING INCOME OR EXPENSES
Overview
Interim reexaminations canfor changes in income or expenses may be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. When a family reports a change, the PHA may take different actions depending on whether the family reported the change voluntarily, or because it was required to do so.

PHA-Initiated Interim Reexaminations
PHA-initiated interim reexaminations are those that are scheduled based on circumstances or criteria defined by the PHA. They are not scheduled because of changes reported by the family.

The PHA must estimate the income of the family for the upcoming 12-month period to determine family income for an interim reexamination [24 CFR

5.609(c)(1)]. Policies for projecting income are found in Chapter 6.

Interim Decreases [24 CFR 982.516(c)(2) and Notice PIH 2023-27] A family may request an interim determination of family income for any change since the last determination. However, the PHA may decline to conduct an Formatted: Line spacing: 1.5 lines
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interim reexamination if the PHA estimates the family’s adjusted income will decrease by an amount that is less than 10 percent of the family’s adjusted income. The PHA may set a lower threshold in PHA policy such as performing an interim for any decreases in adjusted income, although HUD prohibits the PHA from setting a dollar-figure threshold.

However, while the PHA has some discretion, HUD requires that the PHA perform an interim reexamination for a decrease in adjusted income of any amount in two circumstances:
• When there is a decrease in family size attributed to the death of a family member; or
• When a family member permanently moves out of the assisted unit during the period since the family’s last reexamination.

In the above circumstances, the PHA must perform an interim reexamination for any decrease in adjusted income.

If the net effect of the changes in adjusted income due to a decrease in family size results in no change or an increase in annual adjusted income, then PHA must process the removal of the household member(s) as a non-interim reexamination transaction without making changes to the family’s annual adjusted income.

HACP Policy:

The HACP will conduct interim reexaminations in each of the following instances:

• EID: For families receiving the Earned Income Disallowance (EID), the HACPThe PHA will conduct an interim reexamination at the start and conclusion of the 24-month eligibility periodany time the family’s adjusted income has decreased by any amount.

Zero-Income Families: If the family has reported zero income, the HACP will Interim Increases [24 CFR 982.516(c)(3) and Notice PIH 2023-27] Increases Less than 10 Percent
PHAs must not process interim reexaminations for income increases that result in less than a 10 percent increase in annual adjusted income.

Increases 10 Percent or Greater
• PHAs must conduct an interim reexamination every 3 months as long as the family continues to report that they have no income. • If a family member reports a zero of family income, while other family members continue to receive income, HACP will conduct an Interim reexamination to reduce the family's rent portion for the first of the month following the reported reduction in income. Once that family member begins to receive income, they must report it within 14 days and HACP will conduct a Formatted: Line spacing: Multiple 1.15 li
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follow-up Interim reexamination to adjust the tenant rent portion to begin at least 30 days from the reported increase in income. This is to be distinguished from a reduction in income for a family member or household whereby HACP will adjust the household's rent portion for the first of the following month but will not re-adjust the rent portion when the household's income increases again until the family's Annual reexamination. The family is still required to report the increase in income as indicated in this chapter.PHA becomes aware that the family’s adjusted income has changed by an amount that the PHA estimates will result in an increase of 10 percent or more in adjusted income, with the following exceptions:
• If PHAs may not consider any increases in earned income when estimating or calculating whether the family’s adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle; and
• PHAs may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of the next annual reexamination effective date.

When the family previously received an interim reexamination for a decrease to adjusted income during the same annual reexamination cycle, a PHA has the discretion whether to consider a subsequent increase in earned income.

HACP Policy:

When a family reports an increase in their earned income between annual reexaminations, the PHA will not conduct an interim reexamination, regardless of the amount of the increase, and regardless of whether there was a previous decrease since the family’s last annual reexamination.

The PHA will process an interim reexamination for any increases in unearned income of 10 percent or more in adjusted income.

The PHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with the PHA policies in Chapter 14.

Concurrent Increases in Earned and Unearned Income [Notice PIH 2023-27] When the family reports an increase in both earned and unearned income at the same time, the PHA must look at the earned and unearned income changes independently of each other to determine if an interim reexamination is performed. The PHA will only conduct an interim reexamination when the increase independently meets the 10 percent threshold and all other requirements for performing interim reexaminations. For example, if a family reported increases in both earned and unearned income that overall resulted in a Formatted: Font: 12 pt, Not Bold, Not Italic
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12 percent increase in their adjusted income, but the change in earned income represented a 7 percent increase and the change in unearned income represented a 5 percent increase, the PHA may not perform an interim for either change since neither change meets the 10 percent threshold amount independently. If the change in unearned income met the 10 percent threshold in this case, the PHA would be required to perform an interim. If the change in earned income met the 10 percent threshold in this case, the PHA would refer to PHA policy to determine whether an interim was required.

Cumulative Increases [Notice PIH 2023-27]
• A series of smaller reported increases in adjusted income may cumulatively meet or exceed the 10-percent increase threshold, at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12 months (e.g., seasonal or cyclic income), the HACP will schedule an interim reexamination to coincide with the end of the period for which it is feasible to project income.
• If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to the lack of third-party verification, and third-party verification becomes available, the HACP will conduct an interim reexamination.

The HACP maypoint the PHA must conduct an interim reexamination at any time in order to correct an error in a previous reexamination, or to investigate a tenant fraud complaintin accordance with PHA policy.

Family-Initiated Interim Reexaminations Reporting
The PHA must adopt policies consistent with HUD regulations prescribing when and under what conditions the family must report a change in family income or composition [24 CFR 982.516(d)].

PHA policy may require families to report only changes that the family estimates meet the threshold for an interim reexamination or the PHA may establish policies requiring that families report all changes in income and household composition, and the PHA will subsequently determine if the change requires an interim reexamination [Notice PIH 2023-27].

When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in familyall aspects of adjusted income or expenses [24 CFR 982.516(c)]. In addition, HUD regulations require that . For example, if the family be permitted to obtain an interim reexamination any timeis reporting a decrease in adjusted income that is more than 10 percent, but the family has experiencedalso had a change in circumstances sinceassets Formatted: Indent: Left: 0"
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that would result in a change in income, the last determination [24 CFR 982.516(b)(2)].change in assets must also be reviewed [Notice PIH 2023-27].

Required HACP Policy:

The family Reporting
HUD regulations give the PHA the freedom to determine the circumstances under which families will be required to report changes affecting income.

all changes in income regardless of the amount of the change, whether the change is to earned or unearned income, or if the change occurred during the last three months of the certification period. Families must HACP Policy:

Families are required to report all increaseschanges in earned income, including new employment, within 10 business days of the date the change takes effect. The family may notify the PHA of changes either orally or in writing. If the family provides oral notice, the PHA may also require the family to submit the changes in writing.

The HACP will also conduct interim reexaminations for families that qualify for Within 10 business days of the earned income disallowance (EID), and only whenfamily reporting the EID family’s share of rent will change as a result of, the increase.

In all other cases,PHA will determine whether the HACPchange will not conductrequire an interim reexamination.

However, all Families are required to report any other changes If the change will not result in income or expenses.

Optional Reporting
The family may request an interim reexamination any time the family has experienced a change in circumstances since, the last determination [24 CFR 982.516(b)(2)]. The PHA must process the request if the family reports a change that will result in a reduced family income [HCV GB, p. 12-9].

If a family reports a decrease in income from the loss of welfare benefits due to fraud or non-compliance with a welfare agency requirement to participate in an economic self-sufficiency program, the family’s share of the rent will not be reduced [24 CFR 5.615]. For more information regarding the requirement to impute welfare income see Chapter 6.

PHAHACP Policy:

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that would result in an increase in the family share of the rent, HACP will note the information in the tenant software databasefile but will not conduct an interim reexamination. The PHA will send the family written notification within 10 business days of making this determination informing the family that the PHA will not conduct an interim reexamination.

If a family reports a change that will last for at least 30 calendar days that it was not required to report and that would result in a decrease in the family share of rent, HACP will conduct an interim reexamination. See Section 11-II.D. for effective dates.

Families may report changes in income or expenses at any time. 11-II.D. PROCESSING THE INTERIM REEXAMINATION

Method of Reporting

If the change will result in an interim reexamination, the PHA will determine the documentation the family will be required to submit based on the type of change reported and PHA policies in Chapter

7. The PHA will ask the family to report changes in all aspects of adjusted income at this time. The family must submit any required information or documents within 10 business days of receiving a request from the PHA. This time frame may be extended for good cause with PHA approval. The PHA will accept required
documentation by mail, email, fax, or in person. The PHA will conduct the interim within a reasonable time period based on the amount of time it takes to verify the information.

HACP Policy:

The family must notify the HACP of changes in writing.

Generally, the family will not be required to attend an interview for an interim reexamination. However, if the HACPPHA determines that an interview is warranted, the family may be required to attend.

Based on the type of change reported, the HACP will determine the documentation the family will be required to submit. The family must submit any required information or documents within 10 business days of receiving a request from the HACP. This time frame may be extended for good cause with HACP approval. The HACP will accept required documentation by mail, by fax, or in person.

Effective Dates
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The PHA must establish the time frames in which any changes that result from an interim reexamination will take effect [24 CFR 982.516(d)]. The changes may be applied either retroactively or prospectively, depending on whether there is to be an increase or a decrease in the family share of the rent, and whether the family reported any required information within the required time frames [HCV GB, p. 12-10].

11-II.D. EFFECTIVE DATES [24 CFR 982.516(e) and Notice 2023-27] Changes Reported Timely [Notice PIH 2023-27]
If the family reports a change in family income or composition timely in accordance with PHA policies:
• For rent increases, the PHA must provide the family with 30 days advance written notice. The rent increase is effective the first of the month after the end of that 30-day notice period.
• Rent decreases are effective on the first of the month after the date of the actual change leading to the interim reexamination of family income. This means the decrease will be applied retroactively.

Changes Not Reported Timely [Notice PIH 2023-27]
If the family failed to report a change in family income or composition timely in accordance with PHA policies:
• For rent increases, the PHA must implement any resulting rent increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income.
• For rent decreases, the PHA must implement the change no later than the first rent period following completion of the interim reexamination.

However, the PHA may choose to adopt a policy that would make the effective date of the rent decrease retroactive to the first of the month following completion of the reexamination. PHAs may choose to establish conditions or requirements for when such a retroactive application would apply. PHAs that choose to adopt such policies must ensure the earliest date that the retroactive decrease is applied is the later of:
• The first of the month following the date of the change that led to the interim reexamination; or
• The first of the month following the most recent previous income examination. 449
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In applying a retroactive change in rent as the result of an interim reexamination, the PHA must clearly communicate the effect of the retroactive adjustment to the family so that there is no confusion over the amount of the rent that is the family’s responsibility.

HACP Policy:

IfIn general, when the family share of the rent is to increase:
• The increase generally will be effective on the first of the month following 30 days’ notice to the family.

If a family fails to report a change withinin income or family composition timely, and the required time frames or failschange would lead to provide all required information withina rent decrease, the required time frames, the increasePHA will be appliedapply the decrease the first of the month following completion of the interim reexamination.

However, the PHA will apply the results of the interim reexamination retroactively where a family’s ability to the date it would report a change in income promptly may have been effective had the information been provided on a timely hampered due to extenuating circumstances such as a natural disaster or disruptions to PHA management operations. The PHA will decide to apply decreases retroactively on a case-by-case basis. The family will be responsible for any overpaid subsidy and may be offered

• When the PHA applies the results of interim decreases retroactively, the PHA will clearly communicate the effect of the retroactive adjustment to the family and may enter into a repayment agreement in accordance with thePHA policies in Chapter 16.

IfThe PHA will also clearly communicate the family shareeffect of the rent isretroactive adjustment to decrease:

The decrease will be effective on the first day of the month following the month in which the change was reported with all required documentation submitted. owner.

In cases where the change cannot be verified until after the date the change would have become effective, the change will be made retroactively.

PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW
After gathering and verifying required information for an annual or interim reexamination, the PHA must recalculate the family share of the rent and the subsidy amount and notify the family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic policies that govern these Formatted: Line spacing: Multiple 1.15 li
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calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination.

11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be updated and included in the PHA’s calculations.

Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below.

Payment Standards [24 CFR 982.505]
The family share of the rent and HAP calculations must use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the appropriate payment standard.

When the PHA changes its payment standards or the family’s situation changes, new payment standards are applied at the following times:
• If the PHA’s payment standard amount changes during the term of the HAP contract, the date on which the new standard is applied depends on whether the standard has increased or decreased:
- If the payment standard amount has increased, the increased payment standard will be applied at the first annual reexamination following the effective date of the increase in the payment standard. - If the payment standard amount has decreased, during the term of a HAP contract, the PHA is not required to reduce the payment standard as the HAP contract remains in effect. At the family’s second annual reexamination, the PHA may, but is not required to, apply the decreased payment standard or may gradually implement the reduced payment standard (See Chapter 6 for the PHA’s policy on decreases in the payment standard).
• If the family moves to a new unit, or a new HAP contract is executed due to changes in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new HAP contract is processed.

Subsidy Standards [24 CFR 982.505(c)(4)]
If there is a change in the family unit size that would apply to a family during the HAP contract term, either due to a change in family composition, or a change in the PHA’s subsidy standards (see Chapter 5), the new family unit size must be Formatted: Line spacing: 1.5 lines
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used to determine the payment standard amount for the family at the family’s first annual reexamination following the change in family unit size.

Utility Allowances [24 CFR 982.517(d)]
The family share of the rent and HAP calculations must reflect any changes in the family’s utility arrangement with the owner, or in the PHA’s utility allowance schedule [HCV GB, p. 12-5]. Chapter 16 discusses how utility allowance schedules are established.

When there are changes in the utility arrangement with the owner, the PHA must use the utility allowances in effect at the time the new lease and HAP contract are executed.

At reexamination, the PHA must use the PHA current utility allowance schedule [24 CFR 982.517(d)(2)].

HACP Policy:

Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination after the allowance is adopted.

11 -III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT The PHA must notify the owner and family of any changes in the amount of the HAP payment [HUD-52641, HAP Contract]. The notice must include the following information [HCV GB, p. 12-6]:
• The amount and effective date of the new HAP payment
• The amount and effective date of the new family share of the rent • The amount and effective date of the new tenant rent to owner

The family must be given an opportunity for an informal hearing regarding the PHA’s determination of their annual or adjusted income, and the use of such income to compute the housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16).

HACP Policy:

The notice to the family will include the annual and adjusted income amounts that were used to calculate the family share of the rent and the housing assistance payment. The notice also will state the procedures for requesting an informal hearing.

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11-III.D. DISCREPANCIES
During an annual or interim reexamination, the PHA may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, the PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment of subsidy are discoverdiscovered, corrections will be made in accordance with the policies in Chapter 13.

PART IV: NON-INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2023-27]
Families may experience changes within the household that do not trigger an interim reexamination under PHA policy and HUD regulations but which HUD still requires the PHA to report to HUD via Form HUD-50058. These are known as non-interim reexamination transactions. In these cases, PHAs will submit a separate, new action code on Form HUD-50058. The following is a list of non- interim reexamination transactions:
• Adding or removing a hardship exemption for the childcare expense deduction;
• Updating or removing the phased-in hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction (families will begin receiving a 24-month phased-in relief at their next annual or interim reexamination, whichever occurs first)
• Adding or removing general hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction;
• Adding or removing a minimum rent hardship;
• Adding or removing a non-family member (i.e., live-in aide, foster child, foster adult);
• Ending a family’s EID or excluding 50 percent (decreased from 100 percent) of a family member’s increase in employment income at the start of the second 12- month EID period.
• Adding a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule;
• Removing a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule;
• Adding/updating a family or household member’s Social Security number; and Formatted: Line spacing: 1.5 lines
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• Updating a family member’s citizenship status from eligible to ineligible or vice versa, resulting in a change to the family’s rent and/or utility reimbursement, if applicable (i.e., family begins receiving prorated assistance or previously prorated assistance becomes full assistance), or updating the prorated rent calculation due to the addition or removal of family members in household with an ineligible noncitizen(s).

PHAs must make all other changes to assets, income, and deductions at the next annual or interim reexamination of income, whichever is sooner.

EXHIBIT 11-1: CALCULATING Income AT ANNUAL REEXAMINATION

Example 1: Calculating Annual Income at Annual Reexamination Using EIV

Staff are processing the 3/1/2024 annual reexamination for Ruby Myers and her minor daughter, Georgia. No interim reexaminations have been processed, and Ruby has not 454
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reported any changes to annual income to the PHA since the 3/1/2023 annual reexamination. The SSA published 2024 COLA is 7 percent.

Last reexamination – 3/1/2023 Annual Reexamination

Ruby:

Wages: $30,000

Georgia:

SSI: $10,980 ($915 monthly)s

The EIV report pulled on 12/15/2023

Ruby: Georgia:

Wages Total: $33,651

SSI Total: $10,980
Quarter 3 of 2023: $8,859 (City Public School) 2023 benefit $915 monthly Quarter 2 of 2023: $8,616 (City Public School)
Quarter 1 of 2023: $8,823 (City Public School)
Quarter 4 of 2022: $7,353 (City Public School)

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Income Reported on Reexamination Application
Ruby:

Wages at City Public School: $32,000
(switched jobs but no permanent change
to amount)
Georgia:

SSI benefits: $10,980 (no changes)

Calculating Ruby’s wages:

Step 1: Determine prior annual income
from EIV (i.e., Q4 2022 through Q3 of
2023: $33,651).

Step 2: Take into consideration any interim
reexamination of family income completed
since the last annual reexamination (in this
case, there have been no interim
reexaminations processed since the last
annual reexamination).

Step 3: Ruby certifies that the $33,651 of
wages in EIV is accurate and reflects her
current annual income, so the PHA will
use $33,651 for annual wages for the
3/1/2024 annual reexamination given there
have been no additional changes to
annual income.

Calculating Georgia’s SSI benefit:

Step 1: Determine the prior annual income
from EIV (i.e., $915 x 12 months:
$10,980).

Step 3: Ruby certifies the SSI income in
EIV is accurate and reflects Georgia’s
current annual income. The PHA must
adjust the prior-year income (2023 SSI
benefit) by the 7- percent COLA and will
use this amount to calculate annual SSI
income for the 3/1/2024 annual
reexamination:

COLA: $64.05 ($915 x 0.07)
New gross SSI benefit: $11,748.60
($979.05 x 12 months)
If Ruby did not agree with the annual
wages reported in EIV, the PHA/MFH
Owner would be required to verify her
current income in accordance with HUD’s
verification hierarchy.

Summary of Annual Income (as reported on the HUD-50058)

Ruby (Head of Household):

Other Wage: $33,651
Myers Family Total Annual Income:
$45,399
Georgia (Other Youth Under 18):

SSI: $11,748
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Example 2: Calculating Annual Income at Annual Reexamination Using EIV:

Family Disagrees with EIV

Staff are processing Paul Hewson’s 5/1/2024 annual reexamination. Since the last annual reexamination, Paul reported a decrease in annual income that exceeded 10 percent. Last year, Paul reported a decrease in earned income because he transferred from a full-time job at Sasha’s Sweets to a part-time job at Viking Bakery. Following HUD’s EIV verification hierarchy, staff confirmed Paul was no longer employed at Sasha’s Sweets and decreased his anticipated annual income from $28,000 to $7,500 resulting from his new part-time employment at Viking Bakery; an interim reexamination was processed effective 7/1/2023. After the 7/1/2023 interim, Paul worked briefly at two different jobs, but he says he is no longer working and is not planning to work.

5/1/2023 Annual Reexamination
Wages: $28,000

The EIV report pulled on 1/15/2024

Wages Total: $18,271
Quarter 3 of 2023: $2,500 (Viking Bakery)
Quarter 3 of 2023: $796 (Sweet Tooth Candy
Bar)

Quarter 2 of 2023: $1,300 (Sasha’s Sweets)
Quarter 2 of 2023: $584 (Larry’s
Concessions)

Quarter 2 of 2023: $2,401 (Viking Bakery)
Quarter 1 of 2023: $6,500 (Sasha’s Sweets)
Quarter 4 of 2022: $600 (Sasha’s Sweets)
SS/SSI: No history of benefits

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Income Reported on Reexamination Application

Wages: $0 (permanent change; no longer receiving)
Social Security: $14,400 ($1,200 monthly)
Paul certified on the PHA’s annual reexamination paperwork that he does not agree with the annual wages of $18,271 reported in EIV and it is not reflective of his current anticipated annual income. He reported he is currently unemployed, and provided a copy of an award letter from the Social Security Administration to document that he will begin receiving a monthly disability benefit of $1,200 effective 3/1/2024.

Calculating Wages and SS Benefit
Step 1: Determine prior annual income taking into consideration the 8/1/2023 interim reexamination (i.e., EIV wages reflected Q4 2022 through Q3 2023: $18,271)

Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there was a 7/1/2023 interim that reduced wages to $7,500.

Step 3: Obtain documentation to verify current income and confirm Paul is no longer employed at Viking Bakery or The Sweet Tooth Candy Bar (the employers reported in the most recent quarter of EIV). This step is necessary, because Paul did not agree with the EIV income report or income reported on the last interim reexamination. Paul reported that he is no longer working at all.

Process the annual reexamination effective 5/1/2024 using annual SS income of $14,400 and $0 wages.

Summary of Annual Income (as reported on the HUD-50058)

Paul (Head of Household): $14,400 (SS)
Hewson Family Total Annual Income: $14,400

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Example 3: Calculating Annual Income at Annual Reexamination

Staff are processing the 11/1/2024 annual reexamination for Samantha and Fergus Pool, head of household and spouse. On 2/14/2024 Samantha reported her monthly child support payment was reduced from $200 to $100 per month, but an interim reexamination was not processed because the reduction in child support income for Samantha’s daughter, Hailey, did not result in a decrease of 10 percent or more in annual adjusted income, and the PHA did not establish a lower threshold. Samantha did not report any additional changes to the PHA.

Last reexamination – 11/1/2023 Annual Reexamination

Samantha:

Business income: $28,000
VA disability pension: $12,000
Child support: $2,400

Fergus:

Wages: $8,250
Other non-wage income: $3,000 (Go
Fund Me online fundraiser)

The EIV report pulled on 9/16/2024

Samantha: Fergus:

Wages Total: $0 (no wage data reported
since Q1 2023)

Wages Total: $8,600
Quarter 1 of 2024: $2,100 (Ian’s Fish ‘n’
Chips)
Quarter 1 of 2024: $500 (Claire’s
Healthcare Supplies)
Quarter 4 of 2023: $1,000 (Claire’s
Healthcare Supplies)
Quarter 3 of 2023: $1,800 (The Onion
Garden Shop)
Quarter 2 of 2023: $3,200 (Ivar’s Fish
Haus)

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Current Family Circumstances: Income Reported on Reexamination

Application

Samantha and Fergus reported how much income was earned/received in the previous 12-month period and noted permanent changes, where applicable, for each source of their income on PHA’s annual reexamination form. However, no information was reported by the family concerning other non-wage income.

Fergus reported only wages and his current employment at Ian’s Fish ‘n’ Chips for the annual reexamination. The family supplied the supporting documentation noted below to the PHA for the 11/1/2024 annual reexamination.

Samantha:

Business income: $28,750 (last year);
has decreased to $18,000 (permanent
change)
VA disability benefit: $12,000 (last
year); has increased to $12,300
(permanent change)
Child support: $2,400 (last year); has
decreased to $1,200 (permanent
change)

Fergus:

Wages: $6,000

Calculating Samantha’s Net Business Income

Step 1: Determine prior annual net business income (i.e., $28,000 on last HUD–50058.

Step 3: Adjust to reflect current net business income. Samantha reported on the annual reexamination application that business income permanently decreased to $18,000. The PHA must obtain supporting documentation from Samantha that demonstrates current net business income. Samantha provided documentation that supported the current annual net business income is $18,000. Process the annual reexamination effective 11/1/2024 using annual net business income determined in Step 3.

Calculating Samantha’s VA Pension Income
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Step 1: Determine prior annual VA pension income (i.e., $12,000 supported by a VA award letter Samantha supplied that documents the prior year monthly VA pension was $1,000).

Step 3: The PHA needs to adjust to reflect current VA pension income.

Samantha supplies a VA award letter showing a monthly pension of $1,025, or $12,300 annually. Process the annual reexamination effective 11/1/2024 using annual VA pension income determined in Step 3 ($12,300 in this example).

Calculating Samantha’s Child Support Income

Step 1: Determine prior annual child support income (i.e., $2,400 on the last HUD–50058).

Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. The family reported a decrease from $200 to $100 monthly, but the change was not processed because it did not meet the threshold.

Step 3: The family reported changes, so the PHA must adjust to reflect current child support income. In this example, the family submitted a child support history report from the local child support office that documents regular $100 monthly child supports payments beginning 3/1/2024 through the current month. Process the annual reexamination effective 11/1/2024 using current annual child support income determined in Step 3 ($1,200 in this example).

Calculating Fergus’ Wages

Step 1: Determine prior annual income from wages in EIV (i.e., Q2 2023 through Q1 of 2024: $8,600).

Step 3: There is a discrepancy between what the family reported and EIV, so the PHA must verify and adjust to reflect current annual income from wages. Fergus reported $6,000 in annual income from wages on the annual reexamination from 461
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a single employer, Ian’s Fish ‘n’ Chips. The PHA projected annual income of $7,800 based on the two paystubs for this employer, and EIV shows $8,600 earned in the most recent four quarters in EIV. To complete Step 3, the PHA must do the following:
• Resolve the discrepancy between EIV wages, the $6,000 annual income Fergus reported, and the $7,800 projected based on the paystubs he provided, and
• Verify he is no longer employed at Claire’s Healthcare Supplies in accordance with HUD’s verification hierarchy and local policies.

The PHA determined that Fergus reported his net vs. gross annual income from wages, which he corrected on the annual reexamination form to reflect his current gross annual income of $9,000. The PHA verified Fergus was no longer employed at Claire’s Healthcare Supplies and obtained two additional paystubs.

Based on four current and consecutive paystubs, Fergus is now projected to earn $9,360 annually. Process the annual reexamination effective 11/1/2024 using income from wages determined in Step 3 ($9,360 in this example).

Calculating Fergus’ Other Non-Wage Inc
Step 1: Determine prior annual income from other non-wage income (i.e., $3,000 on the last HUD– 50058).

Step 3: The family did not report any non-wage income on the annual reexamination form, but it was included on the last HUD–50058. The PHA must verify and adjust to reflect current non-wage income. The PHA must verify no income was received through a “Go Fund Me” online fundraiser so that it may be excluded. Fergus provided a self-certification that he hasn’t solicited funds online and doesn’t plan to in the following year; he also provided records from the account that documented no fundraising activity in the prior 12-month period. Process the annual reexamination effective 11/1/2024 using annual non-wage income of $0 determined in Step 3.

Summary of Annual Income (as reported on the HUD-50058) Samantha (Head of Household):

Own business: $18,000
Pension: $12,300
Child support: $1,200
Fergus (Co-head):

Wages: $9,360
Poole Family Total Annual Income: $40,860 Formatted: No widow/orphan control 462
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Chapter 12

TERMINATION OF ASSISTANCE AND TENANCY
HUD regulations specify mandatory and optional grounds for which a PHA can terminate a family’s assistance. They also specify the circumstances under which an owner may terminate the tenancy of an assisted family. This chapter describes the policies that govern mandatory and optional terminations of assistance, and termination of tenancy by the owner. It is presented in three parts:

Part I: Grounds for Termination of Assistance. This part describes the various circumstances under which assistance under the program can be terminated by the family or by the PHA.

Part II: Approach to Termination of Assistance. This part describes the policies and the process that the PHA will use in evaluating decisions on whether to terminate assistance due to actions or inactions of the family where termination is an option. It specifies the alternatives that the PHA may consider in lieu of termination, the criteria the PHA will use when deciding what action to take, and the steps the PHA must take when terminating a family’s assistance.

Part III: Termination of Tenancy by the Owner. This part describes the HUD policies that govern the owner’s right to terminate an assisted tenancy.

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PART I: GROUNDS FOR TERMINATION OF ASSISTANCE
12-I.A. OVERVIEW
HUD requires the PHA to terminate assistance for certain actions and inactions of the family and when the family no longer requires assistance due to increases in family income. HUD permits the PHA to terminate assistance for certain other actions or inactions of the family. In addition, a family may decide to withdraw from the program and terminate their HCV assistance at any time by notifying the PHA.

12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455] As a family’s income increases, the amount of the housing assistance payment decreases. If the amount of assistance provided by the PHA is reduced to zero, the family's assistance terminates automatically 180 days after the last HAP payment.

HACP Policy:

If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify the HACP of the change and request an interim reexamination before the expiration of the 180-day period.

12 -I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE
The family may request that the PHA terminate housing assistance payments on behalf of the family at any time.

HACP Policy:

The request to terminate assistance should be made in writing and signed by the head of household, and spouse or cohead if applicable. Before terminating the family’s assistance, the HACP will follow the notice requirements in Section 12-II.F.

12 -I.D. MANDATORY TERMINATION OF ASSISTANCE
HUD requires the PHA to terminate assistance in the following circumstances.

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Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]

The PHA must terminate assistance whenever a family is evicted from a unit assisted under the HCV program for a serious or repeated violation of the lease.

As discussed further in section 12-II.E,., incidents of actual or threatened domestic violence, dating violence, sexual assault, or stalking, or human trafficking may not be construed as serious or repeated violations of the lease by the victim or threatened victim of such violence or stalking.

HACP Policy:

A family will be considered evicted if the family moves after a legal eviction order has been issued, whether or not physical enforcement of the order was necessary.

If a family moves after the owner has given the family an eviction notice for serious or repeated lease violations but before a legal eviction order has been issued, termination of assistance is not mandatory. In such cases the
HACP will determine whether the family has committed serious or repeated violations of the lease based on available evidence and may terminate assistance or take any of the alternative measures described in section 12-II.C. In making its decision, the HACP will consider the factors described in sections 12-II.D and 12-II.E. Upon consideration of such factors, the HACP may, on a case-by-case basis, choose not to terminate assistance.

Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests.

Failure to Provide Consent [24 CFR 982.552(b)(3)]
The PHA must terminate assistance if any family member fails to sign and submit any consent form they are required to sign for a regular or interim reexamination.

See Chapter 7 for a complete discussion of consent requirements.

Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR

5.514(c)]
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citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to reside (on a permanent basis) in the unit.

For (3) above, such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family’s assistance has been prorated. See Chapter 7 for a complete discussion of documentation requirements.

Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2012-10]

The PHA must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number.

However, if the family is otherwise eligible for continued program assistance, and the PHA determines that the family’s failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family’s control, the PHA may defer the family’s termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant.

HACP Policy:

The HACP will defer the family’s termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline.

Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)] The PHA must terminate assistance if any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally- assisted housing.

Lifetime Registered Sex Offenders [Notice PIH 2012-28]
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Should a PHA discover that a member of an assisted household was subject to a lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately terminate assistance for the household member.

In this situation, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household.

Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/06]
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have dependent children, is not residing with his/her parents in an HCV assisted household, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the PHA must the terminate the student’s assistance if, at the time of reexamination, either the student’s income or the income of the student’s parents (if applicable) exceeds the applicable income limit.

If a participant household consists of both eligible and ineligible students, the eligible students shall not be terminated, but must be issued a voucher to move with continued assistance in accordance with program regulations and PHA policies or must be given the opportunity to lease in place if the terminated ineligible student members elect to move out of the assisted unit.

Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010-9]

The PHA must immediately terminate program assistance for deceased single member households.

12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS Mandatory Policies [24 CFR 982.553(b) and 982.551(l)]

HUD requires the PHA to establish policies that permit the PHA to terminate assistance if the PHA determines that:
• Any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents.

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• Any household member’s abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents.
• Any household member has violated the family’s obligation not to engage in any drug-related criminal activity.
• Any household member has violated the family’s obligation not to engage in violent criminal activity.

Use of Illegal Drugs and Alcohol Abuse

HACP Policy:

The HACP will terminate a family’s assistance if any household member is currently engaged in any illegal use of a drug or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents.

The HACP will terminate assistance if any household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents.

Currently engaged
in is defined as any use of illegal drugs during the
previous six months.

The HACP will consider all credible evidence, including but not limited to, convictions, or eviction of household members related to the use of illegal drugs or abuse of alcohol.

A record of arrest(s) will not be used as the basis for the termination or proof that the participant engaged in disqualifying criminal activity.

In making its decision to terminate assistance, the HACP will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D., and 12-II.E. Upon consideration of such alternatives and factors, the HACP may, on a case-by-case basis, choose not to terminate assistance.

Drug-Related and Violent Criminal Activity [24 CFR 5.100] Drug means a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802).

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Drug-related criminal activity is defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug.

Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage.

HACP Policy:

The HACP will terminate a family’s assistance if any household member has violated the family’s obligation not to engage in any drug-related or violent criminal activity during participation in the HCV program.

The HACP will consider all credible evidence, including but not limited to, or convictions of household members related to drug-related or violent criminal
activity, and any eviction or notice to evict based on drug-related or violent criminal activity.

A record of arrest(s) will not be used as the basis for the termination or proof that the participant engaged in disqualifying criminal activity.

In making its decision to terminate assistance, the HACP will consider alternatives as described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, the HACP may, on a case-by-case basis, choose not to terminate assistance.

Other Authorized Reasons for Termination of Assistance
[24 CFR 982.552(c), 24 CFR 5.2005(c)]
HUD permits the PHA to terminate assistance under a number of other circumstances. It is left to the discretion of the PHA whether such circumstances in general warrant consideration for the termination of assistance. As discussed further in section 12-II.E,., the Violence against Women Act of 2013 explicitly(VAWA) prohibits PHAs from considering incidents of, or criminal activity directly related to, domestic violence, dating violence, sexual assault, or stalking, or human trafficking as reasons for terminating the assistance of a victim of such abuse.

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to a family due to the family’s failure to meet its obligations under the Family Self- Sufficiency (FSS) contract of participation [FR Notice 12/29/14].

HACP Policy:

The HACP will terminate a family’s assistance if:
•
The family has failed to comply with any family obligations under the program. See Exhibit 12-1 for a listing of family obligations and related HACP policies.
• Any family member has been evicted from federally- assisted housing in the last fivethree years.
• Any HACP has ever terminated assistance under the program for any member of the family.
•
Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.
• The family currently owes rent or other amounts to any PHA in connection with Section 8 or public housing assistance under the 1837 Act.
• The family has not reimbursed any PHA for amounts the PHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease.
• The family has breached the terms of a repayment agreement entered into with the PHA.
• A family member has engaged in or threatened violent or abusive behavior toward HACP personnel.

Abusive or violent behavior towards HACP personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior.

Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence.

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Family Absence from the Unit [24 CFR 982.312]
The family may be absent from the unit for brief periods. The PHA must establish a policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 180 consecutive calendar days for any reason. Absence in this context means that no member of the family is residing in the unit.

HACP Policy:

If the family is absent from the unit for more than 180 consecutive calendar days, the family’s assistance will be terminated. Notice of termination will be sent in accordance with Section 12-II.F.

Insufficient Funding [24 CFR 982.454]
The PHA may terminate HAP contracts if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program.

HACP Policy:

The HACP will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter

16. If the HACP determines there is a shortage of funding, prior to terminating any HAP contracts, the HACP will determine if any other actions can be taken to reduce program costs.

In the event that the
HACP decides to stop issuing vouchers as a result of
a funding shortfall, and the HACP is not assisting the required number of special purpose vouchers (NED families, HUD-Veterans Affairs Supportive Housing (VASH) families, and family unification program (FUP) families), when the HACP resumes issuing vouchers, the HACP will issue vouchers first to the special purpose voucher families on its waiting list until it has reached the required number of special purpose vouchers, when applicable.

If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, the HACP will terminate HAP contracts as
a last resort.

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Prior to terminating any HAP contracts, the HACP will inform the local HUD field office. The HACP will terminate the minimum number needed in order to reduce HAP costs to a level within the HACP’s annual budget authority.

If the HACP must terminate HAP contracts due to insufficient funding, the HACP will do so in accordance with the following criteria and instructions:

HACP will terminate assistance beginning with families that have been on the Section 8 program the longest, with the exception that contracts for elderly and disabled families will not be cancelled unless there are no non- elderly disabled families on HACP’s HCV program. Families who lose their assistance due to funding cuts will be placed back on the wait list with a preference. Families comprising the required number of special purpose vouchers, including nonelderly disabled (NED), HUD-Veteran’s Affairs Supportive Housing (HUD-VASH), and family unification program (FUP) will be the last to be terminated.

PART II: APPROACH TO TERMINATION OF ASSISTANCE
12-II.A. OVERVIEW
The PHA is required by regulation to terminate a family’s assistance for certain actions or inactions of the family. For other types of actions or inactions of the family, the regulations give the PHA the authority to either terminate the family’s assistance or to take another action. This part discusses the various actions the PHA may choose to take when it has discretion and outlines the criteria the PHA will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notification to the family of the PHA’s intent to terminate assistance.

12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)]

Termination of assistance for a participant may include any or all of the following:
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• Refusing to enter into a new HAP contract or approve a lease, or • Refusing to process a request for or to provide assistance under portability procedures.

12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE
Change in Household Composition
As a condition of continued assistance, the PHA may require that any household member who participated in or was responsible for an offense no longer resides in the unit [24 CFR 982.552(c)(2)(ii)].

HACP Policy:

As a condition of continued assistance, the head of household must certify that the culpable family member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former family member’s current address upon HACP request.

Repayment of Family Debts

HACP Policy:

If a family owes amounts to the HACP, as a condition of continued assistance, the HACP will require the family to repay the full amount or to enter into a repayment agreement, within 30 days of receiving notice from the HACP of the amount owed. See Chapter 16 for policies on repayment agreements.

12 -II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE Evidence
For criminal activity, HUD permits the PHA to terminate assistance if a preponderance of the evidence indicates that a household member has engaged in the activity, regardless of whether the household member has been arrested or convicted [24 CFR 982.553(c)].

HACP Policy:

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the standard for making all termination decisions.

Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.

Use of Criminal Conviction Records after Admission [24 CFR 5.903]

The regulation at 24 CFR 5.903 governs a PHA’s access to and use of criminal conviction records obtained from a “law enforcement agency” such as the National Crime Information Center (NCIC), police departments, and other law enforcement agencies that hold criminal conviction records. While the regulatory listing of permitted uses for these records includes PHA screening of applicants for admission to the HCV program, it specifically excludes the use of records for lease enforcement and eviction of HCV participants and excludes by omission a PHA’s use of records to terminate assistance for participants. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. The limitations, however, do not apply to criminal conviction information searches from non-federal sources (i.e., sources other than the “law enforcement agencies” defined in 24 CFR

5.902(b)). There is no prohibition that bars a PHA from using non-federal sources to conduct criminal background checks of program participants.

Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] The PHA is permitted, but not required, to consider all relevant circumstances when determining whether a family’s assistance should be terminated.

HACP Policy:

The HACP will consider the following facts and circumstances when making its decision to terminate assistance:

The seriousness of the case, especially with respect to how it would affect other residents’ safety or property.

The effects that termination of assistance may have on other members of the family who were not involved in the action or failure to act.

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The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities or (as discussed further in section 12- II.E) a victim of domestic violence, dating violence, sexual assault or, stalking, or human trafficking.

The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future.

While a record of arrest(s) will not be used as the basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, the HACP may obtain the police report associated with the arrest and consider the reported circumstances of the arrest.

The HACP may also consider:
• Any statements made by witnesses, or the participant not included in the police report
• Whether criminal charges were filed
• Whether, if filed, criminal charges were abandoned,
dismissed, not prosecuted, or ultimately resulted in an acquittal.
• Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity

Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property.

In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully.

The HACP will require the participant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully.

In the case of program abuse, the dollar amount of the overpaid assistance and whether or not a false certification was signed by the family.

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Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]
If the family includes a person with disabilities, the PHA’s decision to terminate the family’s assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.

HACP Policy:

If a family indicates that the behavior of a family member with a disability is the reason for a proposed termination of assistance, the HACP will determine whether the behavior is related to the disability. If so, upon the family’s request, the HACP will determine whether alternative measures are appropriate as a reasonable accommodation. The HACP will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed termination of assistance. See Chapter 2 for a discussion of reasonable accommodation.

12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING

VIOLENCE, SEXUAL ASSAULT OR, STALKING, OR HUMAN TRAFFICKING This section describes the protections against termination of assistance that the Violence against Women Act of 2013 (VAWA) provides for victims of domestic violence, dating violence, sexual assault and, stalking, or human trafficking. For general VAWA requirements, key VAWA definitions, and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-IX of this plan.

VAWA Protections against Termination
VAWA provides four specific protections against termination of HCV assistance for victims of domestic violence, dating
violence, sexual assault or stalking.
(Note: The second, third, and fourth protections also apply to terminations of tenancy or occupancy by owners participating in the HCV program, as do the limitations discussed under the next heading.)
• Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears.

First, VAWA provides that a PHA may not terminate assistance to a family that moves out of an assisted unit in violation of the lease, with or without prior notification to the PHA, if the move occurred to protect the health or safety of a Formatted: Line spacing: 1.5 lines
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family member who is or has been the victim of domestic violence, dating violence, sexual assault , stalking, or stalking andhuman trafficking who reasonably believed he or she was imminently threatened by harm from further violence if he or she remained in the unit [24 CFR 982.354(b)(4)].

Second, it provides that an incident or incidents of actual or threatened domestic violence, dating violence, sexual assault or, stalking, or human trafficking may not be construed either as a serious or repeated lease violation by the victim or as good cause to terminate the assistance of the victim [24 CFR 5.2005(c)(1)].

Third, it provides that criminal activity directly related to domestic violence, dating violence, sexual assault or stalking may not be construed as cause for terminating the assistance of a tenant if a member of the tenant’s household, a guest, or another person under the tenant’s control is the one engaging in the criminal activity and the tenant or affiliated individual or other individual is the actual or threatened victim of the domestic violence, dating violence, or stalking, or human trafficking [24 CFR 5.2005(c)(2)].

Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who engages in criminal acts of physical violence against family members or others without terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)].

PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR Notice 1/4/23].

Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)]

VAWA does not limit the authority of a PHA to terminate the assistance of a victim of abuse for reasons unrelated to domestic violence, dating violence, sexual assault or, stalking, or human trafficking so long as the PHA does not subject the victim to a more demanding standard than it applies to other program participants [24 CFR 5.2005(d)(1)].

Likewise, VAWA does not limit the authority of a PHA to terminate the assistance of a victim of domestic violence, dating violence, sexual assault or, stalking, or human trafficking if the PHA can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the assisted property if the victim is not terminated from assistance [24 CFR 5.2005(d)(2)].

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harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include:
• The duration of the risk
• The nature and severity of the potential harm
• The likelihood that the potential harm will occur.
• The length of time before the potential harm would occur [24 CFR

5.2005(e)]

In order to
demonstrate an actual and imminent threat, the PHA must have objective evidence of words, gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other actions that could be taken to reduce or eliminate the threat” [24 CFR 5.2005(d)(3)].

HACP Policy:

In determining whether a program participant who is a victim of domestic violence, dating violence, sexual assault or, stalking, or human trafficking is an actual and imminent threat to other tenants or those employed at or providing service to a property, the HACP will consider the following, and any other relevant, factors:
• Whether the threat is toward an employee or tenant other than the victim of domestic violence, dating violence, sexual assault or, stalking, or human trafficking.
• Whether the threat is a physical danger beyond a
speculative threat
•
Whether the threat is likely to happen within an immediate time frame
• Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location or seeking a legal remedy to prevent the perpetrator from acting on the threat.

If the participant wishes to contest the HACP’s determination that he or she is an actual and imminent threat to other tenants or employees, the participant may do so as part of the informal hearing.

Documentation of Abuse [24 CFR 5.2007]

HACP Policy:

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domestic violence, dating violence, sexual assault or, stalking, or human trafficking claims protection under VAWA, the HACP will request that the individual provide documentation supporting the claim in accordance with the policies in section 16-IX.D. of this plan.

The HACP reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases the HACP will document the waiver in the individual’s file.

Terminating the Assistance of a Domestic Violence Perpetrator

Although VAWA provides protection against termination of assistance for victims of domestic violence, it does not provide such protection for perpetrators. VAWA gives the PHA the explicit authority to “terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others” without terminating assistance to “or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant” [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated lease or other eviction action by an owner against an individual family member.

Further, this authority supersedes any local, state, or other federal law to the contrary. However, if the PHA chooses to exercise this authority, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law regarding termination of assistance. This means that the PHA must follow the same rules when terminating assistance to an individual as it would when terminating the assistance of an entire family [3/16/07 Federal Register notice on the applicability of VAWA to HUD programsFR Notice 3/16/07].

If the perpetrator remains in the unit, the PHA continues to pay the owner until the PHA terminates the perpetrator from the program. The PHA must not stop paying HAP until 30 days after the owner bifurcates the lease to evict the perpetrator. The PHA may pay HAP for the full month if the 30-day period will endends mid-month [Notice PIH 2017-08].

If the perpetrator is the only participant eligible to receive assistance, the PHA will provide any remaining participant a chance to establish eligibility for the program. If the remaining participant cannot do so, the PHA will provide them with 30 days to establish eligibility for another housing program prior to termination of the HAP contract.

HACP Policy:

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physical violence against other family members or others. This action will not affect the assistance of the remaining, nonculpable family members.

In making its decision, the HACP will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to the HACP by the victim in accordance with this section and section 16-IX.D. The HACP will also consider the factors in section 12-II.D. Upon such consideration, the HACP may, on a case-by-case basis, choose not to terminate the assistance of the culpable family member.

If the HACP does terminate the assistance of the culpable family member, it will do so in accordance with applicable law, HUD regulations, and the policies in this plan.

12-II.F. TERMINATION NOTICE

HUD regulations require PHAs to provide written notice of termination of assistance to a family only when the family is entitled to an informal hearing.

However, since the family’s HAP contract and lease will also terminate when the family’s assistance terminates [form HUD-52641], it is a good business practice to provide written notification to both owner and family anytime assistance will be terminated, whether voluntarily or involuntarily.

HACP Policy:

Whenever a family’s assistance will be terminated, the HACP will send a written notice of termination to the family and to the owner. The HACP will also send a form HUD-5382 and form HUD-5380 to the family with the termination notice. The notice will state the date on which the termination will become effective. This date generally will be at least 30 calendar days following the date of the termination notice, but exceptions will be made whenever HUD rules, other HACP policies, or the circumstances surrounding the termination require.

When the
HACP notifies an owner that a family’s assistance will be terminated, the HACP will, if appropriate, advise the owner of his/her right to offer the family a separate, unassisted lease.

If a family whose assistance is being terminated is entitled to an informal hearing, the notice of termination that the HACP sends to the family must meet the Formatted: Line spacing: 1.5 lines
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additional HUD and PHA notice requirements discussed in section 16-III.C of this plan. VAWA 2013 expands notification requirements to requireVAWA requires PHAs to provide notice of VAWA rights and the HUD 5382 form when a PHA terminates a household’s housing benefits.

HACP Policy:

Whenever the HACP decides to terminate a family’s assistance because of the family’s action or failure to act, the HACP will include in its termination notice the VAWA information described in section 16-IX.C of this plan and a form HUD-5382 and form HUD-5380. The HACP will request in writing that a family member wishing to claim protection under VAWA notify the HACP within 14 business days.

Still other notice requirements apply in two situations:
•
If a criminal record is the basis of a family’s termination, the HACP must provide a copy of the record to the subject of the record and the tenant so that they have an opportunity to dispute the accuracy and relevance of the record [24 CFR 982.553(d)(2)].
• If immigration status is the basis of a family’s termination, as discussed in section 12-I.D, the special notice requirements in section 16-III.D must be followed.

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PART III: TERMINATION OF TENANCY BY THE OWNER
12-III.A. OVERVIEW
Termination of an assisted tenancy is a matter between the owner and the family; the PHA is not directly involved. However, the owner is under some constraints when terminating an assisted tenancy. Termination of tenancy for certain reasons will also result in termination of assistance as discussed in this section.

12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum]

During the term of the lease, the owner is not permitted to terminate the tenancy except for serious or repeated violations of the lease, certain violations of state or local law, or other good cause.

Serious or Repeated Lease Violations
The owner is permitted to terminate the family’s tenancy for serious or repeated violations of the terms and conditions of the lease, except when the violations are related to incidents of actual or threatened domestic violence, dating violence, sexual assault or, stalking, or human trafficking and the victim is protected from eviction by the Violence against Women Act of 2013(VAWA) (see section 12- II.E)..). A serious lease violation includes failure to pay rent or other amounts due under the lease. However, the PHA’s failure to make a HAP payment to the owner is not a violation of the lease between the family and the owner.

Violation of Federal, State, or Local Law
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The owner is permitted to terminate the tenancy if a family member violates federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises.

Criminal Activity or Alcohol Abuse
The owner may terminate tenancy during the term of the lease if any covered person—meaning any member of the household, a guest, or another person under the tenant’s control—commits any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100):
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by, other residents (including property management staff residing on the premises)
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by, persons residing in the immediate vicinity of the premises
• Any violent criminal activity on or near the premises • Any drug-related criminal activity on or near the premises However, in the case of criminal activity directly related to domestic violence, dating violence, sexual assault or, stalking, or human trafficking if the tenant or an affiliated individual is the victim, the criminal activity may not be construed as cause for terminating the victim’s tenancy (see section 12-II.E). The owner may terminate tenancy during the term of the lease if any member of the household is:
• Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an attempt to commit a crime that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or
•
Violating a condition of probation or parole imposed under federal or state law.

The owner may terminate tenancy during the term of the lease if any member of the household has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents.

Evidence of Criminal Activity

The owner may terminate tenancy and evict by judicial action a family for criminal activity by a covered person if the owner determines the covered person has engaged in the criminal activity, regardless of whether the covered person has been arrested or convicted for such activity and without satisfying the standard of proof used for a criminal conviction. This is the case except in certain incidents where the criminal activity directly relates to domestic violence, dating violence, sexual assault, or stalking, or human trafficking and the tenant or an affiliated Formatted: Line spacing: 1.5 lines
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individual is the victim or threatened victim of the domestic violence, dating violence, sexual assault, or stalking, or human trafficking.

Other Good Cause

During the initial lease term, the owner may not terminate the tenancy for “other good cause” unless the owner is terminating the tenancy because of something the family did or failed to do. During the initial lease term or during any extension term, other good cause includes the disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises.

After the initial lease term, “other good cause” for termination of tenancy by the owner includes:
• Failure by the family to accept the offer of a new lease or revision. • The owner’s desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit.
• A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rent)

After the initial lease term, the owner may give the family notice at any time, in accordance with the terms of the lease.

If a property is subject to foreclosure, during the term of the lease, the new owner of the property does not have good cause to terminate the tenant’s lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. See Section 13-II.G. for a discussion of PHA policies relating to units in foreclosure.

12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum]

The owner must give the tenant a written notice that specifies the grounds for termination of tenancy during the term of the lease. The tenancy does not terminate before the owner has given this notice, and the notice must be given at Formatted: Line spacing: 1.5 lines
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or before commencement of the eviction action.

The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant.

Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The owner may only evict the tenant from the unit by instituting a court action. The owner must give the PHA a copy of any eviction notice at the same time the owner notifies the family. The family is also required to give the PHA a copy of any eviction notice (see Chapter 5).

HACP Policy:

If the eviction action is finalized in court, the owner must provide the HACP with documentation related to the eviction, including notice of the eviction date, as soon as possible, but no later than 5 business days following the court-ordered eviction.

12 -III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)]

An owner who has grounds to terminate a tenancy is not required to do so and may consider all of the circumstances relevant to a particular case before making a decision. These might include:
• The nature of the offending action
• The seriousness of the offending action,
• The effect on the community of the termination, or of the owner’s failure to terminate the tenancy,
• The extent of participation by the leaseholder in the offending action, • The effect of termination of tenancy on household members not involved in the offending activity,
• The demand for assisted housing by families who will adhere to lease responsibilities,
• The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action, • The effect of the owner's action on the integrity of the program.

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The owner may require a family to exclude a household member in order to continue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination.

In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the owner may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the owner may require the tenant to submit evidence of the household member's current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully.

The owner's termination of tenancy actions must be consistent with the fair housing and equal opportunity provisions in 24 CFR 5.105.

An owner’s decision to terminate tenancy for incidents related to domestic violence, dating violence, sexual assault or, stalking, or human trafficking is limited by the Violence against Women Act of 2013 (VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.)

12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S

ASSISTANCE

If a termination is not due to a serious or repeated violation of the lease, and if the PHA has no other grounds for termination of assistance, the PHA may issue a new voucher so that the family can move with continued assistance (see Chapter 10).

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EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS
Following is a listing of a participant family’s obligations under the HCV program:
•
The family must supply any information that the PHA or HUD determines to be necessary, including submission of required evidence of citizenship or eligible immigration status.
• The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition.

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All adult members of the family must attend recertification appointments, provide documents and sign documents as required to complete annual and interim recertifications.
• The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information.
• Any information supplied by the family must be true and complete. • The family is responsible for any Housing Qualitydeficiencies under the National Standards (HQS) breachfor the Physical Inspection of Real Estate (NSPIRE) by the family caused by failure to pay tenant-provided utilities or appliances, or damages to the dwelling unit or premises beyond normalordinary wear and tear caused by any member of the household or guest.

HACP Policy:

Damages beyond normalordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice.
• The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. •
The family must not commit any serious or repeated violation of the lease.

HACP Policy:

The HACP will determine if a family has committed serious or repeated violations of the lease based on available evidence, including but not limited to, a court-ordered eviction or an owner’s notice to evict.

Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault or, stalking, or human trafficking will not be construed as serious or repeated lease violations by the victim [see 24 CFR 5.2005(c)(1)].
• The family must notify the PHA and the owner before moving out of the unit or terminating the lease.

HACP Policy:

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to the owner. The family must provide written notice to the HACP at the same time the owner is notified.
• The family must promptly give the HACP a copy of any owner eviction notice. • The family must use the assisted unit for residence by the family. The unit must be the family’s only residence. The composition of the assisted family residing in the unit must be approved by the PHA. The family must promptly notify the PHA in writing of the birth, adoption, or court-awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit.

HACP Policy:

The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The HACP will determine eligibility of the new member in accordance with the policies in Chapter 3.
•
The family must promptly notify the HACP in writing if any family member no longer lives in the unit.
• If the HACP has given approval, a foster child or a live-in aide may reside in the unit. The HACP has the discretion to adopt reasonable policies concerning residency by a foster child or a live-in aide, and to define when HACP consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B). • The family must not sublease the unit, assign the lease, or transfer the unit.

HACP Policy:

Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member. •
The family must supply any information requested by the PHA to verify that the family is living in the unit or information related to family absence from the unit.
• The family must promptly notify the PHA when the family is absent from the unit.

HACP Policy:

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be provided to the HACP at the start of the extended absence. • The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher].
• The family must not own or have any interest in the unit, (other than in a cooperative and owners of a manufactured home leasing a manufactured home space).
• Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program. (See Chapter 14, Program Integrity for additional information).
• Family members must not engage in drug-related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for HUD and PHA policies related to drug-related and violent criminal activity.
• Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse.
• An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program.
• A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher
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Chapter 13
OWNERS

INTRODUCTION
Owners play a major role in the HCV program by supplying decent, safe, and sanitary housing for participating families.

The term “owner” refers to any person or entity with the legal right to lease or sublease a unit to a participant in the HCV program [24 CFR 982.4(b)]. The term “owner” includes a principal or other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the owner.

Owners have numerous responsibilities under the program, including screening and leasing to families, maintaining the dwelling unit, enforcing the lease, and complying with various contractual obligations.

The chapter is organized in two parts:

Part I: Owners in the HCV Program. This part discusses the role of an owner in the PHA’s HCV program and highlights key owner rights and responsibilities.

Part II: HAP Contracts. This part explains provisions of the HAP contract and the relationship between the HACP and the owner as expressed in the HAP contract.

For detailed information about HCV program responsibilities and processes, including PHA policies in key areas, owners will need to refer to several other chapters in this plan. Where appropriate, Chapter 13 will reference the other chapters.

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PART I. OWNERS IN THE HCV PROGRAM
13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6] Recruitment
PHAs are responsible for ensuring that very low-income families have access to all types and ranges of affordable housing in the PHA’s jurisdiction, particularly housing outside areas of poverty or minority concentration. A critical element in fulfilling this responsibility is for the PHA to ensure that a sufficient number of owners, representing all types and ranges of affordable housing in the PHA’s jurisdiction, are willing to participate in the HCV program.

To accomplish this objective, PHAs must identify and recruit new owners to participate in the program.

HACP Policy:

The HACP will conduct owner outreach to ensure that owners are familiar with the program and its advantages. The HACP will actively recruit property owners with property located outside areas of poverty and minority concentration. These outreach strategies will include:
•
Distributing printed material about the program to property owners and managers
• Contacting property owners and managers by phone or in- person
• Holding owner recruitment/information meetings at least once a year
• Participating in community-based organizations comprised of private property and apartment owners and managers
• Developing working relationships with owners and real estate brokers associations

Outreach strategies will be monitored for effectiveness and adapted accordingly.

Retention
In addition to recruiting owners to participate in the HCV program, the PHA must also provide the kind of customer service that will encourage participating owners to remain active in the program.

HACP Policy:

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processed as rapidly as possible, in order to minimize vacancy losses for owners.

The HACP will provide owners with a handbook that explains the program, including HUD and HACP policies and procedures, in easy-to-understand language.

The HACP will give special attention to helping new owners succeed through activities such as:

Providing the owner with a designated HACP contact person.

Coordinating inspection and leasing activities between the PHA, the owner, and the family.

Initiating telephone contact with the owner to explain the inspection process and providing an inspection booklet and other resource materials about HUD housing quality standards.

Providing other written information about how the program operates, including answers to frequently asked questions.

Additional services may be undertaken on an as-needed basis, and as resources permit.

13-I.B. BASIC HCV PROGRAM REQUIREMENTS
HUD requires the PHA to assist families in their housing search by providing the family with a list of landlords or other parties known to the PHA who may be willing to lease a unit to the family, or to help the family find a unit. Although the PHA cannot maintain a list of owners that are pre-qualified to participate in the program, owners may indicate to the PHA their willingness to lease a unit to an eligible HCV family, or to help the HCV family find a unit [24 CFR 982.301(b)(11)].

HACP Policy:

Owners that wish to indicate their willingness to lease a unit to an eligible HCV family or to help the HCV family find a unit must notify the HACP.

The HACP will direct applicants to the City of Pittsburg website with a listing of such owners and provide instructions to this link to the HCV family as part of the informational briefing packet.

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When a family approaches an owner to apply for tenancy, the owner is responsible for screening the family and deciding whether to lease to the family, just as the owner would with any potential unassisted tenant. The HACP has no liability or responsibility to the owner or other persons for the family’s behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant family screening policies and process.

If the owner is willing, the family and the owner must jointly complete a Request for Tenancy Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the specified unit, and which documents the owner’s willingness to lease to the family and to follow the program’s requirements. When submitted to the HACP, this document is the first step in the process of obtaining approval for the family to receive the financial assistance it will need in order to occupy the unit. Also submitted with the RTA is a copy of the owner’s proposed dwelling lease, including the HUD-required Tenancy Addendum (Form HUD- 52641-A). See Chapter 9 for more detail on request for tenancy approval policies and process.

HUD regulations stipulate requirements for the approval of an assisted tenancy.

The owner must be qualified to participate in the program [24 CFR 982.306].

Some owners are precluded from participating in the program, or from renting to a particular family, either because of their past history with this or another federal housing program, or because of certain conflicts of interest. Owner qualifications are discussed later in this chapter.

The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain types of dwelling units cannot be assisted under the HCV program. Other types may be assisted under certain conditions. See chapter 9 for more detail on unit eligibility policies and process.

The selected unit must meet HUD’s Housing QualityNational Standards (HQSfor the Physical Inspection of Real Estate (NSPIRE) and/or equivalent state or local standards approved by HUD [24 CFR 982.305(a)]. The HACP will inspect the owner’s dwelling unit at least annuallybiennially to ensure that the unit continues to meet HQSinspection requirements. See chapterChapter 8 for a discussion of the HQSNSPIRE inspection standards and policies for HQS inspections at initial lease-up and throughout the family’s tenancy.

The HACP must determine that the proposed rent for the unit is reasonable [24 CFR 982.305(a)]. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and policies on rent reasonableness, rent Formatted: Font color: Red
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comparability and the rent reasonableness determination process.

At initial lease-up of a unit, if the gross rent exceeds the applicable payment standard, the HACP must ensure that the family share does not exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income, family share of rent and HAP.

The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy Addendum includes the HUD requirements governing the tenancy and must be added word-for-word to the owner’s lease. See chapter 9 for a discussion of the dwelling lease and tenancy addendum, including lease terms and provisions.

The HACP and the owner must execute a Housing Assistance Payment (HAP) Contract (Form HUD-52641). The HAP contract format is prescribed by HUD.

See chapter 9 for a discussion of the HUD requirements for execution of the HAP contract.

13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452]
The basic owner responsibilities in the HCV program are outlined in the regulations as follows:
• Complying with all of the owner’s obligations under the housing assistance payments (HAP) contract and the lease
• Performing all management and rental functions for the assisted unit, including selecting a voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit
• Maintaining the unit in accordance with the Housing QualityNational Standards (HQSfor the Physical Inspection of Real Estate (NSPIRE), including performance of ordinary and extraordinary maintenance • Complying with equal opportunity requirements
• Preparing and furnishing to the PHA information required under the HAP contract
• Collecting the security deposit, the tenant rent, and any charges for unit damage by the family.
• Enforcing tenant obligations under the dwelling lease • Paying for utilities and services that are not the responsibility of the family as specified in the lease
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• Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a disabled person [24 CFR 100.203]
• Complying with the Violence against Women Reauthorization Act of 2013 (VAWA) when screening prospective HCV tenants or terminating the tenancy of an HCV family (see 24 CFR Part 5, Subpart L; 24 CFR 982.310(h)(4); and 24 CFR 982.452(b)(1)))); and FR Notice 1/4/23])
•
13-I.D. OWNER QUALIFICATIONS
The PHA does not formally approve an owner to participate in the HCV program.

However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner-related issues. No owner has a right to participate in the HCV program [24 CFR 982.306(e)].

Owners Barred from Participation [24 CFR 982.306(a) and (b)] The PHA must not approve the assisted tenancy if the PHA has been informed that the owner has been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. HUD may direct the PHA not to approve a tenancy request if a court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements, or if such an action is pending.

Leasing to Relatives [24 CFR 982.306(d),
HCV GB p. 11-2]
The HACP must not approve a tenancy if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family. The HACP may make an exception as a reasonable accommodation for a family member with a disability. The owner is required to certify that no such relationship exists. This restriction applies at the time that the family receives assistance under the HCV program for occupancy of a particular unit. Current contracts on behalf of owners and families that are related may continue, but any new leases or contracts for these families may not be approved.

Conflict of Interest [24 CFR 982.161; HCV GB p. 8-18]
The HACP must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter:
• Any present or former member or officer of the PHA (except a participant commissioner)
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• Any employee of the HACP, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs
• Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States

Such “covered individual” may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or for one year thereafter.

Immediate family member means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister, or brother (including a stepsister or stepbrother) of any covered individual

HUD may waive the conflict -of -interest requirements, except for members of Congress, for good cause. The HACP must submit a waiver request to the appropriate HUD Field Office for determination.

Any waiver request submitted by the HACP must include the following [HCV Guidebook pp.11-2 and 11-3]:
• Complete statement of the facts of the case,
• Analysis of the specific conflict of interest provision of the HAP contract and justification as to why the provision should be waived, • Analysis and statement of consistency with state and local laws. The local HUD office, the HACP, or both parties may conduct this analysis. Where appropriate, an opinion by the state’s attorney general should be obtained, • Opinion by the local HUD office as to whether there would be an appearance of impropriety if the waiver were granted,
• Statement regarding alternative existing housing available for lease under the HCV program or other assisted housing if the waiver is denied, • If the case involves a hardship for a particular family, statement of the circumstances and discussion of possible alternatives,
• If the case involves a public official or member of the governing body, explanation of his/her duties under state or local law, including reference to any responsibilities involving the HCV program,
• If the case involves employment of a family member by the HACP or assistance under the HCV program for an eligible HACP employee, 497
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explanation of the responsibilities and duties of the position, including any related to the HCV program,
• If the case involves an investment on the part of a member, officer, or employee of the HACP, description of the nature of the investment, including disclosure/divestiture plans.

Where the HACP has requested a conflict -of -interest waiver, the HACP may not execute the HAP contract until HUD has made a decision on the waiver request.

HACP Policy:

In considering whether to request a conflict of interest waiver from HUD, the HACP will consider certain factors such as consistency of the waiver with state and local laws, the existence of alternative housing available to the family, the individual circumstances of a particular family, the specific duties of the individual(s) whose positions present a possible conflict of interest, the nature of any financial investment in the property and plans for disclosure/divestiture, and the possible appearance of impropriety.

Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)]

HUD regulations permit the
HACP to disapprove a request for tenancy for
various actions and inactions of the owner.

If the HACP disapproves a request for tenancy because an owner is not qualified, it may not terminate the HAP contract for any assisted families that are already living in the owner’s properties unless the owner has violated the HAP contract for those units [HCV GB p. 11-4].

HACP Policy:

The HACP will refuse to approve a request for tenancy if the HACP becomes aware that any of the following are true:
•
The owner has violated obligations under a HAP contract under Section 8 of the 1837 Act (42 U.S.C. 1437f),
• The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing
program,
• The owner has engaged in any drug-related criminal activity or any violent criminal activity,
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• The owner has a history or practice of non-compliance with the HQSinspection standards 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
program,
• The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity
engaged in by the tenant, any member of the household, 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) (ii) Threatens the health or safety of other residents, employees of the PHA, or of owner employees or
other persons engaged in management of the rental
unit.
(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 premises; or
(iv) (iv) involves drug-related criminal activity or violent criminal activity.

•
The owner has a history or practice of renting units that fail to meet state or local housing codes; or
• The owner has not paid state or local real estate taxes, fines, or assessments.

In considering whether to disapprove owners for any of the discretionary reasons listed above, the PHA will consider any mitigating factors. Such factors may include, but are not limited to, the seriousness of the violation in relation to program requirements, the impact on the ability of families to lease units under the program, health and safety of participating families, among others. Upon consideration of such circumstances, the PHA may, on a case-by-case basis, choose to approve an owner.

Legal Ownership of Unit
The following represents HACP Policy: on legal ownership of a dwelling unit to be assisted under the HCV program.

HACP Policy:

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The HACP will only enter into a contractual relationship with the legal owner of a qualified unit. No tenancy will be approved without acceptable documentation of legal ownership (e.g., deed of trust, proof of taxes for most recent year, management agreement).

13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641]

The owner must not discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability, in connection with any actions or responsibilities under the HCV program and the HAP contract with the HACP.

The owner must cooperate with the HACP and with HUD in conducting any equal opportunity compliance reviews and complaint investigations in connection with the HCV program and the HAP contract with the HACP.

See Chapter 2 for a more thorough discussion of Fair Housing and Equal Opportunity requirements in the HCV program.

PART II. HAP CONTRACTS
13-II.A. OVERVIEW
The HAP contract represents a written agreement between the HACP and the owner of the dwelling unit occupied by a HCV assisted family. The contract states the owner’s responsibilities under the program, as well as the HACP’s obligations. Under the HAP contract, the HACP agrees to make housing assistance payments to the owner on behalf of the family approved by the HACP to occupy the unit.

The HAP contract is used for all HCV program tenancies except for assistance under the Section 8 homeownership program, and assistance to families that own a manufactured home and use their assistance to lease the space for the manufactured home. See chapter 15 for a discussion of any special housing types included in the HACP’s HCV program.

When the HACP has determined that the unit meets program requirements and the tenancy is approvable, the HACP and owner must execute the HAP contract.

See chapter 9 for a discussion of the leasing process, including provisions for execution of the HAP contract.
13-II.B. HAP CONTRACT CONTENTS
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The HAP contract format is required by HUD, specifically Housing Assistance Payment (HAP) Contract, Form HUD-52641.

The HAP contract contains three parts.

Part A of the contract includes basic contract information: the names of the tenant and all household members, the address of the contract unit, start and end dates of initial lease term, the amount of initial monthly rent to owner, the amount of initial housing assistance payment, the utilities and appliances to be supplied by owner and tenant, and the signatures of the HACP representative and owner [HCV Guidebook, pp. 11-10 and 11-11].

In general, the HAP contract cannot be modified. However, PHAs do have the discretion to add language to Part A of the HAP contract which prohibits the owner from collecting a security deposit in excess of private market practices or in excess of amounts charged to unassisted tenants. HACP Policy: on the amount of security deposit an owner may collect is found in Chapter 9.

PHAs also have the discretion to add language to Part A of the HAP contract that defines when the housing assistance payment by the HACP is deemed received by the owner (e.g., upon mailing by the HACP or actual receipt by the owner).

HACP Policy:

The HACP has not adopted a policy that defines when the housing assistance payment by the
HACP is deemed received by the owner.

Therefore, no modifications to the HAP contract will be necessary.

Part B is the body of the contract. It describes in detail program requirements affecting the owner and owner roles and responsibilities under the HCV program.

Most of the requirements contained in Part B of the HAP contract are outlined elsewhere in this plan. Topics addressed in Part B include:
• Lease of Contract Unit
• Maintenance, Utilities, and Other Services
• Term of HAP Contract
• Provision and Payment of Utilities and Appliances
• Rent to Owner: Reasonable Rent
• PHA Payment to Owner
• Prohibition of Discrimination
• Owner’s Breach of HAP Contract
• PHA and HUD Access to Premises and Owner’s Records
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• Exclusion of Third-Party Rights
• Conflict of Interest
• Assignment of the HAP Contract
• Written Notices
• Entire Agreement Interpretation

Part C of the contract includes the Tenancy Addendum (Form HUD-52641-A).

The addendum sets forth the tenancy requirements for the program and the composition of the household, as approved by the HACP. The tenant has the right to enforce the Tenancy Addendum against the owner. The terms of the Tenancy Addendum prevail over any other provisions of the lease.

13-II.C. HAP CONTRACT PAYMENTS

General

During the term of the HAP contract, and subject to the provisions of the HAP contract, the HACP must make monthly HAP payments to the owner on behalf of the family, at the beginning of each month. If a lease term begins after the first of the month, the HAP payment for the first month is prorated for a partial month.

The amount of the HAP payment is determined according to the policies described in Chapter 6 and is subject to change during the term of the HAP contract. The HACP must notify the owner and the family in writing of any changes in the HAP payment.

HAP payments can be made only during the lease term, and only while the family is residing in the unit.

The monthly HAP payment by the HACP is credited toward the monthly rent to owner under the family’s lease. The total of the rent paid by the tenant and the HAP payment is equal to the rent to owner as specified in the lease.

The family is not responsible for payment of the HAP payment, and the HACP is not responsible for payment of the family share of rent.

The family’s share of the rent cannot be more than the difference between the rent to owner and the HAP payment. The owner may not demand or accept any rent payment from the tenant in excess of this maximum [24 CFR 982.451(b)(4)].

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separate, non-lease agreements for services, appliances and other items that are not included in the lease.

If the owner receives any excess HAP from the HACP, the excess amount must be returned immediately. If the HACP determines that the owner is not entitled to all or a portion of the HAP, the HACP may deduct the amount of overpayment from any amounts due to the owner, including amounts due under any other Section 8 HCV contract. See Chapter 16 for additional detail on owner reimbursement of HAP overpayments.

Owner Certification of Compliance
Unless the owner complies with all provisions of the HAP contract, the owner is not entitled to receive housing assistance payments under the HAP contract [HAP Contract – Form HUD-52641].

By endorsing the monthly check from the HACP, the owner certifies to compliance with the terms of the HAP contract. This includes certification that the owner is maintaining the unit and premises in accordance with HQSNSPIRE standards; that the contract unit is leased to the tenant family and, to the best of the owner’s knowledge, the family resides in the unit as the family’s only residence; the rent to owner does not exceed rents charged by the owner for comparable unassisted units on the premises; and that the owner does not receive (other than rent to owner) any additional payments or other consideration for rent of the contract unit during the HAP term.

Late HAP Payments [24 CFR 982.451(a)(5)]
The HACP is responsible for making HAP payments promptly when due to the owner, in accordance with the terms of the HAP contract. After the first two calendar months of the HAP contract term, the HAP contract provides for late penalties if the
HACP fails to make the HAP payment on time.

Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with generally accepted local rental market practices and law governing penalties for late payment by tenants; 2) it is the owner’s normal business practice to charge late payment penalties for both assisted and unassisted families; and 3) the owner charges the assisted family for late payment of the family’s share of the rent.

The HACP is not required to pay a late payment penalty if HUD determines that the payment is late for reasons beyond the HACP’s control. In addition, late payment penalties are not required if the HACP intentionally delays or denies payment as a remedy to an owner breach of the HAP contract [HCV Guidebook p. 11-7].

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Termination of HAP Payments [24 CFR 982.311(b)]

The HACP must continue making housing assistance payments to the owner in accordance with the HAP contract as long as the tenant continues to occupy the unit and the HAP contract is not violated.

HAP payments terminate when the HAP contract terminates or when the tenancy is terminated in accordance with the terms of the lease.

If the owner has initiated eviction proceedings against the family and the family continues to reside in the unit, the HACP must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant.

HACP Policy:

The owner must inform the HACP when the owner has initiated eviction proceedings against the family and the family continues to reside in the unit.

The owner must inform the
HACP when the owner has obtained a court
judgment or other process allowing the owner to evict the tenant and provide the HACP with a copy of such judgment or determination.

After the owner has obtained a court judgment or other process allowing the owner to evict the tenant, the HACP will continue to make HAP payments to the owner until the family actually moves from the unit or until the family is physically evicted from the unit, whichever is earlier. The owner must inform the HACP of the date when the family actually moves from the unit or the family is physically evicted from the unit.

Pittsburg City CouncilApril 15, 2024

Pittsburg City Council
April 15, 2024