Redondo Beach City Council
June 16, 2026

AGENDA

SPECIAL MEETING

REDONDO BEACH HOUSING AUTHORITY
TUESDAY, JUNE 16, 2026 - 6:00 P.M.

REDONDO BEACH COUNCIL CHAMBERS
415 DIAMOND STREET

CALL MEETING TO ORDER

ROLL CALL
A. APPROVAL OF ORDER OF AGENDA
B. ADDITIONAL ITEMS FOR IMMEDIATE CONSIDERATION
B1. BLUE FOLDER ITEMS
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.

C. CONSENT CALENDAR #C1 through #C3
Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the Consent Calendar. The Authority Members may request that any Consent Calendar item(s) be removed, discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the “Excluded Consent Calendar” section below. Those items remaining on the Consent Calendar will be approved in one motion following Oral Communications.

C1. APPROVAL OF AFFIDAVIT OF POSTING for the Special Housing Authority meeting of June 16, 2026.

C2. APPROVAL OF MOTION TO READ BY TITLE ONLY and waive further reading of all Ordinances and Resolutions listed on the agenda.

D. EXCLUDED CONSENT CALENDAR ITEMS
E. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
This section is intended to provide members of the public with the opportunity to comment on any subject that does not appear on this agenda for action. This section is limited to 30 minutes. Each speaker will be afforded three minutes to address the Commission. Each speaker will be permitted to speak only once. Written requests, if any, will be considered first under this section.

F. EX PARTE COMMUNICATIONS
This section is intended to allow all officials the opportunity to reveal any disclosure or ex parte communication about the following public hearings.

G. PUBLIC HEARINGS
G1. PUBLIC HEARING TO CONSIDER APPROVAL OF THE REDONDO

BEACH HOUSING AUTHORITY ADMINISTRATIVE PLAN REVISION FOR THE HOUSING CHOICE VOUCHER (SECTION 8) PROGRAM
ADOPT BY TITLE ONLY RESOLUTION NO. HA-2026-04, A RESOLUTION OF

THE HOUSING AUTHORITY OF THE CITY OF REDONDO BEACH,

CALIFORNIA, APPROVING THE AGENCY ADMINISTRATIVE PLAN
RECOMMENDATION: THAT THE CHAIRMAN AND AUTHORITY BOARD
MEMBERS:

A. OPEN THE PUBLIC HEARING; TAKE PUBLIC TESTIMONY; AND
B. CLOSE THE PUBLIC HEARING; AND
C. ADOPT RESOLUTION NO. HA-2026-04 BY TITLE ONLY
CONTACT: ELIZABETH HAUSE, HOUSING ADMINISTRATOR
G2. PUBLIC HEARING TO CONSIDER APPROVAL OF THE SIGNIFICANT

AMENDMENT TO THE BEACH HOUSING AUTHORITY FIVE-YEAR
PLAN THE HOUSING CHOICE VOUCHER (SECTION 8) PROGRAM
ADOPT BY TITLE ONLY RESOLUTION NO. HA-2026-05, A

RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF

REDONDO BEACH, CALIFORNIA, APPROVING THE SIGNIFICANT

AMENDMENT TO THE FIVE-YEAR AGENCY PLAN
REDOMMENDATION: THAT THE CHAIRMAN AND AUTHORITY BOARD
MEMBERS:

A. OPEN THE PUBLIC HEARING; TAKE PUBLIC TESTIMONY; AND
B. CLOSE THE PUBLIC HEARING; AND
C. ADOPT RESOLUTION NO. HA-2026-05 BY TITLE ONLY
CONTACT: ELIZABETH HAUSE, HOUSING ADMINISTRATOR
H. OLD BUSINESS
I. NEW BUSINESS
J. MEMBERS ITEMS AND REFERRALS TO STAFF
K. ADJOURNMENT
The next scheduled meeting of the Redondo Beach Housing Authority is a Regular meeting on Tuesday, September 1, 2026 at 6:00 p.m. in the City Hall Council Chambers, 415 Diamond Street, Redondo Beach, California.

It is the intention of the City of Redondo Beach to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant of this meeting you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the City Clerk’s Office at (310) 318-0656 at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. Please advise us at that time if you will need accommodations to attend or participate in meetings on a regular basis.

An Agenda Packet is available 24 hours a day at www.redondo.org under the City Clerk and during City Hall hours. Agenda Packets are also available for review in the Office of the City Clerk.

Any writings or documents provided to a majority of the members of the Authority regarding any item on this agenda will be made available for public inspection at the City Clerk’s Counter at City Hall located at 415 Diamond Street during normal business hours.

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF REDONDO BEACH )

AFFIDAVIT OF POSTING
In compliance with the Brown Act, the following materials have been posted at the locations indicated below.

Legislative Body Redondo Beach Housing Authority
Posting Type Agenda – June 16, 2026 Special Meeting Posting Locations 415 Diamond Street, Redondo Beach, CA 90277
 City Hall Kiosk
 City Clerk’s Counter, Door “1”
Meeting Date & Time June 16, 2026 6:00 p.m.

As Housing Administrator of the City of Redondo Beach, I declare, under penalty of perjury, the document noted above was posted on the date displayed below.

Elizabeth Hause, Housing Administrator
Date: June 11, 2026
Community Services Department 1922 Artesia Boulevard
Redondo Beach, California 90278
www.redondo.org
tel: 310 318-0610
fax: 310 798-8273
Administrative Report
Authority Action Date: June 16, 2026
To: CHAIRMAN AND MEMBERS OF THE HOUSING AUTHORITY
From: ELIZABETH HAUSE, HOUSING ADMINISTRATOR
Subject: PUBLIC HEARING TO CONSIDER APPROVAL OF THE REDONDO

BEACH HOUSING AUTHORITY ADMINISTRATIVE PLAN REVISION
FOR THE HOUSING CHOICE VOUCHER (SECTION 8) PROGRAM
ADOPT BY TITLE ONLY RESOLUTION NO. HA-2026-04, A

RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF

REDONDO BEACH, CALIFORNIA, APPROVING THE AGENCY

ADMINISTRATIVE PLAN

URECOMMENDATION
That the Chairman and Authority Board Members:

A. Open the Public Hearing; Take Public Testimony; and
B. Close the Public Hearing; and
C. Adopt Resolution No. HA-2026-04 by title only.

UEXECUTIVE SUMMARY
This item is a public hearing to consider approval of a revision to the Redondo Beach Housing Authority Administrative Plan for the Housing Choice Voucher (Section 8) Program. The proposed amendment establishes an annual application process and a twelve-month waiting list cycle that expires and is re-established annually to maintain an accurate and current pool of eligible applicants. The revision also requires a corresponding amendment to the Five-Year PHA Plan to reflect this change in program administration. Following the public hearing, staff recommends adoption of Resolution No. HA-2026-04 approving the revised Administrative Plan. The Board is requested to open the public hearing, receive public testimony, close the public hearing, and adopt the resolution by title only.

BACKGROUND
HUD regulations require Public Housing Agencies (PHAs) to adopt and maintain a written Administrative Plan that establishes local policies governing the administration of housing assistance programs, including areas where HUD provides discretion for local policy development. The Administrative Plan serves as the governing framework for program administration, including eligibility, waiting list management, application intake, tenant selection, and verification procedures, and is regularly updated to reflect changes in HUD requirements, operational needs, and Board-directed policy decisions.

Administrative Report June 16, 2026
Revised Administration Plan

During the regular Housing Authority meeting on December 2, 2025, the Board directed staff to revise the Administrative Plan to establish an annual process for accepting applications and updating the waiting list. This proposed revision is intended to ensure the waiting list remains current, accurate, and representative of eligible applicants seeking assistance. A revision to Chapter 4 of the Redondo Beach Administrative Plan, titled “Applications, Waiting List and Tenant Selection” is presented for consideration and approval.

Under the proposed policy, applications for rental assistance would be accepted during a designated annual application period, and applicants would remain on the waiting list for up to twelve months, during which qualified households may be selected as needed to maintain HUD-required lease-up rates. At the conclusion of each twelve-month cycle, the waiting list would expire and be re-established through a new application period, ensuring all eligible households have a regular opportunity to apply for assistance.

Because this change modifies waiting list administration procedures, it constitutes a significant amendment to the Administrative Plan and the FY 2026–2030 Five-Year PHA Plan (originally approved on March 11, 2025), both most recently amended on January 13, 2026 to capture other HUD regulation updates and policy refinement. A corresponding significant amendment to the Five-Year PHA Plan capturing the change to the waiting list process is also presented for Board consideration and approval on this same agenda. As part of the amendment process, the Redondo Beach Housing Authority consulted with the Resident Advisory Board (RAB) on May 19, 2026, regarding the proposed changes, and the RAB did not provide any comments.

Following the public hearing, staff recommends that the Board close the public hearing and adopt Resolution No. HA-2026-04 by title only, thereby approving the revised Administrative Plan effective July 1, 2026.

COORDINATION
The City Attorney’s Office approved the Resolution as to form. This report was prepared by the Housing Division of Community Services Department.

FISCAL IMPACT
The Housing Choice Voucher (Section 8) rental assistance program is funded by HUD.

Preparation of this report is part of the department’s annual work plan and operating budget. There is no additional fiscal impact.

Submitted by: Approved for forwarding by:

Elizabeth Hause, Housing Administrator Mike Witzansky, City Manager Attachments:
 Redondo Beach Housing Authority Administrative Plan Draft  Resolution No. HA-2026-04

ADMINISTRATIVE PLAN

FOR THE

HOUSING CHOICE VOUCHER PROGRAM
Product # 301-002
January 1, 2005
Revision Date Revision Date
September 1, 2005 March 1, 2016
May 1, 2006 March 1, 2017
December 1, 2006 July 1, 2017
July 1, 2007 July 1, 2018
August 1, 2008 June 1, 2019
November 1, 2008 April 1, 2020
October 1, 2009 March 1, 2021
August 1, 2010 April 1, 2022
May 1, 2011 September 1, 2023
April 1, 2012 January 1, 2024
April 1, 2013 August 1, 2024
May 1, 2014 February 1, 2025
October 1, 2014 February 1, 2026
October 1, 2015
1810 Gillespie Way, Suite 202
El Cajon, CA 92020
800.783.3100
www.nanmckay.com
© Copyright 2026 by Nan McKay & Associates, Inc.

All rights reserved
Permission to reprint granted only to the Public Housing Authority that has purchased this plan from Nan McKay & Associates, Inc. This document may not be reprinted or distributed to any other person or entity other than the purchasing agency without the express written permission of Nan McKay & Associates, Inc.

HCV ADMINISTRATIVE
PLAN
June 2026 Housing Authority of the
City of Redondo Beach
HCV Administrative Plan
HCV Administrative Plan

HOUSING AUTHORITY OF THE CITY OF REDONDO BEACH
Approved by the HA Board of Commissioners:

Submitted to HUD:

Copyright 2026 by Nan McKay & Associates, Inc.

All rights reserved
Permission to reprint granted only to the Public Housing Authority or Housing Agency that has purchased this plan from Nan McKay & Associates, Inc. This document may not be reprinted or distributed to any other person or entity other than the purchasing agency without the express written permission of Nan McKay & Associates, Inc.

Administrative Plan -Table of Contents
Table of Contents TOC-1 Redondo Beach Housing Authority June 2026

HOTMA CHANGES IN THE ADMINSTRATIVE PLAN
HOTMA 102/104 ............................................................................................... Intro-i

ABOUT THE ADMINISTRATIVE PLAN
References Cited in the Administrative Plan ................................................... Intro-iii HUD ................................................................................................................. Intro-iii NSPIRE and HQS in the Administrative Plan ................................................. Intro-iv Resources Cited in the Administrative Plan ..................................................... Intro-v Chapter 1

OVERVIEW OF THE PROGRAM AND PLAN
PART I: THE PHA ................................................................................................................ 1-1 1-I.A. Overview ................................................................................................. 1-1 1-I.B. Organization and Structure of the PHA .................................................. 1-2 1-I.C. PHA Mission .......................................................................................... 1-2 1-I.D. The PHA’s Programs .............................................................................. 1-3 1-I.E. The PHA’s Commitment to Ethics and Service ..................................... 1-3 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................. 1-5 1-II.A. Overview and History of the Program .................................................... 1-5 1-II.B. HCV Program Basics .............................................................................. 1-7 1-II.C. The HCV Partnerships ............................................................................ 1-7 The HCV Relationships: ................................................................... 1-8 What Does HUD Do? ....................................................................... 1-9 What Does the PHA Do? .................................................................. 1-9 What Does the Owner Do? ............................................................. 1-10 What Does the Family Do? ............................................................. 1-11 1-II.D. Applicable Regulations ......................................................................... 1-12 PART III: THE HCV ADMINISTRATIVE PLAN ............................................................... 1-13 1-III.A. Overview and Purpose of the Plan ........................................................ 1-13 1-III.B. Contents of the Plan (24CFR 982.54 and 24 CFR 983.10) .................. 1-13 Mandatory vs. Discretionary Policy ............................................... 1-18 1-III.C. Organization of the Plan ....................................................................... 1-18 1-III.D. Updating and Revising the Plan ........................................................... 1-18 Administrative Plan -Table of Contents
Table of Contents TOC-2 Redondo Beach Housing Authority June 2026
Chapter 2

FAIR HOUSING AND EQUAL OPPORTUNITY
PART I: NONDISCRIMINATION....................................................................................... 2-3 2-I.A. Overview ................................................................................................. 2-3 2-I.B. Nondiscrimination .................................................................................. 2-4 Providing Information to Families and Owners ............................... 2-5 2-1.C Discrimination Complaints ..................................................................... 2-5 General Housing Discrimination Complaints ................................... 2-5 VAWA Complaint Processing [Notice FHEO 2023-01].................. 2-6 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................. 2-7 2-II.A. Overview ................................................................................................. 2-7 2-II.B. Definition of Reasonable Accommodation ............................................ 2-8 Types of Reasonable Accommodations ............................................ 2-8 2-II.C. Request for an Accommodation ............................................................. 2-9 2-II.D. Verification of Disability ...................................................................... 2-10 2-II.E. Approval/Denial of a Requested Accommodation
[Joint Statement of the Departments of HUD and Justice:

Reasonable Accommodations under the Fair Housing Act,
Notice PIH 2010-26]. ............................................................................ 2-11 2-II.F. Program Accessibility for Persons with Hearing
or Vision Impairments ......................................................................... 2-12 2-II.G. Physical Accessibility ........................................................................... 2-13 2-II.H. Denial or Termination of Assistance .................................................... 2-14 PART III: SERVING LIMITED ENGLISH PROFICIENCT (LEP) PERSONS.................. 2-15 2-III.A. Overview [OAG Memo 7/14/25 and Executive Order 14224] ............ 2-15 Exhibit 2-1: Definition of a Person with a Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.201] ............................... 2-17 Administrative Plan -Table of Contents
Table of Contents TOC-3 Redondo Beach Housing Authority June 2026
Chapter 3

ELIGIBILITY
PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS.......................... 3-3 3-I.A. Overview ................................................................................................. 3-3 3-I.B. Family and Household [24 CFR 5.403; 24 CFR 5.100; and FR Notice 2/14/23] .......................................................................... 3-3 Family ............................................................................................... 3-3 Household ......................................................................................... 3-4 3-I.C. Family Breakup and Remaining Member of Tenant Family .................. 3-4 Family Breakup [24 CFR 982.315; Notice PIH 2017-08] ................ 3-4 Remaining Member of a Tenant Family [24 CFR 5.403] ................ 3-5 3-I.D. Head of Household [24 CFR 5.504(b)] .................................................. 3-5 3-I.E. Spouse, Cohead, and Other Adult .......................................................... 3-5 3-I.F. Dependents and Minors [24 CFR 5.603] ................................................ 3-6 Joint Custody of Dependents ............................................................ 3-6 3-I.G. Full-Time Student [24 CFR 5.603, HVC GB, p. 5-29] .......................... 3-6 3-I.H. Elderly and Near-Elderly Persons, and Elderly Family [24 CFR 5.100 and 5.403, FR Notice 02/03/12]..................................... 3-6 Elderly Persons ................................................................................ 3-6 Near-Elderly Persons ........................................................................ 3-6 Elderly Family .................................................................................. 3-6 3-I.I. Persons with Disabilities and Disabled Family [24 CFR 5.403, FR Notice 02/03/12] ............................................................................... 3-7 Persons with Disabilities................................................................... 3-7 Disabled Family ................................................................................ 3-7 3-I.J. Guests [24 CFR 5.100] ........................................................................... 3-7

3.I.K. Foster Children and Foster Adults [24 CFR 5.603] ................................ 3-8 3-I.L. Absent Family Members ......................................................................... 3-9 Definitions of Temporarily and Permanently Absent ....................... 3-9 Absent Students ................................................................................ 3-9 Absences Due to Placement in Foster Care [24 CFR 5.403] ............ 3-9 Absent Head, Spouse, or Cohead ..................................................... 3-9 Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] ......................................................................... 3-10 Return of Permanently Absent Family Members ........................... 3-10 3-I.M. Live-In Aide .......................................................................................... 3-11 Administrative Plan -Table of Contents
Table of Contents TOC-4 Redondo Beach Housing Authority June 2026
PART II: BASIC ELIGIBILITY CRITERIA ....................................................................... 3-13 3-II.A. Income Eligibility and Targeting .......................................................... 3-13 Income Limits ................................................................................. 3-13 Definitions of the Income Limits [24 CFR 5.603(b)] ..................... 3-13 Using Income Limits for Eligibility [24 CFR 982.201
and Notice PIH 2023-27] ................................................................ 3-13 Using Income Limits for Targeting [24 CFR 982.201] .................. 3-14 3-II.B. Citizenship or Eligible Immigration Status [24 CFR 5, Subpart E] ..... 3-15 Declaration [24 CFR 5.508] ........................................................... 3-15 Mixed Families ............................................................................... 3-16 Ineligible Families [24 CFR 5.514(d), (e), and (f)] ........................ 3-17 Timeframe for Determination of Citizenship Status
[24 CFR 5.508(g)] .......................................................................... 3-18 3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218, Notice PIH 2018-24] ............................................................................. 3-18 3-II.D. Family Consent to Release of Information [24 CFR 5.230, 24 CFR 5.232, and HCV GB, p. 5-13] ................................................. 3-18 3-II.E. Students Enrolled In Institutions of Higher Education [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16]...................... 3-19 Definitions ...................................................................................... 3-19 Determining Student Eligibility ...................................................... 3-23 3-II.F. EIV System Searches [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27] ...................................................................... 3-24 Existing Tenant Search ................................................................... 3-24 Debts Owed to PHAs and Terminations ......................................... 3-25 EIV Income Report ......................................................................... 3-25 Administrative Plan -Table of Contents
Table of Contents TOC-5 Redondo Beach Housing Authority June 2026
PART III: DENIAL OF ASSISTANCE ................................................................................ 3-27 3-III.A. Overview ............................................................................................... 3-27 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] ........ 3-27 Prohibited Reasons for Denial of Program Assistance
[24 CFR 982.202(b), 24 CFR 5.2005(b)] ....................................... 3-27 3-III.B. Mandatory Denial of Assistance [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)] .................................................................. 3-28 3-III.C. Restriction on Assistance Based on Assets [24 CFR 5.618] ................ 3-29 3-III.D. Other Permitted Reasons for Denial of Assistance ................................. 3-31 Criminal Activity [24 CFR 982.553] .............................................. 3-31 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] ....... 3-32 3-III.E. Screening .............................................................................................. 3-34 Screening for Eligibility ................................................................. 3-34 Screening for Suitability as a Tenant [24 CFR 982.307] ................ 3-35 3-III.F. Criteria for Deciding to Deny Assistance ............................................. 3-36 Evidence [24 CFR 982.553(c)] ....................................................... 3-36 Consideration of Circumstances [24 CFR 982.552(c)(2)] .............. 3-36 Removal of a Family Member's Name from the Application......... 3-37 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ............. 3-37 3-III.G. Notice of Eligibility or Denial .............................................................. 3-38 3-III.H. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating Violence, Sexual Assault, Stalking.
and Human Trafficking ......................................................................... 3-39 Notification ..................................................................................... 3-39 Documentation ................................................................................ 3-40 Exhibit 3-1: Detailed Definitions Related to Disabilities ......................................................... 3-41 Person with Disabilities [24 CFR 5.403] ........................................ 3-41 Individual with Handicaps [24 CFR 8.3] ........................................ 3-43 Exhibit 3-2: Definition of Institution of Higher Education [20 U.S.C 1001 and 1002] ........... 3-45 Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] ...................................... 3-45 Administrative Plan -Table of Contents
Table of Contents TOC-6 Redondo Beach Housing Authority June 2026
Chapter 4

APPLICATIONS, WAITING LIST AND TENANT SELECTION
PART I: THE APPLICATION PROCESS ........................................................................... 4-3 4-I.A. Overview ................................................................................................. 4-3 4-I.B. Applying for Assistance
[HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] .................................. 4-3 4-I.C. Accessibility of the Application Process ................................................ 4-4 Elderly and Disabled Populations [24 CFR 8 and HCV GB,
pp. 4-11 – 4-13] ................................................................................ 4-4 4-I.D. Placement on the Waiting List ................................................................ 4-4 Ineligible for Placement on the Waiting List .................................... 4-4 Eligible for Placement on the Waiting List ...................................... 4-4 PART II: MANAGING THE WAITING LIST...................................................................... 4-5 4-II.A. Overview ................................................................................................. 4-5 4-II.B. Organization of the Waiting List [24 CFR 982.204 and 205] ................ 4-5 4-II.C. Opening and Closing the Waiting List [24 CFR 982.206] ..................... 4-6 Closing the Waiting List ................................................................... 4-6 Reopening the Waiting List .............................................................. 4-6 4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4] ........................................... 4-7 4-II.E. Reporting Changes in Family Circumstances ......................................... 4-8 4-II.F. Updating the Waiting List [24 CFR 982.204] ........................................ 4-8 Purging the Waiting List ................................................................... 4-8 Removal from the Waiting List ........................................................ 4-9 PART III: SELECTION FOR HCV ASSISTANCE ............................................................. 4-11 4-III.A. Overview ............................................................................................... 4-11 4-III.B. Selection and HCV Funding Sources ................................................... 4-11 Special Admissions [24 CFR 982.203] .......................................... 4-11 Targeted Funding [24 CFR 982.204(e)] ......................................... 4-11 Regular HCV Funding .................................................................... 4-12 4-III.C. Selection Method .................................................................................. 4-12 Local Preferences [24 CFR 982.207; HCV p. 4-16] ...................... 4-12 Income Targeting Requirement [24 CFR 982.201(b)(2)] ............... 4-14 Order of Selection ........................................................................... 4-14 4-III.D. Notification of Selection ....................................................................... 4-15 4-III.E. The Eligibility Determination Process.................................................. 4-15 4-III.F. Completing the Application Process .................................................... 4-17 Administrative Plan -Table of Contents
Table of Contents TOC-7 Redondo Beach Housing Authority June 2026
Chapter 5

BRIEFINGS AND VOUCHER ISSUANCE
PART I: BRIEFINGS AND FAMILY OBLIGATIONS ...................................................... 5-1 5-I.A. Overview ................................................................................................. 5-1 5-I.B. Briefing [24 CFR 982.301] ..................................................................... 5-2 Notification of Briefing .................................................................... 5-2 In-Person Briefings ........................................................................... 5-2 Remote Briefings [Notice PIH 2020-32] .......................................... 5-3 Accessibility Requirements for Persons with Disabilities ................ 5-3 Conducting Remote Briefings [Notice PIH 2020-32] ...................... 5-4 Oral Briefing [24 CFR 982.301(a)] .................................................. 5-5 Briefing Packet [24 CFR 982.301(b); New HCV GB,
Housing Search and Leasing, p. 7] ................................................... 5-6 Additional Items to be Included in the Briefing Packet ................... 5-8 5-I.C. Family Obligations ................................................................................ 5-9 Time Frames for Reporting Changes Required
by Family Obligations ...................................................................... 5-9 Family Obligations [24 CFR 982.551] ............................................. 5-9 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE .................................. 5-13 5-II.A. Overview ............................................................................................... 5-13 5-II.B. Determining Family Unit (Voucher) Size [24 CFR 982.402] .............. 5-13 5-II.C. Exceptions to Subsidy Standards .......................................................... 5-15 5-II.D. Voucher Issuance [24 CFR 982.302] .................................................... 5-16 5-II.E. Voucher Term and Extensions.............................................................. 5-17 Voucher Term [24 CFR 982.303] ................................................... 5-17 Extensions of Voucher Term [24 CFR 982.303(b)] ....................... 5-17 Suspensions of Voucher Term [24 CFR 982.303(c)] ..................... 5-19 Expiration of Voucher Term ........................................................... 5-19 Administrative Plan -Table of Contents
Table of Contents TOC-8 Redondo Beach Housing Authority June 2026
Chapter 6.A.

INCOME AND SUBSIDY DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 982]
PART I: ANNUAL INCOME ............................................................................................ 6A-2 6-I.A. Overview .............................................................................................. 6A-2 6-I.B. Household Composition and Income ................................................... 6A-3 Summary of Income Included and Excluded by Person ................ 6A-3 Temporarily Absent Family Members ........................................... 6A-4 Family Members Permanently Confined for Medical Reasons ..... 6A-5 Joint Custody of Dependents ......................................................... 6A-5 Caretakers for a Child .................................................................... 6A-6 6-I.C. Anticipating Annual Income ............................................................... 6A-7 Basis of Annual Income Projection ............................................... 6A-7 Projecting Income .......................................................................... 6A-8 6-I.D. Earned Income ..................................................................................... 6A-9 Types of Earned Income Included in Annual Income ................... 6A-9 Types of Earned Income Not Counted in Annual Income .......... 6A-10 6-I.E. Business Income [24 CFR 5.609(b)(28) as updated for HOTMA; Notice PIH 2023-27)] ........................................................................ 6A-11 Independent Contractors .............................................................. 6A-11 Business Expansion ..................................................................... 6A-11 Capital Indebtedness .................................................................... 6A-12 Negative Business Income ........................................................... 6A-12 Withdrawal of Cash or Assets from a Business ........................... 6A-12 Co-owned Businesses .................................................................. 6A-12 6-I.F. Student Financial Assistance [FR Notice 2/14/23 and Notice PIH 202327] ........................................................................... 6A-13 Calculating Income from Student Financial Assistance
[HOTMA Student Financial Assistance Resource Sheet;
Notice PIH 2023-27] .................................................................... 6A-14 6-I.G. Periodic Payments [Notice PIH 2023-27] ......................................... 6A-17 Lump-Sum Payments for the Delayed Start of a Periodic
Payment [24 CFR 5.609(b)(16) as updated for HOTMA] .......... 6A-17 Retirement Accounts [24 CFR 5.609(b)(26)
as updated for HOTMA] .............................................................. 6A-18 Social Security Benefits [Notice PIH 2023-27]........................... 6A-18 6-I.H. Nonrecurring Income [24 CFR 5.609(b)(24) as updated for HOTMA and Notice PIH 2023-27] ............................................. 6A-19 6-I.I. State Payments to Allow Individuals with Disabilities to Live at Home [24 CFR 5.609(b)(19) as updated for HOTMA] ........ 6A-21 6-I.J. Civil Rights Settlements [24 CFR 5.609(b)(25)
as updated for HOTMA; FR Notice 2/14/23] .................................... 6A-21 6-I.K. Additional Exclusions from Annual Income [24 CFR 5.609(b) as updated for HOTMA; FR Notice 1/31/2024] ................................ 6A-22 Administrative Plan -Table of Contents
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6-I.L. Assets [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] ................................ 6A-28 Overview ...................................................................................... 6A-28 General Policies ........................................................................... 6A-28 Types of Assets ............................................................................ 6A-32 6-I.M. Welfare Assistance ............................................................................ 6A-37 Overview ...................................................................................... 6A-37 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] ............................................................................ 6A-37 6-I.N. Periodic and Determinable Allowances [24 CFR 5.609(b)(7)] ......... 6A-38 Alimony and Child Support ......................................................... 6A-38 PART II: ADJUSTED INCOME....................................................................................... 6A-39 6-II.A. Introduction ........................................................................................ 6A-39 Overview ...................................................................................... 6A-39 Anticipating Expenses ................................................................. 6A-39 6-II.B. Dependent Deduction ........................................................................ 6A-40 6-II.C. Elderly or Disabled Family Deduction .............................................. 6A-40 6-II.D. Health and Medical Care Expenses Deduction
[24 CFR 5.611(a)(3)(i) and 5.603(b) as updated for HOTMA] ........ 6A-41 Definition of Medical Expenses................................................... 6A-41 Summary of Allowable Medical Expenses from IRS
Publication 502 ............................................................................ 6A-42 Families That Qualify for Both health and Medical Care
and Disability Assistance Expenses............................................. 6A-43 6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ..................................................................... 6A-44 Earned Income Limit on the Disability Assistance
Expense Deduction ...................................................................... 6A-44 Eligible Disability Expenses ........................................................ 6A-45 Necessary and Reasonable Expenses ........................................... 6A-46 Families That Qualify for Both Medical and Disability
Assistance Expenses .................................................................... 6A-46 6-II.F. Childcare Expense Deduction ............................................................ 6A-47 Clarifying the Meaning of Child for This Deduction .................. 6A-47 Qualifying for the Deduction ....................................................... 6A-47 Earned Income Limit on Childcare Expense Deduction ............. 6A-48 Eligible Childcare Expenses ........................................................ 6A-49 Administrative Plan -Table of Contents
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PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................ 6A-51 6-III.A. Overview of Rent and Subsidy Calculations ..................................... 6A-51 TTP Formula [24 CFR 5.628] ..................................................... 6A-51 Family Share [24 CFR 982.305(a)(5)] ......................................... 6A-51 PHA Subsidy [24 CFR 982.505(b)]............................................. 6A-52 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] .......... 6A-52 6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] ....... 6A-53 Overview ...................................................................................... 6A-53 HUD-Defined Financial Hardship ............................................... 6A-53 Implementation of Hardship Exemption ..................................... 6A-54 6-III.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2024-34] .......................................................................... 6A-56 Overview ...................................................................................... 6A-56 Changes in Payment Standards .................................................... 6A-56 Reasonable Accommodation [24 CFR 982.503(d)(5)] ................ 6A-59 6-III.D. Applying Utility Allowances [24 CFR 982.517] ............................... 6A-60 Overview ...................................................................................... 6A-60 Flat Fees [24 CFR 982.517(b)(2)(iii)] ......................................... 6A-60 PBV Developments [24 CFR 982.517(b)(2)(iv)] ........................ 6A-60 Reasonable Accommodation and Individual Relief .................... 6A-60 Utility Allowance Revisions ........................................................ 6A-61 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] .................. 6A-62 Exhibit 6-1: Annual Income Inclusions ................................................................................. 6A-63 HHS Definition of "Assistance" ........................................................................ 6A-64 Exhibit 6-2: Annual Income Exclusions ................................................................................ 6A-66 Exhibit 6-3: Treatment of Family Assets ............................................................................... 6A-71 Exhibit 6-4: The Effect of Welfare Benefit Reduction .......................................................... 6A-72 Administrative Plan -Table of Contents
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Chapter 6.B.

INCOME AND SUBSIDY DETERMINATIONS UNDER HOTMA 102/104
[24 CFR Part 5, Subparts E and F; 24 CFR 982]
PART I: ANNUAL INCOME .............................................................................................6B-2 6-I.A. Overview [24 CFR 5.609] ....................................................................6B-2 6-I.B. Household Composition and Income ....................................................6B-3 Overview .........................................................................................6B-3 Summary of Income Included and Excluded by Person .................6B-3 Temporarily Absent Family Members ............................................6B-4 Family Members Permanently Confined for Medical Reasons ......6B-5 Joint Custody of Dependents ..........................................................6B-5 Caretakers for a Child .....................................................................6B-6 6-I.C. Calculating Annual Income .................................................................6B-7 Anticipating Annual Income [24 CFR 5.609(c)(1)] .......................6B-7 Calculating Annual Income at Annual Reexamination
[24 CFR.609(c)(2); Notice PIH 2023-27] ......................................6B-8 6-I.D. Earned Income ......................................................................................6B-9 6-I.E. Business and Self-Employment Income [24 CFR 5.609(b)(28); Notice PIH 2023-27] ...........................................................................6B-11 Independent Contractors ...............................................................6B-11 Business Expansion ......................................................................6B-11 Capital Indebtedness .....................................................................6B-12 Negative Business Income ............................................................6B-12 Withdrawal of Cash or Assets from a Business ............................6B-12 Co-owned Businesses ...................................................................6B-12 Assets Owned by a Business Entity..............................................6B-12 6-I.F. Student Financial Assistance [FR Notice 2/14/23
and Notice PIH 2023-27] ....................................................................6B-13 Calculating Income from Student Financial Assistance
[HOTMA Student Financial Assistance Resource Sheet;
Notice PIH 2023-27 ......................................................................6B-14 Administrative Plan -Table of Contents
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6-I.G. Periodic Payments ..............................................................................6B-17 Lump-Sum Payments for the Delayed Start of a
Periodic Payment [24 CFR 5.609(b)(16)] ....................................6B-17 Retirement Accounts [24 CFR 5.609(b)(26);
Notice PIH 2023-27] .....................................................................6B-18 Social Security Benefits [Notice PIH 2023-27]............................6B-18 Alimony and Child Support ..........................................................6B-19 6-I.H. Nonrecurring Income [24 CFR 5.609(b)(24) and
Notice PIH 2023-27] ...........................................................................6B-20 6-I.I. Welfare Assistance .............................................................................6B-21 Overview .......................................................................................6B-21 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] .............................................................................6B-21 6-I.J. State Payments to Allow Individuals with Disabilities to Live at Home [24 CFR 5.609(b)(19)] ...............................................6B-22 6-I.K. Civil Rights Settlements [24 CFR 5.609(b)(25);
FR Notice 2/14/23] .............................................................................6B-22 6-I.L. Additional Exclusions From Annual Income
[24 CFR 5.609(b); FR Notice 1/31/2024] ...........................................6B-23 PART II: ASSETS ..............................................................................................................6B-29 6-II.A. Overview .............................................................................................6B-29 6-II.B. Assets Disposed of for Less Than Fair Market Value [24 CFR 5.603(b)(2)] ..........................................................................6B-30 6-II.C. Asset Inclusions and Exclusions .........................................................6B-31 6-II.D. Determining Income from Assets .......................................................6B-40 PART III: ADJUSTED INCOME........................................................................................6B-43 6-III.A. Introduction .........................................................................................6B-43 Overview .......................................................................................6B-43 Anticipating Expenses ..................................................................6B-44 6-III.B. Dependent Deduction .........................................................................6B-44 6-III.C. Elderly or Disabled Family Deduction ...............................................6B-44 6-III.D. Health and Medical Care Expenses Deduction
[24 CFR 5.611(a)(3)(i) and 5.603(b)] .................................................6B-45 Definition of Medical Expenses....................................................6B-45 Families That Qualify for Both and Medical and
Disability Assistance Expenses ....................................................6B-47 6-III.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ......................................................................6B-48 Earned Income Limit on the Disability Assistance
Expense Deduction .......................................................................6B-48 Necessary and Reasonable Expenses ............................................6B-49 Families That Qualify for Both Health and Medical and
Disability Assistance Expenses ....................................................6B-49 Administrative Plan -Table of Contents
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6-III.F. Childcare Expense Deduction .............................................................6B-50 Clarifying the Meaning of Child for This Deduction ...................6B-50 Qualifying for the Deduction ........................................................6B-50 Earned Income Limit on Childcare Expense Deduction ..............6B-51 Eligible Childcare Expenses .........................................................6B-52 6-III.G. Hardship Exemptions [24 CFR 5.611(c), (d), and (e)] .......................6B-53 Health and Medical Care and Disability Assistance
Expenses [24 CFR 5.611(c); Notice PIH 2023-27] ......................6B-53 Phased-In Relief ............................................................................6B-53 General Relief` ..............................................................................6B-54 Childcare Expense Hardship Exemption [24 CFR 5.611(d)
and Notice PIH 2023-27] ..............................................................6B-56 6-III.H. Permissive Deductions [24 CFR 5.611(b)(1)(ii)] ...............................6B-59 PART IV: CALCULATING FAMILY SHARE AND PHA SUBSIDY .............................6B-61 6-IV.A. Overview of Rent and Subsidy Calculations ......................................6B-61 TTP Formula [24 CFR 5.628] ......................................................6B-61 Family Share [24 CFR 982.305(a)(5)] ..........................................6B-61 PHA Subsidy [24 CFR 982.505(b)]..............................................6B-62 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ...........6B-62 6-IV.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] ........6B-63 Overview .......................................................................................6B-63 HUD-Defined Financial Hardship ................................................6B-63 Implementation of Hardship Exemption ......................................6B-64 6-IV.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2024 34] ...........................................................................6B-66 Overview .......................................................................................6B-66 Changes in Payment Standards .....................................................6B-66 Reasonable Accommodation [24 CFR 982.503(d)(5)] .................6B-69 6-IV.D. Applying Utility Allowances [24 CFR 982.517] ................................6B-70 Overview .......................................................................................6B-70 Flat Fees [24 CFR 982.517(b)(2)(iii)] ..........................................6B-70 PBV Developments [24 CFR 982.517(b)(2)(iv)] .........................6B-70 Reasonable Accommodation and Individual Relief .....................6B-70 Utility Allowance Revisions .........................................................6B-71 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] ...................6B-72 Exhibit 6-1: Annual Income Full Definition ...........................................................................6B-74 Exhibit 6-2: Treatment of Family Assets ................................................................................6B-79 Exhibit 6-3: The Effect of Welfare Benefit Reduction ...........................................................6B-80 Administrative Plan -Table of Contents
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Chapter 7.A.

VERIFICATION
[24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2018-18] PART I: GENERAL VERIFICATION REQUIREMENTS .............................................. 7A-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; Notice PIH 2023-27; and
[email protected] response 9/15/25] ............................... 7A-1 Consent Forms ............................................................................... 7A-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4),
and (c)(5); and Notice PIH 2023-27] ............................................. 7A-3 Penalties for Failing to Consent [24 CFR 5.232] .......................... 7A-4 7-I.B. Overview of Verification Requirements .............................................. 7A-5 Use of Other Programs’ Income Determinations
[24 CFR 5.609(c)(3) and Notice PIH 2023 27] ............................. 7A-5 HUD’s Verification Hierarchy [Notice PIH 2018-18] .................. 7A-8 Requirements for Acceptable Documents ..................................... 7A-8 File Documentation ....................................................................... 7A-9 7-I.C. Streamlined Income Determinations [24 CFR 960.257(c) and Notice PIH 2023-27] ................................................................... 7A-10 7-I.D. Up-Front Income Verification (UIV) ................................................ 7A-10 Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) ...................................... 7A-11 Upfront Income Verification Using Non-HUD
Systems (Optional) ...................................................................... 7A-12 7-I.E. Third-Party Written and Oral Verification ........................................ 7A-13 Written Third-Party Verification [Notice PIH 2018-18] ............. 7A-13 Written Third-Party Verification Form ....................................... 7A-14 Oral Third-Party Verification [Notice PIH 2018-18] .................. 7A-14 When Third-Party Verification is Not Required
[Notice PIH 2018-18] .................................................................. 7A-15 7-I.F. Self-Certification ............................................................................... 7A-15 Administrative Plan -Table of Contents
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PART II: VERIFYING FAMILY INFORMATION ......................................................... 7A-17 7-II.A. Verification of Legal Identity ............................................................ 7A-17 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2018-24] ....... 7A-18 7-II.C. Documentation of Age ....................................................................... 7A-20 7-II.D. Family Relationships ......................................................................... 7A-21 Marriage ....................................................................................... 7A-21 Separation or Divorce .................................................................. 7A-21 Absence of Adult Member........................................................... 7A-21 Foster Children and Foster Adults ............................................... 7A-21 7-II.E. Verification of Student Status ............................................................ 7A-22 General Requirements ................................................................. 7A-22 Restrictions on Assistance to Students Enrolled in
Institutions of Higher Education .................................................. 7A-22 7-II.F. Documentation of Disability .............................................................. 7A-23 Family Members Receiving SSA Disability Benefits ................. 7A-24 Family Members Not Receiving SSA Disability Benefits .......... 7A-24 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ............. 7A-25 Overview ...................................................................................... 7A-25 U.S. Citizens and Nationals ......................................................... 7A-23 Eligible Immigrants ..................................................................... 7A-25 7-II.H. Verification of Preference Status ....................................................... 7A-27 PART III: VERIFYING INCOME AND ASSETS ............................................................ 7A-29 7-III.A. Earned Income ................................................................................... 7A-29 Tips .............................................................................................. 7A-29 Wages .......................................................................................... 7A-29 7-III.B. Business and Self Employment Income ............................................ 7A-30 7-III.C. Periodic Payments and Payments In Lieu of Earnings ...................... 7A-31 Social Security/SSI Benefits ........................................................ 7A-31 7-III.D. Alimony or Child Support ................................................................. 7A-32 7-III.E. Assets and Income From Assets ........................................................ 7A-32 Assets Disposed of for Less than Fair Market Value .................. 7A-32 7-III.F. Net Income From Rental Property ..................................................... 7A-33 7-III.G. Retirement Accounts ......................................................................... 7A-33 7-III.H. Income From Excluded Sources ........................................................ 7A-34 7-III.I. Zero Income Families [Notice PIH 2023-27] .................................... 7A-35 7-III.J. Student Financial Assistance [24 CFR 5.609(b)(9) as updated for HOTMA] ...................................................................................... 7A-36 7-III.K. Parental Income of Students Subject to Eligibility Restrictions ........ 7A-37 Administrative Plan -Table of Contents
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PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................ 7A-39 7-IV.A. Dependent and Elderly/Disabled Household Deductions .................. 7A-39 Dependent Deduction .................................................................. 7A-39 Elderly/Disabled Family Deduction ............................................ 7A-39 7-IV.B. Health and Medical Care Expense Deduction ................................... 7A-40 Amount of Expense ..................................................................... 7A-40 Eligible Household ...................................................................... 7A-41 Qualified Expenses ...................................................................... 7A-41 Unreimbursed Expenses .............................................................. 7A-41 Expenses Incurred in Past Years .................................................. 7A-41 7-IV.C. Disability Assistance Expenses ......................................................... 7A-42 Amount of Expense ..................................................................... 7A-42 Family Member is a Person with Disabilities .............................. 7A-43 Family Member(s) Permitted to Work ........................................ 7A-43 Unreimbursed Expenses .............................................................. 7A-43 7-IV.D. Childcare Expenses ............................................................................ 7A-44 Eligible Child ............................................................................... 7A-44 Unreimbursed Expense ................................................................ 7A-44 Pursuing an Eligible Activity ...................................................... 7A-45 Allowable Type of Childcare ....................................................... 7A-46 Reasonableness of Expenses ........................................................ 7A-46 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10] ............................................................................. 7A-47 Administrative Plan -Table of Contents
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Chapter 7.B.

VERIFICATION UNDER HOTMA 102/104
[24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2023-27] PART I: GENERAL VERIFICATION REQUIREMENTS ...............................................7B-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; Notice PIH 2023-27; and
[email protected] response 9/15/25] ................................7B-1 Consent Forms ................................................................................7B-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4),
and (c)(5); and Notice PIH 2023-27] ..............................................7B-3 Penalties for Failing to Consent [24 CFR 5.232] ...........................7B-4 7-I.B. Use of Other Programs’ Income Determinations
[24 CFR 5.609(c)(3) and Notice PIH 2023-27] ....................................7B-5 7-I.C. Streamlined Income Determinations [24 CFR 960.257(c); Notice PIH 2023-27] .............................................................................7B-8 7-I.D. Verification Hierarchy [Notice PIH 2023-27] ......................................7B-8 File Documentation ........................................................................7B-9 7-I.E. Level 5 and 6 Verifications: Up-Front Income Verification (UIV) ...7B-10 HUD’s Enterprise Income Verification (EIV) System
(Mandatory) ..................................................................................7B-10 Upfront Income Verification Using Non-HUD Systems ..............7B-13 7-I.F. Level 4 Verification [Notice PIH 2023-27] ........................................7B-14 EIV + Self-Certification ...............................................................7B-14 Written Third-Party Verification from the Source .......................7B-14 7-I.G. Level 3 Verification: Written, Third-Party Form
[Notice PIH 2023-27] .........................................................................7B-17

7.I.H. Level 2: Oral Third-Party Verification [Notice PIH 2023-27] ...........7B-17 When Third-Party Verification is Not Required
[Notice PIH 2023-27] ...................................................................7B-18 7-I.I. Level 1: Non-Third-Party Verification:

Self-Certification [Notice PIH 2023-27] ............................................7B-19 PART II: VERIFYING FAMILY INFORMATION ..........................................................7B-20 7-II.A. Verification of Legal Identity .............................................................7B-20 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2023-27] ........7B-21 7-II.C. Documentation of Age ........................................................................7B-23 7-II.D. Family Relationships ..........................................................................7B-24 Marriage ........................................................................................7B-24 Separation or Divorce ...................................................................7B-24 Absence of Adult Member............................................................7B-24 Foster Children and Foster Adults ................................................7B-24 7-II.E. Verification of Student Status .............................................................7B-25 General Requirements ..................................................................7B-25 Restrictions on Assistance to Students Enrolled in
Institutions of Higher Education ...................................................7B-25 Administrative Plan -Table of Contents
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7-II.F. Documentation of Disability ...............................................................7B-26 Family Members Receiving SSA Disability Benefits ..................7B-27 Family Members Not Receiving SSA Disability Benefits ...........7B-27 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ..............7B-28 Overview .......................................................................................7B-28 U.S. Citizens and Nationals ..........................................................7B-28 Eligible Immigrants ......................................................................7B-29 7-II.H. Verification of Preference Status ........................................................7B-30 PART III: VERIFYING INCOME AND ASSETS .............................................................7B-32 7-III.A. Earned Income ....................................................................................7B-32 Tips ...............................................................................................7B-32 Wages ...........................................................................................7B-32 7-III.B. Business and Self Employment Income .............................................7B-33 7-III.C. Periodic Payments and Payments In Lieu of Earnings .......................7B-34 Social Security/SSI Benefits [Notice PIH 2023-27] .....................7B-34 7-III.D. Alimony or Child Support [Notice PIH 2023-27] ..............................7B-35 7-III.E. Nonrecurring Income [Notice PIH 2023-27] ......................................7B-35 7-III.F. Assets and Income From Assets .........................................................7B-36 Net Family Assets [24 CFR 5.603]...............................................7B-36 Self-Certification of Real Property Ownership
[24 CFR 5.618(b)(2); Notice PIH 2023-27] .................................7B-36 7-III.G. Net Income From Rental Property ......................................................7B-37 7-III.H. Federal Tax Refunds or Refundable Tax Credits
[Notice PIH 2023-27] .........................................................................7B-37 7-III.I. Retirement Accounts ..........................................................................7B-37 7-III.J. Income From Excluded Sources [Notice PIH 2023-27] .....................7B-38 7-III.K. Zero Income Families [Notice PIH 2023-27] .....................................7B-39 7-III.L. Student Financial Assistance [24 CFR 5.609(b)(9)] ...........................7B-40 7-III.M. Parental Income of Students Subject to Eligibility Restrictions .........7B-41 PART IV: VERIFYING MANDATORY DEDUCTIONS .................................................7B-43 7-IV.A. Dependent and Elderly/Disabled Household Deductions ...................7B-43 Dependent Deduction ...................................................................7B-43 Elderly/Disabled Family Deduction .............................................7B-43 7-IV.B. Health and Medical Care Expense Deduction ....................................7B-44 Amount of Expense ......................................................................7B-44 Eligible Household .......................................................................7B-45 Qualified Expenses .......................................................................7B-45 Unreimbursed Expenses ...............................................................7B-45 Expenses Incurred in Past Years ...................................................7B-45 7-IV.C. Disability Assistance Expenses ..........................................................7B-46 Amount of Expense ......................................................................7B-46 Family Member is a Person with Disabilities ...............................7B-48 Family Member(s) Permitted to Work .........................................7B-48 Unreimbursed Expenses ...............................................................7B-48 Administrative Plan -Table of Contents
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7-IV.D. Childcare Expenses .............................................................................7B-49 Eligible Child ................................................................................7B-49 Unreimbursed Expense .................................................................7B-49 Pursuing an Eligible Activity .......................................................7B-50 Allowable Type of Childcare ........................................................7B-51 Reasonableness of Expenses .........................................................7B-51 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10] ..............................................................................7B-52 Exhibit 7-2: SAVE System Responses and Section 214 Eligibility for HUD Assistance [HUD Secretary Letter 12/16/25] .......................................................................7B-53 Administrative Plan -Table of Contents
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Chapter 8.A.

HOUSING QUALITY STANDARDS AND RENT REASONABLENESS

DETERMINATIONS
[24 CFR 982 Subpart I and 24 CFR 982.507]
NSPIRE AND HQS .................................................................................................................. 8A-1 PART I: PHYSICAL STANDARDS ................................................................................. 8A-2 8-I.A. General HUD Requirements ................................................................ 8A-2 HUD Performance and Acceptability Standards ........................... 8A-2 NSPIRE Standards Applicable to HQS [HUD Letter 6/14/24
and PIH 2024-26, REV-1] ............................................................. 8A-3 Tenant Preference Items ................................................................ 8A-3 Modifications to Provide Accessibility ......................................... 8A-4 8-I.B. Additional Local Requirements ........................................................... 8A-4 Thermal Environment [HCV GB p.10-7] ...................................... 8A-4 Clarifications of HUD Requirements ............................................ 8A-4 8-I.C. Life-Threatening Conditions [24 CFR 982.404(a);
FR Notice 1/18/17] .............................................................................. 8A-6 8-I.D. Owner and Family Responsibilities [24 CFR 982.404] ....................... 8A-9 Owner Obligation .......................................................................... 8A-9 Family Responsibilities ............................................................... 8A-10 8-I-E. Special Requirements for Children with Elevated Blood Lead Level [24 CFR 35.1225; FR Notice 1/13/17;
Notice PIH 2017-13] .......................................................................... 8A-11 8-I-F. Violation of HQS Space Standards
[24 CFR 982.401, 24 CFR 982.403].................................................. 8A-11 PART II: THE INSPECTION PROCESS ......................................................................... 8A-13 8-II.A. Overview [24 CFR 982.405] ............................................................. 8A-13 Types of Inspections .................................................................... 8A-13 Inspection of PHA-Owned Units [24 CFR 982.352(b)] .............. 8A-13 Inspection Costs [Notice PIH 2016-05; 24 CFR 5.705(h)] ......... 8A-14 Remote Video Inspections (RVIs) [Notice PIH 2020-31] ........... 8A-14 Notice and Scheduling ................................................................. 8A-14 Owner and Family Inspection Attendance .................................. 8A-15 Administrative Plan -Table of Contents
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8-II.B. Initial HQS Inspection [24 CFR 982.405(a)] .................................... 8A-15 Approving Units with Non-Life-Threatening Deficiencies
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.405(j)] ............................................................... 8A-15 Approving Units Using Alternative Inspections
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.406] ................................................................... 8A-16 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] ............ 8A-16 Inspection Results and Reinspections .......................................... 8A-17 Utilities ........................................................................................ 8A-17 Appliances [Form HUD-52580] .................................................. 8A-17 8-II.C. Periodic HQS Inspections [24 CFR 982.405(b) and Notice PIH 2016-05] .......................................................................... 8A-18 Scheduling the Inspection ............................................................ 8A-18 8-II.D. Interim Inspections [24 CFR 982.405(d)] ......................................... 8A-18 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-32].............................................. 8A-19 8-II.F. Inspection Results and Reinspections for Units
Under HAP Contract .......................................................................... 8A-19 Notification of Corrective Actions [24 CFR 982.404(d)(1)] ....... 8A-19 Extensions .................................................................................... 8A-21 Reinspections [24 CFR 982.405(i)] ............................................. 8A-21 8-II.G. Enforcing Owner Compliance ........................................................... 8A-22 HAP Withholding [24 CFR 982.404(d)(1)]................................. 8A-22 HAP Abatement [24 CFR 982.404(d)(2)] ................................... 8A-22 HAP Contract Termination .......................................................... 8A-23 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] ....... 8A-23 PART III: RENT REASONABLENESS [24 CFR 982.507] ................................................ 8A-24 8-III.A. Overview ............................................................................................ 8A-24 PHA-Owned Units [24 CFR 982.352(b)] .................................... 8A-24 8-III.B. When Rent Reasonableness Determinations Are Required............... 8A-25 Owner-Initiated Rent Determinations .......................................... 8A-25 PHA- and HUD-Initiated Rent Reasonableness Determinations 8A-25 LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) .......... 8A-26 8-III.C. How Comparability Is Established .................................................... 8A-26 Factors to Consider ...................................................................... 8A-26 Units that Must Not be Used as Comparables ............................. 8A-26 Rents Charged for Other Units on the Premises .......................... 8A-27 8-III.D. PHA Rent Reasonableness Methodology .......................................... 8A-27 How Market Data Is Collected .................................................... 8A-27 How Rents Are Determined ......................................................... 8A-27 Exhibit 8-1: Overview of HUD Housing Quality Standards ................................................. 8A-29 Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality .................. 8A-33 Administrative Plan -Table of Contents
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Chapter 8.B.

NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE

AND RENT REASONABLENESS DETERMINATIONS
[24 CFR 5 Subpart G and Notice PIH 2024-26, REV-1]
NSPIRE AND HQS ...................................................................................................................8B-2 PART I: NSPIRE STANDARDS ........................................................................................8B-3 8-I.A. Inspectable Areas [24 CFR 5.703(a)(1) and
24 CFR 5.705(a)(2)] .............................................................................8B-3 8-I.B. Affirmative Habitability Requirements
[24 CFR 5.703(b), (c), and (d)] .............................................................8B-3 8-I.C. Modifications to Provide Accessibility
[24 CFR 100.203; Notice 2003-31; and Notice PIH 2014-02] .............8B-4 8-I.D. Additional Local Requirements [24 CFR 5.705(a)(3) and Notice PIH 2024-26. Rev-1] .................................................................8B-4 8-I.E. Life-Threatening Deficiencies [Notice PIH 2024-26, REV-1 and FR Notice 7/14/17] ...............................................................................8B-5 8-I.F. Owner and Family Responsibilities [24 CFR 982.404] ........................8B-8 Owner Obligation ...........................................................................8B-8 Family Responsibilities ..................................................................8B-9 8-I.G. Lead-Based Paint ................................................................................8B-10 Special Requirements for Children with Elevated Blood
Lead Level [24 CFR 35.1225; FR Notice 1/13/17;
Notice PIH 2017-13] .....................................................................8B-10 8-I-H. Violation of Space Standards [24 CFR 5.703(d)(5)] ..........................8B-11 PART II: THE INSPECTION PROCESS ..........................................................................8B-12 8-II.A. Overview [24 CFR 982.405] ..............................................................8B-12 Types of Inspections .....................................................................8B-12 Inspection of PHA-Owned Units [24 CFR 982.352(b)] ...............8B-12 Inspection Costs [Notice PIH 2016-05 and 24 CFR 5.705(h)] .....8B-13 Remote Video Inspections (RVIs) [Notice PIH 2020-31] ............8B-13 Notice and Scheduling ..................................................................8B-13 Owner and Family Inspection Attendance ...................................8B-14 Administrative Plan -Table of Contents
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8-II.B. Initial Inspection [24 CFR 982.405(a)] ..............................................8B-14 Approving Units with Non-Life-Threatening Deficiencies
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.405(j)] ................................................................8B-14 Approving Units Using Alternative Inspections
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.406] ....................................................................8B-15 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] .............8B-15 Inspection Results and Reinspections ...........................................8B-16 Utilities .........................................................................................8B-16 Appliances ....................................................................................8B-16 8-II.C. Periodic Inspections [24 CFR 982.405(b) and
Notice PIH 2016-05] ...........................................................................8B-17 Scheduling the Inspection .............................................................8B-17 8-II.D. Interim Inspections [24 CFR 982.405(d)] ..........................................8B-17 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-32]...............................................8B-18 8-II.F. Inspection Results and Reinspections for Units Under HAP Contract ......................................................................................8B-18 Correction Timeframes [Notice PIH 2024-26, REV-1] ...............8B-18 Notification of Corrective Actions [24 CFR 982.404(d)(1)] ........8B-18 Extensions .....................................................................................8B-20 Reinspections [24 CFR 982.405(i)] ..............................................8B-20 8-II.G. Enforcing Owner Compliance ............................................................8B-21 HAP Withholding [24 CFR 982.404(d)(1)]..................................8B-21 HAP Abatement [24 CFR 982.404(d)(2)] ....................................8B-21 HAP Contract Termination ...........................................................8B-22 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] ........8B-23 Administrative Plan -Table of Contents
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PART III: RENT REASONABLENESS [24 CFR 982.507] ...............................................8B-24 8-III.A. Overview .............................................................................................8B-24 PHA-Owned Units [24 CFR 982.352(b)] .....................................8B-24 8-III.B. When Rent Reasonableness Determinations Are Required................8B-25 Owner-Initiated Rent Determinations ...........................................8B-25 PHA- and HUD-Initiated Rent Reasonableness Determinations .8B-25 LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) ...........8B-26 8-III.C. How Comparability Is Established .....................................................8B-27 Factors to Consider .......................................................................8B-27 Units that Must Not be Used as Comparables ..............................8B-27 Rents Charged for Other Units on the Premises ...........................8B-27 8-III.D. PHA Rent Reasonableness Methodology ...........................................8B-28 How Market Data Is Collected .....................................................8B-28 How Rents Are Determined ..........................................................8B-28 Exhibit 8-1: Affirmative Habitability Requirements ..............................................................8B-30 Administrative Plan -Table of Contents
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Chapter 9

GENERAL LEASING POLICIES
9-I.A. Tenant Screening .................................................................................... 9-2 9-I.B. Requesting Tenancy Approval [Form HUD-52517
and 24 CFR 982.302] .............................................................................. 9-3 9-I.C. Owner Participation ................................................................................ 9-4 9-I.D. Eligible Units .......................................................................................... 9-5 Ineligible Units [24 CFR 982.352(a)] ............................................... 9-5 PHA-Owned Units [24 CFR 982.352(b)] ......................................... 9-5 Special Housing Types [24 CFR 982 Subpart M] ............................ 9-5 Duplicative Assistance [24 CFR 982.352(c)] ................................... 9-6 Initial Inspection ............................................................................... 9-6 Unit Size ........................................................................................... 9-7 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] ........ 9-7 Rent Burden [24 CFR 982.508] ........................................................ 9-7 9-I.E. PHA Leasing Assistance for Families (Notice PIH 2022-18) ................ 9-8 9-I.F. Lease and Tenancy Addendum ............................................................... 9-8 Lease Form and Tenancy Addendum [24 CFR 982.308] ................. 9-8 Lease Information [24 CFR 982.308(d)] .......................................... 9-9 Term of Assisted Tenancy ................................................................ 9-9 Security Deposit [24 CFR 982.313 (a) and (b)] ............................... 9-9 Separate Non-Lease Agreements between Owner and Tenant ....... 9-10 PHA Review of Lease .................................................................... 9-11 9-I.G. Tenancy Approval [24 CFR 982.305] .................................................. 9-12 9-I.H. HAP Contract Execution [24 CFR 982.305] ........................................ 9-13 9-I.I. Changes in Lease or Rent [24 CFR 982.308] ....................................... 9-15 Administrative Plan -Table of Contents
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Chapter 10

MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY
PART I: MOVING WITH CONTINUED ASSISTANCE ................................................. 10-1 10-I.A. Allowable Moves .................................................................................. 10-1 10-I.B. Family Moves Due to Unit Deficiencies .............................................. 10-3 Units in Abatement [24 CFR 982.404(d)(3)] ................................. 10-3 Termination of HAP Contract and Family Moves
[24 CFR 982.404(e)] ....................................................................... 10-3 Offer of Public Housing [24 CFR 982.404(e)(2)] .......................... 10-4 Relocation Assistance [24 CFR 982.404(e)(3)] .............................. 10-4 10-I.C. Restrictions On Moves ......................................................................... 10-5 Denial of Moves ............................................................................. 10-5 Restrictions on Elective Moves [24 CFR 982.354(c)] .................... 10-6 10-I.D. Moving Process .................................................................................... 10-7 Notification ..................................................................................... 10-7 Approval ......................................................................................... 10-7 Reexamination of Family Income and Composition ...................... 10-7 Voucher Issuance and Briefing ....................................................... 10-7 Housing Assistance Payments [24 CFR 982.311(d)] ..................... 10-8 Zero HAP Families Who Wish to Move [24 CFR 982.455] .......... 10-8 PART II: PORTABILITY .................................................................................................... 10-9 10-II.A. Overview ............................................................................................... 10-9 10-II.B. Initial PHA Role ................................................................................. 10-10 Allowable Moves under Portability .............................................. 10-10 Determining Income Eligibility .................................................... 10-11 Reexamination of Family Income and Composition .................... 10-11 Briefing ......................................................................................... 10-12 Voucher Issuance and Term ......................................................... 10-12 Voucher Extensions and Expiration ............................................. 10-13 Preapproval Contact with the Receiving PHA ............................. 10-13 Initial Notification to the Receiving PHA .................................... 10-13 Sending Documentation to the Receiving PHA ........................... 10-14 Initial Billing Deadline [Notice PIH 2016-09] ............................. 10-15 Monthly Billing Payments [Notice PIH 2016-09] ........................ 10-16 Annual Updates of Form HUD-50058 ......................................... 10-16 Denial or Termination of Assistance [24 CFR 982.355(c)(17)] ... 10-16 10-II.C. Receiving PHA Role ........................................................................... 10-17 Responding to Initial PHA’s Request [24 CFR 982.355(c)] ........ 10-17 Initial Contact with Family ........................................................... 10-17 Briefing ......................................................................................... 10-18 Income Eligibility and Reexamination ......................................... 10-18 Voucher Issuance .......................................................................... 10-19 Notifying the Initial PHA ............................................................. 10-20 Administering a Portable Family’s Voucher ................................ 10-20 Absorbing a Portable Family ........................................................ 10-24 Administrative Plan -Table of Contents
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Chapter 11.A.

REEXAMINATIONS
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ........................................ 11A-1 11-I.A. Overview ............................................................................................ 11A-1 11-I.B. Scheduling Annual Reexaminations .................................................. 11A-2 Notification of and Participation in the Annual
Reexamination Process ................................................................ 11A-2 11-I.C. Conducting Annual Reexaminations ................................................. 11A-3 11-I.D. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)] ..................................................................... 11A-5 11-I.E. Effective Dates ................................................................................... 11A-6 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ........................................ 11A-7 11-II.A. Overview ............................................................................................ 11A-7 11-II.B. Changes In Family and Household Composition .............................. 11A-7 New Family Members Not Requiring PHA Approval ................ 11A-7 New Family and Household Members Requiring Approval ....... 11A-8 Departure of a Family or Household Member ............................. 11A-8 Changes in Family Unit Size (Voucher Size)
[24 CFR 982.505(c)(6)] ............................................................... 11A-9 11-II.C. Changes Affecting Income or Expenses .......................................... 11A-10 PHA-Required Interim Reexaminations .................................... 11A-10 Family-Initiated Interim Reexaminations .................................. 11A-11 11-II.D. Processing the Interim Reexamination ............................................ 11A-12 Method of Reporting .................................................................. 11A-12 Effective Dates ........................................................................... 11A-12 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT ........... 11A-13 11-III.A. Overview .......................................................................................... 11A-13 11-III.B. Changes In Payment Standards and Utility Allowances ................. 11A-13 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ... 11A-13 Subsidy Standards [24 CFR 982.505(c)(4)] .............................. 11A-13 Utility Allowances [24 CFR 982.517(d)] .................................. 11A-13 11-III.C. Notification of New Family Share and HAP Amount ..................... 11A-14 11-III.D. Discrepancies ................................................................................... 11A-14 Administrative Plan -Table of Contents
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Chapter 11.B.

REEXAMINATIONS UNDER HOTMA 102/104
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] .........................................11B-1 11-I.A. Overview .............................................................................................11B-1 11-I.B. Scheduling Annual Reexaminations ...................................................11B-2 Notification of and Participation in the Annual
Reexamination Process .................................................................11B-2 11-I.C. Conducting Annual Reexaminations ..................................................11B-3 11-I.D. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)] ......................................................................11B-5 11-I.E. Calculating Annual Income at Annual Reexamination [24 CFR 5.609(c)(2) and Notice PIH 2023-27] ..................................11B-6 11-I.F. Effective Dates ....................................................................................11B-8 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516; Notice PIH 2023-27] ......11B-9 11-II.A. Overview .............................................................................................11B-9 11-II.B. Changes In Family and Household Composition ...............................11B-9 Reporting ......................................................................................11B-9 New Family Members Not Requiring PHA Approval .................11B-9 New Family and Household Members Requiring Approval ......11B-10 Departure of a Family or Household Member ............................11B-11 Changes in Family Unit Size (Voucher Size)
[24 CFR 982.505(c)(6)] ..............................................................11B-11 11-II.C. Changes Affecting Income or Expenses ...........................................11B-12 Overview .....................................................................................11B-12 Interim Decreases [24 CFR 982.516(c)(2)
and Notice PIH 2023-27] ............................................................11B-12 Interim Increases [24 CFR 982.516(c)(3) and
Notice PIH 2023-27] ...................................................................11B-13 11-II.D. Effective Dates [24 CFR 982.516(e) and Notice 2023-27] ..............11B-16 Changes Reported Timely [Notice PIH 2023-27] ......................11B-16 Changes Not Reported Timely [Notice PIH 2023-27] ...............11B-16 PART III: NON-INTERIM REEXAMINATION TRANSACTIONS
[Notice PIH 2023-27] .......................................................................................11B-18 PART IV RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT ............11B-20 11-IV.A. Overview ...........................................................................................11B-20 11-IV.B. Changes In Payment Standards and Utility Allowances ..................11B-20 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ....11B-20 Subsidy Standards [24 CFR 982.505(c)(4)] ...............................11B-20 Utility Allowances [24 CFR 982.517(d)] ...................................11B-20 11-IV.C. Notification of New Family Share and HAP Amount ......................11B-21 11-IV.D. Discrepancies ....................................................................................11B-21 Exhibit 11-1: Calculating Income at Annual Reexamination .................................................11B-22 Administrative Plan -Table of Contents
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Chapter 12

TERMINATION OF ASSISTANCE AND TENANCY
PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ...................................... 12-1 12-I.A. Overview ............................................................................................... 12-1 12-I.B. Family No Longer Requires Assistance [24 CFR 982.455] ................. 12-1 12-I.C. Family Chooses to Terminate Assistance ............................................. 12-2 12-I.D. Mandatory Termination of Assistance .................................................. 12-2 Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]................ 12-2 Failure to Provide Consent [24 CFR 982.552(b)(3)] ...................... 12-3 Failure to Document Citizenship [24 CFR 982.552(b)(4)
and 24 CFR 5.514(c)] ..................................................................... 12-3 Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2018-24] ........................................ 12-3 Methamphetamine Manufacture or Production
[24 CFR 983.553(b)(1)(ii)] ............................................................. 12-4 Lifetime Registered Sex Offenders [Notice PIH 2012-28] ............ 12-4 Failure of Students to Meet Ongoing Eligibility
Requirements [24 CFR 982.552(b)(5) and FR 4/10/06] ................. 12-4 Death of the Sole Family Member [24 CFR 982.311(d) and
Notice PIH 2010-9] ......................................................................... 12-4 12-I.E. Mandatory Policies and Other Authorized Terminations ..................... 12-5 Mandatory Policies [24 CFR 982.553(b) and 982.551(l)] .............. 12-5 Other Authorized Reasons for Termination of Assistance
[24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] ...... 12-7 Upon the PHA’s HOTMA 102/104 compliance date, the below section on the asset limitation is added: ......................................... 12-8 Asset Limitation [24 CFR 5.618; Notice PIH 2023-27] ................. 12-8 PART II: APPROACH TO TERMINATION OF ASSISTANCE ..................................... 12-11 12-II.A. Overview ............................................................................................. 12-11 12-II.B. Method of Termination [24 CFR 982.552(a)(3)] ............................... 12-11 12-II.C. Alternatives to Termination of Assistance ......................................... 12-11 Change in Household Composition .............................................. 12-11 Repayment of Family Debts ......................................................... 12-11 12-II.D. Criteria for Deciding to Terminate Assistance ................................... 12-12 Evidence ....................................................................................... 12-12 Use of Criminal Conviction Records
after Admission [24 CFR 5.903] .................................................. 12-12 Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] ........ 12-12 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ........... 12-13 Administrative Plan -Table of Contents
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12-II.E. Terminations Related to Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking ................................ 12-14 VAWA Protections against Terminations .................................... 12-14 Limitations on VAWA Protections
[24 CFR 5.2005(d) and (e)] .......................................................... 12-15 Documentation of Abuse [24 CFR 5.2007] .................................. 12-16 Terminating the Assistance of a Domestic
Violence Perpetrator ..................................................................... 12-16 12-II.F. Termination Notice ............................................................................. 12-18 PART III: TERMINATION OF TENANCY BY THE OWNER........................................ 12-19 12-III.A. Overview ............................................................................................. 12-19 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]....................................... 12-19 Serious or Repeated Lease Violations .......................................... 12-19 Violation of Federal, State, or Local Law .................................... 12-19 Criminal Activity or Alcohol Abuse ............................................. 12-19 Other Good Cause ......................................................................... 12-20 12-III.C. Eviction [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] .......................................................................... 12-21 12-III.D. Deciding Whether to Terminate Tenancy
[24 CFR 982.310(h), 24 CFR 982.310(h)(4)]..................................... 12-22 12-III.E. Effect of Tenancy Termination on the Family’s Assistance .............. 12-22 Exhibit 12-1: Statement of Family Obligations ........................................................................ 12-23 Administrative Plan -Table of Contents
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Chapter 13
OWNERS
PART I: OWNERS IN THE HCV PROGRAM ................................................................. 13-3 13-I.A. Owner Recruitment and Retention [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] .................................... 13-3 Education and Outreach .................................................................. 13-3 Retention ......................................................................................... 13-4 Owner Incentive/Retention Payments [Notice PIH 2022-18] ........ 12-4 13-I.B. Basic HCV Program Requirements ...................................................... 13-5 13-I.C. Owner Responsibilities [24 CFR 982.452] ........................................... 13-7 13-I.D. Owner Qualifications ............................................................................ 13-8 Owners Barred from Participation [24 CFR 982.306(a) and (b)] ... 13-8 Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] ....... 13-8 Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19;
Form HUD-52641, Section 13] ...................................................... 13-8 Owner Actions That May Result in Disapproval of a
Tenancy Request [24 CFR 982.306(c)] ........................................ 13-10 Legal Ownership of Unit .............................................................. 13-11 13-I.E. Non-Discrimination [HAP Contract – Form HUD-52641] ................ 13-11 PART II: HAP CONTRACTS ............................................................................................ 13-13 13-II.A. Overview ............................................................................................. 13-13 13-II.B. HAP Contract Contents ...................................................................... 13-14 13-II.C. HAP Contract Payments ..................................................................... 13-16 General .......................................................................................... 13-16 Owner Certification of Compliance.............................................. 13-16 Late HAP Payments [24 CFR 982.451(a)(5)] .............................. 13-17 Termination of HAP Payments [24 CFR 982.311(b)] .................. 13-17 13-II.D. Breach of HAP Contract [24 CFR 982.453] ....................................... 13-18 13-II.E. HAP Contract Term and Terminations ............................................... 13-19 13-II.F. Change In Ownership / Assignment of the HAP Contract [HUD-52641] ...................................................................................... 13-21 13-II.G. Foreclosure [Notice PIH 2010-49] ..................................................... 13-22 Administrative Plan -Table of Contents
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Chapter 14

PROGRAM INTEGRITY
PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE ............................................................................................ 14-3 14-I.A. Preventing Errors and Program Abuse ................................................. 14-3 14-I.B. Detecting Errors and Program Abuse ................................................... 14-4 Quality Control and Analysis of Data ............................................ 14-4 Independent Audits and HUD Monitoring ..................................... 14-4 Individual Reporting of Possible Errors and Program Abuse ........ 14-4 14-I.C. Investigating Errors and Program Abuse .............................................. 14-5 When the PHA Will Investigate ..................................................... 14-5 Consent to Release of Information [24 CFR 982.516] ................... 14-5 Analysis and Findings..................................................................... 14-5 Consideration of Remedies ............................................................. 14-6 Notice and Appeals ......................................................................... 14-6 PART II: CORRECTIVE MEASURES AND PENALTIES ............................................... 14-7 14-II.A. Subsidy Under- or Overpayments ........................................................ 14-7 Corrections ...................................................................................... 14-7 Reimbursement ............................................................................... 14-7 14-II.B. Family-Caused Errors and Program Abuse .......................................... 14-8 Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] .... 14-8 PHA Reimbursement to Family [HCV GB p. 22-12] ..................... 14-8 Prohibited Actions .......................................................................... 14-9 Penalties for Program Abuse .......................................................... 14-9 14-II.C. Owner-Caused Error or Program Abuse ............................................. 14-10 Owner Reimbursement to the PHA .............................................. 14-10 Prohibited Owner Actions ............................................................ 14-10 Remedies and Penalties ................................................................ 14-11 14-II.D. PHA-Caused Errors or Program Abuse .............................................. 14-12 De Minimis Errors [24 CFR 5.609(c)(4)] ..................................... 14-12 Prohibited Activities ..................................................................... 14-13 14-II.E. Criminal Prosecution .......................................................................... 14-14 14-II.F. Fraud and Program Abuse Recoveries ............................................... 14-14 Administrative Plan -Table of Contents
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Chapter 15

SPECIAL HOUSING TYPES
[24 CFR 982 Subpart M; New HCV GB, Special Housing Types] PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605; Form HUD-52641; New HCV GB, Special Housing Types, p. 4] ....................... 15-3 15-I.A. Overview ............................................................................................... 15-3 15-I.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-3 15-I.C. SRO: Housing Quality Standards [24 CFR 982.605(a)] ...................... 15-3 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609; Form HUD-52641; New HCV GB, Special Housing Types, p. 6] ....................... 15-5 15-II.A. Overview ............................................................................................... 15-5 15-II.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-6 15-II.C. Congregate: Housing Quality Standards .............................................. 15-6 PART III: GROUP HOME [24 CFR 982.610 through 982.614; Form HUD-52641; and New HCV GB, Special Housing Types, p. 8] ................................................ 15-7 15-III.A. Overview ............................................................................................... 15-7 15-III.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-7 15-III.C. Group Home: Housing Quality Standards ............................................ 15-8 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618; Form HUD-52641; Notice PIH 2021-05; New HCV GB, Special Housing Types, p. 11] ................ 15-11 15-IV.A. Overview ............................................................................................. 15-11 15-IV.B. Payment Standard, Utility Allowance and HAP Calculation ............. 15-13 Use of Exception Payment Standards [Notice PIH 2025-12] ....... 15-14 15-IV.C. Shared Housing: Housing Quality Standards ..................................... 15-15 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] ............................................................................ 15-17 15-V.A. Overview ............................................................................................. 15-17 15-V.B. Payment Standard, Utility Allowance and HAP Calculation ............. 15-17 15-V.C. Cooperative: Housing Quality Standards ........................................... 15-18 Administrative Plan -Table of Contents
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PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624; FR Notice 1/18/17; New HCV GB, Special Housing Types, p. 15;] ................. 15-19 15-VI.A. Overview ............................................................................................. 15-19 15-VI.B. Special Requirements for Manufactured Home Owners Who Lease A Space ............................................................................ 15-19 Family Income .............................................................................. 15-19 Lease and HAP Contract .............................................................. 15-19 15-VI.C. Payment Standard, Utility Allowance and HAP Calculation ............. 15-20 Payment Standards ........................................................................ 15-20 Utility Allowance [24 CFR 982.624] ........................................... 15-20 Space Rent [24 CFR 982.622] ...................................................... 15-20 Amortization Costs ....................................................................... 15-20 Housing Assistance Payment [24 CFR 982.623(a)] ..................... 15-20 Eligible Housing Expenses [24 CFR 982.623(b)] ........................ 15-21 Rent Reasonableness [24 CFR 982.622(b)] .................................. 15-21 Distribution of HAP [24 CFR 982.623(c)] ................................... 15-22 Single HAP to Family [24 CFR 982.623.(d)] ............................... 15-22 15-VI.D. Manufactured Homes: Housing Quality Standards
[24 CFR 982.621] ............................................................................... 15-22 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] ................................ 15-23 15-VII.A. Overview [24 CFR 982.625] .............................................................. 15-23 15-VII.B. Family Eligibility [24 CFR 982.627].................................................. 15-24 15-VII.C. Selection of Families [24 CFR 982.626] ............................................ 15-26 15-VII.D. Eligible Units [24 CFR 982.628] ........................................................ 15-27 15-VII.E. Additional PHA Requirements for Search and Purchase [24 CFR 982.629] ............................................................................... 15-29 15-VII.F. Homeownership Counseling [24 CFR 982.630] ................................ 15-30 15-VII.G.Home Inspections, Contract of Sale, and PHA Disapproval of Seller [24 CFR 982.631] ..................................................................... 15-31 Home Inspections ......................................................................... 15-31 Contract of Sale ............................................................................ 15-32 Disapproval of a Seller ................................................................. 15-32 15-VII.H. FINANCING [24 CFR 982.632] ........................................................ 15-33 15-VII.I. Continued Assistance Requirements; Family Obligations [24 CFR 982.633] ............................................................................... 15-34 15-VII.J. Maximum Term of Homeowner Assistance [24 CFR 982.634]......... 15-35 15-VII.K. Homeownership Assistance Payments and Homeownership Expenses [24 CFR 982.635] ............................................................... 15-36 15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] ............................................................................... 15-38 15-VII.M. Moving with Continued Assistance [24 CFR 982.637] .................... 15-39 15-VII.N.Denial or Termination of Assistance [24 CFR 982.638] .................... 15-40 Administrative Plan -Table of Contents
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Chapter 16

PROGRAM ADMINISTRATION
PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] ................................... 16-3 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES .............................. 16-5 16-II.A. Overview ............................................................................................... 16-5 16-II.B. Payment Standards [24 CFR 982.503; HCV GB, Chapter 7; and Notice PIH 2024-34] ...................................................................... 16-5 Small Area FMR PHAs (Mandatory and Opt-In)
[Notice PIH 2018-01; Notice PIH 2023 32;
Notice PIH 2024-34; and Implementing Small Area
Fair Market Rents (SAFMR) Guidebook] ...................................... 16-6 The Basic Range [24 CFR 982.503(c) and
Notice PIH 2024-34] ....................................................................... 16-7 Designated Payment Standard Areas [24 CFR 982.503(d),
Notice PIH 2018-01, Notice PIH 2024-34, and
FR Notice 9/27/21] ......................................................................... 16-7 Exception Payment Standards [24 CFR 982.503(c)(5),
Notice PIH 2018-01, FR Notice 9/27/21] ....................................... 16-7 Reasonable Accommodation [24 CFR 982.503(d)(5),
Notice PIH 2025-12, and Notice PIH 2024 34] .............................. 16-9 Payment Standard below the Basic Range
[24 CFR 982.503(e) and Notice PIH 2024-34] ............................ 16-10 Updating Payment Standards [24 CFR 982.503(c)(3) and
Notice PIH 2023-24] ..................................................................... 16-10 16-II.C. Utility Allowances [24 CFR 982.517] ................................................ 16-12 Energy Efficient Utility Allowance
[24 CFR 982.517(b)(2)(ii)] ........................................................... 16-12 Air Conditioning [24 CFR 982.517(b)(1)(iii)] ............................. 16-12 Reasonable Accommodation and Individual Relief ..................... 16-13 Utility Allowance Revisions ......................................................... 16-13 PART III: INFORMAL REVIEWS AND HEARINGS ...................................................... 16-15 16-III.A. Overview ............................................................................................. 16-15 16-III.B. Informal Reviews ................................................................................ 16-15 Decisions Subject to Informal Review
[24 CFR 982.554(a) and (c)] ........................................................ 16-15 Notice to the Applicant [24 CFR 982.554(a)] .............................. 16-16 Scheduling an Informal Review ................................................... 16-16 Informal Review Procedures [24 CFR 982.554(b)] ..................... 16-16 Remote Informal Reviews [Notice PIH 2020-32] ........................ 16-17 Ensuring Accessibility for Persons with Disabilities
and LEP Individuals ..................................................................... 16-17 Conducting Remote Informal Reviews ........................................ 16-18 Informal Review Decision [24 CFR 982.554(b)] ......................... 16-19 Administrative Plan -Table of Contents
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16-III.C. Informal Hearings for Participants [24 CFR 982.555] ....................... 16-20 Decisions Subject to Informal Hearing ......................................... 16-20 Remote Informal Hearings [Notice PIH 2020-32] ....................... 16-21 Ensuring Accessibility for Persons with Disabilities
and LEP Individuals ..................................................................... 16-22 Conducting Informal Hearings Remotely ..................................... 16-23 Informal Hearing Procedures ........................................................ 16-24 16-III.D. Hearing and Appeal Provisions for Noncitizens [24 CFR 5.514] ................................................................................... 16-31 Notice of Denial or Termination of Assistance
[24 CFR 5.514(d)] ........................................................................ 16-31 USCIS Appeal Process [24 CFR 5.514(e)] ................................... 16-32 Informal Hearing Procedures for Applicants
[24 CFR 5.514(f)] ......................................................................... 16-32 Informal Hearing Procedures for Residents
[24 CFR 5.514(f)] ......................................................................... 16-34 Retention of Documents [24 CFR 5.514(h)] ................................ 16-34 PART IV: OWNER OR FAMILY DEBTS TO THE PHA ................................................. 16-35 16-IV.A. Overview ............................................................................................. 16-35 16-IV.B. Repayment Policy ............................................................................... 16-35 Owner Debts to the PHA .............................................................. 16-35 Family Debts to the PHA .............................................................. 16-36 Criminal Prosecution for Program Fraud/Abuse .......................... 16-36 Refusal to Enter into an Agreement .............................................. 16-36 Repayment Agreement [24 CFR 792.103] ................................... 16-36 General Repayment Agreement Guidelines for Families ............. 16-37 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) .......... 16-41 16-V.A. Overview ............................................................................................. 16-41 16-V.B. SEMAP Certification [24 CFR 985.101] ............................................ 16-42 HUD Verification Method ............................................................ 16-42 16-V.C. SEMAP Indicators [24 CFR 985.3 and Form HUD-52648] .............. 16-43 SEMAP Indicators Chart .............................................................. 16-43 PART VI: RECORD KEEPING ......................................................................................... 16-47 16-VI.A. Overview ............................................................................................. 16-47 16-VI.B. Record Retention [24 CFR 982.158; 24 CFR 908.101] ..................... 16-47 16-VI.C. Records Management ......................................................................... 16-48 Privacy Act Requirements [24 CFR 5.212 and Form-9886-A] .... 16-48 Upfront Income Verification (UIV) Records ............................... 16-49 Criminal Records .......................................................................... 16-49 Medical/Disability Records .......................................................... 16-49 Documentation of Domestic Violence,
Dating Violence, Sexual Assault, Stalking
or Human Trafficking ................................................................... 16-50 Administrative Plan -Table of Contents
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PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN
WITH ELEVATED BLOOD LEAD LEVEL ................................................... 16-51 16-VII.A.Overview ............................................................................................. 16-51 16-VII.B. Reporting Requirement [24 CFR 35.1225(e) );
Notice PIH 2017-13] ........................................................................... 16-51 16-VII.C.Data Collection and Record Keeping [24 CFR 35.1225(f)] ............... 16-51 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING ...................................... 16-53 16-VIII.A. Overview ........................................................................................... 16-53 16-VIII.B. Methodology ..................................................................................... 16-53 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY ................................................... 16-55 16-IX.A. Overview ............................................................................................. 16-55 16-IX.B. Definitions [24 CFR 5.2003] ............................................................... 16-55 16-IX.C. Notification [24 CFR 5.2005(a), 42 USC 13925] ............................... 16-57 Notification to Public .................................................................... 16-57 Notification to Program Applicants and Participants
[24 CFR 5.2005(a)(1)] .................................................................. 16-58 Notification to Owners and Managers .......................................... 16-59 16-IX.D. Documentation [24 CFR 5.2007] ........................................................ 16-60 Conflicting Documentation [24 CFR 5.2007(e)] .......................... 16-61 Discretion to Require No Formal Documentation
[24 CFR 5.2007(d)] ...................................................................... 16-62 Failure to Provide Documentation [24 CFR 5.2007(c)] ............... 16-62 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] .................................... 16-62 Exhibit 16-1: Sample Notice of Occupancy Rights Under the Violence Against Women Act, Form HUD-5380 ............................................................. 16-63 Exhibit 16-2: Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation, Form HUD-5382 ............................ 16-69 Exhibit 16-3: Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (HCV Version) .......................... 16-73 Exhibit 16-4: Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 ...................... 16-78 Exhibit 16-5: Model Owner Notification of Rights and Obligations ...................................... 16-82 Administrative Plan -Table of Contents
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Chapter 17

PROJECT-BASED VOUCHERS
PART I: GENERAL REQUIREMENTS ............................................................................ 17-3 17-I.A. Overview [24 CFR 983.5] .................................................................... 17-3 Public Housing Repositioning ........................................................ 17-3 17-I.B. PBV Definitions [24 CFR 983.3] ......................................................... 17-4 17-I.C. Maximum Number of PBV Units (Percentage Limitation) [24 CFR 983.6] ..................................................................................... 17-7 Program Cap ................................................................................... 17-7 Increased Cap [24 CFR 983.6(d)] ................................................... 17-7 17-I.D. Cap on Number of PBV Units in Each Project [24 CFR 983.54] ........ 17-9 Project Cap [24 CFR 983.54(a)] ..................................................... 17-9 Higher Project Cap [24 CFR 983.54(b)] ......................................... 17-9 Exceptions to the Project Cap [24 CFR 983.54(c)] ........................ 17-9 Units that No Longer Qualify as Excepted Units or Units under the Increased Program Cap [24 CFR 983.262(b)] .............. 17-10 17-I.E. Units not Subject to the PBV Program Cap or Project Cap [FR Notice 1/18/17 and 24 CFR 983.59] ............................................ 17-12 17-I.F. PHA-Owned Units [24 CFR 982.4 and 983.57] ................................. 17-14 17-I.G. Tenant-Based vs. Project-Based Voucher Assistance [24 CFR 983.2] ................................................................................... 17-15 17-I.H. Relocation Requirements [24 CFR 983.7].......................................... 17-15 17-I.I. Equal Opportunity Requirements [24 CFR 983.8] ............................. 17-16 PART II: PROPOSAL AND PROJECT SELECTION ...................................................... 17-18 17-II.A. Overview ............................................................................................. 17-18 Selection of PHA-Owned Units [24 CFR 983.51(h)] ................... 17-18 17-II.B. Competitive Selection Of Proposals [24 CFR 983.51(b)] .................. 17-19 Solicitation and Selection of PBV Proposals
[24 CFR 983.51(d)] ...................................................................... 17-19 17-II.C. Non-Competitive Project Selection [24 CFR 983.51(c)] ................... 17-23 17-II.D. Project or Proposal Selection [24 CFR 983.51(f) and 24 CFR 983.153(c)(3)] ....................................................................... 17-25 PHA Written Notice of Proposal or Project Selection
[24 CFR 983.51(f) and (h) and 24 CFR 983.153(c)(3)] ............... 17-25 17-II.E. Housing Type [24 CFR 983.52] ......................................................... 17-28 17-II.F. Prohibition of Assistance For Certain Units ....................................... 17-29 Ineligible Units [24 CFR 983.52] ................................................. 17-29 Subsidized Housing [24 CFR 983.53] .......................................... 17-30 Administrative Plan -Table of Contents
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17-II.G. Subsidy Layering Requirements [24 CFR 983.11,
24 CFR 983.153(b), 24 CFR 4.13, Notice PIH 2013-11,
and FR Notice 3/13/23] ...................................................................... 17-31 Development Activity Before HAP Contract
[24 CFR 983.153(b)] .................................................................... 17-31 Conducting the SLR [FR Notice 3/3/23 and
Notice PIH 2023-15] ..................................................................... 17-31 Additional Assistance after HAP Contract
\[24 CFR 983.11(d)] ..................................................................... 17-32 17-II.H. Site Selection Standards ..................................................................... 17-33 Compliance with PBV Goals, Civil Rights Requirements,
and Site and Neighborhood Standards [24 CFR 983.55(b)] ......... 17-33 Existing and Rehabilitated Housing Site and
Neighborhood Standards [24 CFR 983.55(d)] .............................. 17-34 New Construction Site and Neighborhood Standards
[24 CFR 983.55(e)] ....................................................................... 17-35 17-II.I. Environmental Review [24 CFR 983.56] ........................................... 17-36 PART III: DWELLING UNITS ........................................................................................... 17-38 17-III.A. Overview ............................................................................................. 17-38 17-III.B. Housing Quality Standards [24 CFR 983.101] ................................... 17-38 Lead-based Paint [24 CFR 983.101(c)] ........................................ 17-38 Housing Quality and Design Requirements
[24 CFR 983.101(e) and 983.208(a)] ........................................... 17-38 17-III.C. Housing Accessibility for Persons with Disabilities [24 CFR 983.102] ............................................................................... 17-39 17-III.D. Inspecting Units[24 CFR 983.103] ..................................................... 17-39 Pre-selection Inspection [24 CFR 983.103(a)] ............................. 17-39 Initial Inspection: Newly Constructed and
Rehabilitated Projects That Underwent Substantial
Improvement [24 CFR 983.103(b)] .............................................. 17-39 Initial Inspection: Existing Housing [24 CFR 983.103(d)] .......... 17-40 Turnover Inspections [24 CFR 983.103(d) ................................... 17-40 Periodic Inspections [24 CFR 983.103(e); FR Notice 6/25/14] ... 17-40 Alternative Inspections for Periodic Inspections
[24 CFR 983.103(g); Notice PIH 2016-05] .................................. 17-41 Interim Inspections [24 CFR 983.103(f)] ..................................... 17-41 Follow Up Inspections [24 CFR 983103(f)(2)] ............................ 17-41 Supervisory Quality Control Inspections
[24 CFR 983.103(f)(3)] ................................................................ 17-41 Inspecting PHA-Owned Units [24 CFR 983.103(g)] ................... 17-41 Administrative Plan -Table of Contents
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PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................... 17-42 17-IV.A. Overview [24 CFR 983.151 and 983.152].......................................... 17-42 17-IV.B. Agreement to Enter into HAP Contract (AHAP)
[24 CFR 983.154] ............................................................................... 17-42 PHA Discretion Not to Use an AHAP [24 CFR 983.154(f)] ....... 17-42 Content of the AHAP [24 CFR 983.154(e)] ................................. 17-43 Execution of the AHAP [FR Notice 11/24/08]............................. 17-43 17-IV.C. Development Requirements................................................................ 17-44 Labor Standards [24 CFR 983.153(c)] ......................................... 17-44 Accessibility [24 CFR 983.153(e)] ............................................... 17-44 Broadband Infrastructure [24 CFR 983.153(f)] ............................ 17-45 Owner Disclosure [24 CFR 983.153(g)] ...................................... 17-45 17-IV.D. Completion of Work [24 CFR 983.155] ............................................. 17-46 Evidence of Completion [24 CFR 983.155] ................................. 17-46 PHA Acceptance of Completed Units
[24 CFR 983.156(a) and (b)] ........................................................ 17-47 Staged Completion of Contract Units [24 CFR 983.156(c)] ........ 17-47 PART V: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT......................... 17-48 17-V.A. Overview [24 CFR 983.202(a)] .......................................................... 17-48 17-V.B. HAP Contract Requirements .............................................................. 17-48 Contract Information [24 CFR 983.204] ...................................... 17-48 Execution of the HAP Contract [24 CFR 983.204] ...................... 17-49 Effective Date of the HAP Contract [24 CFR 983.204(d)] .......... 17-49 Term of HAP Contract [24 CFR 983.205,
FR Notice 1/18/17, and Notice PIH 2017-21] .............................. 17-50 17-V.C. Termination of the HAP Contract ....................................................... 17-51 Termination by Agreement of PHA and Owner
[24 CFR 983.206(e)] ..................................................................... 17-51 Termination by PHA [24 CFR 983.205(c)] .................................. 17-51 Non-extension by Owner – Notice Requirements
[24 CFR 983.206(a)] ..................................................................... 17-51 Termination by Owner – Reduction Below Initial
Contract Rent [24 CFR 983.206(d)] ............................................. 17-52 Termination or Expiration without Extensions – Required Provision of Tenant-Based Assistance [24 CFR 983.206(b)] ...... 17-52 Remedies for Housing Quality Standards Deficiencies
[24 CFR 983.208] ......................................................................... 17-54 Enforcement of Housing Quality Standards
[24 CFR 983.208(b)] .................................................................... 17-54 Family Obligation [24 CFR 983.208(c)] ...................................... 17-55 PHA Remedies [24 CFR 983.208(d)] ........................................... 17-56 HAP Withholding [24 CFR 983.208(d)(1) ................................... 17-57 HAP Abatement [24 CFR 983.208(d)(2)] .................................... 17-57 Failure to Make Repairs ................................................................ 17-58 Offer of Public Housing [24 CFR 983.208(d)(6)(ii)] ................... 17-58 Relocation Assistance [24 CFR 983.208(d)(6)(iii)] ..................... 17-59 Administrative Plan -Table of Contents
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17-V.D. Amendments to the HAP Contract to Add or Substitute Units [24 CFR 983.207] ............................................................................... 17-60 Addition of Contract Units [24 CFR 983.207(b)] ........................ 17-60 Substituting or Adding Occupied Units [24 CFR 983.207(c)] ..... 17-61 17-V.E. HAP Contract Year, Anniversary and Expiration Dates [24 CFR 983.207(b)(2) and (g) and 983.302(e)] ................................ 17-61 17-V.F. Owner Responsibilities Under the HAP Contract
[24 CFR 983.210] ............................................................................... 17-62 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 17-64 17-VI.A. Overview ............................................................................................. 17-64 17-VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 17-64 In-Place Families [24 CFR 983.251(b)] ....................................... 17-65 17-VI.C. Organization of the Waiting List
[24 CFR 983.251(c)] ........................................................................... 17-66 PHA Waiting List Preferences [24 CFR 983.251(c)(3)] .............. 17-67 17-VI.D. Owner-Maintained Waiting Lists [24 CFR 983.251(c)(7)] ................ 17-68 Owner Waiting List Policy [24 CFR 983.251(c)(7)(i)] ................ 17-69 Owner-Maintained Waiting List Preferences
[24 CFR 983.251(c)(7)(ii)] ........................................................... 17-70 Preliminary Eligibility Determinations
[24 CFR 983.251(c)(7)(vi)] .......................................................... 17-70 PHA Oversight [24 CFR 983.251(c)(7)(x)].................................. 17-71 17-VI.E. Selection From the Waiting List [24 CFR 983.251(c)] ...................... 17-72 Income Targeting [24 CFR 983.251(c)(9)] .................................. 17-72 Units with Accessibility Features [24 CFR 983.251(c)(9)] .......... 17-72 17-VI.F. Offer of PBV Assistance or Owner’s Rejection ................................. 17-73 Refusal of Offer [24 CFR 983.251(e)] ......................................... 17-73 Acceptance of Offer [24 CFR 983.252(a) and (b)] ....................... 17-74 17-VI.G. Leasing of Contract Units [24 CFR 983.252] ..................................... 17-76 Filling Vacancies [24 CFR 983.254(a)] ........................................ 17-76 Reduction in HAP Contract Units Due to Vacancies
[24 CFR 983.254(b)] .................................................................... 17-77 17-VI.H. Tenant Screening [24 CFR 983.255] .................................................. 17-78 PHA Option .................................................................................. 17-78 Owner Responsibility ................................................................... 17-78 Administrative Plan -Table of Contents
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PART VII: OCCUPANCY .................................................................................................... 17-80 17-VII.A.Overview ............................................................................................. 17-80 17-VII.B. Lease [24 CFR 983.256] ..................................................................... 17-80 Form of Lease [24 CFR 983.256(b)] ............................................ 17-80 Lease Requirements [24 CFR 983.256(c)] ................................... 17-80 Tenancy Addendum [24 CFR 983.256(d)] ................................... 17-81 Initial Term and Lease Renewal [24 CFR 983.256(f)] ................. 17-81 Changes in the Lease [24 CFR 983.256(e)] .................................. 17-81 Owner Termination of Tenancy [24 CFR 983.257] ..................... 17-82 Continuation of Housing Assistance Payments
[24 CFR 983.258] ........................................................................ 17-82 Security Deposits [24 CFR 983.259] ............................................ 17-83 17-VII.C. Moves ................................................................................................. 17-84 Overcrowded, Under-Occupied, and Accessible Units
[24 CFR 983.260] ......................................................................... 17-84 Family Right to Move [24 CFR 983.261] .................................... 17-86 Emergency Transfers under VAWA
[Notice PIH 2017-08 and 24 CFR 983.261(f) and (g)] ................ 17-87 PART VIII: DETERMINING RENT TO OWNER ............................................................... 17-88 17-VIII.A. Overview [24 CFR 983.301(a)] ........................................................ 17-88 17-VIII.B. Amount of Rent To Owner [24 CFR 983.301(b)] ............................ 17-88 Rent to Owner for Certain Tax Credit Units
[24 CFR 983.301(c)] ..................................................................... 17-88 Use of FMRs, Exception Payment Standards,
and Utility Allowances [24 CFR 983.301(f)] ............................... 17-90 Use of Small Area FMRs (SAFMRs)
[24 CFR 888.113(h) and 24 CFR 983.301(f)(3)] ......................... 17-91 17-VIII.C. Redetermination of Rent to Owner [24 CFR 983.302] ..................... 17-92 PHA-Owned Units [24 CFR 983.301(g)] ..................................... 17-94 17-VIII.D. Reasonable Rent [24 CFR 983.301(d) and 983.303] ........................ 17-95 When Rent Reasonable Determinations Are Required ................ 17-95 Rent Floor ..................................................................................... 17-95 How to Determine Reasonable Rent [24 CFR 983.303(c)] .......... 17-96 PHA-Owned Units [24 CFR 983.303(f)]...................................... 17-96 Owner Certification of Reasonable Rent [24 CFR 983.303(e)] ... 17-96 17-VIII.E. Effect of Other Subsidy and Rent Control ........................................ 17-97 Other Subsidy [24 CFR 983.304] ................................................. 17-97 Rent Control [24 CFR 983.305] ................................................... 17-97 Administrative Plan -Table of Contents
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PART IX: PAYMENTS TO OWNER ................................................................................. 17-99 17-IX.A. Housing Assistance Payments [24 CFR 983.351] .............................. 17-99 17-IX.B. Vacancy Payments [24 CFR 983.352].............................................. 17-100 Payment at Move-Out Month [24 CFR 983.352(a)] .................. 17-100 Vacancy Payments [24 CFR 983.352(b)] ................................... 17-100 17-IX.C. Tenant Rent to Owner [24 CFR 983.353] ........................................ 17-102 Tenant and PHA Responsibilities ............................................... 17-102 Utility Reimbursements [24 CFR 983.353(d)] ........................... 17-102 17-IX.D. Other Fees and Charges [24 CFR 983.354] ...................................... 17-103 Meals and Supportive Services ................................................... 17-103 Other Charges by Owner ............................................................ 17-103 17-IX.E. Project Record Retention [24 CFR 983.12] ...................................... 17-103 Administrative Plan -Table of Contents
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Chapter 18

PROJECT BASED VOUCHERS (PBV) UNDER THE

RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM
PART I: GENERAL REQUIREMENTS ............................................................................ 18-3 18-I.A. Overview and History of the RAD Program ........................................ 18-3 RAD/Section 18 Blends .................................................................. 18-3 18-I.B. Applicable Regulations ......................................................................... 18-4 18-I.C. Tenant-Based Vs. Project-Based Voucher Assistance [24 CFR 983.2] ..................................................................................... 18-5 18-I.D. Relocation Requirements [Notice PIH 2016-17] .................................. 18-6 18-I.E. Equal Opportunity Requirements [24 CFR 983.8;
24 CFR 5.105; Notice PIH 2016-17] .................................................... 18-8 PART II: PBV PROJECT SELECTION .............................................................................. 18-9 18-II.A. Overview ............................................................................................... 18-9 18-II.B. Ownership and Control [Notice PIH 2019-23, REV-4] ....................... 18-9 18-II.C. PHA-Owned Units [24 CFR 983.57; FR Notice 1/18/17, and Notice PIH 2017-21] .................................................................... 18-10 18-II.D. Subsidy Layering Requirements [Notice PIH 2019-23; REV-4] ....... 18-11 18-II.E. PBV Percentage Limitation and Unit Cap
[Notice PIH 2019-23, REV 4] ............................................................ 18-12 PBV Percentage Limitation .......................................................... 18-12 Cap on the Number of PBV Units in Each Project
[Notice PIH 2019-23, REV 4] ...................................................... 18-12 18-II.F. Site Selection Standards [Notice PIH 2019-23, REV-4; Notice PIH 2016-17] ........................................................................... 18-13 18-II.G. Environmental Review [Notice PIH 2019-23. REV-4; Environmental Review Requirements for RAD Conversions,
March 2019] ........................................................................................ 18-13 PART III: DWELLING UNITS ........................................................................................... 18-15 18-III.A. Overview ............................................................................................. 18-15 18-III.B. Housing Quality Standard [24 CFR 983.101 and 24 CFR 5.703] ...... 18-15 Lead-based Paint [24 CFR 983.101(c);
Notice PIH 2019-23, REV-4] ....................................................... 18-15 18-III.C. Housing Accessibility for Persons with Disabilities [Notice PIH 2016-17] ......................................................................... 18-15 Administrative Plan -Table of Contents
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18-III.D. Inspecting Units [24 CFR 983.103] .................................................... 18-16 Initial Inspection [RAD Quick Reference Guide,
Notice PIH 2019-23, REV-4, and Notice PIH 2023-19] .............. 18-16 Turnover Inspections [24 CFR 983.103(d),
FR Notice 1/18/17, and Notice PIH 2017-20] ............................. 18-16 Periodic Inspections [24 CFR 983.103(e);
FR Notice 6/25/14] ....................................................................... 18-16 Alternative Inspections [24 CFR 983.103(i);
Notice PIH 2016-05] ..................................................................... 18-17 Interim Inspections [24 CFR 983.103(e)] .................................... 18-17 Follow Up Inspections [24 CFR 983103(f)(2)] ............................ 18-17 Supervisory Quality Control Inspections
[24 CFR 983.103(f)(3)] ................................................................ 18-17 Inspecting PHA-Owned Units [24 CFR 983.103(g);
Notice PIH 2017-21] ..................................................................... 18-17 PART IV: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT......................... 18-19 18-IV.A. Overview [RAD PBV Quick Reference Guide 6/20] .......................... 18-19 18-IV.B. HAP Contract Requirements .............................................................. 18-19 Contract Information [RAD PBV Quick Reference Guide 6/20; Notice PIH 2019-23, REV-4] ...................................................... 18-19 Execution and Effective Date of the HAP Contract
[RADBlast! 7/11/16] .................................................................... 18-19 Term of HAP Contract [Notice PIH 2019-23, REV-4] ............... 18-19 Agreement to Enter into a HAP (AHAP) Contract
[Notice PIH 2019-23, REV-4] ..................................................... 18-20 Mandatory Contract Renewal [Notice PIH 2019-23, REV-4] ..... 18-20 Remedies for Housing Quality Standards Deficiencies
[24 CFR 983.208(b)] ................................................................... 18-21 Enforcement of Housing Quality Standards
[24 CFR 983.208(b)] .................................................................... 18-21 Family Obligation [24 CFR 983.208(c)] ...................................... 18-22 PHA Remedies [24 CFR 983.208(d)] ........................................... 18-23 HAP Withholding [24 CFR 983.208(d)(1) ................................... 18-23 HAP Abatement [24 CFR 983.208(d)(2)] .................................... 18-24 Failure to Make Repairs ................................................................ 18-25 Offer of Public Housing [24 CFR 983.208(d)(6)(ii)] ................... 18-25 Relocation Assistance [24 CFR 983.208(d)(6)(iii)] ..................... 18-26 18-IV.C. Amendments to the HAP Contract ..................................................... 18-27 Floating Units [Notice PIH 2019-23, REV-4] ............................. 18-27 Reduction in HAP Contract Units
[Notice PIH 2019-23, REV-4] ..................................................... 18-27 18-IV.D. HAP Contract Year and Anniversary Dates
[24 CFR 983.207(b)(2) and (g), and 24 CFR 983.302(e)] .................. 18-27 18-IV.E. Owner Responsibilities under the HAP Contract
[24 CFR 983.210] ............................................................................... 18-28 Administrative Plan -Table of Contents
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PART V: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 18-29 18-V.A. Overview ............................................................................................. 18-29 18-V.B. Prohibited Rescreening of Existing Tenants upon Conversion [Notice PIH 2019-23, REV-4] ............................................................ 18-29 18-V.C. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 18-30 18-V.D. Organization of the Waiting List [24 CFR 983.251(c); Notice PIH 2019-23, REV-4] ............................................................. 18-31 18-V.E. Selection from the Waiting List [24 CFR 983.251(c)] ....................... 18-33 Income Targeting [24 CFR 983.251(c)(9);
Notice PIH 2019-23, REV-4] ...................................................... 18-33 Units with Accessibility Features [24 CFR 983.251(c)(9)] ......... 18-33 Preferences [24 CFR 983.251(d); FR Notice 11/24/08;
Notice PIH 2019-23, REV-4] ...................................................... 18-33 18-V.F. Offer of PBV Assistance .................................................................... 18-34 Refusal of Offer [24 CFR 983.251(e)] ........................................ 18-34 Acceptance of Offer [24 CFR 983.252(a) and (b)] ...................... 18-35 18-V.G. LEASING OF CONTRACT UNITS [24 CFR 983.252]
[24 CFR 983.253] ............................................................................... 18-36 Leasing [24 CFR 983.253(a)] ...................................................... 18-36 Filling Vacancies [24 CFR 983.254(a)] ....................................... 18-36 18-V.H. Tenant Screening [24 CFR 983.255] .................................................. 18-37 PHA Option .................................................................................. 18-37 Owner Responsibility ................................................................... 18-37 PART VI: OCCUPANCY .................................................................................................... 18-39 18-VI.A. Overview ............................................................................................. 18-39 18-VI.B. Lease [24 CFR 983.256] ..................................................................... 18-39 Lease Requirements [24 CFR 983.256(c);
Notice PIH 2019-23, REV-4] ....................................................... 18-39 Tenancy Addendum [24 CFR 983.256(d)] ................................... 18-40 Initial Term and Lease Renewal [24 CFR 983.256(f);
RAD PBV Quick Reference Guide 6/20] ...................................... 18-41 Changes in the Lease [24 CFR 983.256(e)] .................................. 18-41 Owner Termination of Tenancy [24 CFR 983.257;
Notice PIH 2019-23, REV-4] ....................................................... 18-42 Continuation of Housing Assistance Payments
[24 CFR 983.258; Notice PIH 2019-23, REV-4;
Notice PIH 2023-19; RAD PBV Quick Reference Guide 6/20] ... 18-43 Security Deposits [24 CFR 983.259;
RAD PBV Quick Reference Guide 6/20] ...................................... 18-45 18-VI.C. Public Housing FSS and ROSS Participants
[Notice PIH 2019-23, REV-4] ............................................................ 18-46 18-VI.D. Resident Participation and Funding
[Notice PIH 2019-23, REV-4] ............................................................ 18-46 Administrative Plan -Table of Contents
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18-VI.E. Moves ................................................................................................. 18-47 Overcrowded, Under-Occupied, and Accessible Units
[24 CFR 983.260; Notice PIH 2019-23, REV-4] ......................... 18-47 Family Right to Move [24 CFR 983.261] .................................... 18-48 Choice Mobility [Notice PIH 2019-23, REV-4;
PRRAC Choice Mobility Implementation Guidance, 8/20] ......... 18-49 Emergency Transfers under VAWA
[24 CFR 983.261(f) and (g)] ......................................................... 18-51 18-VI.F. Reexaminations [RAD PBV Quick Reference Guide 6/20] ................ 18-53 18-VI.G. Residents’ Procedural Rights [Notice PIH 2019-23, REV-4] ............ 18-53 18-VI.H. Informal Hearings [Notice PIH 2019-23, REV-4] ............................. 18-54 PART VII: DETERMINING CONTRACT RENT ............................................................... 18-55 18-VII.A.Initial Contract Rents [Notice PIH 2019-23, REV-4] ........................ 18-55 Rents in RAD/Section 18 Blends
Notice PIH 2019-23, REV-4] ....................................................... 18-55 18-VII.B. Adjusting Contract Rents [Notice PIH 2019-23, REV-4; RAD PBV Quick Reference Guide 6/20; PHA Asset Repositioning “How to Apply OCAF for RAD PBV” Webinar] .............................. 18-56 Rent Decrease ............................................................................... 18-57 18-VII.C.Utility Allowances [Notice PIH 2019-23, REV-4; RAD PBV Quick Reference Guide 6/20] ............................................ 18-57 18-VII.D.Reasonable Rent [[983.301(d) and 24 CFR 983.303] ........................ 18-58 How to Determine Reasonable Rent [24 CFR 983.303(c)] .......... 18-58 PART VIII: PAYMENTS TO OWNER ................................................................................. 18-59 18-VIII.A. Housing Assistance Payments .......................................................... 18-59 18-VIII.B. Vacancy Payments [24 CFR 983.352] .............................................. 18-60 Payment at Move-Out Month [24 CFR 983.352(a)] .................... 18-60 18-VIII.C. Tenant Rent to Owner [24 CFR 983.353;
Notice PIH 2019-23, REV-4] ............................................................. 18-62 Initial Certifications [Notice PIH 2019-23, REV-4] ..................... 18-62 Tenant and PHA Responsibilities ................................................. 18-62 Utility Reimbursements [24 CFR 983.353(d)] ............................. 18-62 18-VIII.D. Phase-In of Tenant Rent Increases [Notice PIH 2012-32, REV-4; PHA Asset Repositioning “Phase-in of Tenant Rents” Webinar] .... 18-63

18.VIII.E. Other Fees and Charges [24 CFR 983.354] ..................................... 18-64 Meals and Supportive Services ..................................................... 18-64 Other Charges by Owner .............................................................. 18-64 Exhibit 18-1: PBV Development Information ......................................................................... 18-65 Administrative Plan -Table of Contents
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Chapter 19

SPECIAL PURPOSE VOUCHERS
PART I: FOSTER YOUTH TO INDEPENDENCE INITIATIVE .......................................... 19-2 19-I.A. Program Overview [Notice PIH 2020-28; Notice PIH 2023-04; FR Notice 1/24/22; Notice PIH 2025-08] ............................................. 19-3 19-I.B. Partnering Agencies [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar] ................................................ 19-3 Public Child Welfare Agency (PCWA) .......................................... 19-3 Continuum of Care (CoC) and Other Partners ............................... 19-3 19-I.C. Youth Eligibility Criteria [Notice PIH 2023-04; FYI Q&As; FYI FAQs] ........................................................................ 19-4 19-I.D. Supportive Services [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] ............................ 19-5 19-I.E. Referrals and Waiting List Management [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] ........ 19-6 Referrals .......................................................................................... 19-6 Waiting List Placement [Notice PIH 2023-04;
Notice PIH 2025-08; and FYI FAQs] ............................................ 19-7 Waiting List Selection [Notice PIH 2025-08] ................................ 19-7 19-I.F. PHA HCV Eligibility Determination [FYI FAQs] ............................... 19-8 Additional Eligibility Factors ......................................................... 19-8 19-I.G. Lease Up [FR Notice 1/24/22] .............................................................. 19-9 Briefings [FR Notice 1/24/22] ........................................................ 19-9 Voucher Issuance [Notice PIH 2025-08] ........................................ 19-9 Turnover ....................................................................................... 19-10 19-I.H. Maximum Assistance Period
[Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22]................. 19-11 Extension of Assistance ................................................................ 19-11 Statutory Exceptions ..................................................................... 19-11 Education, Workforce Development,
or Employment Activities ............................................................. 19-13 FSS Enrollment at 24 Months....................................................... 19-14 FSS Enrollment Between 36 and 48 Months ................................ 19-14 FSS Enrollment After 48 Months ................................................. 19-15 Extensions of Assistance .............................................................. 19-15 No FSS Program or Unable to Enroll in FSS ............................... 19-15 Verification Prior to Annual Reexam ........................................... 19-15 Termination of Assistance for Failure to Meet Conditions\ ......... 19-17 19-I.I. Termination of Assistance [FYI FAQs] ............................................. 19-17 19-I.J. Portability [FYI FAQs] ....................................................................... 19-18 19-I.K. Project-Basing FYI Vouchers [FYI FAQs; FR Notice 1/24/22; Notice PIH 2024-03] ........................................................................... 19-18 Administrative Plan -Table of Contents
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PART II: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM ....... 19-20 19-II.A. Program Overview .............................................................................. 19-20 19-II.B. Referrals [FR Notice 8/13/24 and HUD-VASH Qs and As] .............. 19-21 19-II.C. HCV Program Eligibility [FR Notice 8/13/24] .................................. 19-22 Social Security Numbers .............................................................. 19-22 Proof of Age ................................................................................. 19-22 Photo Identification ...................................................................... 19-22 Income Eligibility [FR Notice 8/13/24] ........................................ 19-23 Minimum Rent [FR Notice 8/13/24] ............................................ 19-24 Screening [FR Notice 8/13/24] ..................................................... 19-24 Denial of Assistance [Notice PIH 2008-37] ................................. 19-24 19-II.D. Changes in Family Composition ........................................................ 19-25 Adding Family Members [FR Notice 8/13/24] ............................ 19-25 Remaining Family Members [HUD-VASH Qs and As] .............. 19-25 Family Break Up [HUD-VASH Qs and As] ................................ 19-25 19-II.E. Leasing [FR Notice 8/13/24] .............................................................. 19-26 Waiting List .................................................................................. 19-26 Exception Payment Standards [FR Notice 8/13/24] ..................... 19-26 Voucher Issuance [FR Notice 8/13/24] ........................................ 19-26 Special Housing Types [FR Notice 8/13/24] ................................ 19-27 Initial Lease Term [FR Notice 8/13/24] ....................................... 19-27 Ineligible Housing [[FR Notice 8/13/24] ...................................... 19-27 Pre-Inspections [FR Notice 8/13/24] ............................................ 19-27 19-II.F. Portability [Notice PIH 2011-53 and FR Notice 8/13/24] .................. 19-28 General Requirements .................................................................. 19-28 Portability within the Initial VAMC or DSP’s Catchment Area .. 19-28 Portability Outside of the Initial VAMC
or DSP’s Catchment Area ............................................................. 19-28 Portability Outside of the Initial VAMC
or DSP’s Catchment Area under VAWA ..................................... 19-28 19-II.G. Termination of Assistance [FR Notice 8/13/24] ................................. 19-30 Cessation of Case Management .................................................... 19-30 Serious Violation of the Lease ...................................................... 19-30 VAWA [FR Notice 8/13/24] ........................................................ 19-31 Administrative Plan -Table of Contents
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19-II.H. Project-Basing VASH Vouchers ....................................................... 19-32 General Requirements
[Notice PIH 2017-21 and FR Notice 8/13/24] .............................. 19-32 Ineligible Units ............................................................................. 19-32 Termination of Assistance ............................................................ 19-33 Moves ........................................................................................... 19-33 Wrong-Sized or Accessible Units ................................................. 19-34 Contract Terminations .................................................................. 19-34 Rents ............................................................................................. 19-34 Removing Units from the HAP Contract
for Ineligible Families ................................................................... 19-34 Zero HAP Families ....................................................................... 19-35 Proposal Project Selection ............................................................ 19-35 Failure to Participate in Case Management
[FR Notice 8/13/24] ...................................................................... 19-36 Moves [HUD-VASH Qs and As, FR Notice 8/13/24] ................. 19-36

GLOSSARY
HOTMA 102/104 Appendix to the Administrative Plan
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Chapter 1

OVERVIEW OF THE PROGRAM AND PLAN

INTRODUCTION
The PHA receives its funding for the Housing Choice Voucher (HCV) program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into an Annual Contributions Contract (ACC) with HUD to administer the program requirements on behalf of HUD. The PHA must ensure compliance with federal laws, regulations and notices and must establish policy and procedures to clarify federal requirements and to ensure consistency in program operation.

This chapter contains information about the PHA and its programs with emphasis on the HCV program. It also contains information about the purpose, intent and use of the plan and guide.

There are three parts to this chapter:

Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent.

Part II: The HCV Program. This part contains information about the Housing Choice Voucher program operation, roles and responsibilities, and partnerships.

Part III: The HCV Administrative Plan. This part discusses the purpose and organization of the plan and its revision requirements.

PART I: THE PHA
1-I.A. OVERVIEW
This part explains the origin of the PHA’s creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff.

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1-I.B. ORGANIZATION AND STRUCTURE OF THE PHA
The Section 8 tenant-based Housing Choice Voucher (HCV) assistance program is funded by the federal government and administered by the Housing Authority of the City of Redondo Beach for the jurisdiction of the City of Redondo Beach in the County of Los Angeles.

The officials of a PHA are known as commissioners or, collectively, as the board of commissioners. Commissioners are appointed in accordance with state housing law and generally serve in the same capacity as the directors of a corporation, establishing policies under which the PHA conducts business, ensuring that policies are followed by PHA staff and ensuring that the PHA is successful in its mission. The board is responsible for preserving and expanding the agency’s resources and assuring the agency’s continued viability.

Formal actions of the PHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of the PHA.

The principal staff member of the PHA is the executive director (ED), hired and appointed by the board of commissioners. The executive director is directly responsible for carrying out the policies established by the board and is delegated the responsibility for hiring, training and supervising the PHA staff in order to manage the day-to-day operations of the PHA. The executive director is responsible for ensuring compliance with federal and state laws and directives for the programs managed. In addition, the executive director’s duties include budgeting and financial planning for the agency.
1-I.C. PHA MISSION
The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides guiding direction for developing strategy, defining critical success factors, searching out key opportunities, making resource allocation choices, satisfying clients and stakeholders, and making decisions.

PHA Policy
The mission of the Housing Authority is to promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination for as many program-eligible persons as funding permits.

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1-I.D. THE PHA’S PROGRAMS
The following programs are included under this administrative plan:

PHA Policy
The PHA’s administrative plan is applicable to the operation of the Housing Choice Voucher program.
1-I.E. THE PHA’S COMMITMENT TO ETHICS AND SERVICE
As a public service agency, the PHA is committed to providing excellent service to HCV program participants, owners, and to the community. The PHA’s standards include:
• Administer applicable federal and state laws and regulations to achieve high ratings in performance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide safe, habitable housing – in compliance with program housing quality standards – for very low-income families while ensuring that family rents are fair, reasonable, and affordable.
• Encourage self sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs.
• Promote fair housing and equal opportunity for very low-income families of all ethnic backgrounds to experience freedom of housing choice.
• Promote a housing program which maintains quality service and integrity while providing an incentive to private property owners to rent to very low-income families. • Promote a market-driven housing program that will help qualified low-income families be successful in obtaining affordable housing and increase the supply of housing choices for such families.
• Create positive public awareness and expand the level of family, owner, and community support in accomplishing the PHA’s mission.
• Attain and maintain a high level of standards and professionalism in day-to-day management of all program components.
• Administer an efficient, high-performing agency through continuous improvement of the PHA’s support systems and a high level of commitment to our employees and their development.

The PHA will make every effort to keep program participants informed of HCV program rules and regulations, and to advise participants of how the program rules affect them.

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PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM
1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM
The intent of this section is to provide the public and staff with information related to the overall operation of the program. There have been many changes to the program since its inception in 1974 and a brief history of the program will assist the reader to better understand the program.

The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program initiatives. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing developments for low-income residents.

The Housing and Community Development (HCD) Act of 1974 created a new federally assisted housing program – the Section 8 Existing program (also known as the Section 8 Certificate program). The HCD Act represented a significant shift in federal housing strategy from locally owned public housing to privately owned rental housing.

Under the Certificate program, federal housing assistance payments were made directly to private owners of rental housing, where this housing was made available to lower-income families. Eligible families were able to select housing in the private rental market. Assuming that the housing met certain basic physical standards of quality (“housing quality standards”) and was within certain HUD-established rent limitations (“fair market rents”), the family would be able to receive rental assistance in the housing unit. Family contribution to rent was generally set at 30 percent of the family’s adjusted income, with the remainder of the rent paid by the program.

Another unique feature of the Certificate program was that the rental assistance remained with the eligible family, if the family chose to move to another privately-owned rental unit that met program requirements (in contrast to the public housing program where the rental assistance remains with the unit, should the family decide to move). Consequently, the Certificate program was characterized as tenant-based assistance, rather than unit-based assistance.

The Housing and Community Development (HCD) Act of 1987 authorized a new version of tenant-based assistance – the Section 8 Voucher program. The Voucher program was very similar to the Certificate program in that eligible families were able to select housing in the private rental market and receive assistance in that housing unit.

However, the Voucher program permitted families more options in housing selection. Rental housing still had to meet the basic housing quality standards, but there was no fair market rent limitation on rent. In addition, family contribution to rent was not set at a limit of 30 percent of adjusted income. Consequently, depending on the actual rental cost of the unit selected, a family might pay more or less than 30 percent of their adjusted income for rent.

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From 1987 through 1999, public housing agencies managed both the Certificate and Voucher tenant-based assistance programs, with separate rules and requirements for each. From 1994 through 1998, HUD published a series of new rules, known as “conforming” rules, to more closely combine and align the two similar housing programs, to the extent permitted by the law.

In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing Reform Act – was signed into law. QHWRA eliminated all statutory differences between the Certificate and Voucher tenant-based programs and required that the two programs be merged into a single tenant-based assistance program, now known as the Housing Choice Voucher (HCV) program.

The HCV program was modeled closely on the pre-merger Voucher program. However, unlike the pre-merger Voucher program, the HCV program requires an assisted family to pay at least 30 percent of adjusted income for rent.

The transition of assistance from the Certificate and Voucher programs to the new HCV program began in October 1999. By October 2001, all families receiving tenant-based assistance were converted to the HCV program.

On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. • The Final Rule implementing broad changes to income and assets in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the implementation of the program changes described in the Final Rule. HUD issued a revised version of the notice on February 2, 2024. • The Final Rule implementing streamlining changes to the HCV and PBV programs was published on May 7, 2024, and codified certain provisions in Sections 101, 105, 106, and 112 of HOTMA as well as incorporating changes from the NSPIRE final rule. Technical amendments to the rule were published December 8, 2025.

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1-II.B. HCV PROGRAM BASICS
The purpose of the HCV program is to provide rental assistance to eligible families. The rules and regulations of the HCV program are determined by the U.S. Department of Housing and Urban Development. The PHA is afforded choices in the operation of the program which are included in the PHA’s administrative plan, a document approved by the board of commissioners of the PHA.

The HCV program offers mobility to eligible families because they may search for suitable housing anywhere in the PHA’s jurisdiction and may also be eligible to move under portability to other PHAs’ jurisdictions.

When a family is determined to be eligible for the program and funding is available, the PHA issues the family a housing voucher. When the family finds a suitable housing unit and funding is available, the PHA will enter into a contract with the owner and the family will enter into a lease with the owner. Each party makes their respective payment to the owner so that the owner receives full rent.

Even though the family is determined to be eligible for the program, the owner has the responsibility of approving the family as a suitable renter. The PHA continues to make payments to the owner as long as the family is eligible and the housing unit continues to qualify under the program.
1-II.C. THE HCV PARTNERSHIPS
To administer the HCV program, the PHA enters into a contractual relationship with HUD (Consolidated Annual Contributions Contract). The PHA also enters into contractual relationships with the assisted family and the owner or landlord of the housing unit.

For the HCV program to work and be successful, all parties involved – HUD, the PHA, the owner, and the family – have important roles to play. The roles and responsibilities of all parties are defined in federal regulations and in legal documents that parties execute to participate in the program.

The chart on the following page illustrates key aspects of these relationships.

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The HCV Relationships:

Congress
Appropriates
Funding
HUD
Provides Funding
To PHA
PHA
Administers
Program
Owner /
Landlord
Family
(Program
Participant)
Voucher specifies
Family Obligations
Housing Assistance Payments
(HAP) Contract specifies Owner
and PHA Obligations
Lease specifies Tenant
and Landlord
Obligations
Program Regulations and ACC
specifies PHA Obligations and
Voucher Funding
Overview of the Program and Plan Page 1-9 Redondo Beach Housing Authority June 2026
What Does HUD Do?
HUD has the following major responsibilities:
• Develop regulations, requirements, handbooks, notices and other guidance to implement HCV housing program legislation passed by Congress;
• Allocate HCV program funds to PHAs;
• Provide technical assistance to PHAs on interpreting and applying HCV program requirements;
• Monitor PHA compliance with HCV program requirements and PHA performance in program administration.

What Does the PHA Do?
The PHA administers the HCV program under contract with HUD and has the following major responsibilities:
• Establish local policies to administer the program;
• Review applications from interested applicants to determine whether they are eligible for the program;
• Maintain a waiting list and select families for admission; • Issue vouchers to eligible families and provide information on how to lease a unit; • Conduct outreach to owners, with special attention to owners outside areas of poverty or minority concentration;
• Approve the rental unit (including assuring compliance with housing quality standards and rent reasonableness), the owner, and the tenancy;
• Make housing assistance payments to the owner in a timely manner; • Recertify families for continued eligibility under the program; • Ensure that owners and families comply with their contractual obligations; • Provide families and owners with prompt, professional service; • Comply with all fair housing and equal opportunity requirements, HUD regulations and requirements, the ACC, HUD-approved applications for funding, the PHA’s administrative plan, and other applicable federal, state and local laws.

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What Does the Owner Do?
The owner has the following major responsibilities:
• Screen families who apply for tenancy, to determine suitability as renters. - The PHA can provide some information to the owner, but the primary responsibility for tenant screening rests with the owner.
- The owner should consider family background factors such as rent and bill-paying history, history of caring for property, respecting the rights of others to peaceful enjoyment of the property, compliance with essential conditions of tenancy, whether the family is engaging in drug-related criminal activity or other criminal activity that might threaten others.
• Comply with the terms of the Housing Assistance Payments contract executed with the PHA; • Comply with all applicable fair housing laws and do not discriminate against anyone; • Maintain the housing unit in accordance with minimum quality standards developed by HUD in accordance with 24 CFR 5.703 (including any variations approved by HUD for the PHA) and make necessary repairs in a timely manner;
• Collect rent due from the assisted family and otherwise comply with and enforce provisions of the dwelling lease.

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What Does the Family Do?
The family has the following responsibilities:
• Provide the PHA with complete and accurate information as determined by the PHA to be necessary for administration of the program;
• Make their best and most timely efforts to locate qualified and suitable housing; • Attend all appointments scheduled by the PHA;
• Allow the PHA to inspect the unit at reasonable times and after reasonable notice; • Take responsibility for care of the housing unit, including any violations of housing quality standards caused by the family;
• Comply with the terms of the lease with the owner;
• Comply with the family obligations of the voucher;
• Not commit serious or repeated violations of the lease; • Not engage in drug-related or violent criminal activity; • Notify the PHA and the owner before moving or terminating the lease; • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit, assign the lease, or have any interest in the unit; • Promptly notify the PHA of any changes in family composition; • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs.

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1-II.D. APPLICABLE REGULATIONS
Applicable regulations include:
• 24 CFR Part 5: General Program Requirements
• 24 CFR Part 8: Nondiscrimination
• 24 CFR Part 35: Lead-Based Paint
• 24 CFR Part 100: The Fair Housing Act
• 24 CFR Part 982: Section 8 Tenant-Based Assistance: Housing Choice Voucher Program • 24 CFR Part 983: Project-Based Vouchers
• 24 CFR Part 985: The Section 8 Management Assessment Program (SEMAP) Overview of the Program and Plan Page 1-13 Redondo Beach Housing Authority June 2026
PART III: THE HCV ADMINISTRATIVE PLAN
1-III.A. OVERVIEW AND PURPOSE OF THE PLAN
The administrative plan is required by HUD. The purpose of the administrative plan is to establish policies for carrying out the programs in a manner consistent with HUD requirements and local goals and objectives contained in the PHA’s agency plan. This administrative plan is a supporting document to the PHA agency plan and is available for public review as required by CFR 24 Part 903.

This administrative plan is set forth to define the PHA's local policies for operation of the housing programs in accordance with federal laws and regulations. All issues related to the HCV program not addressed in this document are governed by such federal regulations, HUD handbooks and guidebooks, notices, and other applicable law. The policies in this administrative plan have been designed to ensure compliance with the consolidated ACC and all HUDapproved applications for program funding.

The PHA is responsible for complying with all changes in HUD regulations pertaining to the HCV program. If such changes conflict with this plan, HUD regulations will have precedence.

Administration of the HCV program and the functions and responsibilities of PHA staff shall be in compliance with the PHA's personnel policy and HUD regulations as well as all federal, state and local fair housing laws and regulations.
1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54 and 24 CFR 983.10] The HUD regulations at 24 CFR 982.54 define the policies that must be included in the administrative plan for the HCV program. They are as follows:
• Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list (Chapter 4); • Issuing or denying vouchers, including PHA policy governing the voucher term and any extensions of the voucher term. If the PHA decides to allow extensions of the voucher term, the PHA administrative plan must describe how the PHA determines whether to grant extensions, and how the PHA determines the length of any extension (Chapter 5); • Any special rules for use of available funds when HUD provides funding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4);
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• Occupancy policies, including definition of what group of persons may qualify as a 'family'; definition of when a family is considered to be “continuously assisted”; standards for denying admission or terminating assistance based on criminal activity or alcohol abuse in accordance with 982.553 or other factors in accordance with 982.552, 982.554, and 982.555; and policies concerning residency by a foster child, foster adult, or live-in aide, including defining when PHA consent for occupancy by a foster child, foster adult, or live-in aide must be given or may be denied (Chapters 3 and 12);
• Encouraging participation by owners of suitable units located outside areas of low income or minority concentration (Chapter 13);
• Assisting a family that claims that illegal discrimination has prevented the family from leasing a suitable unit (Chapter 2);
• Providing information about a family to prospective owners (Chapters 3 and 9); • Disapproval of owners (Chapter 13);
• Subsidy standards (Chapter 5);
• Family absence from the dwelling unit (Chapter 12);
• How to determine who remains in the program if a family breaks up (Chapter 3); • Informal review procedures for applicants (Chapter 16); • Informal hearing procedures for participants (Chapter 16); • The process for establishing and revising voucher payment standards, including whether the PHA has voluntarily adopted the use of Small Area Fair Market Rents (SAFMRs) (Chapter 16);
• Policies on administering decreases and increases in the payment standard during the HAP contract term (Chapter 6);
• If the PHA establishes different payment standard amounts for designated areas within its jurisdiction, including exception areas, the criteria used to determine the designated areas and the payment standard amounts for those designated areas (Chapter 16); • The method of determining that rent to owner is a reasonable rent (initially and during the term of a HAP contract) (Chapter 8);
• Special policies concerning special housing types in the program (e.g., use of shared housing) (Chapter 15);
• Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 16);
• Interim redeterminations of family income and composition the frequency of determinations of family income, and income-determination practices, including whether the PHA will accept a family declaration of assets (Chapter 11);
• Restrictions, if any, on the number of moves by a participant family (Chapter 10); Overview of the Program and Plan Page 1-15 Redondo Beach Housing Authority June 2026
• Approval by the board of commissioners or other authorized officials to charge the administrative fee reserve (Chapter 16);
• Procedural guidelines and performance standards for conducting required housing quality standards inspections, including any deficiency that the PHA has adopted as a lifethreatening deficiency that is not a HUD-required life-threatening deficiency (Chapter 8); • For PHAs that adopt the initial inspection non-life-threatening deficiency option, the PHA’s policy on whether the provision will apply to all initial inspections or a portion of initial inspections, the PHA’s policy on whether the provision will be applied to only some inspections and how the units will be selected, and the PHA’s policy on using withheld HAP funds to repay an owner once the unit is in compliance with housing qualify standards (Chapter 8);
• For PHAs that adopt the alternative inspection provision, the PHA’s policy on how it will apply the provision to initial and periodic inspections; the specific alternative inspection method used by the PHA; the specific properties or types of properties where the alternative inspection method will be employed; and, for initial inspections, the maximum amount of time the PHA will withhold HAP if the owner does not correct the HQS deficiencies within the cure period, and the period of time after which the PHA will terminate the HAP contract for the owner’s failure to correct the deficiencies, which may not exceed 180 days from the effective date of the HAP contract (Chapter 8);
• The PHA’s policy for charging a reinspection fee to owners (Chapter 8); • The PHA’s policy for withholding HAP for units that do not meet housing quality standards (Chapter 8);
• The PHA’s policy on assisting families with relocating and finding a new unit (Chapter 10); • PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3); • Whether the PHA will allow the family to submit more than one Request for Tenancy Approval at a time (Chapter 9);
• In the event of insufficient funding, taking into account any cost-savings measures taken by the PHA, a description of the factors the PHA will consider when determining which HAP contracts to terminate first (e.g., prioritization of PBV HAP contracts over tenant-based HAP contracts or prioritization of contracts that serve vulnerable families or individuals) (Chapter 12); and
• Special policies governing any special purpose vouchers issued by the PHA (Chapter 19).

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If a PHA exercises its discretion to operate a PBV program, the PHA’s administrative must also include the PHA’s local policies on PBV-related matters over which the PHA is exercising its policymaking discretion. At a minimum, the administrative plan must include the following PHA policies related to PBV, as applicable. All policies listed below may be found in Chapter 17. • The definition of project;
• The program cap, including a description of the types and availability of services that will qualify units under the supportive services exception and the PHA’s policy limiting Family Unification Program (FUP) assistance normally available for eligible families and youth; • A description of the circumstances under which the PHA will use the competitive and noncompetitive selection methods and the procedures for submission and selection of PBV proposals;
• The project cap, including the PHA’s policy limiting FUP assistance normally available for eligible families and youth, and a description of the types and availability of services that will qualify units under the supportive services exception from the project cap; • Site selection standards, including the PHA’s standards for deconcentrating poverty and expanding housing and economic opportunities, and the PHA’s site selection policy; • PHA PBV inspection policies, including the timing of an initial inspection of existing housing; whether the PHA adopts for initial inspection of PBV existing housing the non-lifethreatening deficiencies option, the alternative inspection option, or both, and whether the PHA adopts for periodic inspection of PBV housing the alternative inspection option; the frequency of periodic inspections; and any verification methods other than on-site inspection for different inspection types or for different deficiencies; • A description of the circumstances (if any) under which the PHA will establish additional requirements for quality, architecture, or design of PBV housing at the time of initial rehabilitation or new construction;
• A description of the circumstances (if any) under which the PHA will enter into a PBV HAP contract for newly constructed and rehabilitated housing without first entering into an Agreement or execute an Agreement after construction or rehabilitation that complied with applicable requirements;
• The PHA’s policy on the form and manner in which the owner must submit evidence and certify that work has been completed;
• For rehabilitated housing developed after HAP contract execution, a description of the circumstances (if any) under which the PHA will enter a PBV HAP contract for rehabilitated housing that allows for development activity to occur after HAP contract execution; the timing of the initial inspection; the form and manner of owner notifications of changes in the status of contract units; and the period for compliance (if any) for development activity that has not been completed by the deadline;
• The PHA’s policy on amending PBV HAP contracts to substitute or add contract units; Overview of the Program and Plan Page 1-17 Redondo Beach Housing Authority June 2026
• The PHA’s housing quality policies, including a description of the circumstances (if any) under which the PHA will establish additional requirements for continued compliance with quality, architecture, or design of PBV housing during the term of the HAP contract; the PHA’s policy on the conditions under which it will withhold HAP and the conditions under which it will abate HAP or terminate the contract for units other than the unit with housing quality standards deficiencies; and the PHA’s policy on assisting families with relocating and finding a new unit;
• A description of the PHA’s waiting list policies for admission to PBV units, including any information on the owner waiting list policy;
• A description of the PHA’s policy on whether to conduct tenant screening and offer information to an owner;
• The PHA’s policy on continued housing assistance for a family that occupies a wrong-sized unit or a unit with accessibility features that the family does not require; • The PHA’s policy on a family's right to move, including the form of tenant-based rental assistance that the PHA will offer families, and the procedures for tenants to request tenantbased rental assistance to move; • The PHA’s policy regarding which options it will take if a unit is no longer qualified for excepted status or the increased program cap;
• The PHA’s policy regarding continued occupancy of a unit under the increased program cap for supportive housing for persons with disabilities or elderly persons and units excepted based on elderly or disabled family status after a change in family composition removing the elderly family member or family member with a disability; • The PHA’s policy regarding the PHA-determined amount it will use to calculate rent to owner;
• The PHA’s policy on the required timing and form of owner requests for a rent increase; • The PHA’s policy on providing vacancy payments, including the required form and manner of requests for vacancy payments;
• The PHA’s policy on utility reimbursements; and
• The PHA’s policy on applying SAFMRs to its PBVs.

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Mandatory vs. Discretionary Policy
HUD makes a distinction between:
• Mandatory policies: those driven by legislation, regulations, current handbooks, notices, and legal opinions, and
• Optional, non-binding guidance, including guidebooks, notices that have expired and recommendations from individual HUD staff.

HUD expects PHAs to adopt local policies and procedures that are consistent with mandatory policies in areas where HUD gives the PHA discretion. The PHA's administrative plan is the foundation of those policies and procedures. HUD’s directions require PHAs to make policy choices that provide sufficient guidance to staff and ensure consistency to program applicants and participants.

Creating policies based upon HUD guidance is not mandatory but provides a PHA with a “safe harbor.” HUD has already determined that the recommendations and suggestions it makes are consistent with mandatory policies. If a PHA adopts an alternative strategy, it must make its own determination that the alternative approach is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than HUD’s safe harbor, but PHAs should carefully think through those decisions. 1-III.C. ORGANIZATION OF THE PLAN
The plan is organized to provide information to users in particular areas of operation. 1-III.D. UPDATING AND REVISING THE PLAN
The PHA will revise this administrative plan as needed to comply with changes in HUD regulations. The original plan and any changes must be approved by the board of commissioners of the agency, the pertinent sections included in the Agency Plan, and a copy provided to HUD.

PHA Policy
The PHA will review and update the plan as needed, to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation.

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Chapter 2

FAIR HOUSING AND EQUAL OPPORTUNITY

INTRODUCTION
This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and processes. The responsibility to further nondiscrimination pertains to all areas of the PHA’s housing choice voucher (HCV) operations.

This chapter describes HUD regulations and PHA policies related to these topics in three parts:

Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination.

Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the housing choice voucher program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004.

Part III: Serving Limited English Proficient (LEP) Persons. This part details current requirements related to LEP persons.

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PART I: NONDISCRIMINATION
2-I.A. OVERVIEW
Federal laws require PHAs to treat all applicants and participants equally, providing the same opportunity to access services, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including:
• Title VI of the Civil Rights Act of 1964
• Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988)
• Executive Order 11063
• Section 504 of the Rehabilitation Act of 1973
• The Age Discrimination Act of 1975
• Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern)
• Violence Against Women Act (VAWA)
When more than one civil rights law applies to a situation, the laws will be read and applied together.

Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted will also apply.

PHA Policy
The State of California Fair Employment and Housing Act.

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2-I.B. NONDISCRIMINATION
Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination based on other factors.

The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called “protected classes”) Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18.

The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [24 CFR 5.105(a)(2)]. Enforcement of the Equal Access to Housing in HUD Program Regardless of Sexual Orientation or Gender Identity Final Rule has been halted. HUD has proposed the elimination of the Equal Access Rule regulation at 24 CFR 5.105(a)(2) to harmonize HUD regulations with Executive Order 14168. HUD has already rescinded Notice PIH 2014-20 regarding Equal Access Rule enforcement and has removed references to the rule from the HCV Guidebook. As of Spring 2026, elimination of the regulation is currently under review by OMB.

PHA Policy
The State of California has the following additional protected classes: Ancestry, Citizenship, Gender Identity and Gender Expression, Genetic Information, Immigration Status, Marital Status, Primary Language, Sexual Orientation, Source of Income, and any other arbitrary basis (for example, Occupation or Veteran Status) The PHA will not use any of these factors to:
• Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the housing choice voucher program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment
• Subject anyone to sexual harassment
• Restrict anyone's access to any benefit enjoyed by others in connection with the housing program
• Treat a person differently in determining eligibility or other requirements for admission • Steer an applicant or participant toward or away from a particular area based any of these factors
• Deny anyone access to the same level of services
• Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program
• Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class
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• Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class Providing Information to Families and Owners
The PHA must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, the PHA must provide information to HCV applicant families about civil rights requirements and the opportunity to rent in a broad range of neighborhoods [24 CFR 982.301]. The Housing Assistance Payments (HAP) contract informs owners of the requirement not to discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability in connection with the contract. 2-I.C. DISCRIMINATION COMPLAINTS
General Housing Discrimination Complaints
If an applicant or participant believes that any family member has been discriminated against by the PHA or an owner, the family should advise the PHA. The PHA should make every reasonable attempt to determine whether the applicant’s or participant’s assertions have merit and take any warranted corrective action.

In all cases, the PHA will advise the family that they may file a fair housing complaint if the family feels they have been discriminated against under the Fair Housing Act.

PHA Policy
Applicants or participants who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing.

Within 10 business days of receiving the complaint, the PHA will investigate and attempt to remedy discrimination complaints made against the PHA. The PHA will also advise the family of their right to file a fair housing complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The fair housing poster, posted in conspicuous and accessible locations in PHA lobbies, will reference how to file a complaint with FHEO.

The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.)
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VAWA Complaint Processing [Notice FHEO 2023-01]
A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated, file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to, investigate the allegations under the additional authority and procedures described in FHEO 2023-01.

Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate the complaint.

PHA Policy
Applicants or participants who wish to file a VAWA complaint against the PHA may notify the PHA either orally or in writing.

The PHA will advise the family of their right to file a VAWA complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The PHA will inform the family that not later than one year after an alleged VAWA violation has occurred or terminated, applicants and tenants who believe they have been injured by a VAWA violation or will be injured by such a violation that is about to occur may file a VAWA complaint using FHEO’s online complaint form via mail, email, or telephone.

The PHA will attempt to remedy complaints made against the PHA and will conduct an investigation into all allegations of discrimination.

The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.)
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PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES
2-II.A. OVERVIEW
One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program.

The PHA must ensure that persons with disabilities have full access to the PHA’s programs and services. This responsibility begins with the first contact by an interested family and continues through every aspect of the program.

PHA Policy
The PHA will ask all applicants and participants if they require any type of accommodations in writing, on the intake application, reexamination documents, and notices of adverse action by the PHA, by including the following language:
“If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact the housing authority.”
A specific name and phone number of designated staff will be provided to process requests for accommodation.

The PHA will display posters and other housing information and signage in locations throughout the PHA’s office in such a manner as to be easily readable from a wheelchair.

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2-II.B. DEFINITION OF REASONABLE ACCOMMODATION
A reasonable accommodation is an adjustment made to a rule, policy, practice, or service that allows a person with a disability to have equal access to the HCV program. For example, reasonable accommodations may include making home visits, extending the voucher term, or approving an exception payment standard in order for a participant to lease an accessible dwelling unit.

Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an “undue financial and administrative burden” for the PHA, or result in a “fundamental alteration” in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider’s operations.

Types of Reasonable Accommodations
When needed, the PHA will modify normal procedures to accommodate the needs of a person with disabilities. Examples include:
• Permitting applications and reexaminations to be completed by mail • Conducting home visits
• Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside the PHA range) if the PHA determines this is necessary to enable a person with disabilities to obtain a suitable housing unit • Providing time extensions for locating a unit when necessary because of lack of availability of accessible units or special challenges of the family in seeking a unit • Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff
• Allowing for exceptions to the PHA’s subsidy standards • Allowing a change in the family’s rent due date to correspond with the receipt of the head of household, or spouse or cohead’s SSI or SSDI benefits
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2-II.C. REQUEST FOR AN ACCOMMODATION
If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].

The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA’s programs and services.

If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability. There must be an identifiable connection, or nexus, between the requested accommodation and the individual’s disability.

PHA Policy
The PHA will require the family to make its request in writing using a reasonable accommodation request form. The PHA may assist the family with the written request as needed.

The PHA uses specific reasonable accommodation forms as needed, designed to assist the applicant/participant and the PHA, including:

Reasonable Accommodation Request Form – for applicants/participants to request a specific accommodation.

Reasonable Accommodation Request Form – for medical professionals to complete after the applicant/participant has requested a specific accommodation.

Reasonable Accommodation Request Form – for live-in care provider: Families must receive PHA approval for any live-in care provider before that provider will be allowed to move into the assisted unit. This form is to be completed by the family (provided the family is able) and live-in care provider and given to the PHA to process.

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2-II.D. VERIFICATION OF DISABILITY
The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances.

Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family’s access to the PHA’s programs and services.

If a person’s disability is obvious or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known, no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act].

If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation.

When verifying a disability, the PHA will follow the verification policies provided in Chapter 7.

All information related to a person’s disability will be treated in accordance with the confidentiality policies provided in Chapter 16. In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability:
• Third-party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual’s disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]
• The PHA must request only information that is necessary to evaluate the disability-related need for the accommodation. The PHA will not inquire about the nature or extent of any disability.
• Medical records will not be accepted or retained in the participant file. • In the event that the PHA does receive confidential information about a person’s specific diagnosis, treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the information, the PHA will note in the file that the disability and other requested information have been verified, the date the verification was received, and the name and address of the knowledgeable professional who sent the information [Notice PIH 2010-26].

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2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2010-26].

The PHA must approve a request for an accommodation if the following three conditions are met:
• The request was made by or on behalf of a person with a disability. • There is a disability-related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s HCV operations (including the obligation to comply with HUD requirements and regulations).

Requests for accommodations must be assessed on a case-by-case basis, taking into account factors such as the overall size of the PHA’s program with respect to the number of employees, type of facilities and size of budget, type of operation including composition and structure of workforce, the nature and cost of the requested accommodation, and the availability of alternative accommodations that would effectively meet the family’s disability-related needs.

Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation.

PHA Policy
After a request for an accommodation is presented, the PHA will respond in writing within 10 business days.

If the PHA denies a request for an accommodation because there is no relationship, or nexus, found between the disability and the requested accommodation, the notice will inform the family of the right to appeal the PHA’s decision through an informal review (if applicable) or informal hearing (see Chapter 16).

If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA’s operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family’s disability-related needs without a fundamental alteration to the HCV program and without imposing an undue financial and administrative burden.

If the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family in writing of its determination within 10 business days from the date of the most recent discussion or communication with the family.

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2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION

IMPAIRMENTS
HUD regulations require the PHA to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6].

At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork.

PHA Policy
To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display / teletype) communication will be available.

To meet the needs of persons with vision impairments, large-print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, one-on-one assistance will be provided upon request.

Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials and be present at all meetings.

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2-II.G. PHYSICAL ACCESSIBILITY
The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following:
• Notice PIH 2010-26
• Section 504 of the Rehabilitation Act of 1973
• The Americans with Disabilities Act of 1990
• The Architectural Barriers Act of 1968
• The Fair Housing Act of 1988
The PHA’s policies concerning physical accessibility must be readily available to applicants and participants. They can be found in three key documents:
• This plan describes the key policies that govern the PHA’s responsibilities with regard to physical accessibility.
• Notice PIH 2010-26 summarizes information about pertinent laws and implementing regulations related to nondiscrimination and accessibility in federally-funded housing programs.
• The PHA Plan provides information about self-evaluation, needs assessment, and transition plans.

The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS). Newly constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the HCV program.

As part of the briefing packet, the PHA will include notice to families that if the family includes a person with disabilities, the PHA will provide a current list of available accessible units known to the PHA and will assist the family in locating an available accessible unit, and if necessary, other assistance in locating an available accessible dwelling unit [24 CFR 982.301(b)(12)].

In general, owners must permit the family to make reasonable modifications to the unit.

However, the owner is not required to pay for the modification and may require that the unit be restored to its original state at the family’s expense when the family moves.

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2-II.H. DENIAL OR TERMINATION OF ASSISTANCE
A PHA’s decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 982.552 (2)(iv)].

When applicants with disabilities are denied assistance, the notice of denial must inform them of the PHA’s informal review process and their right to request an informal review. In addition, the notice must inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal review process.

When a participant family’s assistance is terminated, the notice of termination must inform them of the PHA’s informal hearing process and their right to request a hearing and reasonable accommodation.

When reviewing reasonable accommodation requests, the PHA must consider whether any mitigating circumstances can be verified to explain and overcome the problem that led to the PHA’s decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation.

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PART III: SERVING LIMITED ENGLISH PROFICIENCT (LEP) PERSONS 2-III.A. OVERVIEW [OAG Memo 7/14/25 and Executive Order 14224] In March 2025, Executive Order 14224 revoked Executive Order 13166, which had directed agencies to enhance access to federal programs for persons with limited English proficiency (LEP) and required tailored guidance for recipients of federal funding under Title VI of the Civil Rights Act of 1964. Executive Order 14224 also declared English as the official language of the United States.

In response, on July 14, 2025, the Office of the Attorney General (OAG) issued a memo on the implementation of EO 14224, which rescinded all prior guidance to federal agencies regarding Title VI of the Civil Right Act’s prohibition against national origin discrimination affecting LEP persons. The memo presents a legal analysis that finds language is not an immutable characteristic entitled to Title VI protection and decoupling LEP persons from national origin discrimination. The memo states that, where allowed by law, agencies should determine which of their programs and policies might serve the public at large better if operated exclusively in English. The OAG memo also states that agencies are not required to amend, remove, or otherwise stop production of all multilingual documents, products, or other services prepared or offered. Further, many states and localities have laws regarding language services to be provided to non-English-speaking persons that may apply to the PHA.

Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the HCV program.

PHA Policy
PHA oral and written communications with families will generally be conducted in English. For applicants and participants who may require language assistance, the PHA will encourage families to bring an advocate, family member, friend, or other adult representative to assist in communications. The PHA will also utilize available resources such as bilingual staff, community volunteer resources, responsible use of artificial intelligence technology, and/or machine translation to assist families with communication.

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EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201] A person with a disability, as defined under federal civil rights laws, is any person who:
• Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or
• Has a record of such impairment, or
• Is regarded as having such impairment
The phrase “physical or mental impairment” includes:
• Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or • Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism.
“Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. “Has a record of such impairment” means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. “Is regarded as having an impairment” is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment.

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The definition of a person with disabilities does not include:
• Current illegal drug users
• People whose alcohol use interferes with the rights of others • Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the HCV program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations.

The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the $480 dependent deduction, the allowance for medical expenses, or the allowance for disability assistance expenses.

The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the HCV program, yet an accommodation is needed to provide equal opportunity.

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Chapter 3

ELIGIBILITY

INTRODUCTION
The PHA is responsible for ensuring that every individual and family admitted to the HCV program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family’s assistance.

To be eligible for the HCV program:
• The applicant family must:
- Qualify as a family as defined by HUD and the PHA.
- Have income at or below HUD-specified income limits.
- Qualify on the basis of citizenship or the eligible immigrant status of family members. - Provide social security number information for household members as required. - Consent to the PHA’s collection and use of family information as provided for in PHAprovided consent forms. - Not currently receive a duplicative subsidy.
- Upon the PHA’s full implementation of HOTMA, meet net asset and property ownership restriction requirements.
• The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA.

This chapter contains three parts:

Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members.

Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent.

Part III: Denial of Assistance. This part covers factors related to an applicant’s past or current conduct (e.g., criminal activity) that can cause the PHA to deny assistance as well as the asset limitation for HCV.

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PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3-I.A. OVERVIEW
Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the assisted unit. This part provides information that is needed to correctly identify family and household members, and to apply HUD's eligibility rules.
3-I.B. FAMILY AND HOUSEHOLD [24 CFR 5.403; 24 CFR 5.100; and FR Notice 2/14/23] The terms family and household have different meanings in the HCV program.

Family
To be eligible for assistance, an applicant must qualify as a family. Family as defined by HUD includes, but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, a single person, who may be an elderly person, displaced person, disabled person, near-elderly person, or any other single person, an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or a group of persons residing together.

Such group includes but is not limited to a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, and the remaining member of a tenant family. The PHA has the discretion to determine if any other group of persons qualifies as a family.

Gender Identity means actual or perceived gender characteristics.

Sexual orientation means homosexuality, heterosexuality, or bisexuality.

PHA Policy
A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law but who either can demonstrate that they have lived together previously or certify that each individual’s income and other resources will be available to meet the needs of the family.

Each family must identify the individuals to be included in the family at the time of application and must notify the PHA if the family’s composition changes. Applicants will generally not be allowed to add additional adult member/s to the application after the PHA has initiated the initial eligibility process and the PHA has notified the applicant that his/her name has reached the top of the wait list. (It is the applicant’s responsibility to notify the PHA of changes as they occur. (See Section 5-II.C, “Changes in Household Size/Need for Change in Voucher Size”.) Exceptions will be made for persons who can produce proof of marriage or other legal family union. Exceptions will also be made in cases where adding additional members would not give the applicant an additional wait list preference. This Eligibility Page 3-4 Redondo Beach Housing Authority
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rule does not apply to, or affect, those applicants who are elderly or disabled or families. (Families are defined in the paragraph above).

Household
Household is a broader term that includes additional people who, with the PHA’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup [24 CFR 982.315; Notice PIH 2017-08]
Except under the following conditions, the PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up:
• If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, stalking, and human trafficking, see section 16-IX.D of this plan.) • In accordance with Notice PIH 2017-08, for HUD–Veterans Affairs Supportive Housing (HUD–VASH) vouchers, when the veteran is the perpetrator of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator’s HUD–VASH voucher, the victim should be given a regular HCV if one is available, and the perpetrator’s HUD–VASH voucher should be used to serve another eligible family. If a regular HCV is not available, the victim will continue to use the HUD–VASH voucher, which must be issued to another eligible family upon the voucher’s turnover.
• If a court determines the disposition of property between members of the assisted family, the PHA is bound by the court’s determination of which family members continue to receive assistance.

PHA Policy
When a family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original application date. Other former family members may make a new application with a new application date if the waiting list is open.

If a family breaks up into two otherwise eligible families while receiving assistance, only one of the new families will continue to be assisted.

In the absence of a judicial decision or an agreement among the original family members, the PHA will determine which family will retain their placement on the waiting list or continue to receive assistance. In making its determination, the PHA will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including a family member who was forced to leave an assisted unit as a result of such actual or threatened abuse; (4) any possible risks to family members as a result of criminal activity; and (5) the recommendations of social service professionals.

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Remaining Member of a Tenant Family [24 CFR 5.403]
The HUD definition of family includes the remaining member of a tenant family, which is a member of an assisted family who remains in the unit when other members of the family have left the unit. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family.

If dependents are the only “remaining members of a tenant family” and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6- I.B, for the policy on “Caretakers for a Child.”
3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]
Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse.

PHA Policy
The family may designate any qualified family member as the head of household.

The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household.
3-I.E. SPOUSE, COHEAD, AND OTHER ADULT
A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13].

Spouse means the marriage partner of the head of household.

PHA Policy
A marriage partner includes the partner in a "common law" marriage as defined in state law. The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse.

A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead.

PHA Policy
Minors who are emancipated under state law may be designated as a cohead.

Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults.

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3-I.F. DEPENDENTS AND MINORS [24 CFR 5.603]
A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age.

A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides.

Identifying each dependent in the family is important because each dependent qualifies the family for a dependent allowance as described in Chapter 6.

Joint Custody of Dependents
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time.

When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, or an IRS return showing which family has claimed the child for income tax purposes.
3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-29] A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to be full-time is defined by the educational institution.

Identifying each FTS is important because: (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent allowance, and (2) the earned income of such an FTS is treated differently from the income of other family members. 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/12]
Elderly Persons
An elderly person is a person who is at least 62 years of age.

Near-Elderly Persons
A near-elderly person is a person who is 50-61 years of age.

Elderly Family
An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person.

Identifying elderly families is important because elderly families qualify for the elderly family allowance as described in Chapter 6.

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3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12]
Persons with Disabilities
Under the HCV program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter.

These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability.

As discussed in Chapter 2, the PHA must make all aspects of the HCV program accessible to persons with disabilities and consider reasonable accommodations requested based upon a person’s disability.

Disabled Family
A disabled family is one in which the head, spouse, or cohead is a person with disabilities.

Identifying disabled families is important because these families qualify for the disabled family allowance as described in Chapter 6.

Even though persons with drug or alcohol dependencies are considered persons with disabilities, this does not prevent the PHA from denying assistance for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter, or from terminating assistance in accordance with the policies in Chapter 12. 3-I.J. GUESTS [24 CFR 5.100]
A guest is a person temporarily staying in the unit with the consent of a member of the household who has expressed or implied authority to so consent.

PHA Policy
A guest can remain in the assisted unit no longer than 14 cumulative days during a 12- month period. No more than 3 days and nights in any week in the assisted unit, except as follows:

Children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the assisted household more than 50 percent of the time, are not subject to the time limitations of guests as described above.

A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure is expected to last 40 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return and obtain approval from the property owner and the PHA.

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3-I.K. FOSTER CHILDREN AND FOSTER ADULTS [24 CFR 5.603] Foster children or adults are permitted to live in an assisted unit with the PHA’s permission. A PHA refusal to allow a family to have a foster child or foster children may constitute a violation of the familial status provisions of the Fair Housing Act.

A foster adult is a member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

A foster child is a member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction.

Foster children and foster adults who are living with an applicant or who have been approved by the PHA to live with a participant family are considered household members but not family members. The income of foster children/adults is not counted in family annual income, and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603; HUD-50058 IB, p. 13].

The administrative plan must include policies concerning residency by a foster child or foster adult, including defining when PHA consent for occupancy by a foster child or foster adult must be given or may be denied [24 CFR 982.54].

PHA Policy
A foster child or foster adult may be allowed to reside in the unit if their presence would not result in a violation of space standards as described in Section 8-I.F. of this policy.

Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L.

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3-I.L. ABSENT FAMILY MEMBERS
Individuals may be absent from the family, either temporarily or permanently, for a variety of reasons including educational activities, placement in foster care, employment, illness, incarceration, and court order.

Definitions of Temporarily and Permanently Absent
PHA Policy
Generally, an individual who is or is expected to be absent from the assisted unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.

Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household.

Absences Due to Placement in Foster Care [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family.

PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member.

Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member.

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Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22] If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22].

PHA Policy
An individual confined to a nursing home or hospital on a permanent basis is not considered a family member.

The PHA will request verification of the family member’s permanent absence from a responsible medical professional. If the responsible medical professional cannot provide a determination, the person will be considered temporarily absent. If the family certifies that the family member is confined on a permanent basis, they may present, and the PHA will consider any additional documentation or evidence.

Return of Permanently Absent Family Members
PHA Policy
The family must request PHA approval for the return of any adult family members that the PHA previously determined to be permanently absent and can only be added back to the household as a reasonable accommodation request. The individual is subject to the eligibility and screening requirements discussed elsewhere in this chapter.

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3-I.M. LIVE-IN AIDE
A live-in aide is a person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the persons, (2) is not obligated for the support of the persons, and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403].

The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR 8, to make the program accessible to and usable by the family member with disabilities.

The income of a live-in aide is not counted in the calculation of annual income for the family [24 CFR 5.609(b)]. Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide. Because live-in aides are not family members, a relative who serves as a live-in aide would not be considered a remaining member of a tenant family.

PHA Policy
A family’s request for a live-in aide must be made in writing. The PHA will verify the need for a live-in aide with a reliable, knowledgeable professional, such as a doctor, social worker, or case worker, that the live-in aide is essential for the care and well-being of the elderly, near-elderly, or disabled family member unless the disability-related need is apparent or known to the PHA. For continued approval, the family may be required to submit a new, written request that is subject to PHA verification at each annual reexamination.

In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services.

The PHA will not approve a particular person as a live-in aide, and may withdraw such approval if [24 CFR 982.316(b)]:

The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program;
The person commits drug-related criminal activity or violent criminal activity; or The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act.

The PHA will notify the family of its decision in writing within 10 business days of receiving a request for a live-in aide, including all required documentation related to the request.

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PART II: BASIC ELIGIBILITY CRITERIA
3-II.A. INCOME ELIGIBILITY AND TARGETING
Income Limits
HUD establishes income limits for all areas of the country and publishes them annually in the Federal Register. They are based upon estimates of median family income with adjustments for family size. The income limits are used to determine eligibility for the program and for income targeting purposes as discussed in this section.

Definitions of the Income Limits [24 CFR 5.603(b)]
Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size.

Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size.

Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher.

Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes.

Using Income Limits for Eligibility [24 CFR 982.201 and Notice PIH 2023-27] Income limits are used for eligibility only at admission. Income eligibility is determined by comparing the annual income of an applicant to the applicable income limit for their family size.

Income and net family assets of household members are excluded when determining income eligibility; however, household members are considered for purposes of unit size and subsidy standards. In order to be income eligible, an applicant family must be one of the following:
• A very low-income family
• A low-income family that has been “continuously assisted” under the 1937 Housing Act. A family is considered to be continuously assisted if the family is already receiving assistance under any 1937 Housing Act program at the time the family is admitted to the HCV program [24 CFR 982.4; 24 CFR 982.201(b)]
PHA Policy
The PHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program at the time they were selected from the PHA’s waiting list.
• A low-income family that qualifies for voucher assistance as a non-purchasing household living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing homeownership) developments, or other HUD-assisted multifamily homeownership programs covered by 24 CFR 248.173
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• A low-income or moderate-income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract on eligible low-income housing as defined in 24 CFR 248.101.
• A low-income family is eligible for assistance under VASH [FR Notice 8/13/24]. See Chapter 19 of this policy for more information.

HUD permits the PHA to establish additional categories of low-income families that may be determined eligible. The additional categories must be consistent with the PHA plan and the consolidated plans for local governments within the PHA’s jurisdiction.

PHA Policy
The PHA has not established any additional categories of eligible low-income families.

Using Income Limits for Targeting [24 CFR 982.201]
At least 75 percent of the families admitted to the PHA's program during a PHA fiscal year must be extremely low-income families. HUD may approve exceptions to this requirement if the PHA demonstrates that it has made all required efforts but has been unable to attract an adequate number of qualified extremely low-income families.

Families continuously assisted under the 1937 Housing Act and families living in eligible lowincome housing that are displaced as a result of prepayment of a mortgage or voluntary termination of a mortgage insurance contract are not counted for income targeting purposes.

Eligibility Page 3-15 Redondo Beach Housing Authority
June 2026
3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance.

All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply.

Declaration [24 CFR 5.508]
HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults.

U.S. Citizens and Nationals
U.S. citizens or U.S. nationals (or the parent/guardian for family members under age 18) must sign a declaration of their status, under penalty of perjury. In general, citizens and nationals are required to submit only a signed declaration as verification of their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport. HUD strongly encourages PHAs to require that families provide proof of citizenship by such means as birth certificates, naturalization certificates, passports, or other documentation [HUD Secretary Letter 12/16/25].

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

Eligible Noncitizens
Eligible noncitizens (or the parent/guardian for family members under age 18) must sign a declaration of their status, under penalty of perjury. In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person’s age, and the date on which the family began receiving HUD-funded assistance.

Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504].

Eligibility Page 3-16 Redondo Beach Housing Authority
June 2026
Ineligible Noncitizens
Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. Family members who do not sign a declaration of their status or provide the required supporting documentation will be considered ineligible for housing assistance.

Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family.

When reviewing applicants for assistance, if a PHA formally makes a finding of fact or conclusion of law, supported by a determination from the Department of Homeland Security (DHS) or the Executive Office of Immigration Review (e.g., a Final Order of Deportation), that an individual is not lawfully present in the United States, then the PHA must provide to DHS a report of the person’s name, address, and other identifying information that the PHA has. Note that a SAVE response of no service record or verification of an immigration status that makes the individual ineligible for housing assistance is not a finding of fact or conclusion of law that the individual is not lawfully present. At least four times annually, PHAs must provide such information to DHS. If a PHA has knowledge of an individual who is not lawfully present in the United States, they must provide a report to DHS within 45 days after the close of the appropriate calendar year quarter [HUD Secretary Letter 12/16/25].

Mixed Families
A family is eligible for assistance as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 16 for a discussion of informal hearing procedures.

Eligibility Page 3-17 Redondo Beach Housing Authority
June 2026
Ineligible Families [24 CFR 5.514(d), (e), and (f)]
A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible. Verification of eligibility for this purpose occurs when the individual or family members have submitted documentation to the PHA in accordance with program requirements [24 CFR 5.512(a)].

PHA Policy
The PHA will not provide assistance to a family before the verification of at least one family member.

When a PHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 10 business days of the determination.

The notice will explain the reasons for the denial of assistance, that the family may be eligible for proration of assistance, and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS) or to request an informal hearing with the PHA. The informal hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process.

Informal hearing procedures are contained in Chapter 16.

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June 2026
Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the assisted family, the PHA must verify status at the first interim or regular reexamination following the person’s occupancy, whichever comes first.

If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)].

Each family member is required to submit evidence of eligible status only one time during continuous occupancy.

PHA Policy
The PHA will verify the citizenship status of applicants at the time other eligibility factors are determined.
3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2018-24] The applicant and all members of the applicant’s household must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN. If a child under age 6 has been added to an applicant family within 6 months prior to voucher issuance, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of the effective date of the initial HAP contract. A detailed discussion of acceptable documentation is provided in Chapter 7.

Note: These requirements do not apply to noncitizens who do not contend eligible immigration status.

The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216.
3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230, 24 CFR 5.232, and HCV GB, p. 5-13]
HUD requires that each adult family member, and the head of household, spouse, or cohead, regardless of age, sign form HUD-9886-A, Authorization for the Release of Information/Privacy Act Notice, the form HUD-52675 Debts Owed to Public Housing Agencies and Terminations, and other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The consent form remains effective until the family is denied assistance, assistance is terminated, or the family provides written notification to revoke consent.

The PHA must deny admission to the program if any member of the applicant family fails to sign and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts B and F [24 CFR 982.552(b)(3) and 24 CFR 5.232(a)].

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June 2026
However, this does not apply if the applicant or participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance [24 CFR 5.232(c)].

PHA Policy
The PHA has established a policy that revocation of consent to access financial records will result in denial of admission.
3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16]
Section 327 of Public Law 109-115 and the implementing regulation at 24 CFR 5.612 established restrictions on the eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education.

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 student’s eligibility must be examined along with the income eligibility of the student’s parents. In these cases, both the student and the student’s parents must be income eligible for the student to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents in accordance with PHA policy, the income of the student’s parents will not be considered in determining the student’s eligibility.

The law does not apply to students who reside with parents who are applying to receive HCV assistance. It is limited to students who are seeking assistance on their own, separately from their parents.

Definitions
In determining whether and how the eligibility restrictions apply to a student, the PHA will rely on the following definitions [FR Notice 4/10/06, FR Notice 9/21/16].

Dependent Child
In the context of the student eligibility restrictions, dependent child means a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent in 24 CFR 5.603, which states that the dependent must be a member of the assisted family, other than the head of household or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Foster children and foster adults are not considered dependents.

Eligibility Page 3-20 Redondo Beach Housing Authority
June 2026
Independent Student
PHA Policy
The PHA will consider a student “independent” from their parents and the parents’ income will not be considered when determining the student’s eligibility if the following four criteria are all met:

The individual is of legal contract age under state law.

The individual has established a household separate from their parents for at least one year prior to application for occupancy or the individual meets the U.S.

Department of Education’s definition of independent student.

To be considered an independent student according to the Department of Education, a student must meet one or more of the following criteria:

The individual is at least 24 years old by December 31 of the award year for which aid is sought
The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older
The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence
The individual is a veteran of the U.S. Armed Forces or is currently serving on active duty in the Armed Forces for other than training purposes
The individual is a graduate or professional student
The individual is married
The individual has one or more legal dependents other than a spouse (for example, dependent children or an elderly dependent parent) Eligibility Page 3-21 Redondo Beach Housing Authority
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The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by:

A local educational agency homeless liaison
The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a
designee of the director
A financial aid administrator
The individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances
The individual was not claimed as a dependent by their parents pursuant to IRS regulations, as demonstrated on the parents’ most recent tax forms.

The individual provides a certification of the amount of financial assistance that will be provided by their parents. This certification must be signed by the individual providing the support and must be submitted even if no assistance is being provided.

If the PHA determines that an individual meets the definition of a vulnerable youth such a determination is all that is necessary to determine that the person is an independent student for the purposes of using only the student’s income for determining eligibility for assistance.

The PHA will verify that a student meets the above criteria in accordance with the policies in Section 7-II.E.

Institution of Higher Education
The PHA will use the statutory definition under section 102 of the Higher Education Act of 1965 to determine whether a student is attending an institution of higher education (see Exhibit 3-2).

Parents
PHA Policy
For purposes of student eligibility restrictions, the definition of parents includes biological or adoptive parents, stepparents (as long as they are currently married to the biological or adoptive parent), and guardians (e.g., grandparents, aunt/uncle, godparents, etc).

Person with Disabilities
The PHA will use the statutory definition under section 3(b)(3)(E) of the 1937 Act to determine whether a student is a person with disabilities (see Exhibit 3-1).

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Veteran
PHA Policy
A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable.

Vulnerable Youth
PHA Policy
A vulnerable youth is an individual who meets the U.S. Department of Education’s definition of independent student in paragraphs (b), (c), or (h), as adopted in Section II of FR Notice 9/21/16:

The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older
The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s state of legal residence The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by:

A local educational agency homeless liaison
The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director A financial aid administrator
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Determining Student Eligibility
If a student is applying for assistance on their own, apart from their parents, the PHA must determine whether the student is subject to the eligibility restrictions contained in 24 CFR 5.612.

If the student is subject to those restrictions, the PHA must ensure that: (1) the student is individually eligible for the program, (2) either the student is independent from their parents or the student’s parents are income eligible for the program, and (3) the “family” with which the student is applying is collectively eligible for the program.

PHA Policy
For any student who is subject to the 5.612 restrictions, the PHA will:

Follow its usual policies in determining whether the student individually and the student’s “family” collectively are eligible for the program Determine whether the student is independent from their parents in accordance with the definition of independent student in this section
Follow the policies below, if applicable, in determining whether the student’s parents are income eligible for the program
If the PHA determines that the student, the student’s parents (if applicable), or the student’s “family” is not eligible, the PHA will send a notice of denial in accordance with the policies in Section 3-III.F, and the applicant family will have the right to request an informal review in accordance with the policies in Section 16-III.B.

Determining Parental Income Eligibility
PHA Policy
For any student who is subject to the 5.612 restrictions and who does not satisfy the definition of independent student in this section, the PHA will determine the income eligibility of the student’s parents as follows:

If the student’s parents are married and living together, the PHA will obtain a joint income declaration and certification of joint income from the parents.

If the student’s parent is widowed or single, the PHA will obtain an income declaration and certification of income from that parent.

If the student’s parents are divorced or separated, the PHA will obtain an income declaration and certification of income from each parent.

If the student has been living with one of their parents and has not had contact with or does not know where to contact their other parent, the PHA will require the student to submit a certification under penalty of perjury describing the circumstances and stating that the student does not receive financial assistance from the other parent. The PHA will then obtain an income declaration and certification of income from the parent with whom the student has been living or had contact.

In determining the income eligibility of the student’s parents, the PHA will use the income limits for the jurisdiction in which the parents live.

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3-II.F. EIV SYSTEM SEARCHES [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27]
Existing Tenant Search
Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance.

If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable.

PHA Policy
The PHA will contact the other PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, including a form HUD-50058 or 50059, as applicable, showing an end of participation.

The PHA will only approve assistance contingent upon the move-out from the currently occupied assisted unit.

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June 2026
Debts Owed to PHAs and Terminations
All adult household members must sign the form HUD-52675 Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module.

If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program.

PHA Policy
The PHA will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household.

The PHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, the PHA will determine if this information warrants a denial in accordance with the policies in Part III of this chapter.

EIV Income Report
For each new admission, the PHA is required to review income information in EIV to confirm and validate family reported income within 120 days after the admission information is transmitted to HUD. The PHA must print and maintain copies of the reports in the tenant file and resolve any discrepancies with the family.

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Eligibility Page 3-27 Redondo Beach Housing Authority
June 2026
PART III: DENIAL OF ASSISTANCE
3-III.A. OVERVIEW
A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied assistance. A PHA may deny assistance for an applicant because of the family’s action or failure to act as described in 24 CFR 982.552 or 982.553. In this section we will discuss other situations and circumstances in which denial of assistance is mandatory for the PHA, and those in which denial of assistance is optional for the PHA.

The regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history. HUD does not require the adoption of “One Strike” policies. PHAs should safeguard the due process rights of applicants and tenants.

Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] Denial of assistance includes any of the following:
• Not placing the family’s name on the waiting list
• Denying or withdrawing a voucher
• Not approving a request for tenancy or refusing to enter into a HAP contract • Refusing to process a request for or to provide assistance under portability procedures Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)]
HUD rules prohibit denial of program assistance to the program based on any of the following criteria:
• Age, disability, race, color, religion, sex, or national origin (See Chapter 2 for additional information about fair housing and equal opportunity requirements.) • Where a family lives prior to admission to the program • Where the family will live with assistance under the program. Although eligibility is not affected by where the family will live, there may be restrictions on the family’s ability to move outside the PHA’s jurisdiction under portability. (See Chapter 10.) • Whether members of the family are unwed parents, recipients of public assistance, or children born out of wedlock
• Whether the family includes children
• Whether a family decides to participate in a family self-sufficiency program • Whether or not a qualified applicant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the applicant is otherwise qualified for assistance (See section 3-III.G.)
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3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)]
HUD requires the PHA to deny assistance in the following cases:
• Any member of the household has been evicted from federally assisted housing in the last three years for drug-related criminal activity. HUD permits, but does not require, the PHA to admit an otherwise-eligible family if the household member has completed a PHA-approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g., the person involved in the criminal activity no longer lives in the household).

PHA Policy
The PHA will admit an otherwise-eligible family who was evicted from federally assisted housing within the past five years for drug-related criminal activity if the PHA is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by the PHA, or the person who committed the crime is no longer living in the household. • The PHA determines that any household member is currently engaged in the use of illegal drugs.

PHA Policy
Currently engaged in is defined as any use of illegal drugs during the previous five months including marijuana unless medically prescribed. Although marijuana is legal in the state of California, this is a federally assisted program and is considered illegal on the federal level.
• The PHA has reasonable cause to believe that any household member’s current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents.

PHA Policy
In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A record or records of arrest will not be used as the sole basis of determining reasonable cause. The PHA will also consider evidence from treatment providers or community-based organizations providing services to household members.
• Any household member has ever been convicted of drug-related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing.
• Any household member is subject to a lifetime registration requirement under a state sex offender registration program.
• Any member of the family fails to sign and submit consent forms for obtaining information. • The family does not meet the restrictions on net assets and real property ownership as required by 24 CFR 5.618.

Eligibility Page 3-29 Redondo Beach Housing Authority
June 2026
Upon the PHA’s HOTMA 102/104 compliance date, the following section on the asset limitation is added. The asset limitation does not apply until the PHA’s HOTMA compliance date.
3-III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS [24 CFR 5.618] There are two circumstances under which a family is ineligible to receive assistance based on asset ownership.

First, assistance may not be provided to any family if the family’s net assets exceed the HUDpublished asset limitation amount (adjusted annually by HUD). • This amount is listed in HUD’s current year Inflation-Adjusted Values tables Second, the family has real property that is suitable for occupancy by the family as a residence and the family has:
• A present ownership interest in the real property; and • A legal right to reside in the real property; and
• The effective legal authority to sell (based on state or local laws of the jurisdiction where the property is located) the real property.

The PHA does not have the discretion not to enforce or provide limited enforcement of the asset limitation at admission. However, the real property restriction does not apply in the following circumstances:
• Any property for which the family is receiving assistance for a manufactured home under 24 CFR 982.620 or under the HCV Homeownership program;
• Any property that is jointly owned by a member of the family and at least one non-household member who does not live with the family, if the non-household member resides at the jointly owned property;
• Any family that is offering the property for sale; or • Any person who is a victim of domestic violence, dating violence, sexual assault, or stalking. - When a family asks for an exception because a family member is a victim of domestic violence, dating violence, sexual assault, or stalking, the PHA must comply with all the confidentiality requirements under VAWA. The PHA must accept a self-certification from the family member, and the restrictions on requesting documentation under VAWA apply.

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A property is considered suitable for occupancy unless the family demonstrates that it:
• Does not meet the disability-related needs for all members of the family (e.g., physical accessibility requirements, disability-related need for additional bedrooms, proximity to accessible transportation, etc.);
• Is not sufficient for the size of the family;
PHA Policy
The PHA defines not sufficient for the size of the family as being overcrowded based on space standards in Chapter 8 of this policy.
• Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time between the property and the family's place of work or school would be a hardship to the family, as determined by the PHA or owner); PHA Policy
In general, the PHA defines a geographic hardship to include when a family members’ work, school, health care provider, or other necessary service is located an unreasonable distance from the real property or there is a lack of adequate transportation options for the family to access work, school, health care, or other necessary services. The PHA will consider circumstantial details a family faces when determining whether a geographic hardship is present.
• Is not safe to reside in because of the physical condition of the property (e.g., property’s physical condition poses a risk to the family’s health and safety and the condition of the property cannot be easily remedied); or
• Is not a property that a family may reside in under the state or local laws of the jurisdiction where the property is located.

If a family meets one of the above exceptions, the real property is not automatically excluded from the calculation of net family assets. Unless the real property is specifically excluded from net family assets as described in 24 CFR 5.603 and Chapter 6 of this policy, it will be included in net family assets. If the value of that real property brings the net family assets above the HUDpublished asset limitation amount, the family is out of compliance with the asset limitation.

See Chapter 7 for information on verifying net family assets for purposes of the asset limitation.

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3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE HUD permits, but does not require, the PHA to deny assistance for the reasons discussed in this section.

Criminal Activity [24 CFR 982.553]
HUD permits, but does not require, the PHA to deny assistance if the PHA determines that any household member is currently engaged in, or has engaged in during a reasonable time before the family would receive assistance, certain types of criminal activity.

PHA Policy
If any household member is currently engaged in, or has engaged in any of the following criminal activities, within the past five years, the family will be denied assistance.

Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100];
Violent criminal activity, defined by HUD as any criminal activity that has as one of its elementsthe use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100];
Criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; Immediate vicinity means within a three-block radius of the premises.

Criminal sexual conduct, including but not limited to sexual assault, incest, open and gross lewdness, or child abuse; or
Criminal activity that may threaten the health or safety of property owners, management staff, and persons performing contract administration functions or other responsibilities on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor, or agent).

Evidence of such criminal activity includes, but is not limited to:

Any conviction for drug-related or violent criminal activity within the past five years.

Records of arrests for drug-related or violent criminal activity within the past five years, although a record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity.

In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a caseby-case basis, decide not to deny assistance.

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Previous Behavior in Assisted Housing [24 CFR 982.552(c)] HUD authorizes the PHA to deny assistance based on the family’s previous behavior in assisted housing.

PHAs are not permitted to deny assistance to a family because the family previously failed to meet its obligations under the Family Self-Sufficiency (FSS) program [24 CFR 984.101(d)].

PHA Policy
The PHA will deny assistance to an applicant family if:

The family does not provide information that the PHA or HUD determines is necessary in the administration of the program.

The family does not provide complete and true information to the PHA.

Any family member has been evicted from federally assisted housing in the last five years.

Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.

The family owes rent or other amounts to any PHA in connection with Section 8 or other public housing assistance under the 1937 Act, unless the family repays the full amount of the debt prior to being selected from the waiting list.

If 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, unless the family repays the full amount of the debt prior to being selected from the waiting list.

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The family has breached the terms of a repayment agreement entered into with the PHA, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list.

When denying admission due to family debts as shown in HUD’s EIV system, the PHA will provide the family with a copy of the EIV Debt Owed to PHA and Termination report.

If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to the PHA to support the family’s claim. The PHA will consider the information provided by the family prior to issuing a notice of denial.

A family member has engaged in or threatened violent or abusive behavior toward PHA personnel.

Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior.

Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence.

In making its decision to deny assistance, the PHA will consider the factors discussed in Section 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a caseby-case basis, decide not to deny assistance.

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3-III.E. SCREENING
Screening for Eligibility
PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the HCV program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903].

PHA Policy
The PHA will perform a criminal background check through the Redondo Beach Police Department or a software company designated by the PHA for use in criminal background checks for every adult household member.

If the results of the criminal background check indicate that there may be past criminal activity, but the results are inconclusive, the PHA will request a fingerprint card and will request information from the National Crime Information center (NCIC).

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.

PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 982.553(a)(2)(i)].

PHA Policy
The PHA will use the Dru Sjodin National Sex Offender database or local law enforcement to screen applicants for admission.

Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH 2012-28].

If the PHA proposes to deny assistance based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission. [24 CFR

5.903(f) and 5.905(d)].

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Screening for Suitability as a Tenant [24 CFR 982.307]
The PHA has no liability or responsibility to the owner for the family’s behavior or suitability for tenancy. The PHA has the authority to conduct additional screening to determine whether an applicant is likely to be a suitable tenant.

PHA Policy
The PHA will not conduct additional screening to determine an applicant family’s suitability for tenancy. Additionally, because the housing authority is not considered the landlord, the housing authority will not provide landlord references.

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

The PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. An owner may consider a family’s history with respect to factors such as: payment of rent and utilities, caring for a unit and premises, respecting the rights of other residents to the peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or property of others, and compliance with other essential conditions of tenancy.

HUD requires the PHA to provide prospective owners with the family’s current and prior address (as shown in PHA records) and the name and address (if known) of the owner at the family’s current and prior addresses. HUD permits the PHA to provide owners with additional information, as long as families are notified that the information will be provided, and the same type of information is provided to all owners.

The PHA may not disclose to the owner any confidential information provided to the PHA by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking, except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(a)(4)].

PHA Policy
The PHA will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of the initial inspection or before. The PHA will not provide any additional information to the owner, such as tenancy history or criminal history, etc.

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3-III.F. CRITERIA FOR DECIDING TO DENY ASSISTANCE
Evidence [24 CFR 982.553(c)]
PHA Policy
The PHA will use the concept of the preponderance of the evidence as the standard for making all admission decisions.

Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.

Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence.

Consideration of Circumstances [24 CFR 982.552(c)(2)]
HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny assistance based on a family’s past history except in the situations for which denial of assistance is mandatory (see Section 3-III.B).

PHA Policy
The PHA will deny assistance based on the factors previously discussed in this chapter.

Additionally, the PHA will deny assistance to families if there is a preponderance of evidence to show that the family has committed fraud at any time during the application process.

The PHA will consider the following facts and circumstances prior to making its decision:

The seriousness of the case, especially with respect to how it would affect other residents’ safety or property
The effects that denial of assistance may have on other members of the family who were not involved in the action or failure to act
The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section 3-III.H.) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking
The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future
While a record or records of arrest will not be used as the sole basis for denial, an arrest may trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider:

Any statements made by witnesses or the applicant not included in the police report
Whether criminal charges were filed
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Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal
Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity
Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property
In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the applicant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully.

Removal of a Family Member's Name from the Application
Should the PHA’s screening process reveal that an applicant’s household includes an individual subject to state lifetime registered sex offender registration, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must deny admission to the family [Notice PIH 2012-28].

For other criminal activity, the PHA may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 982.552(c)(2)(ii)].

PHA Policy
As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit, stay as a guest, or reside in the assisted unit.

After admission to the program, the family must present evidence of the former family member’s current address upon PHA request.

Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]
If the family includes a person with disabilities, the PHA’s decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8.

PHA Policy
If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, the PHA will determine whether the behavior is related to the stated disability. If so, upon the family’s request, the PHA will determine whether admitting the family as a reasonable accommodation is appropriate. The PHA will only consider accommodations that can reasonably be expected to address the behavior Eligibility Page 3-38 Redondo Beach Housing Authority
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that is the basis of the proposed denial of assistance. See Chapter 2 for a discussion of reasonable accommodation.
3-III.G. NOTICE OF ELIGIBILITY OR DENIAL
If the family is eligible for assistance, the PHA will notify the family in writing and schedule an applicant briefing, as discussed in Chapter 5.

If the PHA determines that a family is not eligible for the program for any reason, the family must be notified promptly. The notice must describe: (1) the reasons for which assistance has been denied, (2) the family’s right to an informal review, and (3) the process for obtaining the informal review [24 CFR 982.554 (a)]. See Chapter 16, for informal review policies and procedures.

PHA Policy
The family will be notified of a decision to deny assistance in writing within 10 business days of the determination.

If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. The PHA must give the family an opportunity to dispute the accuracy and relevance of that record, in the informal review process in accordance with program requirements [24 CFR 982.553(d)].

PHA Policy
If based on a criminal record or sex offender registration information, an applicant family appears to be ineligible the PHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 10 business days to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10-day period, the PHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal review process.

Notice requirements related to denying assistance to noncitizens are contained in Section 3-II.B.

Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking are contained in Section 3-III.H.

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3-III.H. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF

DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND

HUMAN TRAFFICKING
The Violence against Women Act (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying an applicant admission to the HCV program on the basis or as a direct result of the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant otherwise qualifies for assistance or admission.
• Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears.

Definitions of key terms used in VAWA are provided in section 16-IX of this plan, where general VAWA requirements and policies pertaining to notification, documentation, and confidentiality are also located.

Notification
VAWA requires PHAs to provide applicants who are denied assistance with a VAWA Notice of Occupancy Rights (form HUD–5380) and a domestic violence certification form (HUD-5382) at the time the applicant is denied.

PHA Policy
The PHA acknowledges that a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking may have an unfavorable history (e.g., a poor credit history, poor rental history, a record of previous damage to an apartment, a prior arrest record) due to adverse factors that would warrant denial under the PHA’s policies.

While the PHA is not required to identify whether adverse factors that resulted in the applicant’s denial are a result of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the applicant may inform the PHA that their status as a victim is directly related to the grounds for the denial. The PHA will request that the applicant provide enough information to the PHA to allow the PHA to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim.

The PHA will include in its notice of denial the VAWA information described in section 16-IX.C of this plan as well as including a copy of the form HUD-5382. The PHA will request in writing that an applicant wishing to claim protection under VAWA notify the PHA within 14 business days.

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Documentation
Victim Documentation [24 CFR 5.2007]
PHA Policy
If an applicant claims the protection against denial of assistance that VAWA provides to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-IX.D of this plan.

Perpetrator Documentation
PHA Policy
If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following:

A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the assisted unit.

Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must attest under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation.

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EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.403]
The term person with disabilities means a person who has any of the following types of conditions:
• Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads:

Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months; or
In the case of an individual who has attained the age of 55 and is blind (within the meaning of “blindness” as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time.
• Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows:
(A)In General
The term “developmental disability” means a severe, chronic disability of an individual that:
(i) is attributable to a mental or physical impairment or combination of mental and physical impairments;
(ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely;
(iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self-care, (II) Receptive and expressive language, (III) Learning, (IV) Mobility, (V) Self-direction, (VI) Capacity for independent living, (VII) Economic self-sufficiency; and
(v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated.

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(B) Infants and Young Children
An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life.
• Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes their ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions.

People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition.

A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program.

For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps.

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Individual with Handicaps [24 CFR 8.3]
Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others.

As used in this definition, the phrase:
(1) Physical or mental impairment includes:
(a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities.
(4) Is regarded as having an impairment means:
(a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation; (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment.

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EXHIBIT 3-2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION [20 U.S.C. 1001 and 1002]
Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] Institution of Higher Education shall have the meaning given this term in the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002.

Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1001 (a) Institution of higher education. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ means an educational institution in any State that
(1) Admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (2) Is legally authorized within such State to provide a program of education beyond secondary education;
(3) Provides an educational program for which the institution awards a bachelor’s degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree;
(4) Is a public or other nonprofit institution; and
(5) Is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time.
(b) Additional institutions included. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’ also includes—
(1) Any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and (2) A public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1) of this section, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.
(c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this chapter, to be reliable authority as to the quality of the education or training offered.

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Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1002 (a) Definition of institution of higher education for purposes of student assistance programs (1) Inclusion of additional institutions. Subject to paragraphs (2) through (4) of this subsection, the term ‘‘institution of higher education’’ for purposes of subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1001 of this title— (A) A proprietary institution of higher education (as defined in subsection (b) of this section);
(B) A postsecondary vocational institution (as defined in subsection (c) of this section); and
(C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as defined in section 1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter.
(2) Institutions outside the United States
(A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 1001 of this title (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 1001 (a)(4) of this title).

Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless—
(i) In the case of a graduate medical school located outside the United States— (I)(aa) At least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; and
(bb) At least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; or
(II) The institution has a clinical training program that was approved by a State as of January 1, 1992; or
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(ii) In the case of a veterinary school located outside the United States that does not meet the requirements of section 1001(a)(4) of this title, the institution’s students complete their clinical training at an approved veterinary school located in the United States.
(B) Advisory panel
(i) In general. For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall—
(I) Evaluate the standards of accreditation applied to applicant foreign medical schools; and
(II) Determine the comparability of those standards to standards for accreditation applied to United States medical schools.
(ii) Special rule if the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1001 of this title.
(C) Failure to release information. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter.
(D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
(3) Limitations based on course of study or enrollment. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution—
(A) Offers more than 50 percent of such institution’s courses by correspondence, unless the institution is an institution that meets the definition in section 2471 (4)(C) of this title;
(B) Enrolls 50 percent or more of the institution’s students in correspondence courses, unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2-or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;
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(C) Has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a nonprofit institution that provides a 2-or 4-year program of instruction (or both) for which the institution awards a bachelor’s degree, or an associate’s degree or a postsecondary diploma, respectively; or (D)Has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does not provide a 2-or 4- year program of instruction (or both) for which the institution awards a bachelor’s degree or an associate’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent.
(4) Limitations based on management. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if— (A) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution’s management or policies) that files for bankruptcy under chapter 11 of title 11 between July 1, 1998, and December 1, 1998; or
(B) The institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42.
(5) Certification. The Secretary shall certify an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of subchapter IV of this chapter.
(6) Loss of eligibility. An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of subchapter IV of this chapter.

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(b) Proprietary institution of higher education
(1) Principal criteria. For the purpose of this section, the term ‘‘proprietary institution of higher education’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of this title; (C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title; (D) Is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part G of subchapter IV of this chapter; (E) Has been in existence for at least 2 years; and
(F) Has at least 10 percent of the school’s revenues from sources that are not derived from funds provided under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary.
(2) Additional institutions. The term ‘‘proprietary institution of higher education’’ also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.
(c) Postsecondary vocational institution.
(1) Principal criteria. For the purpose of this section, the term ‘‘postsecondary vocational institution’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this title; and
(C) Has been in existence for at least 2 years.
(2) Additional institutions. The term ‘‘postsecondary vocational institution’’ also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.

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June 2026
Applications, Waiting List and Tenant Selection Page 4-1 Redondo Beach Housing Authority June 2026
Chapter 4

APPLICATIONS, WAITING LIST AND TENANT SELECTION

INTRODUCTION
When a family wishes to receive assistance under the HCV program, the family must submit an application that provides the PHA with the information needed to determine the family’s eligibility. HUD requires the PHA to place all families that apply for assistance on a waiting list.

When HCV assistance becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in the administrative plan and the annual plan.

The PHA is required to adopt clear policies and procedures for accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow these policies and procedures consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA that justify their selection. Examples of this are the selection of families for income targeting and the selection of families that qualify for targeted funding.

HUD regulations require that all families have an equal opportunity to apply for and receive housing assistance, and that the PHA affirmatively further fair housing goals in the administration of the program [24 CFR 982.53, HCV GB p. 4-1]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant fair housing requirements, as described in Chapter 2.

This chapter describes HUD and PHA policies for taking applications, managing the waiting list and selecting families for HCV assistance. The policies outlined in this chapter are organized into three sections, as follows:

Part I: The Application Process. This part provides an overview of the application process, and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives.

Part II: Managing the Waiting List. This part presents the policies that govern how the PHA’s waiting list is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for assistance. It also discusses the process the PHA will use to keep the waiting list current.

Part III: Selection for HCV Assistance. This part describes the policies that guide the PHA in selecting families for HCV assistance as such assistance becomes available. It also specifies how in-person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination.

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PART I: THE APPLICATION PROCESS
4-I.A. OVERVIEW
This part describes the PHA policies for making applications available, accepting applications making preliminary determinations of eligibility, and the placement of applicants on the waiting list. This part also describes the PHA’s obligation to ensure the accessibility of the application process to elderly persons and people with disabilities. 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] Any family that wishes to receive HCV assistance must apply for admission to the program.

HUD permits the PHA to determine the format and content of HCV applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. The PHA must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of the PHA’s application.

PHA Policy
Depending upon the length of time that applicants may need to wait to receive assistance, the PHA may use a one- or two-step application process.

A one-step process will be used when it is expected that a family will be selected from the waiting list within 60 days of the date of application. At application, the family must provide all information necessary to establish family eligibility and level of assistance.

A two-step process will be used when it is expected that a family will not be selected from the waiting list for at least 60 days from the date of application. Under the two-step application process, the PHA initially will require families to provide only the information needed to make an initial assessment of the family’s eligibility, and to determine the family’s placement on the waiting list. The family will be required to provide all information necessary to establish family eligibility and level of assistance when the family is selected from the waiting list.

Applications will only be available and accepted during open enrollment through the online electronic process available on the Redondo Beach Housing Authority website. Incomplete or duplicate applications will not be accepted. A P.O. Box or mailing only address will not be accepted.

If an elderly person or a person with disabilities is unable to complete the online application process due to the nature of their disability, then they may contact the Redondo Beach Housing Authority during business hours to request a reasonable accommodation for assistance with the online application. Reasonable accommodation requests will only be accepted during the time the application process is open. To prevent delay, reasonable accommodation requests will be accepted without third-party verification.

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4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS
Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 – 4-13] The PHA must take steps to ensure that the application process is accessible to those people who might have difficulty complying with the normal, standard PHA application process. This could include people with disabilities and certain elderly individuals. The PHA must provide reasonable accommodation to the needs of individuals with disabilities. The application-taking facility and the application process must be fully accessible, or the PHA must provide an alternate approach that provides full access to the application process. Chapter 2 provides a full discussion of the PHA’s policies related to providing reasonable accommodations for people with disabilities.
4-I.D. PLACEMENT ON THE WAITING LIST
The PHA may review each complete application received and make a preliminary assessment of the family’s eligibility. The PHA must accept applications from families for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 982.201(f)]. Where the family is not determined to be ineligible, the family will be placed on a waiting list of applicants.

No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list [24 CFR 982.202(c)].

Ineligible for Placement on the Waiting List
PHA Policy
If the PHA determines from the information provided that a family is ineligible, the family will not be placed on the waiting list. Where a family is determined to be ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of receiving a complete application. The notice will specify the reasons for ineligibility and will inform the family of its right to request an informal review and explain the process for doing so (see Chapter 16).

Eligible for Placement on the Waiting List
PHA Policy
The PHA will send written notification that the family’s application was accepted within 30 business days of receiving a complete application.

Placement on the waiting list does not indicate that the family is, in fact, eligible for assistance. A final determination of eligibility will be made when the family is selected from the waiting list.

Applicants will be placed on the waiting list according to any preference(s) they claimed, and the date and time their complete application is received by the PHA.

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PART II: MANAGING THE WAITING LIST
4-II.A. OVERVIEW
The PHA must have policies regarding various aspects of organizing and managing the waiting list of applicant families. This includes opening the list to new applicants, closing the list to new applicants, notifying the public of waiting list openings and closings, updating waiting list information, purging the list of families that are no longer interested in or eligible for assistance, as well as conducting outreach to ensure a sufficient number of applicants.

In addition, HUD imposes requirements on how a PHA may structure its waiting list and how families must be treated if they apply for assistance from a PHA that administers more than one assisted housing program.
4-II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205] The PHA’s HCV waiting list must be organized in such a manner to allow the PHA to accurately identify and select families for assistance in the proper order, according to the admissions policies described in this plan.

The waiting list must contain the following information for each applicant listed:
• Applicant name;
• Family unit size;
• Date and time of application;
• Qualification for any local preference;
• Racial or ethnic designation of the head of household.

HUD requires the PHA to maintain a single waiting list for the HCV program unless it serves more than one county or municipality. Such PHAs are permitted, but not required, to maintain a separate waiting list for each county or municipality served.

PHA Policy
The PHA will maintain a single waiting list for the HCV program.

HUD directs that a family that applies for assistance from the HCV program must be offered the opportunity to be placed on the waiting list for any public housing, project-based voucher or moderate rehabilitation program the PHA operates if 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other programs.

HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing programs.

A family’s decision to apply for, receive, or refuse other housing assistance must not affect the family’s placement on the HCV waiting list, or any preferences for which the family may qualify.

PHA Policy
The PHA will not merge the HCV waiting list with the waiting list for any other program the PHA operates.

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4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.206] Closing the Waiting List
A PHA is permitted to close the waiting list if it has an adequate pool of families to use its available HCV assistance. Alternatively, the PHA may elect to continue to accept applications only from certain categories of families that meet particular preferences or funding criteria.

PHA Policy
The PHA will close the waiting list when the number of applications reaches 500. Where the PHA has particular preferences or funding criteria that require a specific category of family, the PHA may elect to continue to accept applications from these applicants while closing the waiting list to others.

Reopening the Waiting List
If the waiting list has been closed, it cannot be reopened until the PHA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received.

PHA Policy
The PHA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice.

The PHA may elect to continuously accept applications from particular preferences and/or targeted funding and/or a specific category of family while closing the waiting list to others.

The PHA will give public notice by publishing the relevant information in suitable media outlets to be determined at the time of waiting list opening.

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4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4]
The PHA must conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waiting list to use the HCV resources it has been allotted.

Because HUD requires the PHA to admit a specified percentage of extremely low-income families to the program (see Chapter 4, Part III), the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for assistance [HCV GB, p. 4-20 to 4-21].

PHA outreach efforts must comply with fair housing requirements. This includes:
• Analyzing the housing market area and the populations currently being served to identify underserved populations
• Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program
• Avoiding outreach efforts that prefer or exclude people who are members of a protected class PHA outreach efforts must be designed to inform qualified families about the availability of assistance under the program. These efforts may include, as needed, any of the following activities:
• Submitting press releases to local newspapers, including minority newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low-income population
• Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities PHA Policy
The PHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in the PHA’s jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved.

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4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES
PHA Policy
While the family is on the waiting list, the family must immediately inform the PHA of changes in contact information, including current residence, mailing address, and phone number. The changes must be submitted in writing.
4-II.F. UPDATING THE WAITING LIST [24 CFR 982.204]
HUD requires the PHA to establish policies to use when removing applicant names from the waiting list.

Purging the Waiting List
The decision to withdraw an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to a PHA request for information or updates, and the PHA determines that the family did not respond because of the family member’s disability, the PHA must reinstate the applicant family to their former position on the waiting list [24 CFR 982.204(c)(2)].

PHA Policy
Effective July 1, 2026, the PHA will implement an annual waiting list cycle. All new applications received during an open application period will be placed on the waiting list for that cycle.

At the end of each 12-month cycle, the PHA will purge the entire waiting list. Applicants who have not been selected from the waiting list and determined eligible by the end of the cycle will be removed and will not carry over into the next cycle.

The PHA will provide advance public notice of the waiting list cycle and purge process, including information provided at the time of application. Individual notices of removal will be provided to applicants using their last known contact information to the extent practicable.

Applicants who remain interested in receiving assistance must submit a new application during a subsequent open application period.

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Removal from the Waiting List
PHA Policy
If at any time an applicant family is on the waiting list, the PHA determines that the family is not eligible for assistance (see Chapter 3), the family will be removed from the waiting list.

If a family is removed from the waiting list because the PHA has determined the family is not eligible for assistance, a notice will be sent to the family’s address of record as well as to any alternate address provided on the initial application. The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal review regarding the PHA’s decision (see Chapter 16) [24 CFR 982.201(f)].

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PART III: SELECTION FOR HCV ASSISTANCE
4-III.A. OVERVIEW
As vouchers become available, families on the waiting list must be selected for assistance in accordance with the policies described in this part.

The order in which families are selected from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences for which the family qualifies. The availability of targeted funding also may affect the order in which families are selected from the waiting list.

The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA’s selection policies [24 CFR 982.204(b) and 982.207(e)].
4-III.B. SELECTION AND HCV FUNDING SOURCES
Special Admissions [24 CFR 982.203]
HUD may award funding for specifically-named families living in specified types of units (e.g., a family that is displaced by demolition of public housing; a non-purchasing family residing in a HOPE 1 or 2 projects). In these cases, the PHA may admit such families whether or not they are on the waiting list, and, if they are on the waiting list, without considering the family’s position on the waiting list. These families are considered non-waiting list selections. The PHA must maintain records showing that such families were admitted with special program funding.

Targeted Funding [24 CFR 982.204(e)]
HUD may award a PHA funding for a specified category of families on the waiting list. The PHA must use this funding only to assist the families within the specified category. In order to assist families within a targeted funding category, the PHA may skip families that do not qualify within the targeted funding category. Within this category of families, the order in which such families are assisted is determined according to the policies provided in Section 4-III.C.

PHA Policy
The PHA administers the following types of targeted funding:

Veterans Affairs Supportive Housing (VASH) – - HUD-VASH vouchers are issued to homeless Veterans or Veteran families.

Emergency Housing Vouchers (EHV) - EHVs are issued to individuals and families who are homeless, at-risk of homelessness, fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking, or were recently homeless or have a high risk of housing instability.

Foster Youth to Independence Initiative (FYI)– Tenant Protection Vouchers are awarded to youth eligible under the Family Unification Program (FUP). Vouchers are for 36 months and dedicated to house youth between 18 to 24 years old, is Applications, Waiting List and Tenant Selection Page 4-12 Redondo Beach Housing Authority June 2026
homeless or at-risk of becoming homeless, and have been previously involved with the foster care system.

Regular HCV Funding
Regular HCV funding may be used to assist any eligible family on the waiting list. Families are selected from the waiting list according to the policies provided in Section 4-III.C. 4-III.C. SELECTION METHOD
PHAs must describe the method for selecting applicant families from the waiting list, including the system of admission preferences that the PHA will use [24 CFR 982.202(d)].

Local Preferences [24 CFR 982.207; HCV p. 4-16]
PHAs are permitted to establish local preferences, and to give priority to serving families that meet those criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits the PHA to establish other local preferences, at its discretion.

Any local preferences established must be consistent with the PHA plan and the consolidated plan and must be based on local housing needs and priorities that can be documented by generally accepted data sources.

PHA Policy
The PHA will use the following local preferences:

1. Residents who live, work, or have been hired to work in the City of Redondo Beach will be given a selection priority. A Post Office Box, garage, office space, a mailing-only address, or other space not authorized for residency will not be accepted.

Resident: Head of Household, or spouse or co-head who resides within the City of Redondo Beach and who has as its sole residential address a Redondo Beach physical address. (Post Office boxes, garages, office space, or other space not authorized for residency are not considered residential addresses and cannot be used for purposes of establishing Redondo Beach residency.) Persons who reside in zip codes 90277 or 90278 but who have physical addresses outside of the City of Redondo Beach are not considered residents. Also, if it turns out that an applicant family has provided an address belonging to a participant family, the PHA will advise the applicant family that is not a valid address for purposes of establishing a Redondo Beach residency preference, unless that applicant was approved to live in the participant family’s unit prior to the application submittal.

Residents may also be persons who work or have been notified they have been hired to work in Redondo Beach, as described above.

2. Veterans from the U.S. Military (Army, Navy, Air Force, Marine Corp, and Coast Guard). A Post Office Box or a mailing-only address will not be accepted. A DD-214 form indicating HONORABLE discharge status must be presented.

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3. Emergency Housing Vouchers (EHV) disabled or elderly preference. Currently or formerly (within the last 24-months from the date of application) assisted Redondo Beach Housing Authority EHV participants with a head of household, spouse, or co-head who are disabled (by the Social Security Administration definition) or elderly (62 years of age or older) whose EHV assistance is expiring and will lack adequate housing as a result of the termination of their EHV assistance will be eligible for this selection preference.

4. Emergency Housing Vouchers (EHV) preference. Currently or formerly (within the last 24-months from the date of application) assisted Redondo Beach Housing Authority EHV participants whose EHV assistance is expiring and will lack adequate housing as a result of the termination of their EHV assistance will be eligible for this selection preference.

5. One-person household applicants who are disabled (by the Social Security Administration definition) or elderly (62 years of age or older) will receive a selection priority over other single individual-applicant households.

6. All applicant households with two or more persons related by blood, marriage, or who have a history of residing together for the past 12 consecutive months will receive the same selection priority as one-person disabled and elderly applicant households.

7. Homeless applicant(s) that meet HUD’s definition of “chronically homeless” and referred by an eligible organization. To be eligible for this preference the applicant(s) homelessness must be first verified by the eligible organization.

Homeless Families Referred by an Eligible Organization:

Families that qualify for the homeless preference must meet HUD’s definition of “chronically homeless” and referred by an approved Coordinated Entry System (CES).

The referring entity must provide a certification of the family’s homeless status.

Funding and eligible applicants available, the Housing Authority will assign available HCV voucher funding to applicants that qualify for the homeless preference category.

As approved by the City of Redondo Beach Housing Authority Board, the Housing Authority may assist up to five (5) homeless applicants per fiscal year. Additionally, families registered on the waiting list that declare themselves as homeless, but are not referred by an approved CES, must provide a certification of their homeless status from a government organization or other organization i.e. People Assisting the Homeless (PATH), Los Angeles Homeless Services Authority (LAHSA) or similar that is qualified to determine their homelessness. Families claiming the homeless preference must meet HUD’s definition of “chronically homeless” and/or must have a history of contacts (approximately 5 or more contacts within a 1-year period) with Redondo Beach Police Department.

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Income Targeting Requirement [24 CFR 982.201(b)(2)]
HUD requires that extremely low-income (ELI) families make up at least 75 percent of the families admitted to the HCV program during the PHA’s fiscal year. ELI families are those with annual incomes at or below the federal poverty level or 30 percent of the area median income, whichever number is higher. To ensure this requirement is met, a PHA may skip non-ELI families on the waiting list in order to select an ELI family.

Low-income families admitted to the program that are “continuously assisted” under the 1937 Housing Act [24 CFR 982.4(b)], as well as low-income or moderate-income families admitted to the program that are displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)].

PHA Policy
The PHA will monitor progress in meeting the income targeting requirement throughout the fiscal year. Extremely low-income families will be selected ahead of other eligible families on an as-needed basis to ensure the income targeting requirement is met.

Order of Selection
The PHA system of preferences may select families based on local preferences according to the date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a PHA does not have enough funding to assist the family at the top of the waiting list, it is not permitted to skip down the waiting list to a family that it can afford to subsidize when there are not sufficient funds to subsidize the family at the top of the waiting list [24 CFR 982.204(d) and (e)].

PHA Policy
Families will be selected from the waiting list based on the targeted funding category or the selection preference(s) for which they qualify, consistent with 24 CFR 982.205 and 982.207, and in accordance with the Redondo Beach Housing Authority’s hierarchy of preferences.

Within each targeted funding or preference category, families will be selected in order of their position on the waiting list. The order of placement will be based on the date and time the complete application was received within that application cycle, and the Redondo Beach Housing Authority will not carry over dates or positions from prior years because the waiting list is purged annually and all applicants must reapply when applications are being accepted.

Documentation will be maintained by the PHA as to whether families on the list qualify for and are interested in targeted funding. If a higher placed family on the waiting list is not qualified or not interested in targeted funding, there will be a notation maintained so that the PHA does not have to ask higher placed families each time targeted selections are made.

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4-III.D. NOTIFICATION OF SELECTION
When a family has been selected from the waiting list, the PHA must notify the family [24 CFR 982.554(a)].

PHA Policy
The PHA will notify the family by first class mail or email when it is selected from the waiting list. The notice will inform the family of the following:

Date, time, and location of the scheduled application interview, including any procedures for rescheduling the interview
Who is required to attend the interview
All documents that must be provided at the interview, including information about what constitutes acceptable documentation
If a notification letter is returned to the PHA with no forwarding address, the family will be removed from the waiting list. A notice of denial (see Chapter 3) will be sent to the family’s address of record, as well as to any known alternate address. 4-III.E. THE ELIGIBILITY DETERMINATION PROCESS
HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination though a face-to-face interview with a PHA representative [HCV GB, pg. 4-16]. Being invited to attend an interview does not constitute admission to the program.

Assistance cannot be provided to the family until all SSN documentation requirements are met.

However, if the PHA determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by the PHA [Notice PIH 2018-24].

Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability.

PHA Policy
Families selected from the waiting list are required to participate in an eligibility interview.

All adult family members are required to attend the interview.

The head of household or spouse/cohead must provide acceptable documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity.) If the family representative does not provide the required documentation at the time of the interview, they will be required to provide it within 10 business days.

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Pending disclosure and documentation of social security numbers, the PHA will allow the family to retain its place on the waiting list for 45 days. If all household members have not disclosed their SSNs at the time the PHA is issuing vouchers, the PHA will issue a voucher to the next eligible applicant family on the waiting list.

The family must provide the information necessary to establish the family’s eligibility and determine the appropriate level of assistance, and must complete required forms, provide required signatures, and submit required documentation. If any materials are missing, the PHA will provide the family with a written list of items that must be submitted.

Any required documents or information that the family is unable to provide at the interview must be provided within 10 business days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of eligible noncitizen status). If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the required documents and information are not provided within the required time frame (plus any extensions), the family will be sent a notice of denial (See Chapter 3).

An advocate, interpreter, or other assistant may assist the family with the application and the interview process.

Interviews will be conducted in English. For limited English proficient (LEP) applicants, the PHA will provide translation services in accordance with the PHA’s LEP plan.

If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend a scheduled interview, the PHA will send another notification letter with a new interview appointment time. Applicants who fail to attend two scheduled interviews without PHA approval will be denied assistance based on the family’s failure to supply information needed to determine eligibility. A notice of denial will be issued in accordance with policies contained in Chapter 3.

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4-III.F. COMPLETING THE APPLICATION PROCESS
The PHA must verify all information provided by the family (see Chapter 7). Based on verified information, the PHA must make a final determination of eligibility (see Chapter 3) and must confirm that the family qualified for any special admission, targeted funding admission, or selection preference that affected the order in which the family was selected from the waiting list.

PHA Policy
If the PHA determines that the family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review (Chapter 16).

If a family fails to qualify for any criteria that affected the order in which it was selected from the waiting list (e.g., claimed preference, targeted funding, extremely low-income), the family will be returned to the correct position on the waiting list. The PHA will notify the family in writing that it has been returned to the waiting list, and will specify the reasons for it.

If the PHA determines that the family is eligible to receive assistance, the PHA will invite the family to attend a briefing in accordance with the policies in Chapter 5.

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Chapter 5

BRIEFINGS AND VOUCHER ISSUANCE

INTRODUCTION
This chapter explains the briefing and voucher issuance process. When a family is determined to be eligible for the Housing Choice Voucher (HCV) program, the PHA must ensure that the family fully understands the way the program operates and the family’s obligations under the program. This is accomplished through both an oral briefing and provision of a briefing packet containing the HUD-required documents and other information the family needs to know in order to lease a unit under the program. Once the family is fully informed of the program’s requirements, the PHA issues the family a voucher. The voucher includes the unit size for which the family qualifies based on the PHA’s subsidy standards, as well as the issue and expiration date of the voucher. The voucher is the document that authorizes the family to begin its search for a unit and limits the amount of time the family has to successfully locate an acceptable unit.

This chapter describes HUD regulations and PHA policies related to these topics in two parts:

Part I: Briefings and Family Obligations. This part details the program’s requirements for briefing families orally, and for providing written materials describing the program and its requirements. It includes a particular focus on the family’s obligations under the program.

Part II: Subsidy Standards and Voucher Issuance. This part discusses the PHA’s standards for determining how many bedrooms a family of a given composition qualifies for, which in turn affects the amount of subsidy the family can receive. It also discusses the policies that dictate how vouchers are issued, and how long families have to locate a unit.

PART I: BRIEFINGS AND FAMILY OBLIGATIONS
5-I.A. OVERVIEW
HUD regulations require the PHA to conduct mandatory briefings for applicant families who qualify for a voucher. The briefing provides a broad description of owner and family responsibilities, explains the PHA’s procedures, and includes instructions on how to lease a unit.

This part describes how oral briefings will be conducted, specifies what written information will be provided to families, and lists the family’s obligations under the program.

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5-I.B. BRIEFING [24 CFR 982.301]
Notification of Briefing
Prior to issuance of a voucher, the PHA must give the family an oral briefing and provide the family with a briefing packet containing written information about the program. Families may be briefed in individual face-to-face meetings, through group briefing sessions, or via remote briefing sessions.

PHA Policy
Families will be notified of their eligibility for assistance at the time they are invited to a briefing. The notice will be sent by first class mail and will also be sent by email if the family has provided a valid email address to the PHA.

The notice will advise the family of the type of briefing, who is required to be present at the briefing, and the date and time of the briefing. The notice will also inform the family of any additional requirements for in-person or remote briefings as addressed in relevant policy elsewhere in this section.

If the notice is returned by the post office with no forwarding address, the applicant will be denied, and their name will not be placed back on the waiting list. If the notice is returned by the post office with a forwarding address, the notice will be re-sent to the address indicated.

In-Person Briefings
At the briefing, the PHA must ensure effective communication in accordance with Section 504 requirements (Section 504 of the Rehabilitation Act of 1973) and ensure that the briefing site is accessible to individuals with disabilities. For a more thorough discussion of accessibility requirements, refer to Chapter 2.

PHA Policy
In-person briefings will generally be conducted in group meetings. At the family’s written request, the PHA may provide an individual briefing.

Generally, the head of household is required to attend the briefing. If the head of household is unable to attend, the PHA may approve another adult family member to attend the briefing.

Families that attend group briefings and still need individual assistance will be referred to an appropriate PHA staff person.

Briefings will be conducted in English. For applicants who may require language assistance, the PHA will encourage families to bring an advocate, family member, friend, or other adult representative to assist in communications. The PHA will also utilize available resources such as bilingual staff, community volunteer resources, responsible use of artificial intelligence technology, and/or machine translation to assist families with communication.

Briefings and Voucher Issuance Page 5-3 Redondo Beach Housing Authority June 2026
Attendance
PHA Policy
Applicants who fail to attend a scheduled in-person briefing will be scheduled for another briefing automatically. The PHA will notify the family of the date and time of the second scheduled briefing. Applicants who fail to attend two scheduled briefings, without prior PHA approval, will be denied assistance (see Chapter 3).

Remote Briefings [Notice PIH 2020-32]
Remote briefings may be conducted over the phone, via video conferencing, or through other virtual platforms.

PHA Policy
The PHA has the sole discretion to require that briefings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. If the PHA schedules a remote briefing, the PHA will conduct a face-toface briefing upon request of the applicant as a reasonable accommodation for a person with a disability if safety and health concerns can be reasonably addressed.

In addition, the PHA will conduct a briefing remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have childcare or transportation that would enable them to attend the briefing, or if the applicant believes an in-person briefing would create an undue health risk. The PHA will consider other reasonable requests for a remote briefing on a case-by-case basis.

Accessibility Requirements for Persons with Disabilities As with in-person briefings, the platform for conducting remote briefings must be accessible and the briefing conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts.

Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual.

If no method of conducting a remote briefing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote briefing, and the PHA should consider whether postponing the remote briefing to a later date is appropriate or whether there is a suitable alternative.

Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances.

PHAs may consider responsible use of artificial intelligence and machine translation to communicate with individuals who are limited English proficient.

Briefings and Voucher Issuance Page 5-4 Redondo Beach Housing Authority June 2026
Conducting Remote Briefings [Notice PIH 2020-32]
The PHA must ensure that the lack of technology or inability to use technology for remote briefings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA must ensure that the family has appropriate technological access in order to fully participate in the remote briefing.

PHA Policy
At least 10 business days prior to scheduling the remote briefing, the PHA will provide written notification via first class mail and/or email to families participating in the briefing to advise of technological requirements and to request the family notify the PHA of any known barriers. If any family does not respond within five business days, or if the written notification is returned by the post office or the email is rejected, the PHA will contact the family by telephone to identify potential technological barriers and to determine which technology resources are accessible to the family. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person briefing or have a one-on-one briefing over the phone, as appropriate.

The PHA will conduct remote briefings via a video conferencing platform when available.

If applicants are unable to adequately access the video conferencing platform, the briefing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in, the remote briefing will be postponed, and an inperson alternative or one-on-one briefing over the phone will be provided.

The PHA will provide a link to access the Redondo Beach HCV orientation video. A confirmation notice that the Redondo Beach HCV orientation video was viewed is required.

The PHA will provide login information and/or conferencing call-in information and an electronic copy of the briefing packet via email at least five business days before the briefing. The PHA will provide a paper copy of the briefing packet upon family request and may reschedule the briefing to allow adequate time for the family to receive the physical briefing packet.

The PHA will ensure that all electronic information stored or transmitted as part of the briefing meets the requirements for accessibility for persons with disabilities and is secure, including ensuring personally identifiable information (PII) is protected.

The PHA will ensure that families who participate in remote briefings have the opportunity to ask questions as part of the briefing.

If families lose connectivity during any remote briefing or otherwise feel they were unable to access information presented during the briefing, the family may request a one-on-one briefing over the phone or in person with the PHA.

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Oral Briefing [24 CFR 982.301(a)]
Each briefing must provide information on the following subjects:
• How the Housing Choice Voucher program works;
• Family and owner responsibilities;
• Where the family can lease a unit, including renting a unit inside or outside the PHA’s jurisdiction and any information on selecting a unit that HUD provides; • An explanation of how portability works;
• The PHA must inform the family of how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family’s assistance; and • An explanation of the advantages of areas that do not have a high concentration of low-income families.

The PHA may not discourage the family from choosing to live anywhere in the PHA’s jurisdiction or outside the PHA’s jurisdiction under portability, unless otherwise expressly authorized by statute, regulation, PIH Notice, or court order.

The PHA must take appropriate steps to ensure effective communication in accordance with 24 CFR 8.6 and 28 CFR part 35, subpart E, and must provide information on the reasonable accommodation process.

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Briefing Packet [24 CFR 982.301(b); New HCV GB, Housing Search and Leasing, p. 7] Documents and information provided in the briefing packet must include the following:
• The term of the voucher, voucher suspensions, and the PHA’s policies on any extensions of the term. If the PHA allows extensions, the packet must explain how the family can request an extension.
• A description of the method used to calculate the housing assistance payment for a family, including how the PHA determines the payment standard for a family and how the PHA determines total tenant payment for a family.
• An explanation of how the PHA determines the maximum allowable rent for an assisted unit. • Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family’s assistance through screening, subsidy standards, payment standards, and any other elements of the portability process that may affect the family’s assistance.
• The HUD-required tenancy addendum, which must be included in the lease. • The form the family must use to request approval of tenancy, and an explanation of how to request approval.
• A statement of the PHA policy on providing information about families to prospective owners.
• The PHA subsidy standards and when the PHA will consider granting exceptions as allowed by 24 CFR 982.402(b)(8), and when exceptions are required as a reasonable accommodation for persons with disabilities under Section 504, the Fair Housing Act, or the Americans with Disabilities Act (ADA).
• Materials (e.g., brochures) on how to select a unit and any additional information on selecting a unit that HUD provides (e.g., HUD brochure entitled, “A Good Place to Live”). • Information on federal, state and local equal opportunity laws, the contact information for the Section 504 coordinator, a copy of the housing discrimination complaint form, and information on how to request a reasonable accommodation or modification (including information on requesting exception payment standards as a reasonable accommodation) under Section 504, the Fair Housing Act, or the Americans with Disabilities Act (ADA). • A list of landlords known to the PHA who may be willing to lease a unit to the family or other resources (e.g., newspapers, organizations, online search tools) known to the PHA that may assist the family in locating a unit. PHAs must ensure that the list of landlords or other resources covers areas outside of poverty or minority concentration. • Notice that if the family includes a person with disabilities, the PHA is subject to requirements under 24 CFR 8.28(a)(3) to provide a current listing of accessible units known to the PHA, and if necessary, other assistance in locating an available unit.

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• The family obligations under the program.
• PHA informal hearing procedures including when the PHA is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. • An explanation of the advantages of moving to an area that does not have a high concentration of low-income families, which may include access to accessible and highquality housing, transit, employment opportunities, educational opportunities, recreational facilities, public safety stations, retail services, and health services. • The HUD pamphlet on lead-based paint entitled, “Protect Your Family from Lead in Your Home” [24 CFR 35.88].

If the PHA is located in a metropolitan area, the following additional information must be included in the briefing packet in order to receive full points under SEMAP Indicator 7, Expanding Housing Opportunities [24 CFR 985.3(g)]:
• Maps showing areas with housing opportunities outside areas of poverty or minority concentration, both within its jurisdiction and its neighboring jurisdiction • Information about the characteristics of these areas including job opportunities, schools, transportation, and other services
• An explanation of how portability works, including a list of portability contact persons for neighboring PHAs with names, addresses, and telephone numbers Briefings and Voucher Issuance Page 5-8 Redondo Beach Housing Authority June 2026
Additional Items to Be Included in the Briefing Packet
In addition to items required by the regulations, PHAs may wish to include supplemental materials to help explain the program to both participants and owners [HCV GB p. 8-7, Notice PIH 2017-12].

PHA Policy
The PHA will provide the following additional materials in the briefing packet:

The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act
Requirements for notifying the PHA of any changes in income or family composition
Information on how to fill out and file a housing discrimination complaint form The form HUD-5380, notice of occupancy rights, and the form HUD-5382, domestic violence certification form, which contain information on VAWA protections for victims of domestic violence, dating violence, sexual assault, and stalking
“Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse
“What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017- 12 Briefings and Voucher Issuance Page 5-9 Redondo Beach Housing Authority June 2026
5-I.C. FAMILY OBLIGATIONS
Obligations of the family are described in the housing choice voucher (HCV) regulations and on the voucher itself. These obligations include responsibilities the family is required to fulfill, as well as prohibited actions. The PHA must inform families of these obligations during the oral briefing, and the same information must be included in the briefing packet. When the family’s unit is approved and the HAP contract is executed, the family must meet those obligations in order to continue participating in the program. Violation of any family obligation may result in termination of assistance, as described in Chapter 12.

Time Frames for Reporting Changes Required by Family Obligations PHA Policy
It is the family’s responsibility to report to the Housing Authority, within 10 business days of occurrence, any changes in family or circumstances that may occur while on the program. Changes must be reported in writing and submitted within the 10 business days.

Changes that must be reported include the following:

The acquisition of any new source of income, including but not limited to wages, benefits, family support.

Increases in total gross household income that exceeds the income last reported to the PHA. (This could be from a wage increase, a benefit increase, or any increase of household income.)
Change in full-time student status.

Reinstatement of any benefits that previously were not included in income by the PHA.

When a family is required to provide notice to the PHA, the notice must be in writing.

Family Obligations [24 CFR 982.551]
The family obligations of the voucher are listed as follows:
• 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. • 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 may be held responsible for a breach of housing quality standards caused by the family’s failure to pay tenant-provided utilities or appliances, or damages to the dwelling unit or premises beyond ordinary wear and tear caused by any member of the household or guest.

PHA Policy
Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice.

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• 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. Any incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be construed as serious or repeated lease violations by the victim or as good cause to terminate the tenancy, occupancy rights, or assistance of the victim.

PHA Policy
The PHA 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, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge.

Serious or 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. • The family must notify the PHA and the owner before moving out of the unit or terminating the lease.

PHA Policy
The family must comply with lease requirements regarding written notice to the owner.

The family must provide written notice to the PHA at the same time the owner is notified.

Unless approved by the PHA, the family must return the house keys and remove all belongings from the assisted unit before the PHA will begin assistance for the family at a new unit.
• The family must promptly give the PHA 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.

PHA Policy
The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. The PHA will determine eligibility of the new member in accordance with the policies in Chapter 3.
• The family must promptly notify the PHA in writing if any family member no longer lives in the unit.
• If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residency by a foster child or a live-in aide, and to define when PHA consent may be given or denied. For policies related Briefings and Voucher Issuance Page 5-11 Redondo Beach Housing Authority June 2026
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.

PHA 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.

PHA Policy
In accordance with HUD regulations, a family may in no case be absent from the unit for a period of more than 180 consecutive calendar days. In cases where a tenant plans to be absent from the unit for more than thirty days, the family must notify the Housing Authority in advance and in writing. The family must state the reason for the absence.

Furthermore, the Housing Authority will not permit a family to be absent for more than sixty consecutive days except for serious illness or accident. For medical absences of over sixty days, the tenant (or someone in the tenant’s behalf) must secure verification for the Housing Authority from the patient’s doctor, verifying the situation and stating that the tenant is expected to return to the unit in less than five months (150 days) from the time the tenant first left. The Housing Authority may terminate assistance if this is not done.

If the tenant does not return to the unit at the end of the five-month period, staff will notify the landlord that assistance will end in thirty more days unless the tenant returns to the unit in that time period. Simultaneously, staff will notify the tenant of the PHA intent to terminate assistance. 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 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 Briefings and Voucher Issuance Page 5-12 Redondo Beach Housing Authority June 2026
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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PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE
5-II.A. OVERVIEW
The PHA must establish subsidy standards that determine the number of bedrooms needed for families of different sizes and compositions. This part presents the policies that will be used to determine the family unit size (also known as the voucher size) a particular family should receive, and the policies that govern making exceptions to those standards. The PHA must also establish policies related to the issuance of the voucher, to the voucher term, and to any extensions of the voucher term.
5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402] For each family, the PHA determines the appropriate number of bedrooms under the PHA subsidy standards and enters the family unit size on the voucher that is issued to the family. The family unit size does not dictate the size of unit the family must actually lease, nor does it determine who within a household will share a bedroom/sleeping room.

The following requirements apply when the PHA determines family unit size:
• The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding.
• The subsidy standards must be consistent with space requirements under 24 CFR 5.703. • The subsidy standards must be applied consistently for all families of like size and composition.
• A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size. • A family that consists of a pregnant woman (with no other persons) must be treated as a twoperson family. • Any live-in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size; Briefings and Voucher Issuance Page 5-14 Redondo Beach Housing Authority June 2026
• Unless a live-in-aide resides with a family, the family unit size for any family consisting of a single person must be either a zero- or one-bedroom unit, as determined under the PHA subsidy standards.

PHA Policy
The PHA will assign one bedroom for each two persons within the household, except in the following circumstances:

Live-in aides will be allocated one separate bedroom. No additional bedrooms are provided for the Live-in aide’s family.

The PHA will reference the following chart in determining the appropriate voucher size for a family:

Voucher Size Persons in Household
(Minimum – Maximum)
0 Bedroom 1-2
1 Bedroom 1-2
2 Bedrooms 3-4
3 Bedrooms 5-6
4 Bedrooms 7-8
5 Bedrooms 9-10
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5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS
In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to:
• A need for an additional bedroom for medical equipment • A need for a separate bedroom for reasons related to a family member’s disability, medical or health condition
For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)].

PHA Policy
The PHA will consider granting an exception for any of the reasons specified in the regulation: the age, sex, health, handicap, or relationship of family members or other personal circumstances.

The family must request any exception to the subsidy standards in writing. The request must explain the need or justification for a larger family unit size and must include appropriate documentation.

Requests based on health-related reasons must be verified by a knowledgeable professional source (e.g., doctor or health professional), unless the disability and the disability–related need for accommodation is readily apparent or otherwise known. The family’s continued need for an additional bedroom due to special medical equipment must be re-verified at annual reexamination.

The PHA will notify the family of its determination within 10 business days of receiving the family’s request. If a participant family’s request is denied, the notice will inform the family of their right to request an informal hearing.

Families with changes in household composition will be right-sized.

Families wishing to move will be issued the appropriate size voucher, based on the current subsidy standards.

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5-II.D. VOUCHER ISSUANCE [24 CFR 982.302]
When a family is selected from the waiting list (or as a special admission as described in Chapter 4), or when a participant family wants to move to another unit, the PHA issues a Housing Choice Voucher, form HUD-52646. This chapter deals only with voucher issuance for applicants. For voucher issuance associated with moves of program participants, please refer to Chapter 10.

The voucher is the family’s authorization to search for housing. It specifies the unit size for which the family qualifies and includes both the date of voucher issuance and date of expiration.

It contains a brief description of how the program works and explains the family obligations under the program. The voucher is evidence that the PHA has determined the family to be eligible for the program, and that the PHA expects to have money available to subsidize the family if the family finds an approvable unit. However, the PHA does not have any liability to any party by the issuance of the voucher, and the voucher does not give the family any right to participate in the PHA’s Housing Choice Voucher program [Voucher, Form HUD-52646].

The PHA must issue the family a voucher within 60 days of determining the family eligible [24 CFR 982.201(e)]. The income documentation must be dated within 120 days of when it was received by the PHA. However, for fixed-income sources, including Social Security benefits, the documentation must be dated within the appropriate benefit year.

PHA Policy
Vouchers will be issued to eligible applicants immediately following the mandatory briefing.

The PHA should have sufficient funds to house an applicant before issuing a voucher. If funds are insufficient to house the family at the top of the waiting list, the PHA must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8-10].

PHA Policy
Prior to issuing any vouchers, the PHA will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16.

If the PHA determines that there is insufficient funding after a voucher has been issued, the PHA may rescind the voucher and place the affected family back on the waiting list.

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5-II.E. VOUCHER TERM AND EXTENSIONS
Voucher Term [24 CFR 982.303]
The initial term of a voucher must be at least 60 calendar days. The initial term must be stated on the voucher [24 CFR 982.303(a)].

PHA Policy
The initial voucher term will be 60 calendar days.

The family must submit a Request for Tenancy Approval and proposed lease within the 60-day period unless the PHA grants an extension.

Extensions of Voucher Term [24 CFR 982.303(b)]
The PHA has the authority to grant extensions of search time, to specify the length of an extension, and to determine the circumstances under which extensions will be granted. There is no limit on the number of extensions that the PHA can approve. Discretionary policies related to extension and expiration of search time must be described in the PHA’s administrative plan [24 CFR 982.54].

PHAs must approve additional search time if needed as a reasonable accommodation to make the program accessible to and usable by a person with disabilities. The extension period must be reasonable for the purpose.

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The family must be notified in writing of the PHA’s decision to approve or deny an extension.

The PHA’s decision to deny a request for an extension of the voucher term is not subject to informal review [24 CFR 982.554(c)(4)].

PHA Policy
The PHA will automatically approve two 30-day extension upon written request from the family for a total of 120 days.

The PHA will approve additional extensions only in the following circumstances:

It is necessary as a reasonable accommodation for a person with disabilities.

It is necessary due to reasons beyond the family’s control, as determined by the PHA. Following is a list of extenuating circumstances that the PHA may consider in making its decision. The presence of these circumstances does not guarantee that an extension will be granted:

Serious illness or death in the family
Other family emergency
Obstacles due to employment
Whether the family has already submitted requests for tenancy approval that were not approved by the PHA
Whether family size or other special circumstances make it difficult to find a suitable unit
Any request for an additional extension must include the reason(s) an additional extension is necessary. The PHA may require the family to provide documentation to support the request or obtain verification from a qualified third party.

All requests for extensions to the voucher term must be made in writing and submitted to the PHA prior to the expiration date of the voucher (or extended term of the voucher).

The PHA will decide whether to approve or deny an extension request within 10 business days of the date the request is received and will immediately provide the family written notice of its decision.

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Suspensions of Voucher Term [24 CFR 982.303(c)]
The PHA must provide for suspension of the initial or any extended term of the voucher from the date 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.

Expiration of Voucher Term
Once a family’s housing choice voucher term (including any extensions) expires, the family is no longer eligible to search for housing under the program. If the family still wishes to receive assistance, the PHA may require that the family reapply, or may place the family on the waiting list with a new application date but without requiring reapplication. Such a family does not become ineligible for the program on the grounds that it was unable to locate a unit before the voucher expired [HCV GB p. 8-13].

PHA Policy
If an applicant family’s voucher term or extension expires before the PHA has approved a tenancy, the PHA will require the family to reapply for assistance.

Within 10 business days after the expiration of the voucher term or any extension, the PHA will notify the family in writing that the voucher term has expired and that the family must reapply when the waiting list is open in order to be placed on the waiting list.

Income and Subsidy Determinations Page 6A-1 Redondo Beach Housing Authority June 2026
Chapter 6.A.

INCOME AND SUBSIDY DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 982]

INTRODUCTION
This chapter is applicable prior to the PHA’s HOTMA 102/104 compliance date. After this date, the PHA will follow policies as outlined in Chapter 6.B. of the administrative plan.

The program regulations in the current Code of Federal Regulations (CFRs) were updated for HOTMA on January 1, 2024. As a result, pre-HOTMA regulations from 2023 are no longer available on the electronic CFRs. However, since full HOTMA implementation is still pending, the pre-HOTMA regulations continue to apply to some elements of the program, and this chapter makes references to both pre-HOTMA and HOTMA regulations where applicable. Where HOTMA regulations apply, citations in this chapter have been provided indicating that current HOTMA CFRs are applicable. For all other citations, the pre-HOTMA CFRs apply. The federal government archives previous versions of the CFRs, and PHAs may access them here:
https://www.govinfo.gov/app/collection/cfr/2023/title24.

A family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the PHA’s subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows:
• Part I: Annual Income. HUD regulations specify the sources of income to include and exclude to arrive at a family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I.
• Part II: Adjusted Income. Once annual income has been established, HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies. These requirements and PHA policies for calculating adjusted income are found in Part II.
• Part III: Calculating Family Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment.

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PART I: ANNUAL INCOME
6-I.A. OVERVIEW

5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, 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 not specifically excluded in paragraph [5.609(c)]. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.

In addition to this general definition, HUD regulations establish policies for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows:
• Annual Income Inclusions (Exhibit 6-1)
• Annual Income Exclusions (as updated for HOTMA per Notice PIH 2024-38) (Exhibit 6-2) • Treatment of Family Assets (Exhibit 6-3)
• The Effect of Welfare Benefit Reduction (Exhibit 6-4) Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7.A.

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6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations.

Summary of Income Included and Excluded by Person
Live-in aides Income from all sources is excluded [24 CFR 5.609(b)(8) as updated for HOTMA].

Foster child or foster adult Income from all sources is excluded [24 CFR 5.609(b)(8) as updated for HOTMA].

Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included [24 CFR 5.609(a)].

Minors Earned income of children under 18 years of age is excluded [24 CFR 5.609(b)(3) as updated for HOTMA].

All sources of income, except those specifically excluded by the regulations, are included.

Full-time students 18 years of
age or older (not head, spouse,
or cohead)
Earned income in excess of the dependent deduction is
excluded [24 CFR 5.609(b)(14) as updated for HOTMA].

All sources of income, except those specifically excluded by the regulations, are included.

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Temporarily Absent Family Members
The income of family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit [HCV GB, p. 5-18].

PHA Policy
Generally, an individual who is or is expected to be absent from the assisted unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.

Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household.

Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care are considered members of the family [24 CFR 5.403].

PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member.

Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member.

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Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22].

PHA Policy
The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member.

When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities.

Joint Custody of Dependents
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time.

When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, school records, or an IRS tax return showing which family has claimed the child for income tax purposes, or other credible documentation.

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Caretakers for a Child
PHA Policy
The approval of a caretaker is at the owner and PHA’s discretion and subject to the owner and PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, the PHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made.
(2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an eligible visitor.
(3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income.

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6-I.C. ANTICIPATING ANNUAL INCOME
The PHA is required to count all income “anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date” [24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are provided below.

Basis of Annual Income Projection
The PHA generally will use current circumstances to determine anticipated income for the coming 12-month period. HUD authorizes the PHA to use other than current circumstances to anticipate income when:
• An imminent change in circumstances is expected [HCV GB, p. 5-17] • It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income) [24 CFR 5.609(d)]
• The PHA believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)]
PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as a third-party source to verify employment and income information, and to reduce administrative subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)].

HUD allows PHAs to use tenant-provided documents (pay stubs) dated within 120 days of the date received by the PHA to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where the PHA does not determine it is necessary to obtain additional third-party data. The PHA may also accept a statement dated within the appropriate benefit year for fixed income sources.

PHA Policy
When EIV is obtained and the family does not dispute the EIV employer data, based on information provided in the family annual reexamination declaration and family-provided documents, the PHA will use current family-provided documents to project annual wages.

When the family-provided documents are pay stubs, the PHA will make every effort to obtain current and consecutive pay stubs dated within the last 60 days.

The PHA will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases:

If EIV or other UIV data is not available,
If the family disputes the accuracy of the EIV employer data, and/or If the PHA determines additional information is needed.

In such cases, the PHA will review and analyze current data to anticipate annual income.

In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income.

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When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), the PHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income.

Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family’s anticipated income.

Known Changes in Income
If the PHA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12-month period.

Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks).

The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then require an interim reexamination when the change actually occurs. This requirement will be imposed even if the PHA’s policy on reexaminations does not require interim reexaminations for other types of changes.

When tenant-provided third-party documents are used to anticipate annual income, they will be dated within 60 days of the date received by the PHA. Statements dated within the appropriate benefit year will be accepted for fixed income sources.

Projecting Income
In HUD’s EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV quarterly wages to project earnings.

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6-I.D. EARNED INCOME
Types of Earned Income Included in Annual Income
Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27; Notice PIH 2024-38]
The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24) as updated for HOTMA].

Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100 as updated for HOTMA].

A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b) as updated for HOTMA]. Income earned as a day laborer is not considered nonrecurring income.

A seasonal worker is defined as an individual who is hired into a short-term position (e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b) as updated for HOTMA]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2023- 27]. Income earned as a seasonal worker is not considered nonrecurring income.

PHA Policy
For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. The file will be documented appropriately.

Some Types of Military Pay
All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA].

Income and Subsidy Determinations Page 6A-10 Redondo Beach Housing Authority June 2026
Types of Earned Income Not Counted in Annual Income
Earnings of a Minor [24 CFR 5.609(b)(3) as updated for HOTMA] A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included.

Earned Income of Full-Time Students [24 CFR 5.609(b)(14) as updated for HOTMA] The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included.

A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)].

Full-time status is defined by the educational or vocational institution the student is attending [New PH OCC GB, Lease Requirements, p. 5].

Income of a Live-in Aide
Income earned by a live-in aide, as defined in [24 CFR 5.403], is not included in annual income [24 CFR 5.609(b)(8) as updated for HOTMA]. (See Eligibility chapter for a full discussion of live-in aides.)
Income and Subsidy Determinations Page 6A-11 Redondo Beach Housing Authority June 2026
6-I.E. BUSINESS INCOME [24 CFR 5.609(b)(28) as updated for HOTMA; Notice PIH 2023-27)]
Annual income includes “the net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses.

Expenditures for business expansion or amortization of capital indebtedness 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”.

PHA Policy
To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below.

Independent Contractors
Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 2.609 (b)(24) as updated for HOTMA].

An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code federal income tax requirements and whose earnings are consequently subject to self-employment tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b) as updated for HOTMA]. This may include individuals such as third-party delivery and transportation service providers and “gig workers” like babysitters, landscapers, rideshare drivers, and house cleaners. Income earned as an independent contractor is not considered nonrecurring income and is therefore included in annual income unless otherwise excluded by regulation.

Business Expansion
HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion.

PHA Policy
Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion.

Income and Subsidy Determinations Page 6A-12 Redondo Beach Housing Authority June 2026
Capital Indebtedness
HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness.

PHA Policy
Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means the PHA will allow as a business expense interest, but not principal, paid on capital indebtedness.

Negative Business Income
If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income.

Withdrawal of Cash or Assets from a Business
HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family.

PHA Policy
Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up-front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid. Investments do not include the value of labor contributed to the business without compensation.

Co-owned Businesses
PHA Policy
If a business is co-owned with someone outside the family, the family must document the share of the business it owns. If the family’s share of the income is lower than its share of ownership, the family must document the reasons for the difference.

Income and Subsidy Determinations Page 6A-13 Redondo Beach Housing Authority June 2026
6-I.F. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] The regulations distinguish between two categories of student financial assistance paid to both full-time and part-time students. The first category is any assistance to students under section 479B of the Higher Education Act of 1965 (Title IV of the HEA) which must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Examples of assistance under title IV of the HEA include:
• Federal Pell Grants;
• Teach Grants;
• Federal Work Study Programs;
• Federal Perkins Loans;
• Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA); or
• Bureau of Indian Affairs/Education student assistance programs - The Higher Education Tribal Grant
- The Tribally Controlled Colleges or Universities Grant Program The second category is any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education (not otherwise excluded by the Federally mandated income exclusions) [24 CFR 5.609(b)(9)(ii)].

Other student financial assistance received by the student that, either by itself or in combination with HEA assistance, exceeds the actual covered costs is included in income.

Actual covered costs are defined as the actual costs of:
• Tuition, books, and supplies;
- Including supplies and equipment to support students with learning disabilities or other disabilities
• Room and board; and
• Other fees required and charged to a student by the education institution.

For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit.

Further, to qualify, other student financial assistance must be expressly:
• For tuition, book, supplies, room and board, or other fees required and charged to the student by the educational institution;
• To assist a student with the costs of higher education; or • To assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit.

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The student financial assistance may be paid directly to the student or to the educational institution on the student’s behalf. However, any student financial assistance paid to the student must be verified by the PHA.

The financial assistance must be a grant or scholarship received from:
• The Federal government;
• A state, tribal, or local government;
• A private foundation registered as a nonprofit;
• A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or • An institution of higher education.

Student financial assistance, does not include:
• Financial support provided to the student in the form of a fee for services performed; (e.g., a work study or teaching fellowship that is not excluded under section 479B of the Higher Education Act HEA);
• Gifts, including gifts from family or friends; or
• Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student.

Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2023-27]
The formula for calculating student financial assistance always begins with deducting the assistance received under 479B of the HEA from the total actual covered costs, because the 479B assistance is intended to pay the student’s actual covered costs. When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student’s actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income.

Income and Subsidy Determinations Page 6A-15 Redondo Beach Housing Authority June 2026
PHA Policy
If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The PHA will then subtract the total amount of the student’s financial assistance from the student’s actual covered costs. The PHA will include any amount of financial assistance in excess of the student’s actual covered costs in the family’s annual income.

Example 1
• Actual covered costs: $20,000
• Other student financial assistance: $25,000
• Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs)
• Included income: $5,000
When a student receives assistance from both Title IV of the HEA and from other sources, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student’s actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs.

If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance” would be excluded from income.

Example 2
• Actual covered costs: $25,000
• Title IV HEA assistance: $26,000
• Title IV HEA assistance covers the students entire actual covered costs.
• Other Student Financial Assistance: $5,000
• Excluded income: The entire Title IV HEA assistance of $26,000 • Included income: All other financial assistance of $5,000 Income and Subsidy Determinations Page 6A-16 Redondo Beach Housing Authority June 2026
If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, the PHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs.

Example 3
• Actual covered costs: $22,000
• Title IV HEA assistance: $15,000
• The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance).
• Other Student Financial Assistance: $5,000
• $7,000 in remaining actual covered costs - $5,000 in other financial assistance
• Excluded income: $15,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance
• Included income: $0
Example 4
• Actual covered costs: $18,000
• Title IV HEA Assistance: $15,000
• The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance)
• Other student Financial Assistance: $5,000
• When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance).
• Included income: $2,000 (the amount by which the financial aid exceeds the student's actual covered costs).

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6-I.G. PERIODIC PAYMENTS [Notice PIH 2023-27]
Periodic payments are forms of income received on a regular basis.

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. Income that has a discrete end date and will not be repeated beyond the coming year is excluded from a family’s annual income because it is nonrecurring income. For example, a family receives income from a guaranteed income program in their city that has a discrete beginning and end date. While the guaranteed income will be repeated in the coming year, it will end before the family’s next annual reexamination. This income is fully excluded from annual income.

However, this does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly). Unemployment income and other types of periodic payments are not considered nonrecurring income, unless explicitly excluded from income under 25 CFR 5.609(b) as updated for HOTMA, and thus they are included in annual income.

Insurance payments and settlements for personal or property losses, including but not limited to payments under health insurance, motor vehicle insurance, and workers’ compensation, are excluded from annual income. Any workers’ compensation is always excluded from annual income, regardless of the frequency or length of the payments.

Lump-Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16) as updated for HOTMA]
Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly amounts are excluded from annual income.

PHA Policy
The PHA will include in annual income lump sums received as a result of delays in processing periodic payments (other than those specifically excluded by the regulation), such as unemployment or welfare assistance.

When a delayed-start payment is received that is to be included and the family reports this during the period in which the PHA is processing an annual reexamination, the PHA will adjust the family’s rent retroactively for the period the payment was intended to cover.

If the delayed-start payment is received outside of the time the PHA is processing an annual reexamination, then the PHA will consider whether the amount meets the threshold to conduct an interim reexamination. If so, the PHA will conduct an interim in accordance with PHA policies in Chapter 11. If not, the PHA will consider the amount when processing the family’s next annual recertification or request to enter into a repayment agreement with the PHA.

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Retirement Accounts [24 CFR 5.609(b)(26) as updated for HOTMA] Any distribution of periodic payments from a retirement account is included in annual income at the time they are received by the family.

Social Security Benefits [Notice PIH 2023-27]
The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits.

Annually in October, the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the cost of living. The federal COLA does not apply to state-paid disability benefits.

Effective the day after the SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH 2023-27]. When a family member’s benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family’s annual income.

PHA Policy
Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but which they do not receive. When the SSA overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full, the PHA must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount.

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6-I.H. NONRECURRING INCOME [24 CFR 5.609(b)(24) as updated for HOTMA and Notice PIH 2023-27]
Nonrecurring income, which is income that will not be repeated beyond the coming year (e.g., 12 months following the effective date of the certification) based on information provided by the family, is excluded from annual income. The PHA may accept a self-certification from the family stating that the income will not be repeated in the coming year. See Chapter 7 for PHA policies related to verification of nonrecurring income.

Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income as nonrecurring income, even if the source, date, or amount of the income varies.

Income that has a discrete end date and will not be repeated beyond the coming year during the family’s upcoming annual reexamination period will be excluded from a family’s annual income as nonrecurring income. This exclusion does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly).

Income amounts excluded under this category may include, but are not limited to:
• Nonrecurring payments made to the family or to a third party on behalf of the family to assist with utilities;
• Payments for eviction prevention;
• Security deposits to secure housing;
• Payments for participation in research studies (depending on the duration); and • General one-time payments received by or on behalf of the family.

Nonrecurring income that is excluded under the regulations includes:
• Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment [24 CFR 5.609(b)(24)(i) as updated for HOTMA]. • Direct federal or state payments intended for economic stimulus or recovery [24 CFR

5.609(b)(24)(ii) as updated for HOTMA].
• Amounts directly received by the family as a result of state refundable tax credits or state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv) as updated for HOTMA].
• Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v) as updated for HOTMA].

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• Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization [24 CFR 5.609(b)(24)(vi) as updated for HOTMA]. When calculating annual income, PHAs are prohibited from assigning monetary value to such nonmonetary in-kind donations received by the family [Notice PIH 2023-27]. Non-recurring, non-monetary in-kind donations from friends and family are excluded as non-recurring income. However, the value of regular in-kind donations (such as the value of groceries) received by friends and family are included.
• Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings [24 CFR 5.609(b)(24)(vii) as updated for HOTMA].

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6-I.I. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19) as updated for HOTMA]
Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family’s assisted unit are excluded.

Authorized payments may include payments to a member of the assisted family through state Medicaid-managed care systems, other state agencies, federal agencies, or other authorized entities.

The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family’s assisted unit.

Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income.

Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver’s assisted family member would be excluded from income.
6-I.J. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25) as updated for HOTMA; FR Notice 2/14/23]
Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement.

While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family’s net family assets (e.g., if the funds are deposited into the family’s savings account or a revocable trust under the control of the family or some other asset that is not excluded from the definition of net family assets). Income generated on the settlement or judgment amount after it has become a net family asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest-bearing savings account, the interest from that account would be income at the time the interest is received.

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6-I.K. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b) as updated for HOTMA; FR Notice 1/31/2024]
Other exclusions contained in 24 CFR 5.609(b) as updated for HOTMA and FR Notice 1/31/2024 include the following:
• Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4) as updated for HOTMA]. • Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation [24 CFR 5.609(b)(5) as updated for HOTMA]. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages are included in annual income [Notice PIH 2023-27]. • Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6) as updated for HOTMA].
• Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7) as updated for HOTMA]. • Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10) as updated for HOTMA].
• Income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10) as updated for HOTMA].
• The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA].
• Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17) as updated for HOTMA]. This income exclusion applies only to veterans in need of regular aid and attendance and not to other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2023-27]. • Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20) as updated for HOTMA]. The loan borrower or co-borrower must be a member of the family for this income exclusion to be applicable [Notice PIH 2023-27].

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• Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21) as updated for HOTMA]. Generally, payments received by tribal members in excess of the first $2,000 of per capita shares are included in a family’s annual income for purposes of determining eligibility. However, as explained in Notice PIH 2023-27, payments made under the Cobell Settlement, and certain per capita payments under the recent Tribal Trust Settlements, must be excluded from annual income.
• Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments [24 CFR 5.609(b)(23) as updated for HOTMA]. • Income earned on amounts placed in a family’s Family Self-Sufficiency account [24 CFR 5.609(b)(27) as updated for HOTMA].
• Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(c)(12)(ii) as updated for HOTMA]. • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i) as updated for HOTMA].
• Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development [24 CFR 5.600(b)(12)(iii) as updated for HOTMA].

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• Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD or in qualifying federal, state, tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR 5.609(b)(12)(iv) as updated for HOTMA].

PHA Policy
The PHA defines training program as “a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98-2, p. 3].

The PHA defines incremental earnings and benefits as the difference between (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3-4].

In calculating the incremental difference, the PHA will use as the pre-enrollment income the total annualized amount of the family member’s welfare assistance and earnings reported on the family’s most recently completed HUD-50058.

End of participation in a training program must be reported in accordance with the PHA’s interim reporting requirements (see Chapter 11).
• Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13) as updated for HOTMA].
• Adoption assistance payments for a child in excess of the amount of the dependent deduction per adopted child [24 CFR 5.609(b)(15) as updated for HOTMA]. • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20) as updated for HOTMA].

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• Amounts that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) as updated for HOTMA apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary [24 CFR 5.609(b)(22) as updated for HOTMA].

HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on January 31, 2024. It includes:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)). This exclusion also applies to assets. (b) Benefits under Section 1780 of the Richard B. Russell School Lunch Act and Child Nutrition Act of 1966, including WIC and reduced-price lunches. (c) Payments, including for supportive services and reimbursement of out-of-pocket expenses, to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058). The exclusion also applies to assets.
- Except, the exclusion does not apply when the Chief Executive Officer of the Corporation for National and Community Service determines that the value of all such payments, adjusted to reflect the number of hours such volunteers are serving, is equivalent to or greater than the minimum wage then in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) or the minimum wage, under the laws of the State where such volunteers are serving, whichever is the greater (42 U.S.C. 5044(f)(1)).
(d) Certain payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)).
(e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 5506).
(f) Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)(1)). (g) Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998 which was reauthorized as the Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. 3241(a)(2)).
(h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts.
(i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Section 6).
(j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)).

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(k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010. (l) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408). This exclusion does not include proceeds of gaming operations regulated by the Commission (25 U.S.C. 1407–1408).
(m) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056(f)).
(n) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.). This exclusion also applies to assets. (o) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean and Thailand service veterans born with spinal bifida (42 U.S.C. 12637(d)).
(p) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721). This exclusion also applies to assets.
(q) The value of any childcare provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Childcare and Development Block Grant Act of 1990 (42 U.S.C. 9858q).
(r) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)). This exclusion also applies to assets. (s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433).

This exclusion also applies to assets.
(t) Amounts of student financial assistance funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu).

For Section 8 programs only, any financial assistance in excess of amounts received by an individual for tuition and any other required fees and charges under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income if the individual is over the age of 23 with dependent children (Pub. L. 109–115, section 327 (as amended)).
(u) Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)).

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(v) Any amount of crime victim compensation that provides medical or other assistance (or payment or reimbursement of the cost of such assistance) under the Victims of Crime Act of 1984 received through a crime victim assistance program, unless the total amount of assistance that the applicant receives from all such programs is sufficient to fully compensate the applicant for losses suffered as a result of the crime (34 U.S.C. 20102(c)).
(w) Any amounts in an “individual development account” are excluded from assets and any assistance, benefit, or amounts earned by or provided to the individual development account are excluded from income, as provided by the Assets for Independence Act, as amended (42 U.S.C. 604(h)(4)).
(x) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations. This exclusion also applies to assets.
(y) Distributions from an ABLE account, distributions from and certain contributions to an ABLE account established under the ABLE Act of 2014 (Pub. L. 113–295.), as described in Notice PIH 2019–09 or subsequent or superseding notice is excluded from income and assets.
(z) The amount of any refund (or advance payment with respect to a refundable credit) issued under the Internal Revenue Code is excluded from income and assets for a period of 12 months from receipt (26 U.S.C. 6409).
(aa) Assistance received by a household under the Emergency Rental Assistance Program pursuant to the Consolidated Appropriations Act, 2021 (Pub. L. 116–260, section 501(j)), and the American Rescue Plan Act of 2021.
(ab) Per capita payments made from the proceeds of Indian Tribal Trust Settlements listed in IRS Notice 2013-1 and 2013-55 must be excluded from annual income unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe’s private bank account in which the Tribe has deposited the settlement proceeds. Such amounts received in excess of the Tribal Trust Settlement are included in the gross income of the members of the Tribe receiving the per capita payments as described in IRS Notice 2013-1. The first $2,000 of per capita payments are also excluded from assets unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe’s private bank account in which the Tribe has deposited the settlement proceeds (25 U.S.C. 117b(a), 25 U.S.C. 1407).
(ac) Any amounts (i) not actually received by the family, (ii) that would be eligible for exclusion under 42 U.S.C. 1382b(a)(7), and (iii) received for service-connected disability under 38 U.S.C. Chapter 11 or dependency and indemnity compensation under 38 U.S.C. Chapter 13 (25 U.S.C. 4103(9)(C)) as provided by an amendment by the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111–269 section 2) to the definition of income applicable to programs under the Native American Housing Assistance and Self-Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.).

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6-I.L. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)]
Overview
There is no asset limitation for participation in the HCV program. However, HUD requires that the PHA include in annual income the anticipated “interest, dividends, and other net income of any kind from real or personal property” [24 CFR 5.609(b)(3)]. This section discusses how the income from various types of assets is determined. For most types of assets, the PHA must determine the value of the asset in order to compute income from the asset. Therefore, for each asset type, this section discusses:
• How the value of the asset will be determined
• How income from the asset will be calculated
Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR

5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section begins with a discussion of general policies related to assets and then provides HUD rules and PHA policies related to each type of asset.

Optional policies for family self-certification of assets are found in Chapter 7.

General Policies
Income from Assets
The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA to use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant.

PHA Policy
The PHA will use current circumstances to determine both the value of an asset and the anticipated income from the asset.

Anytime current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases the family may present information and documentation to the PHA to show why the asset income determination does not represent the family’s anticipated asset income.

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Valuing Assets
The calculation of asset income sometimes requires the PHA to make a distinction between an asset’s market value and its cash value.
• The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash.

PHA Policy
Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions [HCV GB, p. 5-28].

Lump-Sum Additions to Net Family Assets [24 CFR 5.609(b)(24)(viii) as updated for HOTMA; Notice PIH 2023-27]
The regulations exclude income from lump-sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income.

In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income.

Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income.

However, these amounts may count toward net family assets. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination.

For a discussion of lump-sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.

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Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2012-29] When net family assets are $5,000 or less, the PHA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of $5,000, the PHA will include in annual income the greater of (1) the actual income derived from the assets or (2) the imputed income. Imputed income from assets is calculated by multiplying the total cash value of all family assets by an average passbook savings rate as determined by the PHA.
• Note: The HUD field office no longer provides an interest rate for imputed asset income. The “safe harbor” is now for the PHA to establish a passbook rate within 0.75 percent of a national average.
• The PHA must review its passbook rate annually to ensure that it remains within 0.75 percent of the national average.

PHA Policy
The PHA initially set the imputed asset passbook rate at the national rate established by the Federal Deposit Insurance Corporation (FDIC).

The PHA will review the passbook rate annually. The rate will not be adjusted unless the current PHA rate is no longer within 0.75 percent of the national rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be set at the current national rate.

The effective date of changes to the passbook rate will be determined at the time of the review.

Determining Actual Anticipated Income from Assets
It may or may not be necessary for the PHA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. However, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property’s market value.

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Jointly Owned Assets
The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes “amounts derived (during the 12-month period) from assets to which any member of the family has access.” PHA Policy
If an asset is owned by more than one person and any family member has unrestricted access to the asset, the PHA will count the full value of the asset. A family member has unrestricted access to an asset when they can legally dispose of the asset without the consent of any of the other owners.

If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, the PHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, the PHA will prorate the asset evenly among all owners.

Assets Disposed of for Less than Fair Market Value [24 CFR 5.603(b)] HUD regulations require the PHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below.

Minimum Threshold
The HCV Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5-27].

PHA Policy
The PHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than $1,000.

When the two-year period expires, the income assigned to the disposed asset(s) also expires. If the two-year period ends between annual recertifications, the family may request an interim recertification to eliminate consideration of the asset(s).

Assets placed by the family in nonrevocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments.

Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms.

PHA Policy
All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order.

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Foreclosure or Bankruptcy
Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale.

Family Declaration
PHA Policy
Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by the family.

Types of Assets
Checking and Savings Accounts
For regular checking accounts and savings accounts, cash value has the same meaning as market value. If a checking account does not bear interest, the anticipated income from the account is zero.

PHA Policy
In determining the value of a checking account, the PHA will use the average monthly balance for the last three months.

In determining the value of a savings account, the PHA will use the current balance.

In determining the anticipated income from an interest-bearing checking or savings account, the PHA will multiply the value of the account by the current rate of interest paid on the account.

ABLE Accounts [24 CFR 5.609(b)(10) as updated for HOTMA; Notice PIH 2019-09] An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary’s eligibility and continued occupancy under certain federal meanstested programs. The PHA must exclude the entire value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account are also not considered income.

However, all wage income received, regardless of which account the money is paid to, is included as income.

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Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds Interest or dividends earned by investment accounts are counted as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash.

PHA Policy
In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report.

How anticipated income from an investment account will be calculated depends on whether the rate of return is known.

For assets that are held in an investment account with a known rate of return (e.g., savings certificates), asset income will be calculated based on that known rate (market value multiplied by rate of earnings).

When the anticipated rate of return is not known (e.g., stocks), the PHA will calculate asset income based on the earnings for the most recent reporting period.

Equity in Real Property or Other Capital Investments
Equity (cash value) in a property or other capital asset is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and less reasonable costs (such as broker fees) that would be incurred in selling the asset [HCV GB, p. 5-25].

PHA Policy
In determining the equity, the PHA will determine market value by examining recent sales of at least three properties in the surrounding or similar neighborhood that possess comparable factors that affect market value.

The PHA will first use the payoff amount for the loan (mortgage) as the unpaid balance to calculate equity. If the payoff amount is not available, the PHA will use the basic loan balance information to deduct from the market value in the equity calculation.

Equity in real property and other capital investments is considered in the calculation of asset income except for the following types of assets:
• Equity accounts in HUD homeownership programs [24 CFR5.603(b)] • The value of a home currently being purchased with assistance under the HCV program Homeownership Option for the first 10 years after the purchase date of the home [24 CFR

5.603(b), Notice PIH 2012-3]
• Equity in owner-occupied cooperatives and manufactured homes in which the family lives [HCV GB, p. 5-25]
• Equity in real property when a family member’s main occupation is real estate [HCV GB, p. 5-25]. This real estate is considered a business asset, and income related to this asset will be calculated as described in section 6-I.F.

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• Interests in Indian Trust lands [24 CFR 5.603(b)]
• Real property and capital assets that are part of an active business or farming operation [HCV GB, p. 5-25]
The PHA must also deduct from the equity the reasonable costs for converting the asset to cash.

Using the formula for calculating equity specified above, the net cash value of real property is the market value minus the balance of the loan (mortgage) minus the expenses to convert to cash [Notice PIH 2012-3].

PHA Policy
For the purposes of calculating expenses to convert to cash for real property, the PHA will use ten percent of the market value of the home.

A family may have real property as an asset in two ways: (1) owning the property itself and (2) holding a mortgage or deed of trust on the property. In the case of a property owned by a family member, the anticipated asset income generally will be in the form of rent or other payment for the use of the property. If the property generates no income, actual anticipated income from the asset will be zero.

In the case of a mortgage or deed of trust held by a family member, the outstanding balance (unpaid principal) is the cash value of the asset. The interest portion only of payments made to the family in accordance with the terms of the mortgage or deed of trust is counted as anticipated asset income.

PHA Policy
In the case of capital investments owned jointly with others not living in a family’s unit, a prorated share of the property’s cash value will be counted as an asset unless the PHA determines that the family receives no income from the property and is unable to sell or otherwise convert the asset to cash. In this case, it will be the family’s responsibility to provide convincing evidence that it receives no income from the property and is unable to sell or otherwise convert the asset to cash.

Trusts [24 CFR 5.609(b)(2) as updated for HOTMA]
A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries).

The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable.

When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Typically, special needs trusts are considered irrevocable. Irrevocable trusts not under the control of any member of the family are excluded from net family assets. The value of the trust continues to be excluded from net family assets so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4) as updated for HOTMA]. Further, where an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income from the trust is not distributed.

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A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account. • A revocable trust that is under the control of the family is included in net family assets when the grantor is a member of the assisted family. If a revocable trust is included in the calculation of net family assets, then the actual income earned by the revocable trust is also included in the family’s income. For example, interest earned or rental income if the property is held in the trust.
• A revocable trust that is not under the control of the family is excluded from net family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. In this case the beneficiary does not “own” the revocable trust, and the value of the trust is excluded from net family assets.

For the revocable trust to be considered excluded from net family assets, no family or household member may be the account’s trustee.

For both irrevocable and revocable trusts, if the value of the trust is not considered part of net family assets, then distributions from the trust are treated as follows:
• All distributions from the trust’s principal are excluded from income. • Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust’s principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor.

Retirement Accounts [24 CFR 5.609(b)(26) as updated for HOTMA] 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 is excluded. For example, actual interest or dividend income is not counted as anticipated income from the account on the Form HUD-50058. When the PHA includes the value of the retirement account as assets on the Form HUD-50058, if the total cash value of the family’s assets exceeds $5,000, imputed income will be calculated and included.

In order to correctly include or exclude as an asset any amount held in a company retirement or pension account by an employed person, the PHA must know whether the money is accessible before retirement [HCV GB, p. 5-26].

While a family member is employed, only the amount the family member can withdraw without retiring or terminating employment is counted as an asset [HCV GB, p. 5-26].

After a family member retires or terminates employment, any amount distributed to the family member is counted as a periodic payment or a lump-sum receipt, as appropriate [HCV GB, p. 5-26]. (For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an asset only if it remains accessible to the family member.

IRA, Keogh, and similar retirement savings accounts are counted as assets even though early withdrawal would result in a penalty [HCV GB, p. 5-25].

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Personal Property
Personal property held as an investment, such as gems, jewelry, coin collections, antique cars, etc., is considered an asset [HCV GB, p. 5-25].

PHA Policy
In determining the value of personal property held as an investment, the PHA will use the family’s estimate of the value. The PHA may obtain an appraisal to confirm the value of the asset if there is reason to believe that the family’s estimated value is off by $500 or more. The family must cooperate with the appraiser, but cannot be charged any costs related to the appraisal.

Generally, personal property held as an investment generates no income until it is disposed of. If regular income is generated (e.g., income from renting the personal property), the amount that is expected to be earned in the coming year is counted as actual income from the asset.

Necessary items of personal property are not considered assets [24 CFR 5.603(b)].

PHA Policy
Necessary personal property consists of only those items not held as an investment, and may include clothing, furniture, household furnishings, jewelry, and vehicles, including those specially equipped for persons with disabilities.

Life Insurance
The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family’s assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends or interest that the family could elect to receive, the anticipated amount of dividends or interest is counted as income from the asset whether or not the family actually receives it.

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6-I.M. WELFARE ASSISTANCE
Overview
Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments [24 CFR 5.603(b)].

Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed.

Covered Families
The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR

5.615(b)]
Imputed Income
When a welfare agency imposes a sanction that reduces a family’s welfare income because the family commits fraud or fails to comply with the agency’s economic self-sufficiency program or work activities requirement, the PHA must include in annual income “imputed” welfare income.

The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction.

This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)].

Offsets
The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR

5.615(c)(4)].

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6-I.N. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)] Annual income includes periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing with an assisted family.

Alimony and Child Support
The PHA must count alimony or child support amounts awarded as part of a divorce or separation agreement.

PHA Policy
The PHA will count all regular payments of alimony or child support awarded as part of a divorce or separation agreement unless the family certifies and the PHA verifies that the payments are not being made.

Family Claims No Payments Being Received: In order to verify that payments are not being made, the PHA will review child support payments over the last twelve months. If no payments have been made in the past twelve months and there are no lump sums, the PHA will not include alimony or child support in annual income.

Payments Being Received: If payments are being made regularly, the PHA will use the amount received during the last 12 months (excluding any lump sums received).

If payments have been made for a period less than 12 months, the PHA will average all payments that have been made.

Lump Sum Payments: At new admission or interim recertification, if any lump sum payments were made in the past 12 months, the PHA will determine the likelihood of the family receiving another similar payment within the next 12 months before deciding whether or not this amount will be included in the calculation of annual income.

If the PHA determines and can appropriately verify that the family in all likelihood will not receive a similar payment, then the amount will not be considered when projecting annual income.

If the PHA determines that it is likely that the family will receive a similar payment and can appropriately verify it, the amount will be included when projecting annual income.

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PART II: ADJUSTED INCOME
6-II.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611.

5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income:
(1) $480 for each dependent;
(2) $400 for any elderly family or disabled family;
(3) The sum of the following, to the extent the sum exceeds three percent of annual income:
(i) Unreimbursed health and medical care expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed. This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and (4) Any reasonable childcare expenses necessary to enable a member of the family to be employed or to further his or her education.

This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7.

Anticipating Expenses
PHA Policy
Generally, the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and non-school periods and cyclical medical expenses), the PHA will estimate costs based on historic data and known future costs.

If a family has an accumulated debt for medical or disability assistance expenses, the PHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. The PHA may require the family to provide documentation of payments made in the preceding year.

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6-II.B. DEPENDENT DEDUCTION
An allowance of $480 is deducted from annual income for each dependent [24 CFR 5.611(a)(1)].

Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b) as updated for HOTMA].
6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION
A single deduction of $400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403].

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6-II.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION
[24 CFR 5.611(a)(3)(i) and 5.603(b) as updated for HOTMA] Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent of annual income.

The health and medical care expense deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a health and medical care expense deduction, the medical expenses of all family members are counted [VG, p. 28].

Definition of Medical Expenses
HUD regulations define health and medical care expenses at 24 CFR 5.603(b) (as updated for HOTMA) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed.” Health and medical care expenses may be deducted from annual income only if they are eligible under this definition and not otherwise reimbursed.

Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their policies to IRS Publication 502. PHAs must review each expense to determine whether it is eligible in accordance with HUD’s definition. While PHA policies may not specifically align with IRS Publication 502, HUD recommends PHAs use it as a standard for determining allowable expenses, and the PHA may list examples of allowable expenses in their policy provided they comply with HUD’s definition at 24 CFR 5.603 as updated for HOTMA.

The PHA may not define health and medical care expenses more narrowly than the regulation.

In accordance 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.

PHA Policy
The PHA will use the most current IRS Publication 502 as a standard for determining if expenses claimed by eligible families qualify as health and medical care expenses.

However, under no circumstances will the PHA deduct any expenses listed in IRS Publication 502 that do not conform with HUD’s definition of health and medical care expenses.

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Summary of Typical Allowable Health and Medical Care Expenses Services of medical professionals
Surgery and medical procedures that are
necessary, legal, and non-cosmetic
Services of medical facilities
Hospitalization, long-term care, and inhome nursing services Prescription medicines and insulin, but
not nonprescription medicines even if
recommended by a doctor
Improvements to housing directly related
to medical needs (e.g., ramps for a
wheelchair, handrails)
Medical insurance premiums or the cost
of a health maintenance organization
(HMO)
Medicare Part B and Part D premiums
Substance abuse treatment programs
Psychiatric treatment
Ambulance services and some costs of
transportation related to medical
expenses. The PHA will use the most
current medical mileage rate listed in
IRS Publication 502.

The cost and care of necessary
equipment related to a medical
condition (e.g., eyeglasses/lenses,
hearing aids, crutches, and artificial
teeth)
The costs of buying, training, and
maintaining a guide dog or other service
animal to assist a visually impaired or
hearing disabled person, or a person
with other physical disabilities. In
general, this includes any costs, such as
food, grooming, and veterinary care,
incurred in maintaining the health and
vitality of the service animal so that it
may perform its duties.

Note: This chart provides a summary of eligible health and medical care expenses only. In all cases, the PHA will consider whether health and medical expenses care expenses claimed by the family are eligible under HUD’s definition.

Before placing health, medical, or disability expense 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 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].

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Families That Qualify for Both Health and Medical Care and Disability Assistance Expenses
PHA Policy
This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities.

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

Families will only be permitted to claim medical expenses at the initial and annual recertification interviews unless a reasonable accommodation is requested and approved by the PHA. Families will not be given interim exams to claim new medical expenses inbetween annual re-certifications. Additionally, if applicants decide not to claim medical expenses during the initial eligibility interview in order to speed up the qualification process, they will have to wait until their first annual recertification to claim medical expenses in the future.

Families who wish to claim medical expenses will be required to complete the PHA’s “Medical Expense” form, and to attach proof of expenses. The proof of expenses must be provided in a manner that the PHA can easily review. Therefore, for prescriptions, the family must provide a print-out from the pharmacy/pharmacies. For other medical expenses, all receipts should be photocopied by the family onto letter or legal sized sheets of paper. Families who only claim insurance premium amounts that are already verified on a third-party verification form (such as is the case with Medicare and other insurance plans through pensions) will not be required to complete the “Medical Expense” form.

Generally, the PHA will use the previous 12-month’s medical expenses to anticipate the next 12-month’s expenses, provided the family indicates this is an accurate portrayal of expenses for the coming year.

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6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)]
Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work.

Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)].

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

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

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

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Eligible Disability Expenses
Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: “Auxiliary apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to enable a blind person 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
PHA Policy
Auxiliary apparatus items may include expenses for wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read or type or special equipment to assist a person who is deaf or hard of hearing [Notice PIH 2023-27].

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) 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 included.

Eligible Attendant Care
The family determines the type of attendant care that is appropriate for the person with disabilities.

PHA Policy
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 [Notice PIH 2023-27].

Attendant care also 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 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.

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

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

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

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

Families That Qualify for Both Medical and Disability Assistance Expenses PHA Policy
This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities.

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

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

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

Seeking Work
PHA Policy
If the 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 PHA.

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

Being Gainfully Employed
PHA 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 their 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 income exclusions are applied.

When the person who is enabled to work is 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.

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].

PHA 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 PHA 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
PHA Policy
For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of 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 PHA 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 their education, and (2) the family certifies, and the childcare provider verifies, that the expenses are not paid or reimbursed by any other source.

PHA 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 PHA will use the schedule of childcare costs from a qualified local entity that either subsidizes childcare costs or licenses childcare providers. Families may present, and the PHA will consider, justification for costs that exceed typical costs in the area.

PHA may request verification of proof of payment in the form of cancelled checks, money orders, or online statements showing payment amounts and the dates that the child care was paid. At PHA discretion, other forms of verification may be accepted.

Income and Subsidy Determinations Page 6A-50 Redondo Beach Housing Authority June 2026
Income and Subsidy Determinations Page 6A-51 Redondo Beach Housing Authority June 2026
PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY
6-III.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]
PHA Policy
Welfare rent does not apply in this locality.

Minimum Rent [24 CFR 5.630]
PHA Policy
The minimum rent for this locality is $50.

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 PHA’s applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy the PHA may not approve the tenancy if it would require the family share to exceed 40 percent of the family’s monthly adjusted income. (For a discussion of the application of payment standards, see section 6-III.C.) Income and Subsidy Determinations Page 6A-52 Redondo Beach Housing Authority June 2026
PHA Subsidy [24 CFR 982.505(b)]
The PHA 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-III.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.

PHA Policy
The PHA will make utility reimbursements to the family.

The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar-year quarter 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.

PHA Policy
The PHA will issue all utility reimbursements monthly.

Income and Subsidy Determinations Page 6A-53 Redondo Beach Housing Authority June 2026
6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] Overview
If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship.

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

HUD-Defined Financial Hardship
Financial hardship includes the following situations:
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996.

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

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

PHA Policy
For a family to qualify under this provision, the cause of the potential eviction must be the family’s failure to pay rent to the owner or tenant-paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment.

Income and Subsidy Determinations Page 6A-54 Redondo Beach Housing Authority June 2026
(4) A death has occurred in the family.

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

PHA Policy
The PHA has not established any additional hardship criteria.

Implementation of Hardship Exemption
Determination of Hardship
When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family’s request.

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

PHA Policy
The PHA defines temporary hardship as a hardship expected to last 90 days or less. Longterm hardship is defined as a hardship expected to last more than 90 days.

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

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

Family Share – No Hardship Family Share – With Hardship $0
$15
N/A
$50
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
$0
$15
N/A
$50
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
Minimum rent applies.

TTP = $50
Hardship exemption granted.

TTP = $15
PHA Policy
To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent.

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

Income and Subsidy Determinations Page 6A-55 Redondo Beach Housing Authority June 2026
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.

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

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

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

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

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

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

Income and Subsidy Determinations Page 6A-56 Redondo Beach Housing Authority June 2026
6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505(c) and Notice PIH 2024-34]
Overview
The PHA’s schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the PHA’s payment standards. The establishment and revision of the PHA’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 PHA’s subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family [24 CFR 982.505(c)(1)].

If the PHA has established an exception payment standard for a designated part of an FMR area in accordance with 24 CFR 982.503 and a family’s unit is located in the designated area, the PHA must use the appropriate payment standard for the exception area [24 CFR 982.505(c)(2)].

The PHA 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) 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 PHA 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 PHA 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. Regulations governing increases and decreases in the payment standard have changed, with a required compliance date of December 3, 2024.

Decreases [24 CFR 982.505(c)(3) and Notice PIH 2024-34] For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution.

The PHA must administer decreases in the payment standard amount for the family in accordance with the PHA policy as described in the administrative plan and apply the policy consistently to all families.

If a PHA changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, the PHA 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.

Income and Subsidy Determinations Page 6A-57 Redondo Beach Housing Authority June 2026
Changes effective 12/3/24 and later: If the PHA 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 two years following the effective date of the decrease in the payment standard and only with proper written notice to the family in accordance with 24 CFR 982.505(c)(3)(iii).

At that point, the PHA may either reduce the payment standard to the current amount in effect on the PHA’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 PHA may also establish different policies for designated areas within their jurisdiction (e.g., different zip code areas).

In any case, the PHA must provide the family with at least 12 months’ notice that the payment standard is being reduced before the effective date of the change. In the written notice, the PHA must state the new payment standard amount, explain that the family’s new payment standard amount will be the greater of the amount listed in the current written notice or the new amount (if any) on the PHA’s payment standard schedule at the end of the 12-month period, and make clear where the family will find the PHA’s payment standard schedule. The PHA’s policy on decreases in the payment standard during the term of the HAP contract apply to all families under HAP contract at the time of the effective date of the decrease in the payment standard within the designated area.

PHA Policy
When the payment standard schedule is decreased during the term of the HAP contract, the PHA will determine the payment standard for families currently under a HAP contract as follows:

Step 1: At the first regular reexamination following the decrease in the payment standard, the PHA will determine the payment standard for the family using the lower of the payment standard for the family unit size or the size of the dwelling unit rented by the family.

Step 2: The PHA will compare the payment standard from Step 1 to the payment standard last used to calculate the monthly housing assistance payment for the family. The payment standard used by the PHA at the first regular reexamination following the decrease in the payment standard will be the higher of these two payment standards. The PHA will advise the family that the application of the lower payment standard will be deferred until the second regular reexamination following the effective date of the decrease in the payment standard.

Step 3: At the second regular reexamination following the decrease in the payment standard, the current (lower) payment standard will be used to calculate the monthly housing assistance payment for the family unless the PHA has subsequently increased the payment standard, in which case the payment standard will be determined in accordance with procedures for increases in payment standards.

For reference and audit purposes, for changes that were effective 12/2/24 and earlier: If the PHA reduced the payment standard for families then currently under HAP contract, HUD required that the initial reduction to the payment standard not be applied any earlier than the effective date of Income and Subsidy Determinations Page 6A-58 Redondo Beach Housing Authority June 2026
the family’s second regular reexamination following the effective date of the decrease in the payment standard amount.

Increases [24 CFR 982.505(c)(4) and Notice PIH 2024-34] For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution.

Changes effective 12/3/24 and later: If the payment standard is increased during the term of the HAP contract, the increased payment standard will be applied no later than the earliest of:
• The effective date of an increase in the gross rent that would result in an increase in the family share;
• The family’s first regular or interim reexamination; or • One year following the effective date of the increase in the payment standard amount.

Income and Subsidy Determinations Page 6A-59 Redondo Beach Housing Authority June 2026
The PHA may adopt a policy to apply a payment standard increase at any time earlier than the date calculated above as long as the policy is included in the administrative plan and applied consistently to all families [24 CFR 982.505(c)(5)].

PHA Policy
The PHA will not adopt payment standard increases earlier than the date required by the regulations.

For reference and audit purposes, for changes effective 12/2/24 and earlier: If the PHA increased the payment standard during the term of the HAP contract, the increased payment standard was to be used to calculate the monthly housing assistance payment for 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 did 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 (Voucher Size) [24 CFR 982.505(c)(6) and Notice PIH 2024-34] Changes effective 12/3/24 and later: 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 may be used to determine the payment standard immediately but no later than the family’s first regular reexamination following the change in family unit size.

PHA Policy
If the family unit size (voucher size) changes during the term of a HAP contract, the new family unit size will be used to determine the payment standard at an interim following the change in family unit size. The PHA will provide a minimum 30-day notice of the effective date when the family rent portion increases.

For reference and audit purposes, for changes effective 12/2/24 and earlier: Irrespective of any increase or decrease in the payment standard, if the family unit size increased or decreased during the HAP contract term, HUD required the new family unit size to 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.

Moves
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.

Reasonable Accommodation [24 CFR 982.503(d)(5)]
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 without HUD approval or prior notification to HUD. A PHA may establish a payment standard greater than 120 percent of the applicable FMR as a reasonable accommodation in accordance with 24 CFR part 8, after requesting and receiving HUD approval. See Chapter 16 for more information.

Income and Subsidy Determinations Page 6A-60 Redondo Beach Housing Authority June 2026
6-III.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 PHA subsidy standards, whichever is the lowest of the two. See Chapter 5 for information on the PHA’s subsidy standards.

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

Flat Fees [24 CFR 982.517(b)(2)(iii)]
The PHA may base its utility allowance payments on actual flat fees charged by an owner for utilities that are billed directly by the owner, but only if the flat fee charged by the owner is no greater than the PHA’s applicable utility allowance for the utilities covered by the fee. If the owner charges a flat fee for some but not all utilities, the PHA must pay a separate allowance for any tenant-paid utilities not covered in the flat fee.

PHA Policy
The PHA will not base utility allowance payments on flat fees charged by the owner.

PBV Developments [24 CFR 982.517(b)(2)(iv)]
If a tenant-based voucher holder resides in a project with project-based voucher (PBV) units and the PBV units use a site-specific utility allowance in accordance with PBV regulations, the PHA must use the project-specific utility allowance schedule.

Reasonable Accommodation and Individual Relief
On request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [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 individual relief from charges in excess of the utility allowance on reasonable grounds, such as special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA 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.

Income and Subsidy Determinations Page 6A-61 Redondo Beach Housing Authority June 2026
PHA Policy
The family must request the higher allowance and provide the PHA with information about the amount of additional allowance required.

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

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

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

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

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

Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all 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.

At its discretion, the PHA may reevaluate the need for the increased utility 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 PHA must use the current utility allowance schedule [HCV GB, p. 18-8].

PHA Policy
Revised utility allowances will be applied to a family’s rent and subsidy calculations at the first annual reexamination that is effective after the allowance is adopted.

Income and Subsidy Determinations Page 6A-62 Redondo Beach Housing Authority June 2026
6-III.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.

Income and Subsidy Determinations Page 6A-63 Redondo Beach Housing Authority June 2026
EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS
24 CFR 5.609
(a) Annual income means all amounts,
monetary or not, which:
(1) Go to, or on behalf of, 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 not specifically excluded in
paragraph (c) of this section.
(4) Annual income also means amounts
derived (during the 12-month period) from
assets to 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 and salaries, overtime
pay, commissions, fees, tips 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;
(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 derived from all
net family assets or a percentage of the value
of such assets 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 lumpsum 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);
Income and Subsidy Determinations Page 6A-64 Redondo Beach Housing Authority June 2026
(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 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 that is subject to adjustment by the
welfare assistance agency in accordance with
the actual cost of shelter and utilities, the
amount 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)
1 Text of 45 CFR 260.31 follows.
(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 1965 (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 1965 (20
U.S.C. 1002)), 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
include loan proceeds for the purpose of
determining income.

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).

Income and Subsidy Determinations Page 6A-65 Redondo Beach Housing Authority June 2026
(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 earned 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.

Income and Subsidy Determinations Page 6A-66 Redondo Beach Housing Authority June 2026
EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS
24 CFR 5.609(b) as updated for HOTMA
(b)Annual income does not include the following:
(1) Any imputed return on an asset when net
family assets are less than or equal to the
HUD-published threshold amount (which
amount HUD will adjust annually in
accordance with the Consumer Price Index for
Urban Wage Earners and Clerical Workers)
and no actual income from the net family
assets can be determined.
(2) The following types of trust distributions:
(i) For an irrevocable trust or a revocable trust
outside the control of the family or household
excluded from the definition of net family
assets under § 5.603(b):
(A) Distributions of the principal or corpus of
the trust; and
(B) Distributions of income from the trust
when the distributions are used to pay the costs
of health and medical care expenses for a
minor.
(ii) For a revocable trust under the control of
the family or household, any distributions
from the trust; except that any actual income
earned by the trust, regardless of whether it is
distributed, shall be considered income to the
family at the time it is received by the trust.
(3) Earned income of children under the 18
years of age.
(4) Payments received for the care of foster
children or foster adults, or State or Tribal
kinship or guardianship care payments.
(5) Insurance payments and settlements for
personal or property losses, including but not
limited to payments through health insurance,
motor vehicle insurance, and workers’
compensation.
(6) Amounts received by the family that are
specifically for, or in reimbursement of, the
cost of health and medical care expenses for
any family member.
(7) Any amounts recovered in any civil action
or settlement based on a claim of malpractice,
negligence, or other breach of duty owed to a
family member arising out of law, that resulted
in a member of the family becoming disabled.
(8) Income of a live-in aide, foster child, or
foster adult as defined in §§ 5.403 and 5.603,
respectively.
(9)
(i) Any assistance that section 479B of the
Higher Education Act of 1965, as amended (20
U.S.C. 1087uu), requires be excluded from a
family’s income; and
Income and Subsidy Determinations Page 6A-67 Redondo Beach Housing Authority June 2026
(ii) Student financial assistance for tuition,
books, and supplies (including supplies and
equipment to support students with learning
disabilities or other disabilities), room and
board, and other fees required and charged to a
student by an institution of higher education
(as defined under Section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) and,
for a student who is not the head of household
or spouse, the reasonable and actual costs of
housing while attending the institution of
higher education and not residing in an
assisted unit.
(A) Student financial assistance, for purposes
of this paragraph (9)(ii), means a grant or
scholarship received from— (
1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a
nonprofit under 26 U.S.C. 501(c)(3);
(4) A business entity (such as corporation,
general partnership, limited liability company,
limited partnership, joint venture, business
trust, public benefit corporation, or nonprofit
entity); or
(5) An institution of higher education.
(B) Student financial assistance, for purposes
of this paragraph (9)(ii), does not include—
(1) Any assistance that is excluded pursuant to
paragraph (b)(9)(i) of this section;
(2) Financial support provided to the student in
the form of a fee for services performed (e.g.,
a work study or teaching fellowship that is not
excluded pursuant to paragraph (b)(9)(i) of this
section); (
3) Gifts, including gifts from family or friends;
or
(4) Any amount of the scholarship or grant
that, either by itself or in combination with
assistance excluded under this paragraph or
paragraph (b)(9)(i), exceeds the actual covered
costs of the student. The actual covered costs
of the student are the actual costs of tuition,
books and supplies (including supplies and
equipment to support students with learning
disabilities or other disabilities), room and
board, or other fees required and charged to a
student by the education institution, and, for a
student who is not the head of household or
spouse, the reasonable and actual costs of
housing while attending the institution of
higher education and not residing in an
assisted unit. This calculation is described
further in paragraph (b)(9)(ii)€ of this section.
(C) Student financial assistance, for purposes
of this paragraph (b)(9)(ii) must be:
(1) Expressly for tuition, books, room and
board, or other fees required and charged to a
student by the education institution;
(2) Expressly to assist a student with the costs
of higher education; or
(3) Expressly to assist a student who is not the
head of household or spouse with the
reasonable and actual costs of housing while
attending the education institution and not
residing in an assisted unit.
(D) Student financial assistance, for purposes
of this paragraph (b)(9)(ii), may be paid
directly to the student or to the educational
institution on the student’s behalf. Student
financial assistance paid to the student must be
verified by the responsible entity as student
financial assistance consistent with this
paragraph (b)(9)(ii).
(E) When the student is also receiving
assistance excluded under paragraph (b)(9)(i)
of this section, the amount of student financial
assistance under this paragraph (b)(9)(ii) is
determined as follows:

Income and Subsidy Determinations Page 6A-68 Redondo Beach Housing Authority June 2026
(1) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is equal to or
exceeds the actual covered costs under
paragraph (b)(9)(ii)(B)(4) of this section, none
of the assistance described in this paragraph
(b)(9)(ii) of this section is considered student
financial assistance excluded from income
under this paragraph (b)(9)(ii)(E).
(2) If the amount of assistance excluded under
paragraph (b)(9)(i) of this section is less than
the actual covered costs under paragraph
(b)(9)(ii)(B)(4) of this section, the amount of
assistance described in paragraph (b)(9)(ii) of
this section that is considered student financial
assistance excluded under this paragraph is the
lower of:
(i) the total amount of student financial
assistance received under this paragraph
(b)(9)(ii) of this section, or
(ii) the amount by which the actual covered
costs under paragraph (b)(9)(ii)(B)(4) of this
section exceeds the assistance excluded under
paragraph (b)(9)(i) of this section.
(10) Income and distributions from any
Coverdell education savings account under
section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under
section 529 of such Code; and income earned
by government contributions to, and
distributions from, “baby bond” accounts
created, authorized, or funded by Federal,
State, or local government.
(11) The special pay to a family member
serving in the Armed Forces who is exposed to
hostile fire.
(12)
(i) Amounts received by a person with a
disability that are disregarded for a limited
time for purposes of Supplemental Security
Income eligibility and benefits because they
are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(ii) Amounts received by a participant in other
publicly assisted programs which are
specifically for or in reimbursement of out-ofpocket expenses incurred (e.g., special equipment, clothing, transportation, childcare,
etc.) and which are made solely to allow
participation in a specific program;
(iii) Amounts received under a resident service
stipend not to exceed $200 per month. A
resident service stipend is a modest amount
received by a resident for performing a service
for the PHA or owner, on a part-time basis,
that enhances the quality of life in the
development.
(iv) Incremental earnings and benefits
resulting to any family member from
participation in training programs funded by
HUD or in qualifying Federal, State, Tribal, or
local employment training programs
(including training programs not affiliated
with a local government) and training of a
family member as resident management staff.

Amounts excluded by this provision must be
received under employment training programs
with clearly defined goals and objectives and
are excluded only for the period during which
the family member participates in the
employment training program unless those
amounts are excluded under paragraph
(b)(9)(i) of this section.
(13) Reparation payments paid by a foreign
government pursuant to claims filed under the
laws of that government by persons who were
persecuted during the Nazi era.
(14) Earned income of dependent fulltime
students in excess of the amount of the
deduction for a dependent in § 5.611.
(15) Adoption assistance payments for a child
in excess of the amount of the deduction for a
dependent in § 5.611.

Income and Subsidy Determinations Page 6A-69 Redondo Beach Housing Authority June 2026
(16) Deferred periodic amounts from
Supplemental Security Income and Social
Security benefits that are received in a lump
sum amount or in prospective monthly
amounts, or any deferred Department of
Veterans Affairs disability benefits that are
received in a lump sum amount or in
prospective monthly amounts.
(17) Payments related to aid and attendance
under 38 U.S.C. 1521 to veterans in need of
regular aid and attendance.
(18) Amounts received by the family in the
form of refunds or rebates under State or local
law for property taxes paid on the dwelling
unit.
(19) Payments made by or authorized by a
State Medicaid agency (including through a
managed care entity) or other State or Federal
agency to a family to enable a family member
who has a disability to reside in the family’s
assisted unit. Authorized payments may
include payments to a member of the assisted
family through the State Medicaid agency
(including through a managed care entity) or
other State or Federal agency for caregiving
services the family member provides to enable
a family member who has a disability to reside
in the family’s assisted unit.
(20) Loan proceeds (the net amount disbursed
by a lender to or on behalf of a borrower,
under the terms of a loan agreement) received
by the family or a third party (e.g., proceeds
received by the family from a private loan to
enable attendance at an educational institution
or to finance the purchase of a car).
(21) Payments received by Tribal members as
a result of claims relating to the
mismanagement of assets held in trust by the
United States, to the extent such payments are
also excluded from gross income under the
Internal Revenue Code or other Federal law.
(22) Amounts that HUD is required by Federal
statute to exclude from consideration as
income for purposes of determining eligibility
or benefits under a category of assistance
programs that includes assistance under any
program to which the exclusions set forth in
paragraph (b) of this section apply. HUD will
publish a notice in the Federal Register to
identify the benefits that qualify for this
exclusion. Updates will be published when
necessary.
(23) Replacement housing “gap” payments
made in accordance with 49 CFR part 24 that
offset increased out of pocket costs of
displaced persons that move from one
federally subsidized housing unit to another
Federally subsidized housing unit. Such
replacement housing “gap” payments are not
excluded from annual income if the increased
cost of rent and utilities is subsequently
reduced or eliminated, and the displaced
person retains or continues to receive the
replacement housing “gap” payments.
(24) Nonrecurring income, which is income
that will not be repeated in the coming year
based on information provided by the family.

Income received as an independent contractor,
day laborer, or seasonal worker is not excluded
from income under this paragraph, even if the
source, date, or amount of the income varies.

Nonrecurring income includes:
(i) Payments from the U.S. Census Bureau for
employment (relating to decennial census or
the American Community Survey) lasting no
longer than 180 days and not culminating in
permanent employment.
(ii) Direct Federal or State payments intended
for economic stimulus or recovery.
(iii) Amounts directly received by the family
as a result of State refundable tax credits or
State tax refunds at the time they are received.

Income and Subsidy Determinations Page 6A-70 Redondo Beach Housing Authority June 2026
(iv) Amounts directly received by the family
as a result of Federal refundable tax credits
and Federal tax refunds at the time they are
received.
(v) Gifts for holidays, birthdays, or other
significant life events or milestones (e.g.,
wedding gifts, baby showers, anniversaries).
(vi) Non-monetary, in-kind donations, such as
food, clothing, or toiletries, received from a
food bank or similar organization.
(vii) Lump-sum additions to net family assets,
including but not limited to lottery or other
contest winnings.
(25) Civil rights settlements or judgments,
including settlements or judgments for back
pay.
(26) Income received from any account under
a retirement plan recognized as such by the
Internal Revenue Service, including individual
retirement arrangements (IRAs), employer
retirement plans, and retirement plans for selfemployed individuals; except that any distribution of periodic payments from such
accounts shall be income at the time they are
received by the family.
(27) Income earned on amounts placed in a
family’s Family Self Sufficiency Account.
(28) Gross income a family member receives
through self-employment or operation of a
business; except that the following shall be
considered income to a family member:
(i) Net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of capital
indebtedness shall not be used as deductions in
determining net income. An allowance for
depreciation of assets used in a business or
profession may be deducted, based on straight
line depreciation, as provided in Internal
Revenue Service regulations; and
(ii) Any withdrawal of cash or assets from the
operation of a business or profession will be
included in income, except to the extent the
withdrawal is reimbursement of cash or assets
invested in the operation by the family.

Income and Subsidy Determinations Page 6A-71 Redondo Beach Housing Authority June 2026
EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS
24 CFR 5.603(b) Net Family Assets
(1) Net cash value 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, shall 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.
(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.

Income and Subsidy Determinations Page 6A-72 Redondo Beach Housing Authority June 2026
EXHIBIT 6-4: THE EFFECT OF WELFARE BENEFIT REDUCTION
24 CFR 5.615
Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income.
(a) Applicability. This section applies to
covered families who reside in public housing
(part 960 of this title) or receive Section 8
tenant-based assistance (part 982 of this title).
(b) Definitions. The following definitions
apply for purposes of this section:

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

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

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

Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the
welfare agency, in whole or in part, for a
family member, as determined by the welfare
agency, because of fraud by a family member
in connection with the welfare program; or
because of welfare agency sanction against a
family member for noncompliance with a
welfare agency requirement to participate in an
economic self-sufficiency program.
(2) "Specified welfare benefit reduction'' does
not include a reduction or termination of
welfare benefits by the welfare agency:
(i) at expiration of a lifetime or other time
limit on the payment of welfare benefits;
(ii) because a family member is not able to
obtain employment, even though the family
member has complied with welfare agency
economic self-sufficiency or work activities
requirements; or
(iii) because a family member has not
complied with other welfare agency
requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the
amount of imputed welfare income (because of
a specified welfare benefits reduction, as
specified in notice to the PHA by the welfare
agency), plus the total amount of other annual
income as determined in accordance with Sec.

5.609.
(2) At the request of the PHA, the welfare
agency will inform the PHA in writing of the
amount and term of any specified welfare
benefit reduction for a family member, and the
reason for such reduction, and will also inform
the PHA of any subsequent changes in the
term or amount of such specified welfare
benefit reduction. The PHA will use this
information to determine the amount of
imputed welfare income for a family.
(3) A family's annual income includes imputed
welfare income in family annual income, as
determined at the PHA's interim or regular
reexamination of family income and
composition, during the term of the welfare
benefits reduction (as specified in information
provided to the PHA by the welfare agency).

Income and Subsidy Determinations Page 6A-73 Redondo Beach Housing Authority June 2026
(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 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.

Income and Subsidy Determinations Page 6B-1 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
Chapter 6.B.

INCOME AND SUBSIDY DETERMINATIONS UNDER HOTMA 102/104
[24 CFR Part 5, Subparts E and F; 24 CFR 982]

INTRODUCTION
This chapter is applicable upon the PHA’s HOTMA 102/104 compliance date. Prior to this date, the PHA will follow policies as outlined in Chapter 6.A. of the model policy.

A family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the PHA’s subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows:

Part I: Annual Income. HUD regulations specify the sources of income which are excluded from the family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I.

Part II: Assets. HUD regulations specify the types of assets which are excluded from a family’s annual income. These requirements and PHA policies for calculating income from assets are found in Part II.

Part III: Adjusted Income. Once annual income has been established, HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to adopt additional permissive deductions.

These requirements and PHA policies for calculating adjusted income are found in Part III.

Part IV: Calculating Family Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment.

Income and Subsidy Determinations Page 6B-2 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
PART I: ANNUAL INCOME
6-I.A. OVERVIEW [24 CFR 5.609]
Annual income includes:
• All amounts, not specifically excluded in 24 CFR 5.609(b); • All amounts received from all sources (other than those specifically excluded in 24 CFR 5.609(b)) by each member of the family who is 18 years of age or older or is the head of household or spouse;
• Unearned income (other than those sources specifically excluded in 24 CFR 5.609(b)) by or on behalf of each dependent who is under 18 years of age; and • Imputed returns of an asset based on the current passbook savings rate, as determined by HUD, when the value of net family assets exceeds the HUD-published threshold amount (adjusted annually and published in HUD’s Inflation-Adjusted Values tables) and the actual returns from a given asset cannot be calculated.

In addition to this general definition, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of all sources of income that are excluded from annual income. Note, unlike in previous versions of the regulations, the current regulations governing annual income do not list sources of income that are to be included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the scope of what is included. To that end, generally, all income is included unless it is specifically excluded by regulation.

Annual income includes “all amounts received,” not the amount that a family may be legally entitled to receive but did not receive. For example, a family’s child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders. However, when a family member’s wages or benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other applicable debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family’s annual income [Notice PIH 2023-27].

Annual income also includes all actual anticipated income from assets (provided the income is not otherwise excluded) even if the asset itself is excluded from net family assets [Notice PIH 2023-27]. 24 CFR 5.603(b)(1) describes HUD regulations for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows:
• Annual Income Full Definition (Exhibit 6-1)
• Treatment of Family Assets (Exhibit 6-2)
• The Effect of Welfare Benefit Reduction (Exhibit 6-3) Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7.

Income and Subsidy Determinations Page 6B-3 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Overview
Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition in accordance with HUD regulations and PHA policies in Chapter 11. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations.

Summary of Income Included and Excluded by Person
Live-in aides Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)].

Foster child or foster adult Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)].

Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included [24 CFR 5.609(a)].

Minors Earned income of children under 18 years of age is excluded [24 CFR 5.609(b)(3)].

All sources of unearned income, except those specifically excluded by the regulations, are included [24 CFR

5.609(a)].

Full-time students 18 years of
age or older (not head, spouse,
or cohead)
Earned income in excess of the dependent deduction is
excluded [24 CFR 5.609(b)(14)].

All sources of unearned income, except those specifically excluded by the regulations, are included.

Income and Subsidy Determinations Page 6B-4 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
Temporarily Absent Family Members
The current regulations governing annual income do not specifically address temporarily absent family members. The regulations also do not define “temporarily” or “permanently” absent or specify a timeframe associated with a temporary versus a permanent absence.

PHA Policy
Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit.

Generally, an individual who is or is expected to be absent from the assisted unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below.

Absent Students
PHA Policy
When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household, or the family declares that the student has established a separate household.

Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care (as confirmed by the state child welfare agency) are considered members of the family [24 CFR 5.403].

PHA Policy
If a child has been placed in foster care, the PHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will continue to be counted as a family member.

Absent Head, Spouse, or Cohead
PHA Policy
An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member.

Income and Subsidy Determinations Page 6B-5 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22].

PHA Policy
The PHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member.

When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities.

Joint Custody of Dependents
PHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time.

When more than one applicant or participant family (regardless of program) are claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, school records, or an IRS return showing which family has claimed the child for income tax purposes, or other credible documentation.

Income and Subsidy Determinations Page 6B-6 Redondo Beach Housing Authority Under HOTMA 102/104 June 2026
Caretakers for a Child
PHA Policy
The approval of a caretaker is at the owner and PHA’s discretion and subject to the owner and PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, the PHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made.
(2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an eligible visitor.
(3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income.

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6-I.C. CALCULATING ANNUAL INCOME
The methodology used for calculating income differs depending on whether income is being calculated at initial occupancy, interim reexamination, or at annual reexamination. However, income from assets is always anticipated regardless of certification type.

Anticipating Annual Income [24 CFR 5.609(c)(1)]
At initial occupancy and for an interim reexamination of family income, the PHA is required to use anticipated income (current income) for the upcoming 12-month period following the new admission or interim reexamination effective date. Policies related to verifying income are found in Chapter 7.

PHA Policy
When EIV is obtained and the family does not dispute the EIV employer data, the PHA will use current tenant-provided documents to project annual income. When the tenant provided documents are pay stubs, the PHA will make every effort to obtain current and consecutive pay stubs dated within the last 60 days.

The PHA will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases:

If EIV or other UIV data is not available,
If the family disputes the accuracy of the EIV employer data, and/or If the PHA determines additional information is needed.

In such cases, the PHA will review and analyze current data to anticipate annual income.

In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income.

When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of temporary, sporadic, or variable employment, seasonal employment, unstable working hours, or suspected fraud), the PHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income.

Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family’s anticipated income.

In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income.

Known Changes in Income
If the PHA verifies an upcoming increase or decrease in income at admission or interim reexamination, annual income will be projected by applying each income amount to the appropriate part of the 12-month period.

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Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the new admission or interim reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks).

The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then, should the change in income require the PHA to conduct an interim reexamination, conduct an interim reexamination in accordance with PHA policy in Chapter 11.

Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2023-27]
At annual reexamination, except where the PHA uses a streamlined income determination, PHAs must first determine the family’s income for the previous 12-month period and use this amount as the family income for annual reexaminations; however, adjustments to reflect current income must be made. Any change of income since the family’s last annual reexamination, including those that did not meet the threshold to process an interim reexamination of family income in accordance with PHA policies in Chapter 11 and HUD regulations, must be considered. If, however, there have been no changes to income, then the amount of income calculated for the previous 12-month period is the amount that will be used to determine the family’s rental assistance. Income from assets is always anticipated, irrespective of the income examination type. Policies related to conducting annual reexaminations are located in Chapter 11.

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6-I.D. EARNED INCOME
Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27] The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)].

Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100].

A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b)]. Income earned as a day laborer is not considered nonrecurring income and is therefore included in annual income unless otherwise excluded by regulation.

A seasonal worker is defined as an individual who is hired into a short-term position ( e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b)]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2023-27]. Income earned as a seasonal worker is not considered nonrecurring income and is therefore included in annual income unless otherwise excluded by regulation.

PHA Policy
The PHA will include in annual income the full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation.

For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or interim reexamination.

If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. The file will be documented appropriately.

Military Pay
All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)].

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Earnings of a Minor [24 CFR 5.609(b)(3)]
A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included.

Earned Income of Full-Time Students [24 CFR 5.609(b)(14)] The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included.

A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)].

To be considered “full-time,” a student must be considered “full-time” by an educational institution with a degree or certificate program [HCV GB, p. 5-29].

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6-I.E. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28); Notice PIH 2023-27]
Annual income includes “net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses.

Expenditures for business expansion or amortization of capital indebtedness may not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.” PHA Policy
To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described herein.