Agenda packet — Santa Ana City Council, July 1, 2025 (part 8 of 12)

RESOLUTION NO. 2025 - XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA

DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND

RENEWING THE SANTA ANA TOURISM MARKETING DISTRICT
(SATMD)
WHEREAS, the City o f Santa Ana (City ) created the SATMD on November 17, 2020 by Resolution No. 2020-091; and
WHEREAS, the SATMD wa s created fo r a five (5) yea r term wh ich end s on December 31, 2025; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the SATMD have petitioned the City Council of the City of Santa Ana (Council) to renew the SATMD; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses, existing and in the future, within the SATMD to pay for Sales and Marketing programs, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesse s with in the SATMD will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on April 15, 2025 at 5:30 PM at the Council Chambers located at 22 Civic Center Plaza, Santa Ana, CA 92701, the Council adopted a Resolution of Intention, Resolution No.2025-011; and
WHEREAS, the public meeting and public hearing to consider the renewal of the SATMD have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on June 3, 2025 at 5:30 PM at the Council Chambers located at 22 Civic Center Plaza, Santa Ana, CA 92701, the Council held a public meeting regarding the renewal of the SATMD, and the Council heard and received objections and protests, if any, to the renewal of the SATMD and the levy of the proposed assessment; and

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WHEREAS, on July 1, 2025 at 5:30 PM at the Council Chambers located at 22 Civic Center Plaza, Santa Ana, CA 92701, the Council held a public hearing regarding the renewal of the SATMD, and the Council heard and received all objections and protests, if any, to the renewal of the SATMD and the levy of the proposed assessment; and
WHEREAS, the Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed SATMD which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The recitals set forth herein are adopted by the Council as findings and they are true and correct.

Section 2. The SATMD is hereby renewed for a ten (10) year term, beginning January 1, 2026, or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

Section 3. The Plan dated May 14, 2025 is hereby adopted and approved.

Section 4. The activities to be provided to benefit businesses in the SATMD will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the SATMD; to provide activities or improvements outside the SATMD; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan.

Notwithstanding the foregoing, improvements and activities that must be provided outside the SATMD boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the SATMD.

Section 5. The Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the SATMD that is not provided to those not paying the assessment.

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b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to th ose not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.

c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.

d) Assessments imposed pursuant to the SATMD are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “SATMD Assessment” or “Tourism Assessment” as specified in the Plan.

Section 6. The assessments levied for the SATMD shall be applied towards Sales and Marketing programs to market Santa Ana lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.

Section 7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provid ed are intended to increase sleeping room rentals, an assessment based on gross short-term sleeping room rental revenue is the best measure of benefit.

Section 8. The annual assessment rate is two percent (2%) of gross short -term sleeping room rental rev enue. Every two (2) years during the operation of the SATMD, the assessment rate may be increased by the Travel Santa Ana (TSA) Board to a maximum rate of four percent (4%) of gross short -term sleeping room rental revenue. If the assessment rate is increas ed, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%).

Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the assessment herein provided; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any federal or state officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a transient who is employed by the United States government or the state or their respective instrumentalities from payment of the assessment when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities.

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Section 9. The assessments for the entire SATMD will total approximately $1,600,000 in year one (1).

Section 10. Bonds shall not be issued to fund the SATMD. TSA shall not issue debt of any kind; and shall only fund expenses with recurring assessment revenue collected or the reserve balance.

Section 11. The SATMD shall include certain lodging businesses located within the City. A boundary map is attached hereto and incorporated herein by reference.

Section 12. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent year s in which the SATMD assessment is levied as long as they are used consistent with the requirements set forth herein.

Section 13 . The assessments to fund the activities and improvements for the SATMD will be collected by the the City on a monthly basis, and in accordance with Streets and Highways Code §36631.

Section 14. The Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SATMD as defined in Streets and Highways Code §36612. The Council has determined that TSA shall be the SATMD Owners’ Association.

Section 15. TSA, pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the SATMD.

Section 16. The SATMD renewed pursuant to this Resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

Section 17. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the renewal of the SATMD and to levy the assessments.

Section 18. This Resolution shall take effect immediately upon its adoption by the Council.

ADOPTED this ______ day of ______________, 2025.

_______________________
Valerie Amezcua
Mayor

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APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By:________________________
Andrea Garcia-Miller
Assistant City Attorney

AYES: Councilmembers _______________________________________

NOES: Councilmembers _______________________________________

ABSTAIN: Councilmembers _______________________________________

NOT PRESENT: Councilmembers _______________________________________

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, JENNIFER HALL, City Clerk, do hereby attest to and certify the attached Resolution No. 2025-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on _______________.

Date: ________________ ____________________________________ City Clerk
City of Santa Ana

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Boundary Map

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SATMD Management District Plan 1
May 14, 2025

2026-2035

SANTA ANA TOURISM MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN

Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

May 14, 2025

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SATMD Management District Plan 2
May 14, 2025

CONTENTS
I. OVERVIEW ...................................................................................................................... 3 II. BACKGROUND ................................................................................................................ 5 III. ACCOMPLISHMENTS ................................................................................................ 6 IV. BOUNDARY ................................................................................................................. 7 V. ASSESSMENT BUDGET AND SERVICES ................................................................... 8 A. ANNUAL SERVICE PLAN ...................................................................................................................... 8 B. ANNUAL BUDGET ............................................................................................................................... 10 C. CALIFORNIA CONSTITUTIONAL COMPLIANCE ............................................................................... 10 D. ASSESSMENT ........................................................................................................................................ 12 E. INTEREST AND OVERDUE CHARGES ............................................................................................... 13 F. TIME AND MANNER FOR COLLECTING ASSESSMENTS ................................................................. 14 VI. GOVERNANCE .......................................................................................................... 15 A. OWNERS’ ASSOCIATION .................................................................................................................... 15 B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE ....................................... 15 C. ANNUAL REPORT ................................................................................................................................ 15 APPENDIX 1 – LAW .............................................................................................................. 16 APPENDIX 2 – ASSESSED BUSINESSES ........................................................................... 28

Prepared by
Civitas

(800)999-7781
www.civitasadvisors.com

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SATMD Management District Plan 3
May 14, 2025
I. OVERVIEW

Developed by Santa Ana lodging businesses and Travel Santa Ana (TSA), the Santa Ana Tourism Marketing District (SATMD) is a n assessment district proposed to continue to provide specific benefits to payors by funding Sales and Marketing promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The SATMD was initially created in 2021 for a five (5) year term. TSA and Santa Ana lodging businesses now wish to renew the SATMD for an additional ten (10) year term.

Location: The renewed SATMD includes all lodging businesses with seventy (70) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Santa Ana (City), as shown on the map in Section IV.

Services: The SATMD is designed to provide specific benefits directly to payors by increasing awareness and deman d for room night sales. Sales and Marketing promotions programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total SATMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $1,600,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to this Management District Plan (Plan).

Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Every two (2) years d uring the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short-term sleeping room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%).

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business

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located in the boundaries of the SATMD. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.

Duration: The renewed SATMD will have a ten (10) year life, beginning January 1, 2026, or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the SATMD may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if assessed business owners support continuing the SATMD programs.

Management: TSA shall continue to serve as the SATMD’s Owners’ Association . The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

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II. BACKGROUND

TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $300 million annually for
local destination marketing . With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that Santa
Ana lodging businesses continue
to invest in stable, commerce-
specific marketing programs.

TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism dist ricts. TMDs allow
tourism business owners to
organize their efforts to increase
commerce. lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase commerce.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

0 20
40 60
80 100
120
Number of Districts Operating in
California

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III. ACCOMPLISHMENTS

During its initial five (5) year term, the SATMD has achieved remarkable success in visitor engagement and economic impact through a comprehensive Sales and Marketing program. Accomplishments for the initial SATMD term include:
• Staff of three including President & CEO, Director of Sales and Content & Community Engagement Manager.
• Developed a brand for the destination, including mission and vision. • Worked with five local artists to create Santa Ana signatures in replace ment of a traditional logo.
• Developed three-year strategic plans for 2022-2024 and 2025-2027 to market Santa Ana as a visitor destination, increase visitor revenue and build community support and participation in the SATMD.
• Launched official website, www.travelsantaana.com.
• Published the 2023, 2024, and 2025 Visitors Guides.
• Established a Marketing Advisory Group with the objective of creating synergy among Santa Ana marketers.
• Curated a Public Art Guide featuring more than 200 murals throughout Santa Ana. • Created the Santa Ana Enthusiast Ambassador Program.
• Developed strategic sales efforts identifying key domestic and international market segments. • Developed a digital marketing strategy.
• Launched official social media channels.
• Produced a destination video.
• Partnered with Orange County Restaurant Association to leverage exposure for Santa Ana restaurants during OC Restaurant Week.
• Highlighted local business owners and residents in the “Proud Santanero” campaign series. • Conducted the first-ever tourism economic impact study. • Promoted Santa Ana in print publications for leisure, and meeting trade. • Hosted a dozen media and influencers.
• Developed a cannabis tourism program.
• Developed a Culinary Passport to highlight the destination’s diverse dining. • Developed a Michelada Guide to showcase the popular Mexico beverage. • Developed an international marketing plan to promote Santa Ana to attract visitors from Mexico and Canada.
• Conducted the DNext and Futures Study, an important assessment of how Santa Ana scores as a tourist destination.
• Worked with Peter Greenberg on a production of “Hidden Gems” featuring several locations within Santa Ana to air on PBS and AppleTV.
• Initiated quarterly meetings between City Councilmembers, Santa Ana Police Department, City Manager, economic development, and hoteliers to provide the opportunity for the hoteliers to address issues, concerns and develop relationships with City officials.

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IV. BOUNDARY

The SATMD will continue to include all lodging businesses with seventy (70) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Santa Ana, as shown in the map below.

Lodging business means: Any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.

A complete listing of assessed lodging businesses within the renewed SATMD can be found in Appendix 2.

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SATMD Management District Plan 8
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V. ASSESSMENT BUDGET AND SERVICES

A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SATMD funds are Sales and Marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the TSA Board.

The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $1,600,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the TSA Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. For example, the City and the TSA Board may fluctuate the SATMD’s budget allocation for the Sales and Marketing category from its current seventy percent (70%) to a maximum budget allocation of eighty-five percent (85%) or down to a minimum budget allocation of fifty -five percent (55%). A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SATMD, any and all assessment funds may be used for the costs of defending the SATMD.

Each budget category includes all costs related to providing that service. For example, the Sales and Marketing budget includes the cost of staff time dedicated to overseeing and implementing the Sales and Marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to Sales and Marketing,
$1,120,000.00 , 70%Administration,
$320,000.00 , 20%
Contingency /
Reserve,
$128,000.00 , 8%
City Administration
Fee, $32,000.00 ,
2%
Initial Annual Assessment Budget -
$1,600,000

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multiple budget categories. The staffing levels necessary to provide the services below will be determined by TSA on an as- needed basis.

Sales and Marketing
A Sales and Marketing program will promote assessed businesses and Santa Ana as tourist, meeting, and event destinations. The Sales and Marketing program will have a central theme of promoting Santa Ana as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers , television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote overnight visitation to assessed businesses; • Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses as well as all events, attractions, and reasons to visit (Stay, Shop, Dine, Play);
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
• Development and maintenance of a website designed to promote overnight visitation to the city and promote Santa Ana as a tourism destination highlighting the assessed businesses, as well as all events, attractions, and reasons to visit (Stay, Shop, Dine, Play) to increase overnight visitation at assessed lodging businesses.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and othe r general administrative costs such as insurance, legal, and accounting fees.

City Administration Fee
The City of Santa Ana shall be paid a fee equal to two percent (2%) of the amount of assessment collected, to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the TSA Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the TSA Board. Contingency/reserve funds may be spent on SATMD programs or administrative and renewal costs in such proportions as determined by the TSA Board. The reserve fund may be used for the costs of renewing the SATMD.

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B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $1,600,000 annually, or $24,000,000 through the ten (10) year term of the SATMD if the maximum assessment rate increases are adopted. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to this Plan.

Every two (2) years during the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short-term sleeping room rental revenue.

If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short -term sleeping room rental revenue . The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%).

The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Plan.

Estimated Annual Budget if Maximum Assessment Rates Are Adopted

Year Assessment Rate Budget
2026 2.00% $1,600,000
2027 2.00% $1,600,000
2028 2.50% $2,000,000
2029 2.50% $2,000,000
2030 3.00% $2,400,000
2031 3.00% $2,400,000
2032 3.50% $2,800,000
2033 3.50% $2,800,000
2034 4.00% $3,200,000
2035 4.00% $3,200,000
Total $24,000,000

C. California Constitutional Compliance
The SATMD assessment is not a property -based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SATMD assessment is a business -based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SATMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1 Jarvis v. the City of San Diego 72 Cal App. 4th 230

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1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public , businesses in general, or parcels of land, but rather to serve the specific businesses within the SATMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the SATMD, and are narrowly tailored. SATMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales d irectly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in SATMD programs, or to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non -assessed lodging businesses for the provision of services to those businesses.

The assessment imposed by this SATMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with Sales and Marketing programs promoting lodging businesses paying the SATMD assessment. The Sales and Marketing programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the Sales and Marketing programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the SATMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product .”4 The legislature has recognized that marketing and promotions services like those to be provided by the SATMD are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

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3. Reasonable Cost
SATMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the TSA, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from SATMD- funded activities, be featured in advertising campaigns, and benefit from other SATMD-funded services. The assessed lodging business list was compiled from records provided by the jurisdiction and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the City Council’s determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed lodging businesses will not receive these, nor any other, SATMD-funded services and benefits.

D. Assessment
The annual assessment rate is two percent (2%) of gross short term room rental revenue. Every two (2) years during the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short -term sleeping room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short -term sleeping room rental revenue . The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%).

Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the assessment herein provided; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any federal or state officer or employee while on official business only and when payment for such o ccupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a transient who is employed by the United States government or the state or their respective instrumentalities from payment of the assessment when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the businesses within the SATMD, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the SATMD, are specifically targeted to increase room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to asses sed businesses with higher priced room nights.

The term “gross short-term sleeping room rental revenue” as used herein means: the total consideration charged to transients as shown on the guest receipt for the occupancy of space in a hotel, including charges for equipment (such as rollaway beds, cribs and television set, etc.), and in - room services (such as movies and other services not subject to state taxes), valued in money . The costs of additional goods and services, which are not "rent," but which may be sold as a package with the room (such as meals, excursions, and recreational services), must be accounted for in accordance with the rules and regulations promulgated by the City.

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Gross short-term sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state or local taxes collected, including but not limited to transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SATMD assessment is identified separately it shall be disclosed as the “SATMD Assessment.” As an alternative, the disclosure may include the amount of the SATMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes. The California Department of Tax and Fee Administration (CDTFA) issued a written opinion that state sales tax appli es to the revenue generated from Tourism Business Improvement District (TBID) assessments on items where state sales tax is levied. In light of CDTFA’s opinion, businesses that pay both state sales tax and TBID assessments on sales are advised to collect sales tax on the assessment revenue.

Bonds shall not be issued. TSA shall not issue debt of any kind; and shall only fund expenses with recurring assessment revenue collected or the reserve balance.

E. Interest and Overdue Charges
The SATMD shall reimburse the City for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SATMD assessment are sought to be recovered in the same collection action by the City, the SATMD shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency Overdue Charge: Any lodging business which fails to remit any assessment within the time required shall pay a n overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency Compounding Overdue Charge: Any lodging business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay an additional delinquency overdue charge of ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge first imposed. Any lodging business which fails to remit any delinquent remittance on or before a period of sixty (60) days following the date on which the remittance first became delinquent shall pay an additional d elinquency overdue charge of ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge first imposed together with the additional ten percent (10%) overdue charge imposed.

3. Audit Deficiency Compounding Overdue Charge: If, upon audit by the City, a lodging business is found to be deficient in either its return or its remittance or both, the City shall immediately assess the lodging business the amount of the net deficiency plus an audit deficiency overdue charge of ten percent (10%) of the amount of the net deficiency. If said lodging business’s remittance was deficient for a period of greater than thirty (30) days following the date on which remittance was first delinquent, said lodging business shall pay an additional audit

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deficiency overdue charge of ten percent (10%) of the net deficiency and the ten percent (10%) overdue charge first imposed. If said lodging business’s remittance was deficient for a period of greater than sixty (60) days following the date on which the remittance first became delinquent, said lodging business shall pay an additional audit deficiency overdue charge of ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge first imposed together with the additional ten percent (10%) overdue charge imposed

4. Fraud: If the City determines that the nonpayment of any remittance due under this Plan is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections (1) and (2) of this section.

5. Interest: In addition to the overdue charges imposed, any lodging business who fails to remit any assessment imposed by this Plan shall pay interest at the rate of one and one-half percent (1.50%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.

6. Overdue Charges Merged with Assessment: Every overdue charge imposed and such interest as accrues under the provisions of this section shall become a part of the assessment herein required to be paid.

F. Time and Manner for Collecting Assessments
The SATMD assessment will be implemented beginning January 1, 2026 or as soon as possible thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest and overdue charges) from each assessed lodging business. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. The City shall forward the assessments collected to the Owners’ Association.

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VI. GOVERNANCE

A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SATMD as defined in Streets and Highways Code §36612. The City Council has determined that TSA will continue to serve as the Owners’ Association for the SATMD.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the TSA Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act.

Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
TSA shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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APPENDIX 1 – LAW

CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those

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special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

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36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.

36614. “Property”

“Property” means real property situated within a district.

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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities

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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property- based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be

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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the

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SATMD Management District Plan 23
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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

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SATMD Management District Plan 24
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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]

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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of

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assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

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(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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SATMD Management District Plan 28
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APPENDIX 2 – ASSESSED BUSINESSES

Business Name Business Address
Best Western OC Airport North 2700 S Hotel Terrace Dr Santa Ana, CA 92705 Comfort Inn & Suites OC John Wayne
Airport
2620 S Hotel Terrace Dr Santa Ana, CA 92705
Courtyard By Marriott 311J9 3002 S Harbor Blvd Santa Ana, CA 92704 Courtyard By Marriott Santa Ana 8 E Macarthur Pl Santa Ana, CA 92707 Lakeside Orange County Airport Hotel 7 Hutton Centre Dr Santa Ana, CA 92707 Hotel Zessa, Doubletree by Hilton 201 E Macarthur Blvd Santa Ana, CA 92707 Embassy Suites 1325 E Dyer Rd Santa Ana, CA 92705
Hampton Inn & Suites 2720 S Hotel Terrace Dr Santa Ana, CA 92705 Holiday Inn 2726 S Grand Ave Santa Ana, CA 92705
Holiday Inn Express & Suites Santa Ana 1600 E 1St St Santa Ana, CA 92701 La Quinta Inn & Suites 2721 S Hotel Terrace Dr Santa Ana, CA 92705 Mainstay Suites by Choice Hotels 2701 S Hotel Terrace Dr Santa Ana, CA 92705 Motel 6 Santa Ana 1623 E 1St St Santa Ana, CA 92701
Motel 6 Santa Ana Irvine Orange County
Airport
1717 E Dyer Rd Santa Ana, CA 92705
Red Roof Inns 2600 N Main St Santa Ana, CA 92705
Santa Ana California Lodge 2909 S Bristol St Santa Ana, CA 92704 Sonesta Simply Suites Orange County Airport 2600 S Red Hill Ave Santa Ana, CA 92705

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EXHIBIT 3

City Council Request for Information Summary
Travel Santa Ana – TMD Renewal & Term Extension Request Overview
Travel Santa Ana, the City’s designated destination marketing organization (DMO), is seeking City Council support to renew the Santa Ana Tourism Marketing District (TMD) and extend its term from five years to ten. Having completed its initial five-year term, the district is now in a strong position to build on its progress and expand Santa Ana’s presence in the tourism and hospitality market.

What’s Been Accomplished So Far
Over the past five years, Travel Santa Ana has:
• Helped boost hotel occupancy and brought more visibility to Santa Ana as a destination.
• Operated strategically despite having the smallest budget among the nine Orange County DMOs—roughly $500,000 less than Travel Costa Mesa. • Built strong relationships with local hotel partners, and with hotel operators making up the majority of the Travel Santa Ana Board.
• Established a Marketing Advisory Group with the objective of creating synergy among Santa Ana marketers, including The Frida Cinema, Bowers Museum, Santa Ana Zoo, John Wayne Airport, Discovery Cube, MainPlace Mall, and Mater Dei High School.
• Supported Santa Ana restaurants by partnering with the Orange County Restaurant Association to allow complimentary participation in the annual OC Restaurant Week.
• Developed marketing campaigns to promote Santa Ana’s arts and culture, public art, small businesses, and events.

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2 Why Extend to 10 Years?

1. More Time to Execute Long-Term Plans
The 1994 Law only allows for TMDs initially to be formed for a maximum of five years, and upon renewal they can have up to a ten-year term.

A 10-year term gives Travel Santa Ana the runway to plan and execute marketing campaigns and improvements that require time to produce measurable results.

2. Confidence from a Solid Track Record
With five successful years under its belt, Travel Santa Ana has earned the trust of its hotel partners and is ready for the next phase of growth.

3. Less Time Spent on Renewals
Going to Council or gathering petitions every few years takes time and resources. A 10- year term keeps things efficient and focused on results.

The TMD hoteliers are in support of a 10-year term which would allow Travel Santa Ana to focus on sales and marketing efforts and revenue to be directed towards those efforts.

4. We’re in Good Company
About 90% of all TMD renewals in California opt for a 10-year term. In Southern California alone, 21 cities—including Los Angeles, Torrance, Ontario, Pasadena, Huntington Beach, Lancaster, Murrieta, Burbank, and Santa Barbara—have a 10-year term.

Assessment Rate and Oversight
• Current rate: 2%
• Every 2 years, the TSA Board may increase the rate by 0.5% up to a maximum of 4%.
• If increased, the rate may later be decreased, but not below 2%. • The maximum increase or decrease allowed in any 2-year period is 0.5%.

A proposed increase would be used to address a specific issue, such as recovering from a downturn in tourism, or expanding marketing efforts into new or underserved markets and adapting strategies to enhance destination competitiveness.

The ability to potentially increase the assessment would allow the Santa Ana hoteliers flexibility with the funding source to further boost tourism and the local economy.

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3 The five Santa Ana hoteliers who serve on the Travel Santa Ana Board of Directors would make a recommendation to increase the assessment based on variables like the impact to occupancy, and the potential overall economic impact.

Travel Santa Ana also reports to TMD hoteliers monthly, keeping lines of communication open and ensuring performance is transparent.

The TMD hoteliers are in support of the increase ladder.

Approximately 43% of California Tourism Marketing Districts have an increase ladder.

Other TMDs with Built-In Rate Flexibility
City/County Initial Rate Max Rate
Burbank 1% 3%
Los Angeles 2% 3%
Santa Barbara South Coast 2% 3%
West Hollywood 3% 4%
Pasadena 3.89% 4.89%
Lancaster 3% 5%
Rancho Cordova 4.5% 12%
These examples show that flexible rate structures are common, allowing districts to adapt over time.

Travel Santa Ana is not just renewing a program—it’s positioning Santa Ana for sustained growth in the tourism economy. The proposed 10-year term reflects what’s working in other cities and gives the organization the tools and time it needs to drive results for local hotels, small businesses, and the broader economy.

The renewal of the Santa Ana Tourism Marketing District — including the proposed 10- year term and the assessment increase ladder — is supported by the 17 hoteliers who fund the district.

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This space for filing stamp only
OR#:

O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841

PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of Orange ) ss
Notice Type:

Ad Description:

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

Executed on: 10/10/2004
At Los Angeles, California
I certify (or declare) under penalty of perjury that the foregoing is true and correct.

Signature

O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701
(714) 543-2027 (714) 542-6841
OR 3918585

ABIGAIL ALCALA

CITY OF SANTA ANA/CITY CLERK
20 CIVIC CENTER PLAZA M-30
SANTA ANA, CA - 92701

ORD - ORDINANCE PUBLICATION
PH Notice - SATMD
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the city of SANTA ANA, county of ORANGE, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of ORANGE, State of California, under date 06/20/1922, Case No. 13421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
05/16/2025
05/16/2025
ORANGE
!A000007103825!
Email

NOTICE OF PUBLIC MEETING AND

PUBLIC HEARING CONCERNING THE
renewal OF THE Santa Ana TOURISM
Marketing DISTRICT (SATMD) AND
Levy of AN ASSESSMENT ON
CERTAIN lodging BUSINESSES

WITHIN THE SATMD
The City of Santa Ana encourages the
public to participate in the decision-
making process. The following notice
is being provided so that you can ask
questions, make comments, and stay
informed about projects that might be
important to you. We encourage you to
contact us prior to the Public Hearing if
you have any questions.

NOTICE IS HEREBY GIVEN that on April
15, 2025, the City Council (Council) of the
City of Santa Ana (City) adopted a
Resolution of Intention to renew the
SATMD and to levy an assessment on
certain lodging businesses within the
SATMD as set forth in the Resolution of
Intention.

NOTICE IS HEREBY FURTHER GIVEN
that at 5:30 P.M. on Tuesday, June 3,
2025, at the City Council Chamber, 22
Civic Center Plaza, Santa Ana, CA 92701,
a public meeting shall be held pursuant to
Government Code section 54954.6 to
allow public testimony regarding the
renewal of the SATMD and the levy of
assessments therein as set forth in the
Resolution of Intention and pursuant to
Government Code section 54954.6.

NOTICE IS HEREBY FURTHER GIVEN
that 5:00 P.M ., or as soon thereafter as
the matter may be heard, on Tuesday,
July 1, 2025 , at the City Council
Chamber, 22 Civic Center Plaza, Santa
Ana, CA 92701, has been set as the time
and place for a public hearing at which
time the Council proposes to renew the
SATMD and to levy the proposed
assessment as set forth in the Resolution
of Intention.

Location: The renewed SATMD includes
all lodging businesses with seventy (70)
rooms or more, existing and in the future,
available for public occupancy located
within the boundaries of the City.

Services: The SATMD is designed to
provide specific benefits directly to payors
by increasing awareness and demand for
room night sales. Sales and Marketing
promotions programs will increase
demand for overnight tourism and market
payors as tourist, meeting, and event
destinations, thereby increasing demand
for room night sales.

Budget: The total SATMD annual
assessment budget for the initial year of
its ten (10) year operation is anticipated to
be approximately $1,600,000. A similar
assessment budget is expected to apply
to subsequent years, but this assessment
budget is expected to fluctuate as room
sales do, as businesses open and close,
and if the assessment rate is increased or
decreased pursuant to the Management
District Plan.

Cost: The annual assessment rate is two
percent (2%) of gross short-term sleeping
room rental revenue. Every two (2) years
during the operation of the SATMD, the
assessment rate may be increased by the
Travel Santa Ana (TSA) Board to a
maximum rate of four percent (4%) of
gross short-term sleeping room rental
revenue. If the assessment rate is
increased, it may subsequently be
decreased but shall not be decreased
below a minimum of two percent (2%) of
gross short -term sleeping room rental
revenue. The maximum increase or
decrease in any two-year period shall be
one-half of one percent (0.5%).

Based on the benefit received,
assessments will not be collected on:
stays of more than thirty (30) consecutive
days; stays by any person as to whom, or
any occupancy as to which, it is beyond
the power of the City to impose the
assessment herein provided; stays by any
officer or employee of a foreign
government who is exempt by reason of
express provision of federal law or
international treaty; and stays by any
federal or state officer or employee while
on official business only and when
payment for such occupancy is made
directly to the operator by duly authorized
voucher payment from a governmental
accounting office. This exemption does
not exempt a transient who is employed
by the United States government or the
state or their respective instrumentalities
from payment of the assessment when
the payment is later to be reimbursed by
the United States government or the state
or their respective instrumentalities.

Collection: The City will be responsible
for collecting the assessment on a
monthly basis (including any
delinquencies, interest, and overdue
charges) from each assessed lodging
business located in the boundaries of the
SATMD. The City shall take all
reasonable efforts to collect the
assessments from each assessed lodging
business.

Duration: The renewed SATMD will have
a ten (10) year life, beginning January 1,
2026, or as soon as possible thereafter,
and ending ten (10) years from its start
date. After ten (10) years, the SATMD
may be renewed pursuant to the Property
and Business Improvement District Law of
1994, Streets and Highways Code section
36600 et seq. if assessed business
owners support continuing the SATMD
programs.

Management: TSA shall continue to
serve as the SATMD's Owners'
Association. The Owners' Association is
charged with managing funds and
implementing programs in accordance
with the Management District Plan, and
must provide annual reports to the City
Council.

Protest: Any owner of a lodging business
within the renewed SATMD that will be
subject to the assessment may protest the
renewal of the SATMD. If written protests
are received from the owners of lodging
businesses in the renewed SATMD who
represent fifty percent (50%) or more of
the estimated annual assessments to be
levied, the SATMD shall not be renewed
and the assessment shall not be imposed.

You may mail a written protest to:

Office of the City Clerk
City of Santa Ana
20 Civic Center Plaza, M-30
Santa Ana, CA 92701
You may also appear at the public
meeting or hearing and submit a written
protest at that time.

Information: Should you desire additional
information about this proposed SATMD
or assessment contact:

Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434
Meeting Details:

Members of the public
may attend this meeting in -person or
EXHIBIT 4

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44 7/1/2025

join via Zoom. For the most up to date
information on how to participate virtually
in this meeting, please visit
https://www.santa-ana.org/agendas-and-
minutes/.

Written Comments:

If you are unable to
participate in the meeting, you may send
written comments by e-mail to
[email protected] (reference the
Agenda Item # in the subject line) or mail
to Jennifer L. Hall, City Clerk, City of
Santa Ana, 20 Civic Center Plaza – M30,
Santa Ana, CA 92701. Deadline to submit
written comments is two hours prior to
the start of the meeting. Comments
received after the deadline may not be
distributed to the City Council but will be
made part of the record.

Where To Get More Information
: All
staff reports regarding any item on this
agenda are available for public inspection
in the City Clerk's Office during regular
business hours and posted on the City's
website the Tuesday before a Council
meeting at: https://www.santa-
ana.org/agendas-and-minutes/.

Who To Contact For Questions:

Should
you have any questions, please contact
Marc Morley at (714) 647-5477 or
[email protected].

Note: If you challenge the decision on the
above matter in court, you may be limited
to raising only those issues you or
someone else raised at the public hearing
described in this notice, or in written
correspondence delivered to the City
Council of the City of Santa Ana at, or
prior to, the public hearing.

Si tiene preguntas en español, favor de
llamar a Julie Castro at (714) 647-5477;
N u cn liên lc bng ting Vit, xin
in thoi cho Kristie Ha (714) 565-
2627.

Jennifer L. Hall, CMC
City Clerk
Published: Orange County Reporter -
Legals Section
Date: May 16, 2025
5/16/25
OR-3918585#
EXHIBIT 4

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CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Councilmember-Requested Item Report
DATE
July 1,
2025
TOPIC
Support for Assembly Bill 1303 (Valencia) – Lifeline Program: Customer Data Privacy

COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and consider directing the City Manager to direct city staff to bring back a Resolution for Council consideration that would SUPPORT Assembly Bill 1303
(Valencia), which strengthens privacy protections for applicants and subscribers of the California Lifeline Telephone Service Program. This bill aims to ensure that sensitive personal information is safeguarded from inappropriate disclosure to government agencies, including immigration authorities, and removes unnecessary documentation barriers that deter program participation, particularly among vulnerable, immigrant, and under served communities.

DISCUSSION
The California Lifeline Program provides essential, affordable communication services to low-income residents, many of whom rely on these services to maintain contact with employers, schools, doctors, family, and emergency services. In cities like Santa Ana, where a significant portion of the population includes immigrants and working-class families, access to affordable and secure phone service is not a luxury, it is a lifeline.

Despite the program’s intent to increase connectivity for those in need, concerns about data sharing and immigration enforcement have created fear and distrust among potential applicants, especially those from mixed-status households. The current lack of clear privacy protections can result in eligible residents choosing not to enroll, leaving them digitally disconnected and at increased risk during emergencies.

AB 1303, authored by Assemblymember Avelino Valencia, addresses these concerns by reinforcing California’s commitment to data privacy and access to public benefits without fear. The bill prohibits the California Public Utilities Commission (CPUC), the Lifeline program’s third-party administrator, and service providers from sharing, disclosing, or otherwise making accessible any information submitted by applicants or
subscribers with federal government agencies, including immigration authorities, unless there is a court-ordered subpoena or judicial warrant issued by a California judge.

Importantly, the bill also clarifies that while Social Security numbers (SSNs) may be requested for administrative purposes, they cannot be required as a condition of

City Council
31 –
1 7/1/2025

CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org application or continued participation in the program. This provision is critical in ensuring that undocumented residents are not excluded from accessing basic and essential phone services simply due to their immigration status.

These changes reflect an equity-based approach to telecommunications access, ensuring that California’s most vulnerable communities can remain connected without facing unnecessary fear or barriers. AB 1303 is aligned with Santa Ana’s values of inclusion, accessibility, and community safety.

This measure is supported by advocacy organizations such as The Utility Reform Network (TURN), which has consistently advocated for utility affordability and privacy protections. TURN notes that no resident should be forced to choose between staying connected and staying safe.

Supporting this bill would send a strong message that the City of Santa Ana stands with working families, seniors, immigrants, and all residents in ensuring that access to critical communication services is not compromised by privacy violations or overreach by external authorities.

SUBMITTED BY
Councilmember Peñaloza

EXHIBIT(S)
None

City Council
31 –
2 7/1/2025

CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall

20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org

Councilmember-Requested Item Report

DATE
July 1, 2025

TOPIC
Law Enforcement Masks

COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and Consider Directing the City Manager, City Clerk, and City Attorney to Direct Staff to Prepare an Ordinance Requiring all Law Enforcement Officers Operating in Santa Ana to Wear Clearly Visible Identification (Name or Badge Number) and Prohibit Face Coverings that Obscure Identity During Public Interactions and Resolutions Supporting SB 627 and SB 805.

DISCUSSION
Recent protests and immigration enforcement actions involving masked and unidentified officers have heightened public concern over police transparency and accountability.

The presence of unidentified “law enforcement” erodes public trust and can lead to confusion, fear, and impersonation. These incidents raise concerns not only about accountability but also about the chilling effect on civic participation, particularly during peaceful protests or immigration-related enforcement.

Relevant State Legislation
• SB 627 (Wiener & Arreguín): As proposed, this bill prohibits law enforcement officers from covering their faces (with exceptions for health/safety) and requires identifiable uniforms. The bill was inspired by reports of federal ICE agents in California conducting operations while masked and refusing to identify themselves.

• SB 805 (Pérez): As proposed, this bill requires officers in California to display a name or badge number and prohibits impersonation, targeting incidents involving people impersonating immigration officers or law enforcement.

Federal Context
The National Defense Authorization Act (2021) mandates that federal law enforcement officers responding to civil disturbances display name or ID and agency affiliation. This provision followed public outcry over masked federal agents operating without identification in Washington D.C. and Portland.

City Council
32 –
1 7/1/2025

CITY ATTORNEY
Sonia R. Carvalho

CITY MANAGER
Alvaro Nuñez

CITY CLERK
Jennifer L. Hall

20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org

Local Precedents
• Seattle (2020): Passed an ordinance requiring name tags and prohibiting covering badge numbers. Officers must also verbally identify themselves upon request.

• New York City (2020): Officers must wear badge numbers and rank at all times.

A private right of action exists for willful concealment.

• D.C. (2023): Mandated high-visibility identification for all law enforcement at First Amendment assemblies and clear agency markings on uniforms.

These efforts underscore a growing demand for visible, identifiable, and accountable policing in public spaces.

Legal Considerations
Under California Constitution Art. XI, Sec. 7, local governments, such as the City of Santa Ana, may legislate on matters of public safety, health, and welfare within its jurisdiction. While local ordinances cannot obstruct federal officers from performing lawful duties, they can regulate City-employed and contracted officers, set transparency expectations, and condition inter-agency cooperation on compliance with local standards.

Courts generally uphold visibility and identification requirements for law enforcement as reasonable and related to compelling government interests, such as protecting civil liberties and promoting accountability.

Recommendation
Adopt an ordinance requiring the following:
• All law enforcement officers in Santa Ana to wear clearly visible identification (name or badge number) on their outermost garment while on duty o This includes while responding to peaceful protests by residents exercising their First Amendment rights.

• Face coverings are prohibited unless required for:
o Medical necessity (e.g., N95 masks, pandemic precautions) o Wildfire-related air quality emergencies
o Active tactical operations where physical harm protection is necessary (e.g., SWAT responses)

• Uniforms must clearly display the name of the officer's law enforcement agency.

This ordinance should apply to all law enforcement officers and agents (including local, state, and federal) while operating in public within Santa Ana city limits, including those working through mutual aid agreements or federal task forces. The ordinance would also serve to affirm the Santa Ana City Council’s commitment to upholding the rule of law, as well as to protecting all of our residents, regardless of their immigration status.

SUBMITTED BY
Councilmember Jessie Lopez

City Council
32 –
2 7/1/2025

HOUSING AUTHORITY 1 March 18, 2025

DRAFT Minutes of the Special Meeting
of the Housing Authority
Santa Ana, California

March 18, 2025

CALL TO ORDER

MINUTES: Chair Amezcua called the Special Housing Authority Meeting to order at 11:11 P.M.

ATTENDANCE Authority Members Phil Bacerra
Johnathan Ryan Hernandez
Jessie Lopez
David Penaloza
Thai Viet Phan
Vice Chair Benjamin Vazquez
Chair Valerie Amezcua

City Manager Alvaro Nuñez
City Attorney Sonia R. Carvalho
Recording Secretary Jennifer L. Hall

ROLL CALL

MINUTES: Secretary Jennifer L. Hall conducted Roll Call.

Chair Amezcua , Vice Chair Vazquez, and Authority Members Bacerra, Hernande z, Lopez, and Phan were present. Authority Member Penaloza was absent.

ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA

MINUTES: None.

City Council
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1 7/1/2025

HOUSING AUTHORITY 2 March 18, 2025

PUBLIC COMMENTS – Members of the public may address Housing Authority on items on the Housing Authority agenda.

MINUTES: None.

RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 through 2.

MINUTES: At 11:12 P.M., the Consent Calendar was considered.

MOTION: Authority Member Hernandez moved to approve staff recommendations on the following Consent Calendar Items: 1 through 2, seconded by Chair Amezcua.

The motion carried, 5-0-2, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

AUTHORITY MEMBER B ACERRA, AUTHORITY MEMBER

HERNANDEZ, AUTHORITY MEMBER PHAN, VICE CHAIR

VAZQUEZ, CHAIR AMEZCUA
NONE
NONE

AUTHORITY MEMBER LOPEZ, AUTHORITY MEMBER

PENALOZA
Status: 5 – 0 – 2 - Pass

1. Excused Absences

Department(s): City Clerk’s Office

Recommended Action: Excuse the absent members.

2. Minutes from the Special Meeting of December 17, 2024

Department(s): City Clerk’s Office

Recommended Action: Approve minutes.

**END OF CONSENT CALENDAR**

CONSENT CALENDAR

City Council
2 –
2 7/1/2025

HOUSING AUTHORITY 3 March 18, 2025

PUBLIC HEARING

3. Public Hearing – Approve the Housing Authority Fiscal Years 2025-2030 5-Year Plan and Fiscal Year 2025-2026 Annual Plan

Published in the Orange County Register, La Opinion, and Nguoi Viet on January 31, 2025.

Department(s): Community Development Agency

Recommended Action:

1. Conduct a public hearing in consideration of the approval and submission of the Housing Authority 5 -Year Plan and Annual Plan to the U.S. Department of Housing and Urban Development.

2. Adopt a resolution approving the Housing Authority 5-Year Plan and Annual Plan and authorize the Executive Director of the Housing Authority t o submit the 5 - Year Plan and Annual Plan to the U.S. Department of Housing and Urban Development.

RESOLUTION NO. 2025 -001 entitled A RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ANA APPROVING THE SUBMISSSION OF THE FIVE YEAR PLAN FOR FISCAL YE ARS 2025 -2030 AND
SUBMISSION OF THE ANNUAL PLAN FOR FISCAL YEAR 2025-2026

MINUTES: Chair Amezcua opened the public hearing at 11:13 P.M. and, there being no public comments, closed the public hearing at 11:13 P.M.

MOTION: Authority Member Hernandez moved to approve the recommended actions for Public Hearing Item No. 3, seconded by Chair Amezcua.

The motion carried, 6-0-1, by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

AUTHORITY MEMBER B ACERRA, AUTHORITY MEMBER

HERNANDEZ, AUTHORITY MEMBER, LOPEZ, AUTHORITY

MEMBER PHAN, VICE CHAIR VAZQUEZ, CHAIR AMEZCUA
NONE
NONE

AUTHORITY MEMBER PENALOZA
Status: 6 – 0 – 1 - Pass

HOUSING AUTHORITY MEMBER COMMENTS

MINUTES: None.

City Council
2 –
3 7/1/2025

HOUSING AUTHORITY 4 March 18, 2025

ADJOURNMENT – Adjourn the Housing Authority meeting.

MINUTES: Chair Amezcua adjourned the Housing Authority Meeting at 11:14 P.M.

Respectfully submitted:

__________________________
Jennifer L. Hall, CMC
Secretary

City Council
2 –
4 7/1/2025

Community Development Agency
www.santa-ana.org/cd
Item # 3
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 1, 2025
TOPIC: Update to the Housing Choice Voucher Administrative Plan

AGENDA TITLE
Approve an Update to the Housing Choice Voucher Administrative Plan to Comply with the Housing Opportunity Through Modernization Act

RECOMMENDED ACTION
Approve an update to the Housing Choice Voucher Administrative Plan to comply with the Housing Opportunity Through Modernization Act.

GOVERNMENT CODE §84308 APPLIES: No

DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) requires public housing authorities (PHAs) administering a Housing Choice Voucher (HCV) program to have an HCV Administrative Plan that establishes policies for implementing the program consistent with both HUD requirements and the goals and objectives contained in the Santa Ana Housing Authority’s (SAHA’s) 5-Year and Annual Plans. In addition to the HCV Administrative Plan, SAHA’s HCV program is governed by federal regulations, HUD handbooks and guidebooks, notices, and other applicable law.

In 2016, HUD adopted the Housing Opportunity Through Modernization Act (HOTMA) that made changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937, and improved the efficiency and effectiveness of HUD programs. This comprehensive HCV Administrative Plan update (the “Plan” attached hereto as Exhibit 1) is necessary to maintain compliance with HUD and HOTMA regulations, ensure program integrity, and preserve funding. SAHA prepared this update using a model administrative plan provided by Nan McKay & Associates (Nan McKay) that is used by many PHAs throughout the country and updates all of the Plan’s policies and language in compliance with the latest guidance and regulations from HUD. Nan McKay updates their model administrative plan every year, and the last time SAHA’s Plan was comprehensively updated using a template was on March 15, 2016.

City Council
3 –
1 7/1/2025

Update to the Housing Choice Voucher Administrative Plan July 1, 2025

Page 2 ends

5 1
5 8
Summary of Updates
The Plan incorporates regulatory changes required under HOTMA Sections 102, 104, 105, 106, and 112 for determining income, calculating deductions, and assessing eligibility. For example, the Plan introduces new requirements for calculating annual income and adjusted income, including expanded definitions of assets, new treatment of student financial assistance, and updated policies for business income and periodic payments. SAHA updated deduction amounts, such as the increased elderly/disabled family deduction, and added hardship exemptions and permissive deductions per HUD's implementation guidance.

In addition to updates for HOTMA-specific provisions, the Plan aligns SAHA policies with the most current HUD regulations, notices, and model administrative plan guidance. Entirely new sections were introduced, such as Chapter 6.B, which outlines Income and Subsidy Determinations, and Chapter 7.A, which updates verification hierarchy and methods. The Plan incorporates updated guidance from HUD’s PIH Notices 2023-27, 2024-34, and 2024-38, amongst others, including verification procedures using Form HUD-9886-A, refined rules for self-certification, and expanded use of enterprise income verification tools. Other changes ensure consistency with HUD’s new NSPIRE inspection standards, student eligibility, and the use of digital tools in briefings and application processes.

The Plan integrates new subsections, adds clarifying definitions, and improves organization for clarity and accessibility that provide greater transparency for families and landlords, ensures fair and uniform application of HUD policies, and maintains SAHA’s eligibility for federal funding.

Adopting this Plan allows SAHA to comply with federal law, implement modernized administrative practices, and better serve program participants, applicants, landlords, and the broader Santa Ana community. Failure to adopt these updates may place SAHA at risk of noncompliance, potentially impacting program funding and the City’s ability to continue administering the HCV program in accordance with federal law.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Update to HCV Administrative Plan
Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager

City Council
3 –
2 7/1/2025

ADMINISTRATIVE
PLAN

FOR THE

HOUSING AUTHORITY OF THE

CITY OF SANTA ANA
Michael L. Garcia
Executive Director
Judson Brown, AICP
Housing Manager
Approved by the Housing Authority of the City of Santa Ana: July 1, 2025 DRAFT
EXHIBIT 1

City Council
3 –
3 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-1
Introduction

HOTMA CHANGES IN THE ADMINSTRATIVE PLAN
HOTMA 102/104 ............................................................................................... Intro-i HOTMA Voucher Final Rule ........................................................................... Intro-ii

ABOUT THE ADMINISTRATIVE PLAN
References Cited in the Administrative Plan ................................................... Intro-iii HUD ................................................................................................................. Intro-iii NSPIRE and HQS in the Administrative Plan ................................................. Intro-iv HOTMA Sections 102 And 104 Changes in the Model Policy ....................... Intro-iv HOTMA Voucher Final Rule Changes in the Model Policy ............................ Intro-v 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) ................................................... 1-13 Mandatory vs. Discretionary Policy ............................................... 1-15 1-III.C. Organization of the Plan ....................................................................... 1-15 1-III.D. Updating and Revising the Plan ........................................................... 1-15 EXHIBIT 1

City Council
3 –
4 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-2
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 Complaints under the Equal Access Final Rule
[Notice PIH 2014-20] ....................................................................... 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: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) ....................................................................... 2-15 2-III.A. Overview ............................................................................................... 2-15 2-III.B. Oral Interpretation ................................................................................ 2-16 2-III.C. Written Translation ............................................................................... 2-16 2-III.D. Implementation Plan ............................................................................. 2-17 Exhibit 2-1: Definition of a Person with a Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.201] ............................... 2-19 EXHIBIT 1

City Council
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5 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-3
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; FR Notice 02/03/12; Notice PIH 2014-20; FR Notice 2/14/23] ............................................... 3-3 Family ............................................................................................... 3-3 Household ......................................................................................... 3-3 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] .......... 3-10 Absent Head, Spouse, or Cohead ................................................... 3-10 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 EXHIBIT 1

City Council
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6 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-4
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)] ........................ 3-16 Timeframe for Determination of Citizenship Status
[24 CFR 5.508(g)] .......................................................................... 3-17 3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218, Notice PIH 2018-24] ............................................................................. 3-17 3-II.D. Family Consent to Release of Information [24 CFR 5.230, 24 CFR 5.232, and HCV GB, p. 5-13] ................................................. 3-17 3-II.E. Students Enrolled In Institutions of Higher Education [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16]...................... 3-18 Definitions ...................................................................................... 3-18 Determining Student Eligibility ...................................................... 3-28 3-II.F. EIV System Searches [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2023-27] ...................................................................... 3-23 Existing Tenant Search ................................................................... 3-23 Debts Owed to PHAs and Terminations ......................................... 3-24 EIV Income Report ......................................................................... 3-24 EXHIBIT 1

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SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-5
PART III: DENIAL OF ASSISTANCE ................................................................................ 3-25 3-III.A. Overview ............................................................................................... 3-25 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] ........ 3-26 Prohibited Reasons for Denial of Program Assistance
[24 CFR 982.202(b), 24 CFR 5.2005(b)] ....................................... 3-26 3-III.B. Mandatory Denial of Assistance [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)] .................................................................. 3-27 3-III.C. Restriction on Assistance Based on Assets [24 CFR 5.618] ................ 3-28 3-III.D. Other Permitted Reasons for Denial of Assistance ................................. 3-30 Criminal Activity [24 CFR 982.553] .............................................. 3-30 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] ....... 3-31 3-III.E. Screening .............................................................................................. 3-33 Screening for Eligibility ................................................................. 3-33 Screening for Suitability as a Tenant [24 CFR 982.307] ................ 3-34 3-III.F. Criteria for Deciding to Deny Assistance ............................................. 3-35 Evidence [24 CFR 982.553(c)] ....................................................... 3-35 Consideration of Circumstances [24 CFR 982.552(c)(2)] .............. 3-35 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 EXHIBIT 1

City Council
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8 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-6
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 Limited English Proficiency ............................................................. 4-4 4-I.D. Placement on the Waiting List ................................................................ 4-5 Ineligible for Placement on the Waiting List .................................... 4-5 Eligible for Placement on the Waiting List ...................................... 4-5 PART II: MANAGING THE WAITING LIST...................................................................... 4-7 4-II.A. Overview ................................................................................................. 4-7 4-II.B. Organization of the Waiting List [24 CFR 982.204 and 205] ................ 4-7 4-II.C. Opening and Closing the Waiting List [24 CFR 982.206] ..................... 4-8 Closing the Waiting List ................................................................... 4-8 Reopening the Waiting List .............................................................. 4-8 4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4] ........................................... 4-9 4-II.E. Reporting Changes in Family Circumstances ....................................... 4-10 4-II.F. Updating the Waiting List [24 CFR 982.204] ...................................... 4-10 Purging the Waiting List ................................................................. 4-10 Removal from the Waiting List ...................................................... 4-11 PART III: SELECTION FOR HCV ASSISTANCE ............................................................. 4-13 4-III.A. Overview ............................................................................................... 4-13 4-III.B. Selection and HCV Funding Sources ................................................... 4-13 Special Admissions [24 CFR 982.203] .......................................... 4-13 Targeted Funding [24 CFR 982.204(e)] ......................................... 4-13 Regular HCV Funding .................................................................... 4-13 4-III.C. Selection Method .................................................................................. 4-14 Local Preferences [24 CFR 982.207; HCV p. 4-16] ...................... 4-14 Income Targeting Requirement [24 CFR 982.201(b)(2)] ............... 4-15 Order of Selection ........................................................................... 4-15 4-III.D. Notification of Selection ....................................................................... 4-16 4-III.E. The Application Interview .................................................................... 4-16 4-III.F. Completing the Application Process .................................................... 4-18 EXHIBIT 1

City Council
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9 7/1/2025

SAHA Administrative Plan -Table of Contents
Administrative Plan 7/1/2025 TOC-7
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 and LEP Individuals ...................................................... 5-3 Conducting Remote Briefings .......................................................... 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 EXHIBIT 1

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Chapter 6.A.

INCOME AND SUBSIDY DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 982]
PART I: ANNUAL INCOME ............................................................................................... 6-2 6-I.A. Overview ................................................................................................. 6-2 6-I.B. Household Composition and Income ...................................................... 6-3 Summary of Income Included and Excluded by Person ................... 6-3 Temporarily Absent Family Members .............................................. 6-4 Family Members Permanently Confined for Medical Reasons ........ 6-5 Joint Custody of Dependents ............................................................ 6-5 Caretakers for a Child ....................................................................... 6-6 6-I.C. Anticipating Annual Income .................................................................. 6-7 Basis of Annual Income Projection .................................................. 6-7 Projecting Income ............................................................................. 6-8 6-I.D. Earned Income ........................................................................................ 6-9 Types of Earned Income Included in Annual Income ...................... 6-9 Types of Earned Income Not Counted in Annual Income ............... 6-9 6-I.E. Earned Income Disallowance for Persons with Disabilities [24 CFR 5.617; Streamlining Final Rule (SFR)
Federal Register 3/8/16; Notice PIH 2023 27] ..................................... 6-13 Calculation of the Disallowance ..................................................... 6-13 Calculation Method ........................................................................ 6-13 6-I.F. Business Income [24 CFR 5.609(b)(2)] ................................................ 6-14 Business Expenses .......................................................................... 6-14 Business Expansion ........................................................................ 6-14 Capital Indebtedness ....................................................................... 6-14 Negative Business Income .............................................................. 6-15 Withdrawal of Cash or Assets from a Business .............................. 6-15 Co-owned Businesses ..................................................................... 6-15 6-I.G. Assets [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] ................................... 6-16 Overview ......................................................................................... 6-16 General Policies .............................................................................. 6-16 Types of Assets ............................................................................... 6-20 6-I.H. Periodic Payments ................................................................................ 6-24 Periodic Payments Included in Annual Income .............................. 6-24 Lump-Sum Payments for the Delayed Start of a
Periodic Payment ............................................................................ 6-24 Treatment of Overpayment Deductions from
Social Security Benefits .................................................................. 6-24 Periodic Payments Excluded from Annual Income ........................ 6-25 6-I.I. Payments In Lieu of Earnings............................................................... 6-26 EXHIBIT 1

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6-I.J. Welfare Assistance ............................................................................... 6-27 Overview ......................................................................................... 6-27 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] ............................................................................... 6-27 6-I.K. Periodic and Determinable Allowances [24 CFR 5.609(b)(7)] ............ 6-28 Alimony and Child Support ............................................................ 6-28 Regular Contributions or Gifts ....................................................... 6-28 6-I.L. Student Financial Assistance [24 CFR 5.609(b)(9); Notice PIH 2015-21] ............................................................................. 6-29 Student Financial Assistance Included in Annual Income
[24 CFR 5.609(b)(9) ); FR 4/10/06; Notice PIH 2015-21] ............. 6-29 Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)] ...................................................................... 6-30 6-I.M. Additional Exclusions From Annual Income ....................................... 6-31 PART II: ADJUSTED INCOME.......................................................................................... 6-35 6-II.A. Introduction ........................................................................................... 6-35 Overview ......................................................................................... 6-35 Anticipating Expenses .................................................................... 6-35 6-II.B. Dependent Deduction ........................................................................... 6-36 6-II.C. Elderly or Disabled Family Deduction ................................................. 6-36 6-II.D. Medical Expenses Deduction [24 CFR 5.611(a)(3)(i)] ........................ 6-37 Definition of Medical Expenses...................................................... 6-37 Summary of Allowable Medical Expenses from IRS
Publication 502 ............................................................................... 6-37 Families That Qualify for Both Medical and Disability
Assistance Expenses ....................................................................... 6-38 6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ........................................................................ 6-39 Earned Income Limit on the Disability Assistance
Expense Deduction ......................................................................... 6-39 Eligible Disability Expenses ........................................................... 6-40 Necessary and Reasonable Expenses .............................................. 6-41 Families That Qualify for Both Medical and Disability
Assistance Expenses ....................................................................... 6-41 6-II.F. Childcare Expense Deduction ............................................................... 6-42 Clarifying the Meaning of Child for This Deduction ..................... 6-42 Qualifying for the Deduction .......................................................... 6-42 Earned Income Limit on Childcare Expense Deduction ................ 6-43 Eligible Childcare Expenses ........................................................... 6-44 EXHIBIT 1

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PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................... 6-45 6-III.A. Overview of Rent and Subsidy Calculations ........................................ 6-45 TTP Formula [24 CFR 5.628] ........................................................ 6-45 Family Share [24 CFR 982.305(a)(5)] ............................................ 6-45 PHA Subsidy [24 CFR 982.505(b)]................................................ 6-46 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ............. 6-50 6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-47 Overview ......................................................................................... 6-47 HUD-Defined Financial Hardship .................................................. 6-47 Implementation of Hardship Exemption ........................................ 6-48 6-III.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2024-34] ............................................................................. 6-50 Overview ......................................................................................... 6-50 Changes in Payment Standards ....................................................... 6-50 Reasonable Accommodation [24 CFR 982.503(d)(5)] ................... 6-52 6-III.D. Applying Utility Allowances [24 CFR 982.517] .................................. 6-53 Overview ......................................................................................... 6-53 Flat Fees [24 CFR 982.517(b)(2)(iii)] ............................................ 6-53 PBV Developments [24 CFR 982.517(b)(2)(iv)] ........................... 6-53 Reasonable Accommodation and Individual Relief ....................... 6-53 Utility Allowance Revisions ........................................................... 6-54 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] ..................... 6-55 Exhibit 6-1: Annual Income Inclusions .................................................................................... 6-57 HHS Definition of "Assistance" ........................................................................... 6-58 Exhibit 6-2: Annual Income Exclusions ................................................................................... 6-60 Exhibit 6-3: Treatment of Family Assets .................................................................................. 6-62 Exhibit 6-5: The Effect of Welfare Benefit Reduction ............................................................. 6-63 EXHIBIT 1

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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 ............................................................................................... 6-2 6-I.A. Overview [24 CFR 5.609] ...................................................................... 6-2 6-I.B. Household Composition and Income ...................................................... 6-3 Overview ........................................................................................... 6-3 Summary of Income Included and Excluded by Person ................... 6-3 Temporarily Absent Family Members .............................................. 6-4 Family Members Permanently Confined for Medical Reasons ........ 6-5 Joint Custody of Dependents ............................................................ 6-5 Caretakers for a Child ....................................................................... 6-6 6-I.C. Calculating Annual Income ................................................................... 6-7 Anticipating Annual Income [24 CFR 5.609(c)(1)] ......................... 6-7 Calculating Annual Income at Annual Reexamination
[24 CFR.609(c)(2); Notice PIH 2023-27] ........................................ 6-8 6-I.D. Earned Income ........................................................................................ 6-9 6-I.E. Earned Income Disallowance for Persons with Disabilities [24 CFR 5.617; Streamlining Final Rule (SFR)
Federal Register 3/8/16; Notice PIH 2023-27] ..................................... 6-11 Calculation of the Disallowance ..................................................... 6-11 Calculation Method ........................................................................ 6-11 6-I.F. Business and Self-Employment Income [24 CFR 5.609(b)(28); Notice PIH 2023-27] ............................................................................. 6-12 Independent Contractors ................................................................. 6-12 Business Expansion ........................................................................ 6-12 Capital Indebtedness ....................................................................... 6-13 Negative Business Income .............................................................. 6-13 Withdrawal of Cash or Assets from a Business .............................. 6-13 Co-owned Businesses ..................................................................... 6-13 Assets Owned by a Business Entity................................................ 6-13 6-I.G. Student Financial Assistance [FR Notice 2/14/23
and Notice PIH 2023-27] ...................................................................... 6-14 Introduction ..................................................................................... 6-14 Pre-HOTMA Section 8 Student Financial Assistance
Limitation [FR 4/10/06; Notice PIH 2015-21] ............................... 6-14 HOTMA Student Financial Assistance Requirements
[24 CFR 5.609(b)(9)] ...................................................................... 6-14 Calculating Income from Student Financial Assistance
[HOTMA Student Financial Assistance Resource Sheet;
Notice PIH 2023-27 ........................................................................ 6-16 EXHIBIT 1

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6-I.H. Periodic Payments ................................................................................ 6-20 Lump-Sum Payments for the Delayed Start of a
Periodic Payment [24 CFR 5.609(b)(16)] ...................................... 6-20 Retirement Accounts [24 CFR 5.609(b)(26);
Notice PIH 2023-27] ....................................................................... 6-21 Social Security Benefits [Notice PIH 2023-27].............................. 6-21 Alimony and Child Support ............................................................ 6-22 6-I.I. Nonrecurring Income [24 CFR 5.609(b)(24) and
Notice PIH 2023-27] ............................................................................. 6-23 6-I.J. Welfare Assistance ............................................................................... 6-24 Overview ......................................................................................... 6-24 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] ............................................................................... 6-24 6-I.K. State Payments to Allow Individuals with Disabilities to Live at Home [24 CFR 5.609(b)(19)] ................................................. 6-25 6-I.L. Civil Rights Settlements [24 CFR 5.609(b)(25);
FR Notice 2/14/23] ............................................................................... 6-25 6-I.M. Additional Exclusions From Annual Income
[24 CFR 5.609(b); FR Notice 1/31/2024] ............................................. 6-26 PART II: ASSETS ................................................................................................................ 6-33 6-II.A. Overview ............................................................................................... 6-33 6-II.B. Assets Disposed of for Less Than Fair Market Value [24 CFR 5.603(b)(2)] ............................................................................ 6-34 6-II.C. Asset Inclusions and Exclusions ........................................................... 6-35 6-II.D. Determining Income from Assets ......................................................... 6-43 PART III: ADJUSTED INCOME.......................................................................................... 6-45 6-III.A. Introduction ........................................................................................... 6-45 Overview ......................................................................................... 6-45 Anticipating Expenses .................................................................... 6-46 6-III.B. Dependent Deduction ........................................................................... 6-46 6-III.C. Elderly or Disabled Family Deduction ................................................. 6-46 6-III.D. Health and Medical Care Expenses Deduction
[24 CFR 5.611(a)(3)(i) and 5.603(b)] ................................................... 6-47 Definition of Medical Expenses...................................................... 6-47 Families That Qualify for Both and Medical and
Disability Assistance Expenses ...................................................... 6-48 6-III.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] ........................................................................ 6-49 Earned Income Limit on the Disability Assistance
Expense Deduction ......................................................................... 6-49 Necessary and Reasonable Expenses .............................................. 6-49 Families That Qualify for Both Health and Medical and
Disability Assistance Expenses ...................................................... 6-50 EXHIBIT 1

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6-III.F. Childcare Expense Deduction ............................................................... 6-51 Clarifying the Meaning of Child for This Deduction ..................... 6-51 Qualifying for the Deduction .......................................................... 6-51 Earned Income Limit on Childcare Expense Deduction ................ 6-52 Eligible Childcare Expenses ........................................................... 6-53 6-III.G. Hardship Exemptions [24 CFR 5.611(c), (d), and (e)] ......................... 6-54 Health and Medical Care and Disability Assistance
Expenses [24 CFR 5.611(c); Notice PIH 2023-27] ........................ 6-54 Phased-In Relief .............................................................................. 6-54 General Relief` ................................................................................ 6-55 Childcare Expense Hardship Exemption [24 CFR 5.611(d)
and Notice PIH 2023-27] ................................................................ 6-57 6-III.H. Permissive Deductions [24 CFR 5.611(b)(1)(ii)] ................................. 6-60 PART IV: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................... 6-61 6-IV.A. Overview of Rent and Subsidy Calculations ........................................ 6-61 TTP Formula [24 CFR 5.628] ........................................................ 6-61 Family Share [24 CFR 982.305(a)(5)] ............................................ 6-61 PHA Subsidy [24 CFR 982.505(b)]................................................ 6-62 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ............. 6-62 6-IV.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-63 Overview ......................................................................................... 6-63 HUD-Defined Financial Hardship .................................................. 6-61 Implementation of Hardship Exemption ........................................ 6-64 6-IV.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2024 34] ............................................................................. 6-66 Overview ......................................................................................... 6-66 Changes in Payment Standards ....................................................... 6-66 Reasonable Accommodation [24 CFR 982.503(d)(5)] ................... 6-68 6-IV.D. Applying Utility Allowances [24 CFR 982.517] .................................. 6-69 Overview ......................................................................................... 6-69 Flat Fees [24 CFR 982.517(b)(2)(iii)] ............................................ 6-69 PBV Developments [24 CFR 982.517(b)(2)(iv)] ........................... 6-69 Reasonable Accommodation and Individual Relief ....................... 6-69 Utility Allowance Revisions ........................................................... 6-70 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] ..................... 6-71 Exhibit 6-1: Annual Income Full Definition ............................................................................. 6-73 Exhibit 6-2: Treatment of Family Assets .................................................................................. 6-78 Exhibit 6-3: The Effect of Welfare Benefit Reduction ............................................................. 6-79 EXHIBIT 1

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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 ................................................. 7-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516 and 982.551, 24 CFR 5.230] ................................................................... 7-1 Consent Forms .................................................................................. 7-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4),
and (c)(5); and Notice PIH 2023-27] ................................................ 7-2 Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-2 7-I.B. Overview of Verification Requirements ................................................. 7-3 Use of Other Programs’ Income Determinations
[24 CFR 5.609(c)(3) and Notice PIH 2023 27] ................................ 7-3 HUD’s Verification Hierarchy [Notice PIH 2018-18] ..................... 7-6 Requirements for Acceptable Documents ........................................ 7-6 File Documentation .......................................................................... 7-7 7-I.C. Up-Front Income Verification (UIV) ..................................................... 7-7 Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) ........................................... 7-8 Upfront Income Verification Using Non-HUD
Systems (Optional) ........................................................................... 7-9 7-I.D. Third-Party Written and Oral Verification ........................................... 7-10 Written Third-Party Verification [Notice PIH 2018-18] ................ 7-10 Written Third-Party Verification Form .......................................... 7-11 Oral Third-Party Verification [Notice PIH 2018-18] ..................... 7-11 When Third-Party Verification is Not Required
[Notice PIH 2018-18] ..................................................................... 7-12 7-I.E. Self-Certification .................................................................................. 7-13 PART II: VERIFYING FAMILY INFORMATION ............................................................ 7-15 7-II.A. Verification of Legal Identity ............................................................... 7-15 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2018-24] .......... 7-16 7-II.C. Documentation of Age .......................................................................... 7-18 7-II.D. Family Relationships ............................................................................ 7-18 Marriage .......................................................................................... 7-19 Separation or Divorce ..................................................................... 7-19 Absence of Adult Member.............................................................. 7-19 Foster Children and Foster Adults .................................................. 7-19 7-II.E. Verification of Student Status ............................................................... 7-20 General Requirements .................................................................... 7-20 Restrictions on Assistance to Students Enrolled in
Institutions of Higher Education ..................................................... 7-20 7-II.F. Documentation of Disability ................................................................. 7-21 Family Members Receiving SSA Disability Benefits .................... 7-22 Family Members Not Receiving SSA Disability Benefits ............. 7-22 EXHIBIT 1

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7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-23 Overview ......................................................................................... 7-23 U.S. Citizens and Nationals ............................................................ 7-23 Eligible Immigrants ........................................................................ 7-24 7-II.H. Verification of Preference Status .......................................................... 7-24 PART III: VERIFYING INCOME AND ASSETS ............................................................... 7-25 7-III.A. Earned Income ...................................................................................... 7-25 Tips ................................................................................................. 7-25 7-III.B. Business and Self Employment Income ............................................... 7-25 7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-26 Social Security/SSI Benefits ........................................................... 7-26 7-III.D. Alimony or Child Support .................................................................... 7-27 7-III.E. Assets and Income From Assets ........................................................... 7-28 Assets Disposed of for Less than Fair Market Value ..................... 7-28 7-III.F. Net Income From Rental Property ........................................................ 7-28 7-III.G. Retirement Accounts ............................................................................ 7-29 7-III.H. Income From Excluded Sources ........................................................... 7-30 7-III.I. Zero Income Families [Notice PIH 2023-27] ....................................... 7-31 7-III.J. Student Financial Assistance [Notice PIH 2015-21] ............................ 7-32 7-III.K. Parental Income of Students Subject to Eligibility Restrictions ........... 7-33 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-35 7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-35 Dependent Deduction ..................................................................... 7-35 Elderly/Disabled Family Deduction ............................................... 7-35 7-IV.B. Medical Expense Deduction ................................................................. 7-36 Amount of Expense ........................................................................ 7-36 Eligible Household ......................................................................... 7-37 Qualified Expenses ......................................................................... 7-37 Unreimbursed Expenses ................................................................. 7-37 Expenses Incurred in Past Years ..................................................... 7-37 7-IV.C. Disability Assistance Expenses ............................................................ 7-38 Amount of Expense ........................................................................ 7-38 Family Member is a Person with Disabilities ................................. 7-39 Family Member(s) Permitted to Work ........................................... 7-39 Unreimbursed Expenses ................................................................. 7-39 7-IV.D. Childcare Expenses ............................................................................... 7-40 Eligible Child .................................................................................. 7-40 Unreimbursed Expense ................................................................... 7-40 Pursuing an Eligible Activity ......................................................... 7-41 Allowable Type of Childcare .......................................................... 7-42 Reasonableness of Expenses ........................................................... 7-42 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10] ................................................................................ 7-43 EXHIBIT 1

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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 ................................................. 7-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; and Notice PIH 2023-27] .................. 7-1 Consent Forms .................................................................................. 7-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4),
and (c)(5); and Notice PIH 2023-27] ................................................ 7-2 Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-3 7-I.B. Use of Other Programs’ Income Determinations
[24 CFR 5.609(c)(3) and Notice PIH 2023-27] ...................................... 7-4 7-I.C. Streamlined Income Determinations [24 CFR 960.257(c); Notice PIH 2023-27] ............................................................................... 7-8 7-I.D. Verification Hierarchy [Notice PIH 2023-27] ...................................... 7-10 File Documentation ........................................................................ 7-10 7-I.E. Level 5 and 6 Verifications: Up-Front Income Verification (UIV) ..... 7-11 HUD’s Enterprise Income Verification (EIV) System
(Mandatory) .................................................................................... 7-11 Upfront Income Verification Using Non-HUD Systems ................ 7-14 7-I.F. Level 4 Verification [Notice PIH 2023-27] .......................................... 7-15 EIV + Self-Certification ................................................................. 7-15 Written Third-Party Verification from the Source ......................... 7-15 7-I.G. Level 3 Verification: Written, Third-Party Form
[Notice PIH 2023 27] ........................................................................... 7-17

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

Self-Certification [Notice PIH 2023-27] .............................................. 7-19 PART II: VERIFYING FAMILY INFORMATION ............................................................ 7-21 7-II.A. Verification of Legal Identity ............................................................... 7-21 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2023-27] .......... 7-22 7-II.C. Documentation of Age .......................................................................... 7-24 7-II.D. Family Relationships ............................................................................ 7-25 Marriage .......................................................................................... 7-25 Separation or Divorce ..................................................................... 7-25 Absence of Adult Member.............................................................. 7-25 Foster Children and Foster Adults .................................................. 7-25 7-II.E. Verification of Student Status ............................................................... 7-26 General Requirements .................................................................... 7-26 Restrictions on Assistance to Students Enrolled in
Institutions of Higher Education ..................................................... 7-26 EXHIBIT 1

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7-II.F. Documentation of Disability ................................................................. 7-27 Family Members Receiving SSA Disability Benefits .................... 7-28 Family Members Not Receiving SSA Disability Benefits ............. 7-28 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-29 Overview ......................................................................................... 7-29 U.S. Citizens and Nationals ............................................................ 7-29 Eligible Immigrants ........................................................................ 7-30 7-II.H. Verification of Preference Status .......................................................... 7-30 PART III: VERIFYING INCOME AND ASSETS ............................................................... 7-31 7-III.A. Earned Income ...................................................................................... 7-31 Tips ................................................................................................. 7-31 Wages ............................................................................................. 7-31 7-III.B. Business and Self Employment Income ............................................... 7-32 7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-32 Social Security/SSI Benefits [Notice PIH 2023-27] ....................... 7-32 7-III.D. Alimony or Child Support [Notice PIH 2023-27] ................................ 7-34 7-III.E. Nonrecurring Income [Notice PIH 2023-27] ........................................ 7-34 7-III.F. Assets and Income From Assets ........................................................... 7-35 Net Family Assets [24 CFR 5.603]................................................. 7-35 Self-Certification of Real Property Ownership
[24 CFR 5.618(b)(2); Notice PIH 2023-27] ................................... 7-36 7-III.G. Net Income From Rental Property ........................................................ 7-37 7-III.H. Federal Tax Refunds or Refundable Tax Credits
[Notice PIH 2023-27] ........................................................................... 7-37 7-III.I. Retirement Accounts ............................................................................ 7-37 7-III.J. Income From Excluded Sources [Notice PIH 2023-27] ....................... 7-38 7-III.K. Zero Income Families [Notice PIH 2023-27] ....................................... 7-39 7-III.L. Student Financial Assistance [24 CFR 5.609(b)(9)] ............................. 7-40 7-III.M. Parental Income of Students Subject to Eligibility Restrictions ........... 7-41 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-43 7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-43 Dependent Deduction ..................................................................... 7-43 Elderly/Disabled Family Deduction ............................................... 7-43 7-IV.B. Health and Medical Care Expense Deduction ...................................... 7-44 Amount of Expense ........................................................................ 7-44 Eligible Household ......................................................................... 7-45 Qualified Expenses ......................................................................... 7-45 Unreimbursed Expenses ................................................................. 7-45 Expenses Incurred in Past Years ..................................................... 7-45 7-IV.C. Disability Assistance Expenses ............................................................ 7-46 Amount of Expense ........................................................................ 7-46 Family Member is a Person with Disabilities ................................. 7-48 Family Member(s) Permitted to Work ........................................... 7-48 Unreimbursed Expenses ................................................................. 7-48 EXHIBIT 1

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7-IV.D. Childcare Expenses ............................................................................... 7-49 Eligible Child .................................................................................. 7-49 Unreimbursed Expense ................................................................... 7-49 Pursuing an Eligible Activity ......................................................... 7-50 Allowable Type of Childcare .......................................................... 7-51 Reasonableness of Expenses ........................................................... 7-51 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10] ................................................................................ 7-52 EXHIBIT 1

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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 ..................................................................................................................... 8-1 PART I: PHYSICAL STANDARDS .................................................................................... 8-2 8-I.A. General HUD Requirements ................................................................... 8-2 HUD Performance and Acceptability Standards .............................. 8-2 NSPIRE Standards Applicable to HQS [HUD Letter 6/14/24] ........ 8-3 Tenant Preference Items ................................................................... 8-3 Modifications to Provide Accessibility ............................................ 8-3 8-I.B. Additional Local Requirements .............................................................. 8-4 Thermal Environment [HCV GB p.10-7] ......................................... 8-4 Clarifications of HUD Requirements ............................................... 8-4 8-I.C. Life-Threatening Conditions [24 CFR 982.404(a);
FR Notice 1/18/17] ................................................................................. 8-6 8-I.D. Owner and Family Responsibilities [24 CFR 982.404] .......................... 8-9 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ................................................. 8-9 Family Responsibilities .................................................................... 8-9 Owner Responsibilities ..................................................................... 8-9 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later: ..................................................... 8-9 Owner Obligation ............................................................................. 8-9 Family Responsibilities .................................................................. 8-10 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] ............................................................................. 8-11 8-I-F. Violation of HQS Space Standards
[24 CFR 982.401, 24 CFR 982.403]..................................................... 8-12 PART II: THE INSPECTION PROCESS ............................................................................ 8-13 8-II.A. Overview [24 CFR 982.405] ................................................................ 8-13 Types of Inspections ....................................................................... 8-13 Inspection of PHA-Owned Units [24 CFR 982.352(b)] ................. 8-13 Inspection Costs [Notice PIH 2016-05; 24 CFR 5.705(h)] ............ 8-14 Remote Video Inspections (RVIs) [Notice PIH 2020-31] .............. 8-14 Notice and Scheduling .................................................................... 8-14 Owner and Family Inspection Attendance ..................................... 8-15 EXHIBIT 1

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8-II.B. Initial HQS Inspection [24 CFR 982.405(a)] ....................................... 8-15 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)] .................................................................. 8-15 Approving Units Using Alternative Inspections
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.406] ...................................................................... 8-16 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] ............... 8-16 Inspection Results and Reinspections ............................................. 8-17 Utilities ........................................................................................... 8-17 Appliances [Form HUD-52580] ..................................................... 8-17 8-II.C. Periodic HQS Inspections [24 CFR 982.405(b) and Notice PIH 2016-05] ............................................................................. 8-18 Scheduling the Inspection ............................................................... 8-18 8-II.D. Special Interim Inspections [24 CFR 982.405(d)] ................................ 8-18 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-32]................................................. 8-19 8-II.F. Inspection Results and Reinspections for Units
Under HAP Contract ............................................................................. 8-19 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ............................................... 8-19 Notification of Corrective Actions ................................................. 8-19 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later: ................................................... 8-20 Notification of Corrective Actions [24 CFR 982.404(d)(1)] .......... 8-20 Extensions ....................................................................................... 8-22 Reinspections [24 CFR 982.405(i)] ................................................ 8-22 8-II.G. Enforcing Owner Compliance .............................................................. 8-23 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ............................................... 8-23 HAP Abatement .............................................................................. 8-23 HAP Contract Termination ............................................................. 8-23 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later: ................................................... 8-24 HAP Withholding [24 CFR 982.404(d)(1)].................................... 8-24 HAP Abatement [24 CFR 982.404(d)(2)] ...................................... 8-24 HAP Contract Termination ............................................................. 8-25 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] .......... 8-26 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ............................................... 8-26 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later: ................................................... 8-26 EXHIBIT 1

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PART III: RENT REASONABLENESS [24 CFR 982.507] ................................................. 8-27 8-III.A. Overview ............................................................................................... 8-27 PHA-Owned Units [24 CFR 982.352(b)] ....................................... 8-27 8-III.B. When Rent Reasonableness Determinations Are Required.................. 8-28 Owner-Initiated Rent Determinations ............................................. 8-28 PHA- and HUD-Initiated Rent Reasonableness Determinations ... 8-28 LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) ............. 8-29 8-III.C. How Comparability Is Established ....................................................... 8-29 Factors to Consider ......................................................................... 8-29 Units that Must Not be Used as Comparables ................................ 8-29 Rents Charged for Other Units on the Premises ............................. 8-30 8-III.D. PHA Rent Reasonableness Methodology ............................................. 8-31 How Market Data Is Collected ....................................................... 8-31 How Rents Are Determined ............................................................ 8-31 Exhibit 8-1: Overview of HUD Housing Quality Standards .................................................... 8-33 Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality ..................... 8-37 EXHIBIT 1

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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]
NSPIRE AND HQS ..................................................................................................................... 8-2 PART I: NSPIRE STANDARDS .......................................................................................... 8-3 8-I.A. Inspectable Areas [24 CFR 5.703(a)(1) and
24 CFR 5.705(a)(2)] ............................................................................... 8-3 8-I.B. Affirmative Habitability Requirements
[24 CFR 5.703(b), (c), and (d)] ............................................................... 8-3 8-I.C. Modifications to Provide Accessibility
[24 CFR 100.203; Notice 2003-31; and Notice PIH 2014-02] ............... 8-4 8-I.D. Additional Local Requirements
[24 CFR 5.705(a)(3) and Notice PIH 2024-26] ...................................... 8-5 8-I.E. Life-Threatening Deficiencies [Notice PIH 2024-26] ............................ 8-6 8-I.F. Owner and Family Responsibilities [24 CFR 982.404] .......................... 8-9 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ................................................. 8-9 Family Responsibilities .................................................................... 8-9 Owner Responsibilities ..................................................................... 8-9 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later. ................................................... 8-10 Owner Obligation ........................................................................... 8-10 Family Responsibilities .................................................................. 8-10 8-I.G. Lead-Based Paint .................................................................................. 8-12 Special Requirements for Children with Elevated Blood
Lead Level [24 CFR 35.1225; FR Notice 1/13/17;
Notice PIH 2017-13] ....................................................................... 8-12 8-I-H. Violation of Space Standards [24 CFR 5.703(d)(5)] ............................ 8-13 PART II: THE INSPECTION PROCESS ............................................................................ 8-15 8-II.A. Overview [24 CFR 982.405] ................................................................ 8-15 Types of Inspections ....................................................................... 8-15 Inspection of PHA-Owned Units [24 CFR 982.352(b)] ................. 8-15 Inspection Costs [Notice PIH 2016-05 and 24 CFR 5.705(h)] ....... 8-16 Remote Video Inspections (RVIs) [Notice PIH 2020-31] .............. 8-16 Notice and Scheduling .................................................................... 8-16 Owner and Family Inspection Attendance ..................................... 8-17 EXHIBIT 1

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8-II.B. Initial Inspection [24 CFR 982.405(a)] ................................................ 8-17 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)] .................................................................. 8-17 Approving Units Using Alternative Inspections
[FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.406] ...................................................................... 8-18 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] ............... 8-18 Inspection Results and Reinspections ............................................. 8-19 Utilities ........................................................................................... 8-19 Appliances ...................................................................................... 8-19 8-II.C. Periodic Inspections [24 CFR 982.405(b) and
Notice PIH 2016-05] ............................................................................. 8-20 Scheduling the Inspection ............................................................... 8-20 8-II.D. Interim Inspections [24 CFR 982.405(d)] ............................................ 8-20 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-32]................................................. 8-21 8-II.F. Inspection Results and Reinspections for Units Under HAP Contract ........................................................................................ 8-21 Correction Timeframes ................................................................... 8-21 The following is applicable to HAP contracts executed
or renewed June 5, 2024, or earlier: ............................................... 8-22 Notification of Corrective Actions ................................................. 8-22 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ..................................................................... 8-22 Notification of Corrective Actions [24 CFR 982.404(d)(1)] .......... 8-22 Extensions ....................................................................................... 8-24 Reinspections [24 CFR 982.405(i)] ................................................ 8-24 8-II.G. Enforcing Owner Compliance .............................................................. 8-25 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: .................................................................. 8-25 HAP Abatement .............................................................................. 8-25 HAP Contract Termination ............................................................. 8-25 The following is applicable to HAP contracts executed
or renewed June 6, 2024, or later: ................................................... 8-26 HAP Withholding [24 CFR 982.404(d)(1)].................................... 8-26 HAP Abatement [24 CFR 982.404(d)(2)] ...................................... 8-26 HAP Contract Termination ............................................................. 8-27 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] .......... 8-28 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: .................................................................. 8-28 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ..................................................................... 8-28 EXHIBIT 1

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PART III: RENT REASONABLENESS [24 CFR 982.507] ................................................. 8-29 8-III.A. Overview ............................................................................................... 8-29 PHA-Owned Units [24 CFR 982.352(b)] ....................................... 8-29 8-III.B. When Rent Reasonableness Determinations Are Required.................. 8-30 Owner-Initiated Rent Determinations ............................................. 8-30 PHA- and HUD-Initiated Rent Reasonableness Determinations ... 8-30 LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) ............. 8-31 8-III.C. How Comparability Is Established ....................................................... 8-31 Factors to Consider ......................................................................... 8-31 Units that Must Not be Used as Comparables ................................ 8-31 Rents Charged for Other Units on the Premises ............................. 8-32 8-III.D. PHA Rent Reasonableness Methodology ............................................. 8-33 How Market Data Is Collected ....................................................... 8-33 How Rents Are Determined ............................................................ 8-33 Exhibit 8-1: affirmative habitability requirements .................................................................... 8-35 EXHIBIT 1

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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] .............................. 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. Lease and Tenancy Addendum ............................................................... 9-8 Lease Form and Tenancy Addendum [24 CFR 982.308] ................. 9-8 Lease Information [24 CFR 982.308(d)] .......................................... 9-8 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.F. Tenancy Approval [24 CFR 982.305] .................................................. 9-12 9-I.G. HAP Contract Execution [24 CFR 982.305] ........................................ 9-13 9-I.H. Changes in Lease or Rent [24 CFR 982.308] ....................................... 9-15 EXHIBIT 1

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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 EXHIBIT 1

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Chapter 11.A.

REEXAMINATIONS
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ........................................... 11-1 11-I.A. Overview ............................................................................................... 11-1 11-I.B. Streamlined Annual Reexaminations
[24 CFR 982.516(b); New HCV GB, Reexaminations] ....................... 11-2 11-I.C. Scheduling Annual Reexaminations ..................................................... 11-3 Notification of and Participation in the Annual
Reexamination Process ................................................................... 11-3 11-I.D. Conducting Annual Reexaminations .................................................... 11-4 11-I.E. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)] ........................................................................ 11-6 11-I.F. Effective Dates ...................................................................................... 11-7 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ........................................... 11-9 11-II.A. Overview ............................................................................................... 11-9 11-II.B. Changes In Family and Household Composition ................................. 11-9 New Family Members Not Requiring PHA Approval ................... 11-9 New Family and Household Members Requiring Approval ........ 11-10 Departure of a Family or Household Member .............................. 11-11 Changes in Family Unit Size (Voucher Size)
[24 CFR 982.505(c)(6)] ................................................................ 11-11 11-II.C. Changes Affecting Income or Expenses ............................................. 11-12 PHA-Initiated Interim Reexaminations ........................................ 11-12 Family-Initiated Interim Reexaminations ..................................... 11-13 11-II.D. Processing the Interim Reexamination ............................................... 11-14 Method of Reporting ..................................................................... 11-14 Effective Dates .............................................................................. 11-14 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-15 11-III.A. Overview ............................................................................................. 11-15 11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-15 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ...... 11-15 Subsidy Standards [24 CFR 982.505(c)(4)] ................................. 11-15 Utility Allowances [24 CFR 982.517(d)] ..................................... 11-15 11-III.C. Notification of New Family Share and HAP Amount ........................ 11-16 11-III.D. Discrepancies ...................................................................................... 11-16 EXHIBIT 1

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Chapter 11.B.

REEXAMINATIONS UNDER HOTMA 102/104
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ........................................... 11-1 11-I.A. Overview ............................................................................................... 11-1 11-I.B. Scheduling Annual Reexaminations ..................................................... 11-2 Notification of and Participation in the Annual
Reexamination Process ................................................................... 11-2 11-I.C. Conducting Annual Reexaminations .................................................... 11-3 11-I.D. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)] ........................................................................ 11-5 11-I.E. Calculating Annual Income at Annual Reexamination [24 CFR 5.609(c)(2) and Notice PIH 2023-27] .................................... 11-6 11-I.F. Effective Dates ...................................................................................... 11-8 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516; Notice PIH 2023-27] ........ 11-9 11-II.A. Overview ............................................................................................... 11-9 11-II.B. Changes In Family and Household Composition ................................. 11-9 Reporting ........................................................................................ 11-9 New Family Members Not Requiring PHA Approval ................... 11-9 New Family and Household Members Requiring Approval ........ 11-10 Departure of a Family or Household Member .............................. 11-11 Changes in Family Unit Size (Voucher Size)
[24 CFR 982.505(c)(6)] ................................................................ 11-11 11-II.C. Changes Affecting Income or Expenses ............................................. 11-12 Overview ....................................................................................... 11-12 Interim Decreases [24 CFR 982.516(c)(2)
and Notice PIH 2023-27] .............................................................. 11-12 Interim Increases [24 CFR 982.516(c)(3) and
Notice PIH 2023-27] ..................................................................... 11-13 11-II.D. Effective Dates [24 CFR 982.516(e) and Notice 2023-27] ................ 11-16 Changes Reported Timely [Notice PIH 2023-27] ........................ 11-16 Changes Not Reported Timely [Notice PIH 2023-27] ................. 11-16 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-19 11-III.A. Overview ............................................................................................. 11-19 11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-19 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ...... 11-19 Subsidy Standards [24 CFR 982.505(c)(4)] ................................. 11-19 Utility Allowances [24 CFR 982.517(d)] ..................................... 11-19 11-III.C. Notification of New Family Share and HAP Amount ........................ 11-20 11-III.D. Discrepancies ...................................................................................... 11-20 PART IV: NON-INTERIM REEXAMINATION TRANSACTIONS
[Notice PIH 2023-27] ......................................................................................... 11-21 Exhibit 11-1: Calculating Income at Annual Reexamination ................................................... 11-23 EXHIBIT 1

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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 Upon the PHA’s HOTMA 102/104 compliance date,
the below section on failure to provide consent is added: .............. 12-2 Failure to Provide Consent [24 CFR 982.552(b)(3)] ...................... 12-2 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)] ............................................................. 12-3 Failure of Students to Meet Ongoing Eligibility
Requirements [24 CFR 982.552(b)(5) and FR 4/10/06] ................. 12-3 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 ..................... 12-4 Mandatory Policies [24 CFR 982.553(b) and 982.551(l)] .............. 12-4 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 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 EXHIBIT 1

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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)]..................................... 12-20 12-III.E. Effect of Tenancy Termination on the Family’s Assistance .............. 12-22 Exhibit 12-1: Statement of Family Obligations ........................................................................ 12-23 EXHIBIT 1

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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 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 EXHIBIT 1

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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 EXHIBIT 1

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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 15-IV.C. Shared Housing: Housing Quality Standards ..................................... 15-14 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] ............................................................................ 15-15 15-V.A. Overview ............................................................................................. 15-15 15-V.B. Payment Standard, Utility Allowance and HAP Calculation ............. 15-15 15-V.C. Cooperative: Housing Quality Standards ........................................... 15-16 EXHIBIT 1

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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;] ................. 15-17 15-VI.A. Overview ............................................................................................. 15-17 15-VI.B. Special Requirements for Manufactured Home Owners Who Lease A Space ............................................................................ 15-17 Family Income .............................................................................. 15-17 Lease and HAP Contract .............................................................. 15-17 15-VI.C. Payment Standard, Utility Allowance and HAP Calculation ............. 15-18 Payment Standards ........................................................................ 15-18 Utility Allowance [24 CFR 982.624] ........................................... 15-18 Space Rent [24 CFR 982.622] ...................................................... 15-18 Amortization Costs ....................................................................... 15-18 Housing Assistance Payment [24 CFR 982.623(a)] ..................... 15-18 Eligible Housing Expenses [24 CFR 982.623(b)] ........................ 15-19 Rent Reasonableness [24 CFR 982.622(b)] .................................. 15-19 Distribution of HAP [24 CFR 982.623(c)] ................................... 15-20 Single HAP to Family [24 CFR 982.623.(d)] ............................... 15-20 15-VI.D. Manufactured Homes: Housing Quality Standards
[24 CFR 982.621] ............................................................................... 15-20 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] ................................ 15-21 15-VII.A. Overview [24 CFR 982.625] .............................................................. 15-21 15-VII.B. Family Eligibility [24 CFR 982.627].................................................. 15-22 15-VII.C. Selection of Families [24 CFR 982.626] ............................................ 15-24 15-VII.D. Eligible Units [24 CFR 982.628] ........................................................ 15-25 15-VII.E. Additional PHA Requirements for Search and Purchase [24 CFR 982.629] ............................................................................... 15-27 15-VII.F. Homeownership Counseling [24 CFR 982.630] ................................ 15-28 15-VII.G. Home Inspections, Contract of Sale, and PHA Disapproval of Seller [24 CFR 982.631] ..................................................................... 15-29 Home Inspections ......................................................................... 15-29 Contract of Sale ............................................................................ 15-30 Disapproval of a Seller ................................................................. 15-30 15-VII.H. FINANCING [24 CFR 982.632] ........................................................ 15-31 15-VII.I. Continued Assistance Requirements; Family Obligations [24 CFR 982.633] ............................................................................... 15-32 15-VII.J. Maximum Term of Homeowner Assistance [24 CFR 982.634]......... 15-33 15-VII.K. Homeownership Assistance Payments and Homeownership Expenses [24 CFR 982.635] ............................................................... 15-34 15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553] ............................................................................... 15-36 15-VII.M. Moving with Continued Assistance [24 CFR 982.637] .................... 15-37 15-VII.N. Denial or Termination of Assistance [24 CFR 982.638] .................... 15-38 EXHIBIT 1

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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), 24 CFR
982.505(d), Notice PIH 2024 34, and Notice PIH 2010-26] .......... 16-9 Payment Standard below the Basic Range
[24 CFR 982.503(e) and Notice PIH 2024-34] .............................. 16-9 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] ................................................ 16-11 Energy Efficient Utility Allowance
[24 CFR 982.517(b)(2)(ii)] ........................................................... 16-11 Air Conditioning [24 CFR 982.517(b)(1)(iii)] ............................. 16-11 Reasonable Accommodation and Individual Relief ..................... 16-12 Utility Allowance Revisions ......................................................... 16-12 PART III: INFORMAL REVIEWS AND HEARINGS ...................................................... 16-13 16-III.A. Overview ............................................................................................. 16-13 16-III.B. Informal Reviews ................................................................................ 16-13 Decisions Subject to Informal Review
[24 CFR 982.554(a) and (c)] ........................................................ 16-13 Notice to the Applicant [24 CFR 982.554(a)] .............................. 16-14 Scheduling an Informal Review ................................................... 16-14 Informal Review Procedures [24 CFR 982.554(b)] ..................... 16-14 Remote Informal Reviews [Notice PIH 2020-32] ........................ 16-15 Ensuring Accessibility for Persons with Disabilities
and LEP Individuals ..................................................................... 16-15 Conducting Remote Informal Reviews ........................................ 16-16 Informal Review Decision [24 CFR 982.554(b)] ......................... 16-17 EXHIBIT 1

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16-III.C. Informal Hearings for Participants [24 CFR 982.555] ....................... 16-18 Decisions Subject to Informal Hearing ......................................... 16-18 Remote Informal Hearings [Notice PIH 2020-32] ....................... 16-19 Ensuring Accessibility for Persons with Disabilities
and LEP Individuals ..................................................................... 16-20 Conducting Informal Hearings Remotely ..................................... 16-21 Informal Hearing Procedures ........................................................ 16-22 16-III.D. Hearing and Appeal Provisions for Noncitizens [24 CFR 5.514] ................................................................................... 16-29 Notice of Denial or Termination of Assistance
[24 CFR 5.514(d)] ........................................................................ 16-29 USCIS Appeal Process [24 CFR 5.514(e)] ................................... 16-30 Informal Hearing Procedures for Applicants
[24 CFR 5.514(f)] ......................................................................... 16-30 Informal Hearing Procedures for Residents
[24 CFR 5.514(f)] ......................................................................... 16-31 Retention of Documents [24 CFR 5.514(h)] ................................ 16-31 PART IV: OWNER OR FAMILY DEBTS TO THE PHA ................................................. 16-33 16-IV.A. Overview ............................................................................................. 16-33 16-IV.B. Repayment Policy ............................................................................... 16-33 Owner Debts to the PHA .............................................................. 16-33 Family Debts to the PHA .............................................................. 16-34 Refusal to Enter into an Agreement .............................................. 16-34 Repayment Agreement [24 CFR 792.103] ................................... 16-34 General Repayment Agreement Guidelines for Families ............. 16-34 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) .......... 16-37 16-V.A. Overview ............................................................................................. 16-37 16-V.B. SEMAP Certification [24 CFR 985.101] ............................................ 16-38 HUD Verification Method ............................................................ 16-38 16-V.C. SEMAP Indicators [24 CFR 985.3 and Form HUD-52648] .............. 16-39 SEMAP Indicators Chart .............................................................. 16-39 PART VI: RECORD KEEPING ......................................................................................... 16-43 16-VI.A. Overview ............................................................................................. 16-43 16-VI.B. Record Retention [24 CFR 982.158; 24 CFR 908.101] ..................... 16-43 16-VI.C. Records Management ......................................................................... 16-44 Privacy Act Requirements [24 CFR 5.212 and Form-9886-A] .... 16-44 Upfront Income Verification (UIV) Records ............................... 16-45 Criminal Records .......................................................................... 16-45 Medical/Disability Records .......................................................... 16-45 Documentation of Domestic Violence,
Dating Violence, Sexual Assault, Stalking
or Human Trafficking ................................................................... 16-45 EXHIBIT 1

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PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN
WITH ELEVATED BLOOD LEAD LEVEL ................................................... 16-47 16-VII.A. Overview ............................................................................................. 16-47 16-VII.B. Reporting Requirement [24 CFR 35.1225(e) );
Notice PIH 2017-13] ........................................................................... 16-47 16-VII.C. Data Collection and Record Keeping [24 CFR 35.1225(f)] ............... 16-47 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING ...................................... 16-49 16-VIII.A. Overview ........................................................................................... 16-49 16-VIII.B. Methodology ..................................................................................... 16-49 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY ................................................... 16-51 16-IX.A. Overview ............................................................................................. 16-51 16-IX.B. Definitions [24 CFR 5.2003] ............................................................... 16-51 16-IX.C. Notification [24 CFR 5.2005(a), 42 USC 13925] ............................... 16-53 Notification to Public .................................................................... 16-53 Notification to Program Applicants and Participants
[24 CFR 5.2005(a)(1)] .................................................................. 16-54 Notification to Owners and Managers .......................................... 16-55 16-IX.D. Documentation [24 CFR 5.2007] ........................................................ 16-56 Conflicting Documentation [24 CFR 5.2007(e)] .......................... 16-57 Discretion to Require No Formal Documentation
[24 CFR 5.2007(d)] ...................................................................... 16-57 Failure to Provide Documentation [24 CFR 5.2007(c)] ............... 16-58 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] .................................... 16-58 Exhibit 16-1: Sample Notice of Occupancy Rights Under the Violence Against Women Act, Form HUD-5380 ............................................................. 16-59 Exhibit 16-2: Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation, Form HUD-5382 ............................ 16-65 Exhibit 16-3: Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (HCV Version) .......................... 16-67 Exhibit 16-4: Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 ...................... 16-71 Exhibit 16-5: Model Owner Notification of Rights and Obligations ...................................... 16-75 EXHIBIT 1

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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 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] ............................. 17-15 PART II: PROPOSAL AND PROJECT SELECTION ...................................................... 17-17 17-II.A. Overview ............................................................................................. 17-17 Selection of PHA-Owned Units [24 CFR 983.51(h)] ................... 17-17 17-II.B. Competitive Selection Of Proposals [24 CFR 983.51(b)] .................. 17-18 Solicitation and Selection of PBV Proposals
[24 CFR 983.51(d)] ...................................................................... 17-18 17-II.C. Non-Competitive Project Selection [24 CFR 983.51(c)] ................... 17-22 17-II.D. Project or Proposal Selection [24 CFR 983.51(f) and 24 CFR 983.153(c)(3)] ....................................................................... 17-24 PHA Written Notice of Proposal or Project Selection
[24 CFR 983.51(f) and (h) and 24 CFR 983.153(c)(3)] ............... 17-24 17-II.E. Housing Type [24 CFR 983.52] ......................................................... 17-27 17-II.F. Prohibition of Assistance For Certain Units ....................................... 17-28 Ineligible Units [24 CFR 983.52] ................................................. 17-28 Subsidized Housing [24 CFR 983.53] .......................................... 17-29 EXHIBIT 1

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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] ...................................................................... 17-30 Development Activity Before HAP Contract
[24 CFR 983.153(b)] .................................................................... 17-30 Conducting the SLR [FR Notice 3/3/23 and
Notice PIH 2023-15] ..................................................................... 17-30 Additional Assistance after HAP Contract
\[24 CFR 983.11(d)] ..................................................................... 17-31 17-II.H. Site Selection Standards ..................................................................... 17-32 Compliance with PBV Goals, Civil Rights Requirements,
and Site and Neighborhood Standards [24 CFR 983.55(b)] ......... 17-32 Existing and Rehabilitated Housing Site and
Neighborhood Standards [24 CFR 983.55(d)] .............................. 17-33 New Construction Site and Neighborhood Standards
[24 CFR 983.55(e)] ....................................................................... 17-34 17-II.I. Environmental Review [24 CFR 983.56] ........................................... 17-35 PART III: DWELLING UNITS ........................................................................................... 17-37 17-III.A. Overview ............................................................................................. 17-37 17-III.B. Housing Quality Standards [24 CFR 983.101] ................................... 17-37 Lead-based Paint [24 CFR 983.101(c)] ........................................ 17-37 Housing Quality and Design Requirements
[24 CFR 983.101(e) and 983.208(a)] ........................................... 17-37 17-III.C. Housing Accessibility for Persons with Disabilities [24 CFR 983.102] ............................................................................... 17-38 17-III.D. Inspecting Units[24 CFR 983.103] ..................................................... 17-38 Pre-selection Inspection [24 CFR 983.103(a)] ............................. 17-38 Initial Inspection: Newly Constructed and
Rehabilitated Projects That Underwent Substantial
Improvement [24 CFR 983.103(b)] .............................................. 17-38 Initial Inspection: Existing Housing [24 CFR 983.103(d)] .......... 17-39 Turnover Inspections [24 CFR 983.103(d) ................................... 17-39 Periodic Inspections [24 CFR 983.103(e); FR Notice 6/25/14] ... 17-39 Alternative Inspections for Periodic Inspections
[24 CFR 983.103(g); Notice PIH 2016-05] .................................. 17-40 Interim Inspections [24 CFR 983.103(f)] ..................................... 17-40 Follow Up Inspections [24 CFR 983103(f)(2)] ............................ 17-40 Supervisory Quality Control Inspections
[24 CFR 983.103(f)(3)] ................................................................ 17-40 Inspecting PHA-Owned Units [24 CFR 983.103(g)] ................... 17-40 EXHIBIT 1

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PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................... 17-41 17-IV.A. Overview [24 CFR 983.151 and 983.152].......................................... 17-41 17-IV.B. Agreement to Enter into HAP Contract (AHAP)
[24 CFR 983.154] ............................................................................... 17-41 PHA Discretion Not to Use an AHAP [24 CFR 983.154(f)] ....... 17-41 Content of the AHAP [24 CFR 983.154(e)] ................................. 17-42 Execution of the AHAP [FR Notice 11/24/08]............................. 17-42 17-IV.C. Development Requirements................................................................ 17-43 Labor Standards [24 CFR 983.153(c)] ......................................... 17-43 Accessibility [24 CFR 983.153(e)] ............................................... 17-43 Broadband Infrastructure [24 CFR 983.153(f)] ............................ 17-44 Owner Disclosure [24 CFR 983.153(g)] ...................................... 17-44 17-IV.D. Completion of Work [24 CFR 983.155] ............................................. 17-45 Evidence of Completion [24 CFR 983.155] ................................. 17-45 PHA Acceptance of Completed Units
[24 CFR 983.156(a) and (b)] ........................................................ 17-46 Staged Completion of Contract Units [24 CFR 983.156(c)] ........ 17-46 PART V: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT......................... 17-47 17-V.A. Overview [24 CFR 983.202(a)] .......................................................... 17-47 17-V.B. HAP Contract Requirements .............................................................. 17-47 Contract Information [24 CFR 983.204] ...................................... 17-47 Execution of the HAP Contract [24 CFR 983.204] ...................... 17-48 Effective Date of the HAP Contract [24 CFR 983.204(d)] .......... 17-48 Term of HAP Contract [24 CFR 983.205,
FR Notice 1/18/17, and Notice PIH 2017-21] .............................. 17-49 17-V.C. Termination of the HAP Contract ....................................................... 17-50 Termination by Agreement of PHA and Owner
[24 CFR 983.206(e)] ..................................................................... 17-50 Termination by PHA [24 CFR 983.205(c)] .................................. 17-50 Non-extension by Owner – Notice Requirements
[24 CFR 983.206(a)] ..................................................................... 17-50 Termination by Owner – Reduction Below Initial
Contract Rent [24 CFR 983.206(d)] ............................................. 17-51 Termination or Expiration without Extensions – Required Provision of Tenant-Based Assistance [24 CFR 983.206(b)] ...... 17-51 Remedies for Housing Quality Standards Deficiencies
[24 CFR 983.208] ......................................................................... 17-53 Enforcement of Housing Quality Standards
[24 CFR 983.208(b)] .................................................................... 17-53 Family Obligation [24 CFR 983.208(c)] ...................................... 17-54 PHA Remedies [24 CFR 983.208(d)] ........................................... 17-55 HAP Withholding [24 CFR 983.208(d)(1) ................................... 17-56 HAP Abatement [24 CFR 983.208(d)(2)] .................................... 17-56 Failure to Make Repairs ................................................................ 17-57 Offer of Public Housing [24 CFR 983.208(d)(6)(ii)] ................... 17-57 Relocation Assistance [24 CFR 983.208(d)(6)(iii)] ..................... 17-58 EXHIBIT 1

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17-V.D. Amendments to the HAP Contract to Add or Substitute Units [24 CFR 983.207] ............................................................................... 17-59 Addition of Contract Units [24 CFR 983.207(b)] ........................ 17-59 Substituting or Adding Occupied Units [24 CFR 983.207(c)] ..... 17-60 17-V.E. HAP Contract Year, Anniversary and Expiration Dates [24 CFR 983.207(b)(2) and (g) and 983.302(e)] ................................ 17-60 17-V.F. Owner Responsibilities Under the HAP Contract
[24 CFR 983.210] ............................................................................... 17-61 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 17-63 17-VI.A. Overview ............................................................................................. 17-63 17-VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 17-63 In-Place Families [24 CFR 983.251(b)] ....................................... 17-64 17-VI.C. Organization of the Waiting List
[24 CFR 983.251(c)] ........................................................................... 17-65 PHA Waiting List Preferences [24 CFR 983.251(c)(3)] .............. 17-65 17-VI.D. Owner-Maintained Waiting Lists [24 CFR 983.251(c)(7)] ................ 17-66 Owner Waiting List Policy [24 CFR 983.251(c)(7)(i)] ................ 17-67 Owner-Maintained Waiting List Preferences
[24 CFR 983.251(c)(7)(ii)] ........................................................... 17-68 Preliminary Eligibility Determinations
[24 CFR 983.251(c)(7)(vi)] .......................................................... 17-68 PHA Oversight [24 CFR 983.251(c)(7)(x)].................................. 17-69 17-VI.E. Selection From the Waiting List [24 CFR 983.251(c)] ...................... 17-70 Income Targeting [24 CFR 983.251(c)(9)] .................................. 17-70 Units with Accessibility Features [24 CFR 983.251(c)(9)] .......... 17-70 17-VI.F. Offer of PBV Assistance or Owner’s Rejection ................................. 17-71 Refusal of Offer [24 CFR 983.251(e)] ......................................... 17-71 Acceptance of Offer [24 CFR 983.252(a) and (b)] ....................... 17-72 17-VI.G. Leasing of Contract Units [24 CFR 983.252] ..................................... 17-73 Filling Vacancies [24 CFR 983.254(a)] ........................................ 17-73 Reduction in HAP Contract Units Due to Vacancies
[24 CFR 983.254(b)] .................................................................... 17-74 17-VI.H. Tenant Screening [24 CFR 983.255] .................................................. 17-75 PHA Option .................................................................................. 17-75 Owner Responsibility ................................................................... 17-75 EXHIBIT 1

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PART VII: OCCUPANCY .................................................................................................... 17-77 17-VII.A. Overview ............................................................................................. 17-77 17-VII.B. Lease [24 CFR 983.256] ..................................................................... 17-77 Form of Lease [24 CFR 983.256(b)] ............................................ 17-77 Lease Requirements [24 CFR 983.256(c)] ................................... 17-77 Tenancy Addendum [24 CFR 983.256(d)] ................................... 17-78 Initial Term and Lease Renewal [24 CFR 983.256(f)] ................. 17-78 Changes in the Lease [24 CFR 983.256(e)] .................................. 17-78 Owner Termination of Tenancy [24 CFR 983.257] ..................... 17-79 Continuation of Housing Assistance Payments
[24 CFR 983.258] ........................................................................ 17-79 Security Deposits [24 CFR 983.259] ............................................ 17-80 17-VII.C. Moves ................................................................................................. 17-81 Overcrowded, Under-Occupied, and Accessible Units
[24 CFR 983.260] ......................................................................... 17-81 Family Right to Move [24 CFR 983.261] .................................... 17-83 Emergency Transfers under VAWA
[Notice PIH 2017-08 and 24 CFR 983.261(f) and (g)] ................ 17-84 PART VIII: DETERMINING RENT TO OWNER ............................................................... 17-87 17-VIII.A. Overview [24 CFR 983.301(a)] ........................................................ 17-87 17-VIII.B. Amount of Rent To Owner [24 CFR 983.301(b)] ............................ 17-87 Rent to Owner for Certain Tax Credit Units
[24 CFR 983.301(c)] ..................................................................... 17-87 Use of FMRs, Exception Payment Standards,
and Utility Allowances [24 CFR 983.301(f)] ............................... 17-88 Use of Small Area FMRs (SAFMRs)
[24 CFR 888.113(h) and 24 CFR 983.301(f)(3)] ......................... 17-89 17-VIII.C. Redetermination of Rent to Owner [24 CFR 983.302] ..................... 17-90 PHA-Owned Units [24 CFR 983.301(g)] ..................................... 17-92 17-VIII.D. Reasonable Rent [24 CFR 983.301(d) and 983.303] ........................ 17-93 When Rent Reasonable Determinations Are Required ................ 17-93 Rent Floor ..................................................................................... 17-93 How to Determine Reasonable Rent [24 CFR 983.303(c)] .......... 17-94 PHA-Owned Units [24 CFR 983.303(f)]...................................... 17-94 Owner Certification of Reasonable Rent [24 CFR 983.303(e)] ... 17-94 17-VIII.D. Effect of Other Subsidy and Rent Control ........................................ 17-95 Other Subsidy [24 CFR 983.304] ................................................. 17-95 Rent Control [24 CFR 983.305] ................................................... 17-95 EXHIBIT 1

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PART IX: PAYMENTS TO OWNER ................................................................................. 17-97 17-IX.A. Housing Assistance Payments [24 CFR 983.351] .............................. 17-97 17-IX.B. Vacancy Payments [24 CFR 983.352]................................................ 17-98 Payment at Move-Out Month [24 CFR 983.352(a)] .................... 17-98 Vacancy Payments [24 CFR 983.352(b)] ..................................... 17-98 17-IX.C. Tenant Rent to Owner [24 CFR 983.353] ........................................ 17-100 Tenant and PHA Responsibilities ............................................... 17-100 Utility Reimbursements [24 CFR 983.353(d)] ........................... 17-100 17-IX.D. Other Fees and Charges [24 CFR 983.354] ...................................... 17-101 Meals and Supportive Services ................................................... 17-101 Other Charges by Owner ............................................................ 17-101 17-IX.E. Project Record Retention [24 CFR 983.12] ...................................... 17-101 Exhibit 17-1: PBV Development Information ....................................................................... 17-103 Exhibit 17-2: Special Provisions Applying to TPVs Awarded as Part of a Voluntary Conversion of Public Housing Units in Projects that Include RAD PBV Units .................................................................................. 17-106 Exhibit 17-3: Owner Waiting List Policy .............................................................................. 17-109 EXHIBIT 1

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Chapter 18

SPECIAL PURPOSE VOUCHERS
PART I: FOSTER YOUTH TO INDEPENDENCE INITIATIVE................................... 18-23 18-I.A. Program Overview [Notice PIH 2020-28;
Notice PIH 2023-04; FR Notice 1/24/22] ........................................... 18-23 18-I.B. Partnering Agencies [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar] .............................................. 18-24 Public Child Welfare Agency (PCWA) ........................................ 18-24 Continuum of Care (CoC) and Other Partners ............................. 18-24 18-I.C. Youth Eligibility Criteria [Notice PIH 2023-04; FYI Q&As; FYI FAQs] ...................................................................... 18-25 18-I.D. Supportive Services [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] .......................... 18-26 18-I.E. Referrals and Waiting List Management [Notice PIH 2023-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] ...... 18-27 Referrals ........................................................................................ 18-27 Waiting List Placement [Notice PIH 2023-04 and FYI FAQs] .... 18-28 Waiting List Selection .................................................................. 18-28 18-I.F. PHA HCV Eligibility Determination [FYI FAQs] ............................. 18-29 Additional Eligibility Factors ....................................................... 18-29 18-I.G. Lease Up [FR Notice 1/24/22] ............................................................ 18-30 Turnover ....................................................................................... 18-30 18-I.H. Maximum Assistance Period
[Notice PIH 2023-04 and FYI FAQs; FR Notice 1/24/22]................. 18-31 Extension of Assistance ................................................................ 18-31 Statutory Exceptions ..................................................................... 18-31 Education, Workforce Development,
or Employment Activities ............................................................. 18-33 FSS Enrollment at 24 Months....................................................... 18-34 FSS Enrollment Between 36 and 48 Months ................................ 18-34 FSS Enrollment After 48 Months ................................................. 18-35 Extensions of Assistance .............................................................. 18-35 No FSS Program or Unable to Enroll in FSS ............................... 18-35 Verification Prior to Annual Reexam ........................................... 18-35 Termination of Assistance for Failure to Meet Conditions\ ......... 18-37 18-I.I. Termination of Assistance [FYI FAQs] ............................................. 18-37 18-I.J. Portability [FYI FAQs] ....................................................................... 18-38 18-I.K. Project-Basing FYI Vouchers [FYI FAQs; FR Notice 1/24/22; Notice PIH 2024-03] ........................................................................... 18-38 EXHIBIT 1

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PART II: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM ....... 18-39 18-II.A. Program Overview .............................................................................. 18-39 18-IIB. Referrals [FR Notice 8/13/24 and HUD-VASH Qs and As] .............. 18-40 18-II.C. HCV Program Eligibility [FR Notice 8/13/24] .................................. 18-41 Social Security Numbers .............................................................. 18-41 Proof of Age ................................................................................. 18-41 Photo Identification ...................................................................... 18-41 Income Eligibility [FR Notice 8/13/24] ........................................ 18-42 Minimum Rent [FR Notice 8/13/24] ............................................ 18-43 Screening [FR Notice 8/13/24] ..................................................... 18-43 Denial of Assistance [Notice PIH 2008-37] ................................. 18-43 18-III.D. Changes in Family Composition ........................................................ 18-44 Adding Family Members [FR Notice 8/13/24] ............................ 18-44 Remaining Family Members [HUD-VASH Qs and As] .............. 18-44 Family Break Up [HUD-VASH Qs and As] ................................ 18-44 18-II.E. Leasing [FR Notice 8/13/24] .............................................................. 18-45 Waiting List .................................................................................. 18-45 Exception Payment Standards [FR Notice 8/13/24] ..................... 18-45 Voucher Issuance [FR Notice 8/13/24] ........................................ 18-45 Special Housing Types [FR Notice 8/13/24] ................................ 18-46 Initial Lease Term [FR Notice 8/13/24] ....................................... 18-46 Ineligible Housing [[FR Notice 8/13/24] ...................................... 18-46 Pre-Inspections [FR Notice 8/13/24] ............................................ 18-46 18-II.F. Portability [Notice PIH 2011-53 and FR Notice 8/13/24] .................. 18-47 General Requirements .................................................................. 18-47 Portability within the Initial VAMC or DSP’s Catchment Area .. 18-47 Portability Outside of the Initial VAMC
or DSP’s Catchment Area ............................................................. 18-47 Portability Outside of the Initial VAMC
or DSP’s Catchment Area under VAWA ..................................... 18-48 18-II.G. Termination of Assistance [FR Notice 8/13/24] ................................. 18-49 Cessation of Case Management .................................................... 18-49 Serious Violation of the Lease ...................................................... 18-49 VAWA [FR Notice 8/13/24] ........................................................ 18-50 EXHIBIT 1

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18-II.H. Project-Basing VASH Vouchers ....................................................... 18-51 General Requirements
[Notice PIH 2017-21 and FR Notice 8/13/24] .............................. 18-51 Ineligible Units ............................................................................. 18-51 Termination of Assistance ............................................................ 18-52 Moves ........................................................................................... 18-52 Wrong-Sized or Accessible Units ................................................. 18-53 Contract Terminations .................................................................. 18-53 Rents ............................................................................................. 18-53 Removing Units from the HAP Contract
for Ineligible Families ................................................................... 18-53 Zero HAP Families ....................................................................... 18-54 Proposal Project Selection ............................................................ 18-54 Failure to Participate in Case Management
[FR Notice 8/13/24] ...................................................................... 18-55 Moves [HUD-VASH Qs and As, FR Notice 8/13/24] ................. 18-55 PART III: MAINSTREAM VOUCHER PROGRAM ........................................................ 18-57 18-III.A. Program Overview [Notice PIH 2020-01
and Notice PIH 2-2024-30] ................................................................ 18-57 18-III.B. Eligible Population [Notice PIH 2020-01 and
Notice PIH 2020-22] ........................................................................... 18-58 18-III.C. Partnership And Supportive Services [Notice PIH 2020-01] ............. 18-58 18-III.D. Waiting List Administration [Notice PIH 2024-30] ........................... 18-59 18-III.E. Preferences [Notice PIH 2024-30] ...................................................... 18-60 18-III.F. Voucher Issuance ................................................................................ 18-61 Initial Search Term [Notice PIH 2024-30] ................................... 10-61 Voucher Extension [Notice PIH 2024-30] ................................... 10-61 18-III.G. Portability [Notice PIH 2020-01 and
Mainstream Voucher Basics Webinar, 10/15/20] ............................... 18-63 18-III.H. Project-Basing Mainstream Vouchers [FY19 Mainstream Voucher NOFA Q&A] ....................................................................... 18-63 PART IV: NON-ELDERLY DISABLED (NED) VOUCHERS............................................. 18-65 18-IV.A. Program Overview [Notice PIH 2013-19] .......................................... 18-65 18-IV.B. Eligible Population ............................................................................. 18-66 General Requirements [Notice PIH 2013-19] .............................. 18-66 NED Category 2 [Notice PIH 2013-19
and NED Category 2 FAQs] ......................................................... 18-66 18-IV.C. Waiting List ........................................................................................ 18-67 General Requirements [Notice PIH 2013-19] .............................. 18-67 NED Category 2 Referrals [NED Category 2 FAQs] ................... 18-67 Reissuance of Turnover Vouchers [Notice PIH 2013-19] ............ 18-68 EXHIBIT 1

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18-IV.D. Lease Up [Notice PIH 2013-19] ......................................................... 18-69 Briefings ....................................................................................... 18-69 Voucher Term ............................................................................... 18-69 Special Housing Types [Notice PIH 2013-19
and NED Category 2 FAQs] ......................................................... 18-70 18-IV.E. Portability [NED Category 2 FAQs] .................................................. 18-70

GLOSSARY
HOTMA 102/104 Appendix to the Administrative Plan
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Introduction

HOTMA CHANGES IN THE ADMINSTRATIVE PLAN
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.

HOTMA 102/104
HUD published a final rule on February 14, 2023, revising regulations related to income, assets, adjusted income, verification, and reexams (among others) to implement Sections 102 and 104 of HOTMA. While the new regulations were effective January 1, 2024, HUD has delayed the compliance date for HOTMA 102/104. Initially, HUD published a delayed compliance date of January 1, 2025, but HUD again delayed the compliance date for HOTMA 102/104and no new date has been provided. Compliance with Sections 102 and 104 of HOTMA means not only applying HOTMA 102/104 regulations to affected programs but also reporting in HUD’s new Housing Information Portal (HIP) system. Currently, PHAs remain unable to comply with HOTMA 102/104 because compliance depends on transitioning from HUD’s IMS/PIC system (which is unable to accept HOTMA-compliant Form HUD-50058) to HUD’s new HIP system (which will be the only system that accepts HOTMA-compliant Form HUD-50058). PHAs cannot transition to HOTMA until HIP is in place, HOTMA-compliant, and accessible.

However, HUD has determined that a few HOTMA 102/104 policies are not dependent on transition systems and easily isolated from other HOTMA 102/104 policy changes. These policies may be implemented prior to the migration to HIP.

HUD stated that PHAs may update their policy documents before determining the date at which they will transition to all HOTMA Section 102 and 104 policies. HUD stated that in order to update their policy documents for HOTMA in this circumstance, PHAs may create an appendix that contains the HOTMA policies that will be incorporated at a later date. The policy adopts such an approach. HOTMA 102/104 policies are provided in each affected area of the policy.

However, with the exception of the policies HUD has indicated may be adopted early, HOTMA policies that are “on hold” are indicated in the policy as such. Further, an appendix has been provided to explicitly call out those policies that are on hold.

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HOTMA VOUCHER FINAL RULE
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 discussed above. The rule is known as the “HOTMA voucher final rule.” The effective date of the HOTMA voucher final rule was June 6, 2024. While the compliance date for certain provisions of the rule is the same as the effective date, the compliance date for other provisions is not until 90 days, 180 days, or one year after the effective date. Further, many new changes to the regulations described in the HOTMA voucher final rule require changes to the PHA’s administrative plan. PHAs must make all revisions needed to bring existing policies into compliance with the final rule no later than June 6, 2025 (one year after the effective date). However, if a PHA wishes to use program flexibilities requiring adoption of new local policies not already present in the PHA’s administrative plan, the PHA must add those policies to the administrative plan prior to using those program flexibilities.

Further, the delayed compliance date for policies of June 6, 2025, does not authorize delayed compliance with the provisions of the rule. PHAs that choose not to bring their policies into compliance with the rule until June 6, 2025, must still implement each provision on its compliance date.

In order to identify those provisions of the final rule that are not effective until after June 6, 2024, the policy states that certain policies are not effective until a specific date.

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ABOUT THE ADMINISTRATIVE PLAN

REFERENCES CITED IN THE ADMINISTRATIVE PLAN
The authority for PHA policies is derived from many sources. Primary among these sources are federal statutes, federal regulations, and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. Industry practice may also be used to develop policy as long as it does not conflict with federal requirements or prohibitions.

HUD
HUD provides the primary source of PHA policy through federal regulations, HUD notices, and handbooks. Compliance with federal regulations, current HUD notices, and current HUD handbooks is mandatory.

HUD also provides guidance to PHAs through other means such as HUD-published guidebooks, expired HUD notices, and expired handbooks. Basing PHA policy on HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy.

Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a “safe harbor.” Material posted on the HUD website can provide further clarification of HUD policies. For example, FAQs on the HUD website can provide direction on the application of federal regulations in various aspects of the program.

State Law
Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists.

Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law.

Industry Practice
Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. Industry practice refers to a way of doing things or a policy that has been adopted by a majority of PHAs.

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NSPIRE AND HQS IN THE ADMINISTRATIVE PLAN
The PHA must determine that the rental unit selected by the family is in safe and habitable condition at certain times prescribed by the regulations. The current applicable inspection standard for the HCV and PBV programs is Housing Quality Standards (HQS). On May 11, 2023, HUD published a final rule implementing the National Standards for the Physical Inspection of Real Estate (NSPIRE final rule), a new approach to defining and assessing housing quality across multiple HUD programs. 24 CFR 5.703 describes the NSPIRE standards, including variations for the HCV and PBV programs. Notice PIH 2023-28 finalized the administrative procedures for NSPIRE as they pertain specifically to the HCV and PBV programs. Collectively, this is known as “NSPIRE-V.”
The compliance date for NSPIRE-V is no later than October 1, 2025, at which point the HQS inspection standard will sunset. PHAs may, however, implement NSPIRE-V prior to October 1, 2025, provided they do so in accordance with requirements in FR Notice 7/5/24.

However, even once the HQS inspection standard has sunset, the regulations at 24 CFR Part 982 and 983 governing the HCV and PBV programs will continue to use the terms HQS and housing quality standards rather than NSPIRE. This is because, the definition of housing quality standards (HQS) at 24 CFR 982.4 means the minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for the HCV program, including any variations approved by HUD for the PHA. As such, the policy uses the term housing quality standards whenever applicable regulations use this term. Except in the chapter describing HQS, the acronym HQS is not used in the policy in order to avoid confusion between the umbrella term meaning housing standards and the specific inspection protocol. The policy only uses the term NSPIRE when referring to specific NSPIRE standards.

HOTMA SECTIONS 102 AND 104 CHANGES IN THE POLICY
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. HUD published a final rule on February 14, 2023, revising regulations related to income and assets (Sections 102 and 104 of HOTMA). While the new income and asset regulations were effective January 1, 2024, PHAs were instructed to select a compliance date no later than January 1, 2025. Compliance with Sections 102 and 104 of HOTMA means not only applying HOTMA regulations to affected programs but also reporting in HUD’s new Housing Information Portal (HIP) system. Currently, PHAs remain unable to select a compliance date because HOTMA compliance depends on transitioning from HUD’s IMS/PIC system (which is unable to accept HOTMA-compliant Form HUD-50058) to HUD’s new HIP system (which will be the only system that accepts HOTMA- compliant Form HUD-50058). Because HOTMA-compliant reexaminations cannot be successfully submitted to IMS/PIC, HUD advised PHAs not to begin conducting reexaminations under HOTMA rules without further information on when the new HOTMA-compliant Form HUD-50058 in HIP will be available. PHAs cannot transition to HOTMA until HIP is in place, HOTMA-compliant, and accessible.

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HOTMA VOUCHER FINAL RULE CHANGES IN THE MODEL POLICY
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 discussed above. The rule is known as the “HOTMA voucher final rule.” The effective date of the HOTMA voucher final rule was June 6, 2024. While the compliance date for certain provisions of the rule is the same as the effective date, the compliance date for other provisions is not until 90 days, 180 days, or one year after the effective date. Further, many new changes to the regulations described in the HOTMA voucher final rule require changes to the PHA’s administrative plan. PHAs must make all revisions needed to bring existing policies into compliance with the final rule no later than June 6, 2025 (one year after the effective date). However, if a PHA wishes to use program flexibilities requiring adoption of new local policies not already present in the PHA’s administrative plan, the PHA must add those policies to the administrative plan prior to using those program flexibilities.

In order to identify those provisions of the final rule that are not effective until after June 6, 2024, the policy states that certain policies are not effective until a specific date.

RESOURCES CITED IN THE ADMINISTRATIVE PLAN
The administrative plan cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the administrative plan may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the administrative plan and a list of references and document locations that are referenced in the administrative plan or that may be helpful to you.

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HUD HCV Guidebook
In November 2019 HUD began issuing a new version of the HCV Guidebook chapter-by- chapter. Unlike the previous version of the HCV Guidebook in which chapters were numbered, the new version of the guidebook includes chapter names, but no numbers. As the new version of the guidebook has not yet been fully released, and since the previous version of the guidebook contains guidance not found in the new version, the policy cites both versions of the guidebook.

Therefore, where the HCV Guidebook is cited in the policy, the citation will make a distinction between the “old” and “new” versions of the guidebook. The “old” version of the guidebook will continue to be cited as HCV GB with a chapter/page reference (example: HCV GB, p. 5-4). If HUD has also released a new chapter on the same topic with information that either adds new information or updates existing information from the previous guidebook, the new guidebook will be cited as New HCV GB with a chapter title and page reference (example: New HCV GB, Payment Standards, p. 11). On September 29, 2023, HUD issued Notice PIH 2023-27 to implement sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The notice supersedes relevant portions of the guidebook, specifically the chapters on eligibility, denials, and annual reexaminations and interim reexaminations. Where chapters have not been altered by the HOTMA implementation notice, the policy continues to cite the HCV Guidebook.

Abbreviations
Throughout the administrative plan, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited in the administrative plan.

Abbreviation Document
CFR Code of Federal Regulations
HCV GB Housing Choice Voucher Program Guidebook (7420.10G), April 2001.

New HCV GB Housing Choice Voucher Program Guidebook (7420.10G), Various dates of release
HUD-50058 IB HUD-50058 Instruction Booklet
RHIIP FAQs Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions.

VG PIH Notice 2004-01 Verification Guidance, March 9, 2004.

HB 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs
Resources and Where to Find Them
The HUD website is https://www.hud.gov/.

Guidebooks, handbooks, and other HUD resources may be found at the HUDClips website:
https://www.hud.gov/program_offices/administration/hudclips.

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Following is a list of resources helpful to the PHA or referenced in the administrative plan, and the online location of each.

Document and Location
Code of Federal Regulations
https://www.ecfr.gov/
Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Final Rule
http://edocket.access.gpo.gov/2008/pdf/E8-19435.pdf
Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data
https://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF
Executive Order 11063
https://www.archives.gov/federal-register/codification/executive-order/11063.html Federal Register
https://www.federalregister.gov/
Housing Choice Voucher Program Guidebook (7420.10G), Updated Chapters https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/guidebook HOTMA Final Rule
https://www.federalregister.gov/documents/2023/02/14/2023-01617/housing-opportunity- through-modernization-act-of-2016-implementation-of-sections-102-103-and- 104?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium= email
HOTMA Implementation Notice, PIH 2023-27
https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-27pihn.pdf Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004
https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007
https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf
Notice PIH 2010-26 (HA), Nondiscrimination and Accessibility Notice https://www.hud.gov/sites/documents/DOC_8993.PDF
Notice PIH 2017-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System
https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF VAWA Resources
https://www.hud.gov/vawa

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Administrative Plan 7/1/2025 Page 1-1
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 Santa Ana (SAHA) for the jurisdiction of the City of Santa Ana in the County of Orange.

The officials of SAHA are known as commissioners or, collectively, as the Board of Commissioners. The City Council for the City of Santa Ana is the Board of Commissioners for the Housing Authority when seated as the Authority. The board is responsible for establishing policies under which SAHA conducts business, ensuring that policies are followed by SAHA staff and ensuring that SAHA 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 SAHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of SAHA.

The principal staff member of SAHA is the eExecutive dDirector (ED), hired and appointed by the City Manager. The eExecutive dDirector gives the Housing Division Manager the direct responsibility for carrying out the policies established by the board and is delegated the responsibility for hiring, training and supervising SAHA staff in order to manage the day-to-day operations of SAHA. The Housing Division Manager is responsible for ensuring compliance with federal and state laws and directives for the programs managed. In addition, the Housing Division Manager’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.

SAHA Policy
Our Mission is to provide affordable housing for the most vulnerable members of our community to use as a platform to obtain self-sufficiency and independence from our assistance.
1-I.D. THE PHA’S PROGRAMS
The following programs are included under this administrative plan:

SAHA Policy
SAHA’s Administrative Plan is applicable to the operation of the Housing Choice Voucher program, Project-Based Voucher Program, Mainstream Voucher Program, and all related programs.
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:

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 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 decent, safe, and sanitary 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 the 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.

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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
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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
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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 HUD- approved 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]
The HUD regulations at 24 CFR 982.54 define the policies that must be included in the administrative plan. They are as follow:
 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 (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 (Chapter 16);  Policies on administering decreases and increases in the payment standard during the HAP contract term (Chapter 6);
 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 (Chapter 11);  Restrictions, if any, on the number of moves by a participant family (Chapter 10);  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 (Chapter 8);
 PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3);  Policies governing the project-basing of vouchers in both the standard Project-Based Voucher (PBV) program (Chapter 17) and the RAD Project-Based Voucher program (Chapter 18); and
 Special policies governing any special purpose vouchers issued by the PHA (Chapter 19).

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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.

SAHA Policy
SAHA 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: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register.

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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 Orders 11063 and 13988
 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)
 The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012 and further clarified in Notice PIH 2014-20
 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.

SAHA Policy
SAHA will comply fully with California Assembly Bill 1418 (AB1418) (Gov. Code, §53165.1) Prohibition on Penalties Against Tenants and Landlords for Law Enforcement Contact or Emergency Services.
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”) EXHIBIT 1

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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 [FR Notice 02/03/12; Executive Order 13988].

SAHA Policy
SAHA does not identify any additional protected classes.

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
 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 EXHIBIT 1

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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.

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

Within 14 calendar days of receiving the complaint, SAHA will investigate and attempt to remedy discrimination complaints made against SAHA. SAHA 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 SAHA lobbies, will reference how to file a complaint with FHEO.

SAHA will keep a record of all complaints, investigations, notices, and corrective actions in the client file and/or electronic records. (See Chapter 16.) Complaints under the Equal Access Final Rule [Notice PIH 2014-20] Notice PIH 2014-20 requires an articulated complaint process for allegations of discrimination under the Equal Access Final rule. The Equal Access Final Rule requires that PHAs provide equal access regardless of marital status, gender identity, or sexual orientation. The PHA will be informed on these obligations by the HUD Field Office or FHEO when an Equal Access complaint investigation begins.

SAHA Policy
Applicants or tenant families who believe that they have been subject to unlawful discrimination based on marital status, gender identity, or sexual orientation under the Equal Access Rule may notify SAHA either orally or in writing. SAHA will make a case note documenting the oral report.

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

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SAHA will also provide information on how to complete and submit a housing discrimination complaint form to HUD’s Office of Fair Housing and Equal Opportunity (FHEO).

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.

SAHA Policy
Applicants or tenant families who wish to file a VAWA complaint against SAHA may notify SAHA either orally or in writing.

SAHA will advise the family of their right to file a VAWA complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO)..

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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.

SAHA Policy
SAHA will notify 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 SAHA, 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 our office.”
Requests for reasonable accommodation will be directed to a Senior Housing Specialist and/or a Supervisor. All requests will be forwarded to the Reasonable Accommodation Committee for review.

SAHA will display posters and other housing information and signage in locations throughout the 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.

SAHA Policy
SAHA will encourage the family to make its request in writing using a standard Reasonable Accommodation Request Form. However, SAHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted.

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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.

SAHA Policy
After a request for an accommodation is presented, SAHA will respond in writing within 30 calendar days.

If SAHA 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 SAHA’s decision through an informal review (if applicable) or informal hearing (see Chapter 16).

If SAHA 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 SAHA’s operations), SAHA 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 SAHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, SAHA will notify the family in writing of its determination within 14 calendar 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.

SAHA 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 SAHA 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.

When issuing a voucher to a family that includes an individual with disabilities, the PHA will include a current list of available accessible units known to the PHA and will assist the family in locating an available accessible unit, if necessary.

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: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED

ENGLISH PROFICIENCY (LEP)
2-III.A. OVERVIEW
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. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register.

The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP).

LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this administrative plan, LEP persons are HCV applicants and participants, and parents and family members of applicants and participants.

In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher program; (2) the frequency with which LEP persons come into contact with the program; (3) the nature and importance of the program, activity, or service provided by the program to people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA.

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2-III.B. ORAL INTERPRETATION
The PHA will offer competent interpretation services free of charge , upon request, to the LEP person.

SAHA Policy
SAHA will utilize telephone interpreter services.

When exercising the option to conduct remote briefings, informal reviews, or hearings, however, SAHA will coordinate with a remote interpretation service which, when available, uses video conferencing technology rather than voice-only interpretation.

Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by SAHA. SAHA, at its discretion, may choose to use the language services even when LEP persons desire to use an interpreter of their choosing. The interpreter may be a family member or friend. If the interpreter chosen by the family is a minor, SAHA will not rely on the minor to serve as the interpreter.

SAHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. “Reasonable steps” may not be reasonable where the costs imposed substantially exceed the benefits. 2-III.C. WRITTEN TRANSLATION
Translation is the replacement of a written text from one language into an equivalent written text in another language.

SAHA Policy
In order to comply with written-translation obligations, SAHA will take the following steps:

SAHA will provide written translations of vital documents for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, SAHA does not translate vital written materials, but provides written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost.

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2-III.D. IMPLEMENTATION PLAN
After completing the four-factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves.

If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA’s Housing Choice Voucher program and services.

SAHA Policy
Currently, 100% of Housing Specialists are bilingual in either Spanish or Vietnamese.

These three languages (English, Spanish, and Vietnamese) are spoken by program participants. Forms that are in these three languages include, but are not limited to, the Orientation Packet, the Briefing Packet, Statement of Family Responsibilities, Voucher, Declaration of Legal Residency, Lease Addendum, Owner/Tenant Relationship, and any pertinent SAHA correspondence as appropriate.

Online translation services are made available for any web based information.

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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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Santa Ana City CouncilJuly 1, 2025

Santa Ana City Council
July 1, 2025