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Summary of the Proposed Discretionary Policy Changes to the Public Housing Authority (PHA) Plan for Fiscal Year 2025-2026
The Annual Plan provides updates for the five-year goals, major program policies, and financial resources for both the Santa Monica Housing Authority (SMHA) rental assistance programs and City initiatives. Additionally, the Annual Plan updates information on housing needs, housing strategies, and other City program information.
This attachment includes the following sections:
• Proposed discretionary policy changes to the Administrative Plan, which governs the administration of SMHA’s voucher programs, • Summary updates from HUD related to the implementation of the Housing Opportunity through Modernization Act of 2016 (HOTMA) • Compliance with HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE) inspection protocols Annual Plan Timeline
• The SMHA must provide a proposed PHA Plan for public review and comment for 45 days: January 10, 2025, through February 25, 2025
• Public comments are received, memorialized, and considered in developing the Annual Plan • Public hearing during the Housing Commission meeting on February 6, 2025 • Housing Authority Board consideration, Public Hearing and approval on April 8, 2025 • Annual Plan submission due to HUD by April 17, 2025
• HUD approval 75 days after submission
• Annual/Administrative Plan becomes effective July 1, 2025 The Administrative Plan includes language changes that are statutory, regulatory, and/or that clarify existing policy. Additionally, the SMHA is providing the last Annual update to the Agency Plan for FY 2020-2025, Proposed Five-Year plan FY 2025-2030 proposing the following discretionary changes to the proposed Administrative Plan for Fiscal Year (FY) 2025-2026. 2 of 15
Section
Page # Proposed Policy Explanation
3-I.M.
P 3-12 LIVE-IN AIDE
PHA POLICY
A family’s request for a live-in aide must may be made
either orally or in writing using a live-in aide form. The PHA will verify the need for a live-in aide with Written verification will be required from a reliable,
knowledgeable professional, such as a doctor, social
worker, or case worker, unless the disability-related need is apparent or known to the PHA that the live-in aide is essential for the care and well-being of the elderly, nearelderly, or disabled family member. For continued approval, the family must may be required to submit a
new, written request-subject to PHA verification -at each annual reexamination.
In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the
care, and (2) would not be living in the unit except to provide the necessary supportive services.
This policy has been revised to
enhance accessibility for requesting
a Live-in Aide.
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Section
Page # Proposed Policy Explanation
3-III.C.
P 3-33 RESTRICTION
ON ASSISTANCE BASED
ON ASSETS
PHA Policy
In general, the PHA defines a geographic hardship to
include when a family members’ work, school, health care provider, or other necessary service is located an
unreasonable distance from the real property or there is a lack of adequate transportation options for the family to access work, school, health care, or other necessary
services. The PHA will consider circumstantial details a family faces when determining whether a geographic
hardship is present.
The PHA clarifying a geographic
hardship to decide if a property is
suitable for a family when checking
eligibility for assistance based on assets.
4-I.D.
P 4-4 PLACEMENT ON
THE WAITLIST
PHA Policy
If the PHA can determines, from based on the information provided, that an applicant is ineligible, the applicant will not be placed on be removed from the waitlist. Where an applicant is determined to be ineligible, the PHA will send written notification of the ineligibility determination. The notice will specify the reasons for ineligibility and will inform the applicant of their right to request an informal review and explain the process for doing so (see Chapter 16). If the applicant wants to provide additional
documentation, it must be submitted at the time the
informal review is requested.
Applicants are initially placed on the waitlist based on minimal information, which the applicant family is
required to certify as true and accurate during the
preliminary application process. Once openings for
This clarifies the procedure for how the
Housing Authority reviews applications
for initial eligibility. It will help the
Housing Authority respond more
effectively to Santa Monica residents
and members of the local workforce.
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housing assistance become available, applicants are
notified to proceed with the full application and eligibility process. At that stage, all information provided by the applicant is subject to verification.
If the PHA determines during this verification process that a family is ineligible, the family will be removed from the active waitlist. Additionally, as the PHA reviews the
waitlist to assess preferences and ensure it remains
appropriately sized. An appropriate waitlist size is based on the program funding that is available during the 12- month period following the closing of the waitlist.
4-III.C.
P 4-12 SELECTION
METHOD
The Housing Authority may implement a Temporary
Priority to our wait lists for any natural disaster or
national emergency occurring outside Santa Monica’s
jurisdiction that the City formally supports through Council action, Emergency Order, or Housing Authority Board
action. This priority will be enacted based on the criteria and priorities established in the respective action and/or order to address the emergency or disaster.
PHA POLICY
TIER 1 PREFERENCES:
• The Santa Monica Housing Authority (SMHA) will
allocate up to 50% of voucher attrition to assist
Santa Monica-based households who are
experiencing homelessness or are at risk of
homelessness. Eligibility for the Housing Choice
Voucher (HCV) program requires individuals or
This is a revision and expansion of the
Tier 1 Policy Pilot Program, which has
been highly effective in preventing
homelessness and supporting
vulnerable Santa Monica families. The
revision aims to strengthen the Housing
Authority's connections within the city
to better serve Santa Monica residents.
The Housing Authority will build and
maintain relationships with local
organizations and the Human Services
Department to focus on assisting
vulnerable residents. Through active
community engagement, the Housing
Authority will provide training, establish
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families to be referred by an approved SMHA
Partner. These referrals must be screened and
approved by the Santa Monica Housing Authority
before being accepted, at which point applicants
will receive priority placement on the waitlist.
• Additionally, the City of Santa Monica Human
Services Division, or a designated representative
approved by the Housing Division, may submit
referrals on behalf of other partners that have
been approved by the City of Santa Monica.
TIER 2 PREFERENCES:
• Live: Applicants who live in Santa Monica
(Chronically homeless applicants on the Santa
Monica Service Registry are considered residents
of Santa Monica)
TIER 3: Applicants who do not qualify for the Tier 1-2
preferences
Tier 4 removed
procedures, and implement systems to
reach residents in need, including those
relying on support from both city
services and the broader Santa Monica
community.
5-I.B.
P 5-8 BRIEFING [24
CFR 982.301]
PHA Policy
The PHA will provide the following additional materials in the briefing packet:
The grounds on which the PHA may terminate assistance
for a participant family because of family action or failure to act
Requirements for notifying the PHA of any changes in
income or family composition
Information on how to fill out and file a housing
discrimination complaint form
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The publication Things You Should Know (HUD-1140-OIG)
that explains the types of actions a family must avoid and the penalties for program abuse
The form HUD-5380 domestic violence certification form
and the form HUD-5382 notice of occupancy rights, which contain information on VAWA protections for victims of
domestic violence, dating violence, sexual assault, and stalking “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse “What You Should Know
about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to
Notice PIH 2017-12
6B-II.C.
P6B-38 ASSET
INCLUSIONS AND
EXCLUSIONS
PHA Policy
In determining the value of non-necessary, non-financial personal property, the PHA will use the family’s estimate of the value. The PHA may obtain an appraisal if there is reason to believe that the family’s estimated value is off by $50 or more. The family must cooperate with the
appraiser but cannot be charged any costs related to the appraisal.
New policy to determine the value of nonnecessary, non-financial personal property:
1. Based on the family’s estimate of
the value;
2. Obtain an appraisal if PHA believes
the estimation is of by $50 or more
6B-III.D
P6B-51 HEALTH AND
MEDICAL CARE
EXPENSES DEDUCTION
PHA Policy
The PHA will use the most current IRS Publication 502 as a standard for determining if expenses claimed by eligible families qualify as health and medical care expenses.
However, under no circumstances will the PHA deduct
any expenses listed in IRS Publication 502 that do not
Policy refers IRS Publication 502 as a
standard to define qualified health and
medical care expense
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conform with HUD’s definition of health and medical care expenses.
6B-IV.C.
P6B-70 APPLYING
PAYMENT STANDARDS
PHA Policy
If the PHA changes its payment standard schedule to a
lower amount during the term of a HAP contract, it will not reduce the payment standard used to calculate
subsidy for families under the contract, unless budget
constraints require a reduction in the number of vouchers issued.
Expansion of policy to maximize the
number of households served.
6B-IV.C.
P6B-71 APPLYING
PAYMENT STANDARDS
PHA Policy
If the family unit size (voucher size) changes during the term of a HAP contract, the new family unit size will be used to determine the payment standard at the family’s
first regular reexamination following the change in family unit size.
New policy to reflect the changes in family
unit size and payment standard during the
term of a HAP contract
7B-I.B.
P7B-5
OVERVIEW OF
VERIFICATION
REQUIREMENTS
PHA Policy
When available and applicable, the PHA will accept other programs’ Safe Harbor determinations of income at
annual reexamination to determine the family’s total
annual income. The PHA will still require third-party
verification of all deductions such as the health and
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medical care expense or childcare expense deductions.
Further, if the family is eligible for and claims the disability assistance expense or childcare expense deductions,
where applicable, the PHA will obtain third-party
verification of the amount of employment income of the
individual(s) enabled to work in order to cap the
respective expenses as required.
Prior to using any Safe Harbor determination from
another program, the PHA will ask the family if they agree with the income amounts listed. If the family disputes the income amounts on the Safe Harbor determination, the
PHA will obtain third-party verification of all sources of income and assets (as applicable).
The PHA may at its discretion accept other programs’
determinations of income for any new admission or
interim reexamination.
The PHA will accept Safe Harbor determinations from any of the programs listed above.
In order to be acceptable, the income determination
must:
Be dated within 12 months of the dates listed above;
State the family size
Be for the entire family (i.e., the family members listed in the documentation must match the family’s composition
in the assisted unit, except for household members); and Must state the amount of the family’s annual income.
The determination need not list each source of income
individually. If the PHA does not receive any acceptable 9 of 15
income determination documentation or is unable to
obtain documentation, then the PHA will revert to thirdparty verification of income for the family.
When families present multiple verifications from the
same or different acceptable Safe Harbor programs, the
PHA will use the most recent income determination,
unless the family presents acceptable evidence that the PHA should consider an alternative verification from a
different Safe Harbor source.
When the PHA uses a Safe Harbor income determination
from another program, and the family’s income
subsequently changes, the family is required to report the change to the PHA. Depending on when the change
occurred, the change may or may not impact the PHA’s
calculation of the family’s total annual income. Changes that occur between the time the PHA receives the Safe
Harbor documentation, and the effective date of the
family’s annual reexamination will not be considered. If the family has a change in income that occurs after the annual reexamination effective date, the PHA will conduct an interim reexamination if the change meets the
requirements for performing an interim reexamination as outlined in Chapter 11. In this case, the PHA will use thirdparty verification to verify the change. 8-II.B.
P 8-13 INITIAL HQS
INSPECTION
PHA Policy
The PHA will determine the use of the Non-LifeThreatening (NLT) option on a case-by-case basis.
Otherwise, all units must pass the initial inspection by the effective date of the HAP contract or as specified by the PHA to the owner and family.
New policy that PHA will not use the NLT
option. All units must pass the initial
inspection on or before the effective date
of the HAP contract
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10-I.B.
P 10-3 FAMILY MOVES
DUE TO UNIT
DEFICIENCIES
PHA Policy
Upon receipt of a family’s written notification that it wishes to move, the PHA will issue a voucher within 10
business days of the PHA’s written approval to move. No briefing is required for these families. The PHA will follow the policies set forth in Chapter 5 on voucher term,
extension, and expiration.
New policy regarding family moving due to
unit deficiencies
10-I.B.
P 10-4 FAMILY MOVES
DUE TO UNIT
DEFICIENCIES
PHA Policy
The PHA will issue a family whose HAP contract is being terminated due to an owner failing to make required
repairs within the required time frame a voucher no later than 30 days prior to the termination of the HAP contract.
The initial term of the voucher will be 120 calendar days.
No briefing is required for these families.
To continue under the tenant-based HCV program, the
family must submit a Request for Tenancy Approval and
proposed lease within the 180-day period unless the PHA grants an extension. The PHA will follow the policies set forth in Chapter 5 on voucher extension and expiration.
Policy for contracts after 6/6/24: The PHA
will issue a voucher to families whose HAP
contract is terminated due to owner repair
failure, with a 120-day initial term, and to
continue in the HCV program, the family
must submit a Request for Tenancy
Approval and lease within that period,
unless an extension is granted.
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10-I.B.
P 10-4 FAMILY MOVES
DUE TO UNIT
DEFICIENCIES
PHA Policy
The PHA will assist families with disabilities with locating available accessible units in accordance with program
requirements.
The PHA will use on a case-by-case basis up to two
months of withheld and abated payment to assist with
any required security deposit at the new unit. Funds will not be used for any other relocation assistance.
If the family receives a refund of a security deposit for the new unit, the PHA will not require any amount to be
remitted to the PHA.
New policy regarding assisting families
with disabilities in finding accessible units
12-I.E.
P 12-8 & 12-10
MANDATORY POLICIES
AND OTHER
AUTHORIZED
TERMINATIONS
PHA Policy
The PHA will terminate a family’s assistance if:
The family has failed to comply with any family
obligations under the program and they cannot provide
sufficient evidence that violation was caused by mitigating circumstances, will not likely to be repeated again, nor that they have taken verifiable actions to maintain
compliance with the family obligations. See Exhibit 12-1 for a listing of family obligations and related PHA policies.
In making its decision to terminate assistance, the PHA will consider alternatives to termination and any verifiable evidence that the family will maintain compliance with
the family obligations. The PHA will also consider
alternative as described in Section 12-II.C and other
Policy was revised to clarify the
consequences when the PHA make
decisions to terminate a family’s assistance
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factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, the PHA will choose whether to terminate assistance on a case-bycase basis. 12-I.E.
P 12-10
MANDATORY POLICIES
AND OTHER
AUTHORIZED
TERMINATIONS
Upon the PHA’s HOTMA 102/104 compliance date, the
below section on the asset limitation is added:
Asset Limitation [24 CFR 5.618; Notice PIH 2023-27]
The PHA has discretion with respect to the application of the asset limitation at annual and interim reexamination.
The PHA may adopt a written policy of total
nonenforcement, enforcement, or limited enforcement as
well as adopting exception policies.
PHA Policy
The PHA has adopted a policy of total nonenforcement of the asset limitation for all program participants. The asset limitation only applies to initial eligibility determinations for new admissions to the PHA’s HCV program.
New policy about asset limitation
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17-V.B.
P17-26
HAP CONTRACT
REQUIREMENTS
PHA Policy
For existing housing, the HAP contract will generally be executed within 10 business days of the PHA determining that all units pass inspection.
For rehabilitated or newly constructed housing, the HAP contract will generally be executed within 10 business
days of the PHA determining that the units have been
completed in accordance with the AHAP, all units meet
housing quality standards, and the owner has submitted
all required evidence of completion.
The HAP contract is executed within 10
business days after inspection for existing
housing or after confirming completion
and standards for rehabilitated/new
housing.
21-I.C.
P 21-6
HCV PROGRAM
ELIGIBILITY
Minimum Rent [FR Notice 8/13/24]
PHAs must consider hardship circumstances before
charging a minimum rent in accordance with 24 CFR
5.630(b). The PHA may choose to charge a lower
minimum rent (including a minimum rent of $0)
specifically for their VASH program regardless of the
minimum rent policies established in their administrative plan for other HCV families.
PHA Policy
The PHA will establish a minimum rent of $50 for VASH
families.
Policy for minimum rent for VASH
applicants
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PROPOSED CHANGES TO SMHA POLICY TO COMPLY WITH THE
HOUSING OPPORTUNITIES THROUGH MODERNIZATION ACT of 2016 Proposed Changes to SMHA Policy for FY 2025-26 to Comply with HUD Guidelines and Updates Overview of Key Changes
The Santa Monica Housing Authority (SMHA) has incorporated updates to its Administrative Plan to align with new guidelines and regulations issued by the U.S. Department of Housing and Urban Development (HUD). These changes ensure compliance with the Housing Opportunities Through Modernization Act of 2016 (HOTMA) and other recent HUD provisions.
HOTMA Sections 102 and 104 Compliance
The Housing Opportunity Through Modernization Act (HOTMA) was enacted on July 29, 2016, and includes reforms to the Section 8 rental assistance program. While HOTMA’s Sections 102 and 104 final rules were initially set for a compliance date of January 1, 2024, HUD has postponed this deadline, and a new compliance date has not been established. Until that time, the SMHA will operate under pre-HOTMA policies while preparing for an immediate transition once the compliance date is announced.
What Participants Need to Know:
• Recertification Notifications: During annual reexaminations, participants will be informed whether they are being recertified under the "New Rules" (post-HOTMA) or the "Old Rules" (pre-HOTMA). • HOTMA Compliance Timeline: SMHA will notify all participants when full compliance with HOTMA 102/104 is achieved.
For More Information:
Participants can review HOTMA’s official notices and rules at HUD’s HOTMA Resources.
Texts in red represent proposed revisions/new policies, and texts in black indicate the existing language
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HOTMA Voucher Final Rule (May 2024)
HUD released the HOTMA Voucher Final Rule in May 2024. While full compliance is not required until June 2025, SMHA has proactively updated relevant policies to reflect these changes. This ensures program operations align with new requirements as they take effect.
Key Updates:
• Applicability to Voucher Programs: Updates address both immediate and future implementation of rule provisions throughout 2024 and 2025.
• Participant Impact: Participants may notice minor procedural changes in how eligibility, income, and other program aspects are assessed.
Project-Based Voucher (PBV) Program Updates for Chapter 17 The Project-Based Voucher (PBV) program has undergone significant revisions as mandated by HUD. These changes are reflected in Chapter 17 of the Administrative Plan.
Summary of Administrative Plan Updates
The following chapters have been updated as part of the FY 2025-26 Administrative Plan revision:
• 2 Versions of Chapter 6: Income and Rent Determination (Chapter 6A: Pre-HOTMA and Chapter 6B: HOTMA versions provided)
• 2 Versions of Chapter 7: Verification (Chapter 7A: Pre-HOTMA and Chapter 7B: HOTMA versions provided) • 2 Versions Chapter 11: Reexaminations (Chapter 11A: Pre-HOTMA and Chapter 11B: HOTMA versions provided) • Updated Chapter 17: Project-Based Voucher (PBV) Program The SMHA is committed to a smooth transition and will work to ensure participants are informed of any changes that may impact their housing assistance. If you have questions or need assistance, please contact our office.