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SARA uses the following local preference system: • Live/Work Preference -- Residency preference for families who live or work in the jurisdiction at time of application (proof must be provided, e.g. utility bills, bank statements, paycheck stubs, etc at their eligibility interview appointment). • United States Veteran Preference -- United States veterans or surviving spouses and dependent children of a United States veteran, or active military personnel, their spouse and their dependent children. Form DD 214 with an Honorable Discharge, or equivalent verification, must be provided at the time of orientation. • Graduates of Transitional Housing Preference -- Graduates of transitional housing programs whose agency has entered into a MOU with SARA to provide one year of support services to the participants after lease-up, not to exceed ten (10) vouchers per fiscal year. Additionally, SARA will offer a preference to any family that has been terminated from its HCV program due to insufficient program funding. Income Targeting Requirement [24 CFR 982.201(b)(2)] HUD requires that extremely low-income (ELI) families make up at least 75% of the families admitted to the HCV program during SAHA's fiscal year. ELI families are those with annual incomes at or below 30% of the area median income. To ensure this requirement is met, a PHA may skip non-ELI families on the waiting list in order to select an ELI family. Low income families admitted to the program that are "continuously assisted" under the 1937 Housing Act [24 CFR 982.4(b)], as well as low-income ormoderate-income families admitted to the program that are displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)]. SARA will monitor progress in meeting the ELI requirement throughout the fiscal year. Extremely low-income families will be selected ahead of other eligible families on an as-needed basis to ensure the income targeting requirement is met. Order of Selection SARA system of preferences will select families either according to the date and time of application. When selecting families from the waiting list PHAs are required to use targeted funding to assist only those families who meet the specified criteria, and PHAs are not permitted to skip down the waiting list to a family that it can afford to subsidize when there are not sufficient funds to subsidize the family at the top of the waiting list [24 CFR 982.204(4) and (e)]. Families will be selected from the waiting list based on the targeted funding or selection preference(s) for which they qualify, and in accordance with SAHA's hierarchy of preferences, if applicable. Within each targeted funding or preference category, families will be selected on a first-come, first-served basis according to the date and time their complete application is received by SARA. Documentation will be maintained by SARA as to whether families on the list qualify for and are interested in targeted funding. If a higher placed family on the waiting list is not qualified or not interested in targeted funding, there will be a notation maintained so that SARA does not have to ask higher placed families each time targeted selections are made. ~~02~12 Page 4-8