HomeMy WebLinkAbout3 - PUBLIC HEARING ANNUAL ACTION PLAN3-1
3-2
Streamlined Annual
PHA Plan
(High Performer PHAs)
U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
OMB No. 2577-0226
Expires: 02/29/2016
Page 1 of 5 form HUD-50075-HP (12/2014)
Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the
PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission, goals and
objectives for serving the needs of low- income, very low- income, and extremely low- income families
Applicability. Form HUD-50075-HP is to be completed annually by High Performing PHAs. PHAs that meet the definition of a Standard PHA, Troubled
PHA, HCV-Only PHA, Small PHA, or Qualified PHA do not need to submit this form.
Definitions.
(1) High-Performer PHA – A PHA that owns or manages more than 550 combined public housing units and housing choice vouchers, and was designated as
a high performer on both of the most recent Public Housing Assessment System (PHAS) and Section Eight Management Assessment Program (SEMAP)
assessments.
(2) Small PHA - A PHA that is not designated as PHAS or SEMAP troubled, or at risk of being designated as troubled, and that owns or manages less than
250 public housing units and any number of vouchers where the total combined units exceeds 550.
(3) Housing Choice Voucher (HCV) Only PHA - A PHA that administers more than 550 HCVs, was not designated as troubled in its most recent SEMAP
assessment, and does not own or manage public housing.
(4) Standard PHA - A PHA that owns or manages 250 or more public housing units and any number of vouchers where the total combined units exceeds
550, and that was designated as a standard performer in the most recent PHAS or SEMAP assessments.
(5) Troubled PHA - A PHA that achieves an overall PHAS or SEMAP score of less than 60 percent.
(6) Qualified PHA - A PHA with 550 or fewer public housing dwelling units and/or housing choice vouchers combined, and is not PHAS or SEMAP
troubled.
A. PHA Information.
A.1 PHA Name: __Housing Authority of the City of Santa Ana_______________________________________ PHA Code: _CA093___________
PHA Type: Small High Performer
PHA Plan for Fiscal Year Beginning: (MM/YYYY): __07/2016_____
PHA Inventory (Based on Annual Contributions Contract (ACC) units at time of FY beginning, above)
Number of Public Housing (PH) Units _____________ Number of Housing Choice Vouchers (HCVs) _2,699______
Total Combined _____________
PHA Plan Submission Type: Annual Submission Revised Annual Submission
Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public.
A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all information relevant to the public hearing
and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may
reasonably obtain additional information of the PHA policies contained in the standard Annual Plan, but excluded from their streamlined
submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central
office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official website. PHAs are also encouraged to provide each
resident council a copy of their PHA Plans.
PHA Consortia: (Check box if submitting a Joint PHA Plan and complete table below)
Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the
Consortia
No. of Units in Each Program
PH HCV
Lead PHA:
B. Annual Plan Elements
EXHIBIT 13-3
Page 2 of 5 form HUD-50075-HP (12/2014)
B.1 Revision of PHA Plan Elements.
(a) Have the following PHA Plan elements been revised by the PHA since its last Annual PHA Plan submission?
Y N
Statement of Housing Needs and Strategy for Addressing Housing Needs.
Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions.
Financial Resources.
Rent Determination.
Homeownership Programs.
Safety and Crime Prevention.
Pet Policy.
Substantial Deviation.
Significant Amendment/Modification
(b) The PHA must submit its Deconcentration Policy for Field Office Review.
(c) If the PHA answered yes for any element, describe the revisions for each element below:
Statement of Financial Resources:
The financial resources anticipated to be available in 2016 for SAHA to administer HUD's tenant -based rental assistance program:
Annual Contributions for HCV Program: $27,902,651
FSS Coordinators: $138,000
B.2 New Activities.
(a) Does the PHA intend to undertake any new activities related to the following in the PHA’s current Fiscal Year?
Y N
Project Based Vouchers.
(b) If any of these activities are planned for the current Fiscal Year, describe the activities . If using Project-Based Vouchers (PBVs), provide the
projected number of project based units and general locations, and describe how project basing would be consistent with the PHA Plan.
SAHA will work with the City’s Housing Development Services unit to project base up to 200 vouchers in affordable housing developments via
competitive Notice of Funding Availability (NOFA) processes depending on funding availability. The City prefers to maximize the positive impact
of its limited federal housing development funds by concentrating their expenditure in targeted areas of the City. The City has identified four
geographical areas where it has targeted significant public resources in the past, and where it would like to see additional resources targeted in the
future. The four areas are known as follows: Cornerstone Village, Townsend-Raitt, Cedar-Evergreen, and 1900-2000 Myrtle Street. Additional
target areas are identified in the City’s Housing Element. Project-basing vouchers will be consistent with the PHA Plan because it will more
effectively meet our strategy for addressing our housing needs than regular tenant-based vouchers.
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Page 3 of 5 form HUD-50075-HP (12/2014)
B.3
Progress Report.
Provide a description of the PHA’s progress in meeting its Mission and Goals described in the PHA 5-Year Plan.
Goal #1: Expand the supply of affordable housing by applying for additional Housing Choice Voucher when available. Apply for any new
funding opportunities.
SAHA issued an RFP for 25 VASH Project-Based Vouchers made available under PIH Notice 2015-11. No proposals were received
and SAHA was unable to submit an application for the set-aside.
Goal #2: Improve the quality of assisted housing by improving voucher management, increasing customer satisfaction, and impro ving
specific management functions.
Retain high performer SEMAP: SAHA was certified as a High-Performing PHA for FY 2015. Effective July 2015, for SEMAP Indicator
# 3 SAHA will sample a sufficient number of files per year in order to have 95% confidence that the quality control results obtained from
those file reviews is representative of the entire population of assisted-families. This representative sample will determine what
percentage of SAHA files have the correct housing assistance calculated for the entire population of assisted-families. For SEMAP
Indicator # 5, SAHA will sample an equitable amount of housing inspections per Housing Inspector as sampled and reviewed for
SEMAP Indicator # 3. This sampling is conducted on a monthly basis. This increase in the number of sampled files will exceed HUD’s
minimum requirements under SEMAP and improve the quality, integrity and accuracy of SAHA’s casework and inspections.
Open on-line wait list application process: In July 2015, SAHA opened an on-line Waiting List. A total of 16,375 applications were
submitted before the on-line Waiting List was closed.
Implement applicant portal: In September 2015, SAHA implemented a new applicant portal for applicants to use to make changes on
their Waiting List application.
Research paperless file options: SAHA met with one vendor to discuss options for paperless files.
Maintain leasing to 100% of HAP funding: SAHA utilized 99.7% of our Budget Authority from HUD for CY 2015.
Goal #3: Increase assisted housing choices, portability counseling to 100% of participants, conducting outreach to potential property
owner.
Continue to mail owner/participant newsletters: In December 2015, SAHA implemented a new monthly electronic Landlord Newsletter.
In January, SAHA mailed a request to all of our participants for their e-mail addresses with plans to send a monthly electronic Family
Self-Sufficiency Newsletter to our participants in the future.
Implement annual customer satisfaction survey:
Goal #4: Promote self-sufficiency by increasing employment among participants, linking to supportive services to increase independence
for the elderly and/or disabled, and increase participation in the Family Self Sufficiency (FSS) program.
Continue to provide referrals to the Santa Ana W/O/R/K Center for job training and placement services, providing information and
linkages to the County’s Council on Aging (elderly services) and the Dayle McIntosh Center (disabled services), and conducted
recruitment for the FSS program at initial voucher issuance, at annual re-examinations, and through tenant newsletters: SAHA increased
the number of participants in the Family Self-Sufficiency Program and qualified for a second full-time FSS Coordinator position
effective January 2016.
Goal #5: Ensure equal opportunity and affirmatively further fair housing through coordination with the Orange County Fair Hou sing
Council, the preparation of the Analysis of impediments to fair housing choice, and continued training on fair housing practi ces for staff
owner’s and participants.
Fair Housing programs and resources are included in all issuance briefings, reasonable accommodation tracking logs updated.
Communication was maintained with the County’s Fair Housing Council, Public Law Center, and Legal Aid, ensuring proper referrals
for anyone alleging discrimination, whether an HCV participant or member of the public: SAHA held a meeting with the Orange County
Legal Aid Society to discuss ways to improve communication and enhance collaboration to serve our community.
Assist the City of Santa Ana in maintaining of the housing Stock:
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Page 4 of 5 form HUD-50075-HP (12/2014)
B.4.
Most Recent Fiscal Year Audit.
(a) Were there any findings in the most recent FY Audit?
Y N
(b) If yes, please describe:
There were two findings.
The first finding stated, “During our review, we noted that the City did not have written procedures to implement the requirements of 2 CFR
section 200.305 Payment during fiscal year 2015.” The Cause was, “the City was unaware that this grant was subject to the requirements of
the Uniform Guidance, thus did not implement changes during fiscal year 2015”. The Effect was, “Failure to have a written pr ocedure to
ensure the compliance with 2 CFR section 200.305 Payment may result in noncompliance with Uniform Guidance requirements.”
The second finding stated, “During our review of compliance with the uniform guidance requirements, we noted that the City did not have
written procedures for determining the allowability of costs and the terms and conditions of the Federal award in fiscal year 2015. However,
the City developed and implemented the written procedures during fiscal year 2016.” The Cause was, “the City was unaware tha t this grant
was subject to the requirements of the Uniform Guidance, thus did not implement changes during fiscal year 2015.” The Effective was,
“Failure to have a written policy for determining allowability of costs and the terms and conditions of the Federal award may result in
noncompliance with Uniform Guidance requirements.”
Other Document and/or Certification Requirements.
C.1
Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan
Form 50077-ST-HCV-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic
attachment to the PHA Plan.
C.2
Civil Rights Certification.
Form 50077-ST-HCV-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic
attachment to the PHA Plan.
C.3
Resident Advisory Board (RAB) Comments.
(a) Did the RAB(s) provide comments to the PHA Plan?
Y N
If yes, comments must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describin g their analysis of
the RAB recommendations and the decisions made on these recommendations.
The City analyzed the recommendations of the Resident Advisory Board by: 1) considering the feasibility of each recommendation; 2) discussing as
a team the opportunity for SAHA to implement each recommendation; and 3) making a determination on which recommendation(s) could be
implemented or considered for future implementation. One of the primary recommendations we received was that SAHA needs to assist the most
vulnerable populations in our community. A second primary recommendation was that the vacancy rate is very low in Santa Ana which prevents
participants from finding and locating units. The RAB recommended we conduct more landlord outreach. All of the other recommendations are
summarized in the comments and were taken into consideration by the agency. A decision was made on each recommendation and implemented in
the draft HCV Administrative Plan.
C.4
Certification by State or Local Officials.
Form HUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the
PHA as an electronic attachment to the PHA Plan.
D
Statement of Capital Improvements. Required in all years for all PHAs completing this form that administer public housing and receive funding
from the Capital Fund Program (CFP).
D.1
Capital Improvements. Include a reference here to the most recent HUD-approved 5-Year Action Plan (HUD-50075.2) and the date that it was
approved by HUD.
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Page 5 of 5 form HUD-50075-HP (12/2014)
Instructions for Preparation of Form HUD-50075-HP
Annual Plan for High Performing PHAs
A. PHA Information. All PHAs must complete this section.
A.1 Include the full PHA Name, PHA Code, PHA Type, PHA Fiscal Year Beginning (MM/YYYY), PHA Inventory, Number of Public Housing Units and
or Housing Choice Vouchers (HCVs), PHA Plan Submission Type, and the Availability of Information, specific location(s) of all information relevant
to the public hearing and proposed PHA Plan. (24 CFR §903.23(4)(e))
PHA Consortia: Check box if submitting a Joint PHA Plan and complete the table. (24 CFR §943.128(a))
B. Annual Plan.
B.1 Revision of PHA Plan Elements. PHAs must:
Identify specifically which plan elements listed below that have been revised by the PHA. To specify which elements have been revised, mark the “yes” box.
If an element has not been revised, mark “no."
Statement of Housing Needs and Strategy for Addressing Housing Needs. Provide a statement addressing the housing needs of low-income, very
low-income and extremely low-income families and a brief description of the PHA’s strategy for addressing the housing needs of families who reside in the
jurisdiction served by the PHA. The statement must identify the housing needs of (i) families with incomes below 30 percent of area median income
(extremely low-income), (ii) elderly families and families with disabilities, and (iii) households of various races and ethnic groups residi ng in the jurisdiction
or on the waiting list based on information provided by the applicable Consolidated Plan, information provided by HUD, and ot her generally available data.
The identification of housing needs must address issues of affordability, supply, quality, accessibility, size of units, and location. For years in which the
PHA’s 5-Year PHA Plan is also due, this information must be included only to the extent it pertains to the housing needs of families that are on the PHA’s
public housing and Section 8 tenant-based assistance waiting lists. 24 CFR §903.7(a)(1) and 24 CFR §903.12(b). Provide a description of the PHA’s
strategy for addressing the housing needs of families in the jurisdiction and on the waiting list in the upcoming year. For years in which the PHA’s 5-Year
PHA Plan is also due, this information must be included only to the extent it pertains to the housing needs of families that are on the PHA’s public housing
and Section 8 tenant-based assistance waiting lists. 24 CFR §903.7(a)(2)(ii) and 24 CFR §903.12(b).
Deconcentration and Other Policies that Govern Eligibility, Selection and Admissions. Describe the PHA’s admissions policy for deconcentration
of poverty and income mixing of lower-income families in public housing. The Deconcentration Policy must describe the PHA’s policy for bringing higher
income tenants into lower income developments and lower income tenants into higher income developments. The deconcentration requirements apply to
general occupancy and family public housing developments. Refer to 24 CFR §903.2(b)(2) for developments not subject to deconcentrati on of poverty and
income mixing requirements. 24 CFR §903.7(b) Describe the PHA’s procedures for maintaining waiting lists for admission to public housing and address
any site-based waiting lists. 24 CFR §903.7(b) A statement of the PHA’s policies that govern resident or tenant eligibility, selection and admission including
admission preferences for both public housing and HCV. (24 CFR §903.7(b) Describe the unit assignment policies for public housing. 24 CFR §903.7(b)
Financial Resources. A statement of financial resources, including a listing by general categories, of the PHA’s anticipated resources, such as PH A
operating, capital and other anticipated Federal resources available to the PHA, as well as tenant rents and other income available to support public housing
or tenant-based assistance. The statement also should include the non-Federal sources of funds supporting each Federal program, and state the planned use
for the resources. (24 CFR §903.7(c)
Rent Determination. A statement of the policies of the PHA governing rents charged for public housing and HCV dwelling units, including applicable
public housing flat rents, minimum rents, voucher family rent contributions, and payment standard policies. (24 CFR §903.7(d)
Homeownership Programs. A description of any homeownership programs (including project number and unit count) administered by the agency or
for which the PHA has applied or will apply for approval. For years in which the PHA’s 5-Year PHA Plan is also due, this information must be included
only to the extent that the PHA participates in homeownership programs under section 8(y) of the 1937 Act. (24 CFR §903.7(k) and 24 CFR §903.12(b).
Safety and Crime Prevention (VAWA). A description of: 1) Any activities, services, or programs provided or offered by an agency, either directly or
in partnership with other service providers, to child or adult victims of domestic violence, dating violence, sexual assault, or stalking; 2) Any activities,
services, or programs provided or offered by a PHA that helps child and adult victims of domestic violence, dating violence, sexual assault, or stalking, to
obtain or maintain housing; and 3) Any activities, services, or programs provided or offered by a public housing agency to prevent domestic violence, dating
violence, sexual assault, and stalking, or to enhance victim safety in assisted families. (24 CFR §903.7(m)(5))
Pet Policy. Describe the PHA’s policies and requirements pertaining to the ownership of pets in public housing. (24 CFR §903.7(n))
Substantial Deviation. PHA must provide its criteria for determining a “substantial deviation” to its 5-Year Plan. (24 CFR §903.7(r)(2)(i)
Significant Amendment/Modification. PHA must provide its criteria for determining a “Significant Amendment or Modification” to its 5-Year and
Annual Plan. Should the PHA fail to define ‘significant amendment/modification’, HUD will consider the following to be ‘sign ificant amendments or
modifications’: a) changes to rent or admissions policies or organization of the waiting list; b) additions of non-emergency public housing CFP work items
(items not included in the current CFP Annual Statement or CFP 5-Year Action Plan); or c) any change with regard to demolition or disposition, designation,
homeownership programs or conversion activities. See guidance on HUD’s website at: Notice PIH 1999-51. (24 CFR §903.7(r)(2)(ii)
If any boxes are marked “yes”, describe the revision(s) to those element(s) in the space provided.
PHAs must submit a Deconcentration Policy for Field Office review. For additional guidance on what a PHA must do to deconcentrate poverty in its
development and comply with fair housing requirements, see 24 CFR 903.2. (24 CFR §903.23(b))
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Page 6 of 5 form HUD-50075-HP (12/2014)
B.2 New Activities. If the PHA intends to undertake any new activities related to these elements or discretionary policies in the current Fiscal Year, mark “yes”
for those elements, and describe the activities to be undertaken in the space provided. If the PHA does not plan to undertake these activities, mark “no.”
Hope VI. 1) A description of any housing (including project name, number (if known) and unit count) for which the PHA will apply for HOPE VI; and
2) A timetable for the submission of applications or proposals. The application and approval process for Hope VI is a separate process. See guidance on
HUD’s website at: http://www.hud.gov/offices/pih/programs/ph/hope6/index.cfm. (Notice PIH 2010-30)
Mixed Finance Modernization or Development. 1) A description of any housing (including name, project number (if known) and unit count) for
which the PHA will apply for Mixed Finance Modernization or Development; and 2) A timetable for the submission of applications or proposals. The
application and approval process for Mixed Finance Modernization or Development is a separate process. See guidance on HUD’s website at:
http://www.hud.gov/offices/pih/programs/ph/hope6/index.cfm. (Notice PIH 2010-30)
Demolition and/or Disposition. Describe any public housing projects owned by the PHA and subject to ACCs (including name, project number and
unit numbers [or addresses]), and the number of affected units along with their sizes and accessibility features) for which t he PHA will apply or is currently
pending for demolition or disposition; and (2) A timetable for the demolition or disposition. This statement must be submitted to the extent that approved
and/or pending demolition and/or disposition has changed. The application and approval process for demolition and/or disposition is a separate process. See
guidance on HUD’s website at: http://www.hud.gov/offices/pih/centers/sac/demo_dispo/index.cfm. (24 CFR §903.7(h))
Conversion of Public Housing. Describe any public housing building(s) (including project number and unit count) owned by the PHA that the PHA is
required to convert or plans to voluntarily convert to tenant-based assistance; 2) An analysis of the projects or buildings required to be converted; and 3) A
statement of the amount of assistance received to be used for rental assistance or other housing assistance in connection with such conversion. See guidance
on HUD’s website at: http://www.hud.gov/offices/pih/centers/sac/conversion.cfm. (24 CFR §903.7(j))
Project-Based Vouchers. Describe any plans to use HCVs for new project-based vouchers. (24 CFR §983.57(b)(1)) If using project-based vouchers,
provide the projected number of project-based units and general locations, and describe how project-basing would be consistent with the PHA Plan.
Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants).
.
B.3 Progress Report. For all Annual Plans following submission of the first Annual Plan, a PHA must include a brief statement of the PHA’s progress in
meeting the mission and goals described in the 5-Year PHA Plan. (24 CFR §903.7(r)(1))
B.4 Most Recent Fiscal Year Audit. If the results of the most recent fiscal year audit for the PHA included any findings, mark “yes” and describe those
findings in the space provided. (24 CFR §903.7(p))
C. Other Document and/or Certification Requirements
C.1 Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan. Provide a certification that the
following plan elements have been revised, provided to the RAB for comment before implementation, approved by the PHA board, and made available for
review and inspection by the public. This requirement is satisfied by completing and submitting form HUD-50077 SM-HP.
C.2 Civil Rights Certification. Form HUD-50077 SM-HP, PHA Certifications of Compliance with the PHA Plans and Related Regulation, must be submitted
by the PHA as an electronic attachment to the PHA Plan. This includes all certifications relating to Civil Rights and related regulations. A PHA will be
considered in compliance with the AFFH Certification if: it can document that it examines its programs and proposed programs to identify any impediments
to fair housing choice within those programs; addresses those impediments in a reasonable fashion in view of the resources available; works with the local
jurisdiction to implement any of the jurisdiction’s initiatives to affirmatively further fair housing; and assures that the annual pl an is consistent with any
applicable Consolidated Plan for its jurisdiction. (24 CFR §903.7(o))
C.3 Resident Advisory Board (RAB) comments. If the RAB provided comments to the annual plan, mark “yes,” submit the comments as an attachment to the
Plan and describe the analysis of the comments and the PHA’s decision made on these recommendations. (24 CFR §903.13(c), 24 CFR §903.19)
C.4 Certification by State or Local Officials. Form HUD-50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated
Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. (24 CFR §903.15)
D. Statement of Capital Improvements. PHAs that receive funding from the Capital Fund Program (CFP) must complete this section. (24 CFR 903.7 (g))
D.1 Capital Improvements. In order to comply with this requirement, the PHA must reference the most recent HUD approved Capital Fund 5 Year Action Plan.
PHAs can reference the form by including the following language in Section C. 8.0 of the PHA Plan Template: “See HUD Form 50075.2 approved by HUD
on XX/XX/XXXX.”
This information collection is authorized by Section 511 of the Quality Housing and Work Responsibility Act, which added a new section 5A to the U.S.
Housing Act of 1937, as amended, which introduced the 5-Year and Annual PHA Plan. The 5-Year and Annual PHA Plans provide a ready source for
interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and servi ces, and informs HUD,
families served by the PHA, and members of the public of the PHA’s mission, goals and objectives for serving the needs of low- income, very low-
income, and extremely low- income families.
Public reporting burden for this information collection is estimated to average 16.64 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not
collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number.
Privacy Act Notice. The United States Department of Housing and Urban Development is authorized to solicit the information requested in this form
by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the
collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality.
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ADMINISTRATIVE
PLAN
FOR THE
HOUSING AUTHORITY OF THE
CITY OF SANTA ANA
Kelly Reenders
Executive Director
Judson Brown
Housing Division Manager
Approved by the Housing Authority of the City of Santa Ana: April 1, 2016
EXHIBIT 2
3-9
3-10
SANTA ANA CITY COUNCIL
20 Civic Center Plaza
Santa Ana, California 92701
(714) 647-6900
www.santa-ana.org
Mayor:
Occupation:
Education:
First Elected:
Term Expires:
Miguel A. Pulido
Business Owner
Troy High School, Fullerton
California State University, Fullerton, BA
November 1994
November 2016
COUNCILMEMBER SAL TINAJERO
Council Ward 6
COUNCILMEMBER ANGELICA AMEZCUA
Council Ward 3
Occupation:
Education:
First Elected:
Term Expires:
Teacher
Saddleback HS
Bradley University, BA
National University, MA
November 2006
November 2018
Occupation:
Education:
First Elected:
Term Expires:
Educator
Saddleback HS
Loyola Marymount
University BA & MA
November 2012
November 2016
COUNCILMEMBER P. DAVID BENAVIDES
Council Ward 4
COUNCILMEMBER MICHELE MARTINEZ
Council Ward 2
Occupation:
Education:
First Elected:
Term Expires:
Real Estate Broker
Bravo Medical Magnet,
Los Angeles
Biola University, BA
November 2006
November 2018
Occupation:
Education:
First Elected:
Term Expires:
Director of Alliance for a
Healthy Orange County
(AHOC)
Saddleback HS
Santa Ana College, AA
CSUF, BA
November 2006
November 2018
COUNCILMEMBER ROMAN REYNA
Council Ward 5
MAYOR PRO TEM VINCENT F. SARMIENTO
Council Ward 1
Occupation:
Education:
First Elected:
Term Expires:
Case Manager
Santa Ana High School
November 2012
November 2016
Occupation:
Education:
Appointed:
First Elected:
Term Expires:
Attorney at Law
UC Berkeley, BA
UCLA, JD
January 2, 2007
November 2008
November 2016
3-11
3-12
.
Introduction
ABOUT THE REFERENCES CITED IN THE ADMINISTRATIVE PLAN
AUTHORITIES FOR POLICIES 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.
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.
3-13
.
Abbreviations
Throughout the administrative plan, abbr evi a tions are used to designate certain documents in
citations. The following is a table of abbreviations of documents cited in the model
administrative plan.
Abbreviation Document
CFR Code of Federal Regulations
HCV GB Housing Choice Voucher Program
Guidebook (7420 .l OG), April 2001.
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 www.HUD.gov
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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. SAHA’s Programs .................................................................................. 1-2
1-I.E. SAHA’s Commitment to Ethics and Service .......................................... 1-3
PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................. 1-4
1-II.A. Overview and History of the Program .................................................... 1-4
1-II.B. HCV Program Basics .............................................................................. 1-5
1-II.C. The HCV Partnerships ............................................................................ 1-5
The HCV Relationships: ................................................................... 1-6
What Does HUD Do? ....................................................................... 1-7
What Does SAHA Do? ..................................................................... 1-7
What Does the Owner Do? ............................................................... 1-8
What Does the Family Do? ............................................................... 1-8
1-II.D. Applicable Regulations ........................................................................... 1-9
PART III: THE HCV ADMINISTRATIVE PLAN ............................................................... 1-10
1-III.A. Overview and Purpose of the Plan ........................................................ 1-10
1-III.B. Contents of the Plan (24CFR 982.54) ................................................... 1-10
Mandatory vs. Discretionary Policy ............................................... 1-11
1-III.C. Organization of the Plan ....................................................................... 1-12
1-III.D. Updating and Revising the Plan ........................................................... 1-12
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CHAPTER 2
FAIR HOUSING AND EQUAL OPPORTUNITY
PART I: NONDISCRIMINATION....................................................................................... 2-2
2-I.A. Overview ................................................................................................. 2-2
2-I.B. Nondiscrimination .................................................................................. 2-2
Providing Information to Families and Owners ............................... 2-3
Discrimination Complaints ............................................................... 2-3
PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................. 2-5
2-II.A. Overview ................................................................................................. 2-5
2-II.B. Definition of Reasonable Accommodation ............................................ 2-5
Types of Reasonable Accommodations ............................................ 2-5
2-II.C. Request for an Accommodation ............................................................. 2-6
2-II.D. Verification of Disability ........................................................................ 2-6
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]. .............................................................................. 2-7
2-II.F. Program Accessibility for Persons with Hearing
or Vision Impairments ........................................................................... 2-8
2-II.G. Physical Accessibility ............................................................................. 2-9
2-II.H. Denial or Termination of Assistance ...................................................... 2-9
PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED
ENGLISH PROFICIENCY (LEP) ....................................................................... 2-11
2-III.A. Overview ............................................................................................... 2-11
2-III.B. Oral Interpretation ................................................................................ 2-11
2-III.C. Written Translation ............................................................................... 2-12
2-III.D. Implementation Plan ............................................................................. 2-12
Exhibit 2-1: Definition of a Person with a Disability Under
Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.201] ............................... 2-13
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CHAPTER 3
ELIGIBILITY
PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS.......................... 3-2
3-I.A. Overview ................................................................................................. 3-2
3-I.B. Family and Household [24 CFR 982.201(c); FR Notice 02/03/12;
Notice PIH 2014-20] ............................................................................... 3-2
Family ............................................................................................... 3-2
Household ......................................................................................... 3-3
3-I.C. Family Breakup and Remaining Member of Tenant Family .................. 3-3
Family Breakup [24 CFR 982.315] .................................................. 3-3
Remaining Member of a Tenant Family [24 CFR 5.403] ................ 3-3
3-I.D. Head of Household [24 CFR 5.504(b)] .................................................. 3-4
3-I.E. Spouse, Cohead, and Other Adult .......................................................... 3-4
3-I.F. Dependent [24 CFR 5.603] ..................................................................... 3-5
Joint Custody of Dependents ............................................................ 3-5
3-I.G. Full-Time Student [24 CFR 5.603, HVC GB, p. 5-29] .......................... 3-5
3-I.H. Elderly and Near-Elderly Persons, and Elderly Family
[24 CFR 5.100 and 5.403, FR Notice 02/03/12]..................................... 3-5
Elderly Persons ................................................................................ 3-5
Near-Elderly Persons ........................................................................ 3-5
Elderly Family .................................................................................. 3-5
3-I.I. Persons with Disabilities and Disabled Family [24 CFR 5.403,
FR Notice 02/03/12] ............................................................................... 3-6
Persons with Disabilities................................................................... 3-6
Disabled Family ................................................................................ 3-6
3-I.J. Guests [24 CFR 5.100] ........................................................................... 3-6
3.I.K. Foster Children and Foster Adults .......................................................... 3-6
3-I.L. Absent Family Members ......................................................................... 3-7
Definitions of Temporarily and Permanently Absent ....................... 3-7
Absent Students ................................................................................ 3-7
Absences Due to Placement in Foster Care [24 CFR 5.403] ............ 3-7
Absent Head, Spouse, or Cohead ..................................................... 3-8
Family Members Permanently Confined for Medical Reasons
[HCV GB, p. 5-22] ........................................................................... 3-8
Return of Permanently Absent Family Members ............................. 3-8
3-I.M. Live-In Aide ............................................................................................ 3-8
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PART II: BASIC ELIGIBILITY CRITERIA ....................................................................... 3-10
3-II.A. Income Eligibility and Targeting .......................................................... 3-10
Income Limits ................................................................................. 3-10
Definitions of the Income Limits [24 CFR 5.603(b)] ..................... 3-10
Using Income Limits for Eligibility [24 CFR 982.201] ................. 3-10
Using Income Limits for Targeting [24 CFR 982.201] .................. 3-11
3-II.B. Citizenship or Eligible Immigration Status [24 CFR 5, Subpart E] ..... 3-11
Declaration [24 CFR 5.508] ........................................................... 3-11
Mixed Families ............................................................................... 3-13
Ineligible Families [24 CFR 5.514(d), (e), and (f)] ........................ 3-13
Timeframe for Determination of Citizenship Status
[24 CFR 5.508(g)] .......................................................................... 3-14
3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218,
Notice PIH 2012-10] ............................................................................. 3-14
3-II.D. Family Consent to Release of Information [24 CFR 5.230;
HCV GB, p. 5-13] ................................................................................. 3-14
3-II.E. Students Enrolled In Institutions of Higher Education
[24 CFR 5.612, FR Notice 4/10/06] ..................................................... 3-15
Definitions ...................................................................................... 3-15
Determining Student Eligibility ...................................................... 3-16
PART III: DENIAL OF ASSISTANCE ................................................................................ 3-18
3-III.A. Overview ............................................................................................... 3-18
Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] ........ 3-18
Prohibited Reasons for Denial of Program Assistance
[24 CFR 982.202(b), 24 CFR 5.2005(b)] ....................................... 3-18
3-III.B. Mandatory Denial of Assistance [24 CFR 982.553(a)] ........................ 3-18
3-III.C. Other Permitted Reasons for Denial of Assistance ............................... 3-20
Criminal Activity [24 CFR 982.553] .............................................. 3-20
Previous Behavior in Assisted Housing [24 CFR 982.552(c)] ....... 3-20
3-III.D. Screening .............................................................................................. 3-21
Screening for Eligibility ................................................................. 3-21
Screening for Suitability as a Tenant [24 CFR 982.307] ................ 3-22
3-III.E. Criteria for Deciding to Deny Assistance ............................................. 3-22
Evidence [24 CFR 982.553(c)] ....................................................... 3-22
Consideration of Circumstances [24 CFR 982.552(c)(2)] .............. 3-23
Removal of a Family Member's Name from the Application......... 3-23
Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ............. 3-24
3-III.F. Notice of Eligibility or Denial .............................................................. 3-24
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3-III.G. Prohibition Against Denial of Assistance to Victims of Domestic
Violence, Dating Violence, Sexual Assault, and Stalking .................... 3-25
Notification ..................................................................................... 3-25
Documentation ................................................................................ 3-25
Exhibit 3-1: Detailed Definitions Related to Disabilities ......................................................... 3-26
Person with Disabilities [24 CFR 5.403] ........................................ 3-26
Individual with Handicaps [24 CFR 8.3] ........................................ 3-26
Exhibit 3-2: Definition of Institution of Higher Education [20 U.S.C 1001 and 1002] ............ 3-28
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] ...................................... 3-28
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CHAPTER 4
APPLICATIONS, WAITING LIST AND TENANT SELECTION
PART I: THE APPLICATION PROCESS ........................................................................... 4-2
4-I.A. Overview ................................................................................................. 4-2
4-I.B. Applying for Assistance
[HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36] .................................. 4-2
4-I.C. Accessibility of the Application Process ................................................ 4-2
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 ................................................................ 4-3
Ineligible for Placement on the Waiting List .................................... 4-3
Eligible for Placement on the Waiting List ...................................... 4-3
PART II: MANAGING THE WAITING LIST...................................................................... 4-4
4-II.A. Overview ................................................................................................. 4-4
4-II.B. Organization of the Waiting List [24 CFR 982.204 and 205] ................ 4-4
4-II.C. Opening and Closing the Waiting List [24 CFR 982.206] ..................... 4-5
Closing the Waiting List ................................................................... 4-5
Reopening the Waiting List .............................................................. 4-5
4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4] ........................................... 4-6
4-II.E. Reporting Changes in Family Circumstances ......................................... 4-6
4-II.F. Updating the Waiting List [24 CFR 982.204] ........................................ 4-7
Purging the Waiting List ................................................................... 4-7
Removal from the Waiting List ........................................................ 4-7
PART III: SELECTION FOR HCV ASSISTANCE ............................................................... 4-8
4-III.A. Overview ................................................................................................. 4-8
4-III.B. Selection and HCV Funding Sources ..................................................... 4-8
Special Admissions [24 CFR 982.203] ............................................ 4-8
Targeted Funding [24 CFR 982.204(e)] ........................................... 4-8
Regular HCV Funding ...................................................................... 4-8
4-III.C. Selection Method .................................................................................... 4-9
Local Preferences [24 CFR 982.207; HCV p. 4-16] ........................ 4-9
Income Targeting Requirement [24 CFR 982.201(b)(2)] ............... 4-10
Order of Selection ........................................................................... 4-10
4-III.D. Notification of Selection ....................................................................... 4-11
4-III.E. The Application Interview .................................................................... 4-11
4-III.F. Completing the Application Process .................................................... 4-13
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CHAPTER 5
BRIEFINGS AND VOUCHER ISSUANCE
PART I: BRIEFINGS AND FAMILY OBLIGATIONS ...................................................... 5-1
5-I.A. Overview ................................................................................................. 5-2
5-I.B. Briefing [24 CFR 982.301] ..................................................................... 5-2
Notification and Attendance ............................................................. 5-2
Oral Briefing [24 CFR 982.301(a)] .................................................. 5-3
Briefing Packet [24 CFR 982.301(b)] .............................................. 5-3
Additional Items to be Included in the Briefing Packet ................... 5-4
5-I.C. Family Obligations ................................................................................ 5-5
Time Frames for Reporting Changes Required by Family
Obligations ........................................................................................ 5-5
Family Obligations [24 CFR 982.551] ............................................. 5-5
PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE .................................... 5-8
5-II.A. Overview ................................................................................................. 5-8
5-II.B. Determining Family Unit (Voucher) Size [24 CFR 982.402] ................ 5-8
5-II.C. Exceptions to Subsidy Standards ............................................................ 5-9
5-II.D. Voucher Issuance [24 CFR 982.302] .................................................... 5-10
5-II.E. Voucher Term and Extensions.............................................................. 5-11
Voucher Term [24 CFR 982.303] ................................................... 5-11
Extensions of Voucher Term [24 CFR 982.303(b)] ....................... 5-11
Suspensions of Voucher Term [24 CFR 982.303(c)] ..................... 5-12
Expiration of Voucher Term ........................................................... 5-12
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CHAPTER 6
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 .............................................. 6-3
Family Members Permanently Confined for Medical Reasons ........ 6-4
Joint Custody of Dependents ............................................................ 6-4
Caretakers for a Child ....................................................................... 6-4
6-I.C. Anticipating Annual Income .................................................................. 6-5
Basis of Annual Income Projection .................................................. 6-5
Projecting Income ............................................................................. 6-6
6-I.D. Earned Income ........................................................................................ 6-7
Types of Earned Income Included in Annual Income ...................... 6-7
Types of Earned Income Not Counted in Annual Income ............... 6-7
6-I.E. Earned Income Disallowance for Persons with Disabilities
[24 CFR 5.617] ....................................................................................... 6-9
Eligibility .......................................................................................... 6-9
Calculation of the Disallowance ..................................................... 6-10
6-I.F. Business Income [24 CFR 5.609(b)(2)] ................................................ 6-11
Business Expenses .......................................................................... 6-11
Business Expansion ........................................................................ 6-11
Capital Indebtedness ....................................................................... 6-11
Negative Business Income .............................................................. 6-12
Withdrawal of Cash or Assets from a Business .............................. 6-12
Co-owned Businesses ..................................................................... 6-12
6-I.G. Assets [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)] ............................. 6-12
Overview ......................................................................................... 6-12
General Policies .............................................................................. 6-12
Types of Assets ............................................................................... 6-16
6-I.H. Periodic Payments ................................................................................ 6-19
Periodic Payments Included in Annual Income .............................. 6-19
Lump-Sum Payments for the Delayed Start of a
Periodic Payment ............................................................................ 6-19
Treatment of Overpayment Deductions from
Social Security Benefits .................................................................. 6-20
Periodic Payments Excluded from Annual Income ........................ 6-20
6-I.I. Payments In Lieu of Earnings............................................................... 6-21
6-I.J. Welfare Assistance ............................................................................... 6-21
Overview ......................................................................................... 6-21
Sanctions Resulting in the Reduction of Welfare Benefits
[24 CFR 5.615] ............................................................................... 6-21
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6-I.K. Periodic and Determinable Allowances [24 CFR 5.609(b)(7)] ............ 6-22
Alimony and Child Support ............................................................ 6-22
Regular Contributions or Gifts ....................................................... 6-22
6-I.L. Student Financial Assistance [24 CFR 5.609(b)(9)
and FR 5/20/14] .................................................................................... 6-23
Student Financial Assistance Included in Annual Income
[24 CFR 5.609(b)(9) and FR 4/10/06] ............................................ 6-23
Student Financial Assistance Excluded from Annual Income
[24 CFR 5.609(c)(6)] ...................................................................... 6-23
6-I.M. Additional Exclusions From Annual Income ....................................... 6-24
PART II: ADJUSTED INCOME.......................................................................................... 6-27
6-II.A. Introduction ........................................................................................... 6-27
Overview ......................................................................................... 6-27
Anticipating Expenses .................................................................... 6-27
6-II.B. Dependent Deduction ........................................................................... 6-27
6-II.C. Elderly or Disabled Family Deduction ................................................. 6-28
6-II.D. Medical Expenses Deduction [24 CFR 5.611(a)(3)(i)] ........................ 6-28
Definition of Medical Expenses...................................................... 6-28
Summary of Allowable Medical Expenses from IRS
Publication 502 ............................................................................... 6-29
Families That Qualify for Both Medical and Disability
Assistance Expenses ....................................................................... 6-29
6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and
24 CFR 5.611(a)(3)(ii)] ........................................................................ 6-29
Earned Income Limit on the Disability Assistance
Expense Deduction ......................................................................... 6-29
Eligible Disability Expenses ........................................................... 6-30
Necessary and Reasonable Expenses .............................................. 6-31
Families That Qualify for Both Medical and Disability
Assistance Expenses ....................................................................... 6-31
6-II.F. Child Care Expense Deduction ............................................................. 6-31
Clarifying the Meaning of Child for This Deduction ..................... 6-32
Qualifying for the Deduction .......................................................... 6-32
Earned Income Limit on Child Care Expense Deduction .............. 6-33
Eligible Child Care Expenses ......................................................... 6-33
PART III: CALCULATING FAMILY SHARE AND SAHA SUBSIDY ............................ 6-35
6-III.A. Overview of Rent and Subsidy Calculations ........................................ 6-35
TTP Formula [24 CFR 5.628] ........................................................ 6-35
Family Share [24 CFR 982.305(a)(5)] ............................................ 6-35
SAHA Subsidy [24 CFR 982.505(b)] ............................................. 6-35
Utility Reimbursement [24 CFR 982.514(b)] ................................. 6-35
6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-36
Overview ......................................................................................... 6-36
HUD-Defined Financial Hardship .................................................. 6-36
Implementation of Hardship Exemption ........................................ 6-37
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6-III.C. Applying Payment Standards [24 CFR 982.505] ................................. 6-39
Overview ......................................................................................... 6-39
Changes in Payment Standards ....................................................... 6-39
Reasonable Accommodation .......................................................... 6-40
6-III.D. Applying Utility Allowances [24 CFR 982.517] .................................. 6-40
Overview ......................................................................................... 6-40
Reasonable Accommodation .......................................................... 6-40
Utility Allowance Revisions ........................................................... 6-41
6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520] ..................... 6-41
Exhibit 6-1: Annual Income Inclusions .................................................................................... 6-42
HHS Definition of "Assistance" ........................................................................... 6-43
Exhibit 6-2: Annual Income Exclusions ................................................................................... 6-45
Exhibit 6-3: Treatment of Family Assets .................................................................................. 6-47
Exhibit 6-4: Earned Income Disallowance for Persons with Disabilities ................................. 6-48
Exhibit 6-5: The Effect of Welfare Benefit Reduction ............................................................. 6-50
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CHAPTER 7
VERIFICATION
[24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2010-19]
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] ................................................................... 7-2
Consent Forms .................................................................................. 7-2
Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-2
7-I.B. Overview of Verification Requirements ................................................. 7-2
HUD’s Verification Hierarchy [Notice PIH 2010-19] ..................... 7-2
Requirements for Acceptable Documents ........................................ 7-3
File Documentation .......................................................................... 7-3
7-I.C. Up-Front Income Verification (UIV) ..................................................... 7-3
Upfront Income Verification Using HUD’s Enterprise Income
Verification (EIV) System (Mandatory) ........................................... 7-4
Upfront Income Verification Using Non-HUD
Systems (Optional) ........................................................................... 7-5
7-I.D. Third-Party Written and Oral Verification ............................................. 7-5
Written Third-Party Verification [Notice PIH 2010-19] .................. 7-5
Written Third-Party Verification Form ............................................ 7-6
Oral Third-Party Verification [Notice PIH 2010-19] ....................... 7-6
When Third-Party Verification is Not Required
[Notice PIH 2010-19] ....................................................................... 7-7
7-I.E. Self-Certification .................................................................................... 7-7
PART II: VERIFYING FAMILY INFORMATION .............................................................. 7-9
7-II.A. Verification of Legal Identity ................................................................. 7-9
7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2012-10] ............ 7-9
7-II.C. Documentation of Age .......................................................................... 7-11
7-II.D. Family Relationships ............................................................................ 7-11
Marriage .......................................................................................... 7-12
Separation or Divorce ..................................................................... 7-12
Absence of Adult Member.............................................................. 7-12
Foster Children and Foster Adults .................................................. 7-12
7-II.E. Verification of Student Status ............................................................... 7-12
General Requirements .................................................................... 7-12
Restrictions on Assistance to Students Enrolled in
Institutions of Higher Education ..................................................... 7-13
7-II.F. Documentation of Disability ................................................................. 7-14
Family Members Receiving SSA Disability Benefits .................... 7-14
Family Members Not Receiving SSA Disability Benefits ............. 7-15
7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-15
Overview ......................................................................................... 7-15
U.S. Citizens and Nationals ............................................................ 7-15
Eligible Immigrants ........................................................................ 7-16
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7-II.H. Verification of Preference Status .......................................................... 7-17
PART III: VERIFYING INCOME AND ASSETS ............................................................... 7-18
7-III.A. Earned Income ...................................................................................... 7-18
Tips ................................................................................................. 7-18
Wages ............................................................................................. 7-18
7-III.B. Business and Self Employment Income ............................................... 7-18
7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-19
Social Security/SSI Benefits ........................................................... 7-19
7-III.D. Alimony or Child Support .................................................................... 7-19
7-III.E. Assets and Income From Assets ........................................................... 7-20
Assets Disposed of for Less than Fair Market Value ..................... 7-20
7-III.F. Net Income From Rental Property ........................................................ 7-20
7-III.G. Retirement Accounts ............................................................................ 7-21
7-III.H. Income From Excluded Sources ........................................................... 7-21
7-III.I. Zero Annual Income Status .................................................................. 7-22
7-III.J. Student Financial Assistance ................................................................ 7-22
7-III.K. Parental Income of Students Subject to Eligibility Restrictions ........... 7-23
PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-24
7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-24
Dependent Deduction ..................................................................... 7-24
Elderly/Disabled Family Deduction ............................................... 7-24
7-IV.B. Medical Expense Deduction ................................................................. 7-24
Amount of Expense ........................................................................ 7-24
Eligible Household ......................................................................... 7-25
Qualified Expenses ......................................................................... 7-25
Unreimbursed Expenses ................................................................. 7-25
Expenses Incurred in Past Years ..................................................... 7-25
7-IV.C. Disability Assistance Expenses ............................................................ 7-25
Amount of Expense ........................................................................ 7-25
Family Member is a Person with Disabilities ................................. 7-26
Family Member(s) Permitted to Work ........................................... 7-26
Unreimbursed Expenses ................................................................. 7-26
7-IV.D. Child Care Expenses ............................................................................. 7-27
Eligible Child .................................................................................. 7-27
Unreimbursed Expense ................................................................... 7-27
Pursuing an Eligible Activity ......................................................... 7-27
Allowable Type of Child Care ........................................................ 7-28
Reasonableness of Expenses ........................................................... 7-28
Exhibit 7-1: Summary of Documentation Requirements for Noncitizens
[HCV GB, pp. 5-9 and 5-10] ................................................................................ 7-29
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CHAPTER 8
HOUSING QUALITY STANDARDS AND RENT REASONABLENESS
DETERMINATIONS
[24 CFR 982 Subpart I and 24 CFR 982.507]
PART I: PHYSICAL STANDARDS .................................................................................... 8-2
8-I.A. General HUD Requirements ................................................................... 8-2
HUD Performance and Acceptability Standards .............................. 8-2
Tenant Preference Items ................................................................... 8-2
Modifications to Provide Accessibility ............................................ 8-3
8-I.B. Additional Local Requirements .............................................................. 8-3
Thermal Environment [HCV GB p.10-7] ......................................... 8-3
Clarifications of HUD Requirements ............................................... 8-3
8-I.C. Life-Threatening Conditions [24 CFR 982.404(a)] ................................ 8-5
8-I.D. Owner and Family Responsibilities [24 CFR 982.404] .......................... 8-5
Family Responsibilities .................................................................... 8-5
Owner Responsibilities ..................................................................... 8-5
8-I-E. Special Requirements for Children with Environmental
Intervention Blood Lead Level [24 CFR 35.1225] ................................. 8-6
8-I-F. Violation of HQS Space Standards
[24 CFR 982.401, 24 CFR 982.403]....................................................... 8-6
PART II: THE INSPECTION PROCESS .............................................................................. 8-7
8-II.A. Overview [24 CFR 982.405] .................................................................. 8-7
Types of Inspections ......................................................................... 8-7
Inspection of SAHA-Owned Units [24 CFR 982.352(b)] ................ 8-7
Inspection Costs ................................................................................ 8-7
Notice and Scheduling ...................................................................... 8-7
Owner and Family Inspection Attendance ....................................... 8-8
8-II.B. Initial HQS Inspection [24 CFR 982.401(a)] ......................................... 8-8
Timing of Initial Inspections ............................................................ 8-8
Inspection Results and Reinspections ............................................... 8-8
Utilities ............................................................................................. 8-9
Appliances ........................................................................................ 8-9
8-II.C. Annual/Biennial HQS Inspections [FR Notice 6/25/14] ........................ 8-9
Scheduling the Inspection ................................................................. 8-9
8-II.D. Special Inspections [HCV GB p. 10-30] .............................................. 8-10
8-II.E. Quality Control Inspections [24 CFR 982.405(b),
HCV GB p. 10-32] ................................................................................ 8-10
8-II.F. Inspection Results and Reinspections for Units Under
HAP Contract ........................................................................................ 8-10
Notification of Corrective Actions ................................................. 8-10
Extensions ....................................................................................... 8-11
Reinspections .................................................................................. 8-12
8-II.G. Enforcing Owner Compliance .............................................................. 8-12
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HAP Abatement .............................................................................. 8-12
HAP Contract Termination ............................................................. 8-12
8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)] .......... 8-13
PART III: RENT REASONABLENESS [24 CFR 982.507] ................................................. 8-14
8-III.A. Overview ............................................................................................... 8-14
SAHA-Owned Units [24 CFR 982.352(b)] .................................... 8-14
8-III.B. When Rent Reasonableness Determinations Are Required.................. 8-14
Owner-Initiated Rent Determinations ............................................. 8-14
SAHA- and HUD-Initiated Rent Reasonableness Determinations 8-15
LIHTC- and HOME-Assisted Units [24 CFR 982.507(c) ............. 8-15
8-III.C. How Comparability Is Established ....................................................... 8-15
Factors to Consider ......................................................................... 8-15
Units that Must Not be Used as Comparables ................................ 8-16
Rents Charged for Other Units on the Premises ............................. 8-16
8-III.D. SAHA Rent Reasonableness Methodology .......................................... 8-16
How Market Data Is Collected ....................................................... 8-16
How Rents Are Determined ............................................................ 8-16
Exhibit 8-1: Overview of HUD Housing Quality Standards .................................................... 8-17
Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality ..................... 8-20
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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] .............................. 9-2
9-I.C. Owner Participation ................................................................................ 9-4
9-I.D. Eligible Units .......................................................................................... 9-4
Ineligible Units [24 CFR 982.352(a)] ............................................... 9-4
SAHA-Owned Units [24 CFR 982.352(b)] ...................................... 9-4
Special Housing Types [24 CFR 982 Subpart M] ............................ 9-4
Duplicative Assistance [24 CFR 982.352(c)] ................................... 9-5
Housing Quality Standards (HQS) [24 CFR 982.305 and
24 CFR 982.401] .............................................................................. 9-5
Unit Size ........................................................................................... 9-5
Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] ........ 9-6
Rent Burden [24 CFR 982.508] ........................................................ 9-6
9-I.E. Lease and Tenancy Addendum ............................................................... 9-6
Lease Form and Tenancy Addendum [24 CFR 982.308] ................. 9-6
Lease Information [24 CFR 982.308(d)] .......................................... 9-7
Term of Assisted Tenancy ................................................................ 9-7
Security Deposit [24 CFR 982.313 (a) and (b)] ............................... 9-7
Separate Non-Lease Agreements between Owner and Tenant ......... 9-7
SAHA Review of Lease .................................................................... 9-8
9-I.F. Tenancy Approval [24 CFR 982.305] .................................................... 9-9
9-I.G. HAP Contract Execution [24 CFR 982.305] ........................................ 9-10
9-I.H. Changes in Lease or Rent [24 CFR 982.308] ....................................... 9-10
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CHAPTER 10
MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY
PART I: MOVING WITH CONTINUED ASSISTANCE ................................................. 10-2
10-I.A. Allowable Moves .................................................................................. 10-2
10-I.B. Restrictions On Moves ......................................................................... 10-3
Denial of Moves ............................................................................. 10-3
Restrictions on Elective Moves [24 CFR 982.354(c)] .................... 10-4
10-I.C. Moving Process .................................................................................... 10-4
Notification ..................................................................................... 10-4
Approval ......................................................................................... 10-4
Reexamination of Family Income and Composition ...................... 10-5
Voucher Issuance and Briefing ....................................................... 10-5
Housing Assistance Payments [24 CFR 982.311(d)] ..................... 10-5
PART II: PORTABILITY .................................................................................................... 10-7
10-II.A. Overview ............................................................................................... 10-7
10-II.B. Initial PHA Role ................................................................................... 10-7
Allowable Moves under Portability ................................................ 10-7
Determining Income Eligibility ...................................................... 10-9
Reexamination of Family Income and Composition ...................... 10-9
Briefing ........................................................................................... 10-9
Voucher Issuance and Term ......................................................... 10-10
Voucher Extensions and Expiration ............................................. 10-10
Preapproval Contact with the Receiving PHA ............................. 10-10
Initial Notification to the Receiving PHA .................................... 10-10
Sending Documentation to the Receiving PHA ........................... 10-11
Initial Billing Deadline [Notice PIH 2012-42,
Letter to Executive Directors, 9/15/15] ........................................ 10-11
Monthly Billing Payments [24 CFR 982.355(e),
Notice PIH 2012-42] ..................................................................... 10-12
Annual Updates of Form HUD-50058 ......................................... 10-12
Denial or Termination of Assistance [24 CFR 982.355(c)(17)] ... 10-12
10-II.C. Receiving PHA Role ........................................................................... 10-13
Responding to Initial PHA’s Request [24 CFR 982.355(c)] ........ 10-13
Initial Contact with Family ........................................................... 10-13
Briefing ......................................................................................... 10-13
Income Eligibility and Reexamination ......................................... 10-14
Voucher Issuance .......................................................................... 10-14
Notifying the Initial PHA ............................................................. 10-15
Administering a Portable Family’s Voucher ................................ 10-15
Absorbing a Portable Family ........................................................ 10-18
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CHAPTER 11
REEXAMINATIONS
PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516] ........................................... 11-2
11-I.A. Overview ............................................................................................... 11-2
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)] ........................................................................ 11-4
11-I.E. Effective Dates ...................................................................................... 11-5
PART II: INTERIM REEXAMINATIONS [24 CFR 982.516] ........................................... 11-6
11-II.A. Overview ............................................................................................... 11-6
11-II.B. Changes In Family and Household Composition ................................. 11-6
New Family Members Not Requiring PHA Approval ................... 11-6
New Family and Household Members Requiring Approval .......... 11-6
Departure of a Family or Household Member ................................ 11-7
11-II.C. Changes Affecting Income or Expenses ............................................... 11-7
SAHA-Initiated Interim Reexaminations ....................................... 11-8
Family-Initiated Interim Reexaminations ....................................... 11-8
11-II.D. Processing the Interim Reexamination ................................................. 11-9
Method of Reporting ....................................................................... 11-9
Effective Dates ................................................................................ 11-9
PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-11
11-III.A. Overview ............................................................................................. 11-11
11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-11
Payment Standards [24 CFR 982.505] ......................................... 11-11
Subsidy Standards [24 CFR 982.505(c)(4)] ................................. 11-12
Utility Allowances [24 CFR 982.517(d)] ..................................... 11-12
11-III.C. Notification of New Family Share and HAP Amount ........................ 11-12
11-III.D. Discrepancies ...................................................................................... 11-12
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CHAPTER 12
TERMINATION OF ASSISTANCE AND TENANCY
PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ...................................... 12-2
12-I.A. Overview ............................................................................................... 12-2
12-I.B. Family No Longer Requires Assistance [24 CFR 982.455] ................. 12-2
12-I.C. Family Chooses to Terminate Assistance ............................................. 12-2
12-I.D. Mandatory Termination of Assistance .................................................. 12-2
Eviction [24 CFR 982.552(b)(2) , 24 CFR 5.2005(c)(1)]............... 12-2
Failure to Provide Consent [24 CFR 982.552(b)(3)] ...................... 12-3
Failure to Document Citizenship [24 CFR 982.552(b)(4)
and 24 CFR 5.514(c)] ..................................................................... 12-3
Failure to Disclose and Document Social Security Numbers
[24 CFR 5.218(c), Notice PIH 2012-10] ........................................ 12-3
Methamphetamine Manufacture or Production
[24 CFR 983.553(b)(1)(ii)] ............................................................. 12-4
Failure of Students to Meet Ongoing Eligibility 4
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 2010-3] ......................................................................... 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)] ...................................... 12-6
PART II: APPROACH TO TERMINATION OF ASSISTANCE ....................................... 12-8
12-II.A. Overview ............................................................................................... 12-8
12-II.B. Method of Termination [24 CFR 982.552(a)(3)] ................................. 12-8
12-II.C. Alternatives to Termination of Assistance ........................................... 12-8
Change in Household Composition ................................................ 12-8
Repayment of Family Debts ........................................................... 12-8
12-II.D. Criteria for Deciding to Terminate Assistance ..................................... 12-9
Evidence ......................................................................................... 12-9
Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] .......... 12-9
Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ........... 12-10
12-II.E. Terminations Related to Domestic Violence, Dating Violence,
Sexual Assault or Stalking .................................................................. 12-10
VAWA Protections against Terminations .................................... 12-10
Limitations on VAWA Protections
[24 CFR 5.2005(d) and (e)] .......................................................... 12-11
Documentation of Abuse [24 CFR 5.2007] .................................. 12-12
Terminating the Assistance of a Domestic
Violence Perpetrator ..................................................................... 12-12
12-II.F. Termination Notice ............................................................................. 12-12
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PART III: TERMINATION OF TENANCY BY THE OWNER........................................ 12-14
12-III.A. Overview ............................................................................................. 12-14
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]....................................... 12-14
Serious or Repeated Lease Violations .......................................... 12-14
Violation of Federal, State, or Local Law .................................... 12-14
Criminal Activity or Alcohol Abuse ............................................. 12-14
Other Good Cause ......................................................................... 12-15
12-III.C. Eviction [24 CFR 982.310(e) and (f) and Form HUD-52641-A,
Tenancy Addendum] .......................................................................... 12-15
12-III.D. Deciding Whether to Terminate Tenancy
[24 CFR 982.310(h), 24 CFR 982.310(h)(4)]..................................... 12-16
12-III.E. Effect of Tenancy Termination on the Family’s Assistance .............. 12-17
Exhibit 12-1: Statement of Family Obligations ........................................................................ 12-18
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CHAPTER 13
OWNERS
PART I: OWNERS IN THE HCV PROGRAM ................................................................. 13-2
13-I.A. Owner Recruitment and Retention [HCV GB, pp. 2-4 to 2-6] ............. 13-2
Recruitment ..................................................................................... 13-2
Retention ......................................................................................... 13-2
13-I.B. Basic HCV Program Requirements ...................................................... 13-3
13-I.C. Owner Responsibilities [24 CFR 982.452] ........................................... 13-4
13-I.D. Owner Qualifications ............................................................................ 13-5
Owners Barred from Participation [24 CFR 982.306(a) and (b)] ... 13-5
Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] ....... 13-5
Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19] .............. 13-5
Owner Actions That May Result in Disapproval of a
Tenancy Request [24 CFR 982.306(c)] .......................................... 13-9
Legal Ownership of Unit ................................................................ 13-7
13-I.E. Non-Discrimination [HAP Contract – Form HUD-52641] .................. 13-8
PART II: HAP CONTRACTS .............................................................................................. 13-9
13-II.A. Overview ............................................................................................... 13-9
13-II.B. HAP Contract Contents ........................................................................ 13-9
13-II.C. HAP Contract Payments ..................................................................... 13-10
General .......................................................................................... 13-10
Owner Certification of Compliance.............................................. 13-11
Late HAP Payments [24 CFR 982.451(a)(5)] .............................. 13-11
Termination of HAP Payments [24 CFR 982.311(b)] .................. 13-12
13-II.D. Breach of HAP Contract [24 CFR 982.453] ....................................... 13-12
13-II.E. HAP Contract Term and Terminations ............................................... 13-13
13-II.F. Change In Ownership / Assignment of the HAP Contract
[HUD-52641] ...................................................................................... 13-14
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CHAPTER 14
PROGRAM INTEGRITY
PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND
PROGRAM ABUSE ............................................................................................ 14-2
14-I.A. Preventing Errors and Program Abuse ................................................. 14-2
14-I.B. Detecting Errors and Program Abuse ................................................... 14-3
Quality Control and Analysis of Data ............................................ 14-3
Independent Audits and HUD Monitoring ..................................... 14-3
Individual Reporting of Possible Errors and Program Abuse ........ 14-3
14-I.C. Investigating Errors and Program Abuse .............................................. 14-4
When the PHA Will Investigate ..................................................... 14-4
Consent to Release of Information [24 CFR 982.516] ................... 14-4
Analysis and Findings..................................................................... 14-4
Consideration of Remedies ............................................................. 14-4
Notice and Appeals ......................................................................... 14-5
PART II: CORRECTIVE MEASURES AND PENALTIES ............................................... 14-6
14-II.A. Subsidy Under- or Overpayments ........................................................ 14-6
Corrections ...................................................................................... 14-6
Reimbursement ............................................................................... 14-6
14-II.B. Family-Caused Errors and Program Abuse .......................................... 14-6
Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] .... 14-6
SAHA Reimbursement to Family [HCV GB p. 22-12] .................. 14-7
Prohibited Actions .......................................................................... 14-7
Penalties for Program Abuse .......................................................... 14-7
14-II.C. Owner-Caused Error or Program Abuse ............................................... 14-8
Owner Reimbursement to the SAHA ............................................. 14-8
Prohibited Owner Actions .............................................................. 14-8
Remedies and Penalties .................................................................. 14-9
14-II.D. SAHA-Caused Errors or Program Abuse ............................................. 14-9
Repayment to SAHA ...................................................................... 14-9
SAHA Reimbursement to Family or Owner .................................. 14-9
Prohibited Activities ....................................................................... 14-9
14-II.E. Criminal Prosecution .......................................................................... 14-10
14-II.F. Fraud and Program Abuse Recoveries ............................................... 14-10
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CHAPTER 15
SPECIAL HOUSING TYPES
[24 CFR 982 Subpart M]
PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605] ................ 15-2
15-I.A. Overview ............................................................................................... 15-2
15-I.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-2
15-I.C. Housing Quality Standards (HQS) ....................................................... 15-2
PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609] ....................... 15-4
15-II.A. Overview ............................................................................................... 15-4
15-II.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-4
15-II.C. Housing Quality Standards ................................................................... 15-4
PART III: GROUP HOME [24 CFR 982.610 through 982.614 and HCV GB p. 7-4] ......... 15-5
15-III.A. Overview ............................................................................................... 15-5
15-III.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-5
15-III.C. Housing Quality Standards ................................................................... 15-6
PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618] .................................. 15-7
15-IV.I. Overview ............................................................................................... 15-7
15-IV.B. Payment Standard, Utility Allowance and HAP Calculation ............... 15-7
15-IV.C. Housing Quality Standards ................................................................... 15-7
PART V: COOPERATIVE HOUSING [24 CFR 982.619].................................................. 15-9
15-V.A. Overview ............................................................................................... 15-9
15-V.B. Payment Standard, Utility Allowance and HAP Calculation ............... 15-9
15-V.C. Housing Quality Standards ................................................................... 15-9
PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624] .................. 15-10
15-VI.A. Overview ............................................................................................. 15-10
15-VI.B. Special Policies for Manufactured Home Owners
Who Lease A Space ............................................................................ 15-10
Family Income .............................................................................. 15-10
Lease and HAP Contract .............................................................. 15-10
15-VI.C. Payment Standard, Utility Allowance and HAP Calculation ............. 15-10
Payment Standards ........................................................................ 15-10
Utility Allowance .......................................................................... 15-11
Space Rent .................................................................................... 15-11
Housing Assistance Payment ........................................................ 15-11
Rent Reasonableness .................................................................... 15-11
15-VI.D. Housing Quality Standards ................................................................. 15-11
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PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] ................................ 15-12
15-VII.A. Overview [24 CFR 982.625] .............................................................. 15-12
15-VII.B. Family Eligibility [24 CFR 982.627].................................................. 15-12
15-VII.C. Selection of Families [24 CFR 982.626] ............................................ 15-13
15-VII.D. Eligible Units [24 CFR 982.628] ........................................................ 15-14
15-VII.E. Additional PHA Requirements for Search and Purchase
[24 CFR 982.629] ............................................................................... 15-15
15-VII.F. Homeownership Counseling [24 CFR 982.630] ................................ 15-15
15-VII.G. Home Inspections, Contract of Sale, and PHA Disapproval of
Seller [24 CFR 982.631] ..................................................................... 15-16
Home Inspections ......................................................................... 15-16
Contract of Sale ............................................................................ 15-16
Disapproval of a Seller ................................................................. 15-16
15-VII.H. Financing [24 CFR 982.632] .............................................................. 15-17
15-VII.I. Continued Assistance Requirements; Family Obligations
[24 CFR 982.633] ............................................................................... 15-17
15-VII.J. Maximum Term of Homeowner Assistance [24 CFR 982.634]......... 15-18
15-VII.K. Homeownership Assistance Payments and Homeownership
Expenses [24 CFR 982.635] ............................................................... 15-18
15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c),
982.552, 982.553] ............................................................................... 15-20
15-VII.M. Moving with Continued Assistance [24 CFR 982.637] .................... 15-20
15-VII.N. Denial or Termination of Assistance [24 CFR 982.638] .................... 15-21
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CHAPTER 16
PROGRAM ADMINISTRATION
PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] ................................... 16-2
PART II: SETTING PROGRAM STANDARDS AND SCHEDULES .............................. 16-3
16-II.A. Overview ............................................................................................... 16-3
16-II.B. Payment Standards [24 CFR 982.503; HCV GB, Chapter 7] ............... 16-3
Updating Payment Standards .......................................................... 16-3
Exception Payment Standards [982.503(c)] ................................... 16-4
Unit-by-Unit Exceptions [24 CFR 982.503(c)(2)(ii),
24 CFR 982.505(d), Notice PIH 2010-26] ..................................... 16-5
"Success Rate" Payment Standard Amounts
[24 CFR 982.503(e)] ....................................................................... 16-5
Decreases in the Payment Standard below
the Basic Range [24 CFR 982.503(d)] ........................................... 16-5
16-II.C. Utility Allowances [24 CFR 982.517] .................................................. 16-6
Air Conditioning ............................................................................. 16-6
Reasonable Accommodation .......................................................... 16-6
Utility Allowance Revisions ........................................................... 16-6
PART III: INFORMAL REVIEWS AND HEARINGS ........................................................ 16-7
16-III.A. Overview ............................................................................................... 16-7
16-III.B. Informal Reviews .................................................................................. 16-7
Decisions Subject to Informal Review .......................................... 16-7
Notice to the Applicant [24 CFR 982.554(a)] ................................ 16-8
Scheduling an Informal Review ..................................................... 16-8
Informal Review Procedures [24 CFR 982.554(b)] ....................... 16-8
Informal Review Decision [24 CFR 982.554(b)] ........................... 16-8
16-III.C. Informal Hearings for Participants [24 CFR 982.555] ......................... 16-9
Decisions Subject to Informal Hearing ........................................... 16-9
Informal Hearing Procedures ........................................................ 16-10
16-III.D. Hearing and Appeal Provisions for Noncitizens
[24 CFR 5.514] ................................................................................... 16-15
Notice of Denial or Termination of Assistance
[24 CFR 5.514(d)] ........................................................................ 16-15
USCIS Appeal Process [24 CFR 5.514(e)] ................................... 16-16
Informal Hearing Procedures for Applicants
[24 CFR 5.514(f)] ......................................................................... 16-16
Informal Hearing Procedures for Residents
[24 CFR 5.514(f)] ......................................................................... 16-17
Retention of Documents [24 CFR 5.514(h)] ................................ 16-18
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PART IV: OWNER OR FAMILY DEBTS TO THE PHA ................................................. 16-19
16-IV.A. Overview ............................................................................................. 16-19
16-IV.B. Repayment Policy ............................................................................... 16-19
Owner Debts to the PHA .............................................................. 16-19
Family Debts to the PHA .............................................................. 16-20
Repayment Agreement [24 CFR 792.103] ................................... 16-20
General Repayment Agreement Guidelines for Families ............. 16-20
Repayment Agreements Involving Improper Payments ............... 16-22
PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) .......... 16-23
16-V.A. Overview ............................................................................................. 16-23
16-V.B. SEMAP Certification [24 CFR 985.101] ............................................ 16-23
HUD Verification Method ............................................................ 16-24
16-V.C. SEMAP Indicators [24 CFR 985.3 and form HUD-52648] ............... 16-24
SEMAP Indicators Chart .............................................................. 16-24
PART VI: RECORD KEEPING ......................................................................................... 16-28
16-VI.A. Overview ............................................................................................. 16-28
16-VI.B. Record Retention [24 CFR 982.158] .................................................. 16-28
16-VI.C. Records Management ......................................................................... 16-29
Privacy Act Requirements [24 CFR 5.212 and Form-9886] ........ 16-29
Upfront Income Verification (UIV) Records ............................... 16-29
Criminal Records .......................................................................... 16-29
Medical/Disability Records .......................................................... 16-30
Documentation of Domestic Violence,
Dating Violence, Sexual Assault, or Stalking .............................. 16-30
PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH
ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL ................... 16-31
16-VII.A. Overview ............................................................................................. 16-31
16-VII.B. Reporting Requirement [24 CFR 35.1225(e)] .................................... 16-31
16-VII.C. Data Collection and Record Keeping [24 CFR 35.1225(f)] ............... 16-31
PART VIII: DETERMINATION OF INSUFFICIENT FUNDING ...................................... 16-32
16-VIII.A. Overview ........................................................................................... 16-32
16-VIII.B. Methodology ..................................................................................... 16-32
PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION,
DOCUMENTATION, CONFIDENTIALITY ................................................... 16-33
16-IX.A. Overview ............................................................................................. 16-33
16-IX.B. Definitions [24 CFR 5.2003] ............................................................... 16-33
16-IX.C. Notification [24 CFR 5.2005(a), 42 USC 13925] ............................... 16-34
Notification to Public .................................................................... 16-34
Notification to Program Applicants and Participants
[24 CFR 5.2005(a)(1)] .................................................................. 16-35
Notification to Owners and Managers
[24 CFR 5.2005(a)(2)] .................................................................. 16-35
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16-IX.D. Documentation [24 CFR 5.2007] ........................................................ 16-35
Conflicting Documentation [24 CFR 5.2007(e)] .......................... 16-36
Discretion to Require No Formal Documentation
[24 CFR 5.2007(d)] ...................................................................... 16-37
16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] .................................... 16-37
Exhibit 16-1: Sample Notice to Housing Choice Voucher Applicants and Tenants
Regarding the Violence Against Women Act (VAWA) .................................... 16-38
Exhibit 16-2: Sample Notice to Housing Choice Voucher Owners and Managers
Regarding the Violence Against Women Act (VAWA) .................................... 16-41
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CHAPTER 17
PROJECT-BASED VOUCHERS
PART I: GENERAL REQUIREMENTS ............................................................................ 17-2
17-I.A. Overview [24 CFR 983.5] .................................................................... 17-2
17-I.B. Tenant-Based vs. Project-Based Voucher Assistance
[24 CFR 983.2] ..................................................................................... 17-2
17-I.C. Relocation Requirements [24 CFR 983.7]............................................ 17-2
17-I.D. Equal Opportunity Requirements [24 CFR 983.8] ............................... 17-3
PART II: PBV OWNER PROPOSALS ............................................................................... 17-4
17-II.A. Overview ............................................................................................... 17-4
17-II.B. Owner Proposal Selection Procedures [24 CFR 983.51(b)] ................. 17-4
Solicitation and Selection of PBV Proposals
[24 CFR 983.51(c)] ......................................................................... 17-4
PHA Notice of Owner Selection [24 CFR 983.51(d)] .................... 17-6
17-II.C. Housing Type [24 CFR 983.52] ........................................................... 17-6
17-II.D. Prohibition of Assistance for Certain Units .......................................... 17-7
Ineligible Housing Types [24 CFR 983.53] ................................... 17-7
Subsidized Housing [24 CFR 983.54] ............................................ 17-7
17-II.E. Subsidy Layering Requirements
[24 CFR 983.55, FR Notice 11/24/08, FR Notice 7/9/10,
and FR Notice 6/25/14] ........................................................................ 17-8
17-II.F. Cap On Number of PBV Units in Each Project ................................... 17-8
25 Percent per Project Cap
[24 CFR 983.56(a)] ......................................................................... 17-8
Exceptions to 25 Percent per Project Cap
[24 CFR 983.56(b)] ........................................................................ 17-9
Promoting Partially-Assisted Buildings
[24 CFR 983.56(c)] ......................................................................... 17-9
17-II.G. Site Selection Standards .................................................................... 17-10
Compliance with PBV Goals, Civil Rights Requirements,
and HQS Site Standards [24 CFR 983.57(b)] ............................... 17-10
Existing and Rehabilitated Housing Site and Neighborhood
Standards [24 CFR 983.57(d)] ...................................................... 17-10
New Construction Site and Neighborhood Standards
[24 CFR 983.57(e)] ....................................................................... 17-10
17-II.H. Environmental Review [24 CFR 983.58] ........................................... 17-11
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PART III: DWELLING UNITS ........................................................................................... 17-12
17-III.A. Overview ............................................................................................. 17-12
17-III.B. Housing Quality Standards [24 CFR 983.101] ................................... 17-12
Lead-based Paint [24 CFR 983.101(c)] ........................................ 17-12
17-III.C. Housing Accessibility for Persons with Disabilities .......................... 17-12
17-III.D. Inspecting Units .................................................................................. 17-12
Pre-selection Inspection [24 CFR 983.103(a)] ............................. 17-12
Pre-HAP Contract Inspections [24 CFR 983.103(b)] ................... 17-13
Turnover Inspections [24 CFR 983.103(c)] .................................. 17-13
Annual/Biennial Inspections [24 CFR 983.103(d),
FR Notice 6/25/14] ....................................................................... 17-13
Other Inspections [24 CFR 983.103(e)] ....................................... 17-13
Inspecting PHA-Owned Units [24 CFR 983.103(f)] .................... 17-13
PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................... 17-14
17-IV.A. Overview [24 CFR 983.151] .............................................................. 17-14
17-IV.B. Agreement to Enter into HAP Contract .............................................. 17-14
Content of the Agreement [24 CFR 983.152(d)] .......................... 17-14
Execution of the Agreement
[24 CFR 983.153] ......................................................................... 17-15
17-IV.C. Conduct of Development Work .......................................................... 17-15
Labor Standards [24 CFR 983.154(b)] ......................................... 17-15
Equal Opportunity [24 CFR 983.154(c)] ...................................... 17-15
Owner Disclosure [24 CFR 983.154(d) and (e)] .......................... 17-15
17-IV.D. Completion of Housing....................................................................... 17-15
Evidence of Completion [24 CFR 983.155(b)] ............................ 17-16
PHA Acceptance of Completed Units [24 CFR 983.156] ............ 17-16
PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) ........................ 17-16
17-V.A. Overview ............................................................................................. 17-17
17-V.B. HAP Contract Requirements .............................................................. 17-17
Contract Information [24 CFR 983.203] ...................................... 17-17
Execution of the HAP Contract [24 CFR 983.204] ...................... 17-17
Term of HAP Contract [24 CFR 983.205] ................................... 17-18
Statutory Notice Requirements: Contract Termination
or Expiration [24 CFR 983.206] .................................................. 17-19
Remedies for HQS Violations [24 CFR 983.208(b)] ................... 17-19
17-V.C. Amendments to the HAP Contract ..................................................... 17-19
Substitution of Contract Units [24 CFR 983.207(a)].................... 17-19
Addition of Contract Units [24 CFR 983.207(b)] ........................ 17-20
17-V.D. HAP Contract Year, Anniversary and Expiration Dates
[24 CFR 983.207(b) and 983.302(e)] ................................................. 17-20
17-V.E. Owner Responsibilities Under the HAP [24 CFR 983.210] ............... 17-20
17-V.F. Additional HAP Requirements ........................................................... 17-21
Housing Quality and Design Requirements
[24 CFR 983.101(e) and 983.208(a)] ........................................... 17-21
Vacancy Payments [24 CFR 983.352(b)] ..................................... 17-21
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PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 17-23
17-VI.A. Overview ............................................................................................. 17-23
17-VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 17-23
In-Place Families [24 CFR 983.251(b)] ....................................... 17-23
17-VI.C. Organization of the Waiting List
[24 CFR 983.251(c)] ........................................................................... 17-24
17-VI.D. Selection From the Waiting List
[24 CFR 983.251(c)] ........................................................................... 17-24
Income Targeting [24 CFR 983.251(c)(6)] .................................. 17-24
Units with Accessibility Features [24 CFR 983.251(c)(7)] .......... 17-24
Preferences [24 CFR 983.251(d), FR Notice 11/24/08] ............... 17-24
17-VI.E. Offer of PBV Assistance .................................................................... 17-25
Refusal of Offer [24 CFR 983.251(e)(3)] ..................................... 17-25
Disapproval by Landlord [24 CFR 983.251(e)(2)] ....................... 17-25
Acceptance of Offer [24 CFR 983.252] ....................................... 17-25
17-VI.F. Owner Selection of Tenants ............................................................... 17-26
Leasing [24 CFR 983.253(a)] ....................................................... 17-26
Filling Vacancies [24 CFR 983.254(a)] ........................................ 17-26
Reduction in HAP Contract Units Due to Vacancies
[24 CFR 983.254(b)] .................................................................... 17-26
17-VI.G. Tenant Screening [24 CFR 983.255] .................................................. 17-27
PHA Responsibility ...................................................................... 17-27
Owner Responsibility ................................................................... 17-27
PART VII: OCCUPANCY .................................................................................................... 17-29
17-VII.A. Overview ............................................................................................. 17-29
17-VII.B. Lease [24 CFR 983.256] ..................................................................... 17-29
Form of Lease [24 CFR 983.256(b)] ............................................ 17-29
Lease Requirements [24 CFR 983.256(c)] ................................... 17-29
Tenancy Addendum [24 CFR 983.256(d)] ................................... 17-29
Initial Term and Lease Renewal [24 CFR 983.256(f)] ................. 17-30
Changes in the Lease [24 CFR 983.256(e)] .................................. 17-30
Owner Termination of Tenancy [24 CFR 983.257] ..................... 17-30
Continuation of Housing Assistance Payments
[24 CFR 983.258] ........................................................................ 17-31
Security Deposits [24 CFR 983.259] ............................................ 17-31
17-VII.C. Moves ................................................................................................. 17-31
Overcrowded, Under-Occupied, and Accessible Units
[24 CFR 983.260] ......................................................................... 17-31
Family Right to Move [24 CFR 983.261] .................................... 17-32
17-VII.D. Exceptions to the Occupancy Cap [24 CFR 983.262] ........................ 17-32
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PART VIII: DETERMINING RENT TO OWNER ............................................................... 17-34
17-VIII.A. Overview ........................................................................................... 17-34
17-VIII.B. Rent Limits [24 CFR 983.301] ......................................................... 17-34
Certain Tax Credit Units [24 CFR 983.301(c)] ............................ 17-34
Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)] .......... 17-35
Use of FMRs, Exception Payment Standards,
and Utility Allowances [24 CFR 983.301(f)] ............................... 17-35
Redetermination of Rent [24 CFR 983.302]................................. 17-36
PHA-Owned Units [24 CFR 983.301(g)] ..................................... 17-37
17-VIII.C. Reasonable Rent [24 CFR 983.303] ................................................. 17-37
When Rent Reasonable Determinations Are Required ................ 17-37
How to Determine Reasonable Rent ............................................. 17-37
PHA-Owned Units ........................................................................ 17-38
Owner Certification of Reasonable Rent ...................................... 17-38
17-VIII.D. Effect of Other Subsidy and Rent Control ........................................ 17-38
Other Subsidy [24 CFR 983.304] ................................................. 17-38
Rent Control [24 CFR 983.305] ................................................... 17-39
PART IX: PAYMENTS TO OWNER ................................................................................. 17-40
17-IX.A. Housing Assistance Payments [24 CFR 983.351] .............................. 17-40
17-IX.B. Vacancy Payments [24 CFR 983.352]................................................ 17-40
17-IX.C. Tenant Rent to Owner [24 CFR 983.353] .......................................... 17-41
Tenant and PHA Responsibilities ................................................. 17-41
Utility Reimbursements ................................................................ 17-41
17-IX.D. Other Fees and Charges [24 CFR 983.354] ........................................ 17-42
Meals and Supportive Services ..................................................... 17-42
Other Charges by Owner .............................................................. 17-42
GLOSSARY
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Chapter 1
OVERVIEW OF THE PROGRAM AND PLAN
INTRODUCTION
The Housing Authority of the City of Santa Ana (SAHA) receives its funding for the Housing
Choice Voucher (HCV) program from the Department of Housing and Urban Development.
SAHA is not a federal department or agency. SAHA is a governmental or public body, created
and authorized by state law to develop and operate housing and housing programs for low-
income families. SAHA enters into an Annual Contributions Contract with HUD to administer
the program requirements on behalf of HUD. SAHA 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 SAHA 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 SAHA, 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.
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PART I: THE HOUSING AUTHORITY
1-I.A. ORGANIZATION AND STRUCTURE OF HOUSING AUTHORITY
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 executive director (ED), hired and appointed by the
City Manager. The executive director 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. MISSION STATEMENT
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. SAHA’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 and all related programs.
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1-I.E. SAHA’s COMMITMENT TO ETHICS AND SERVICE
As a public service agency, SAHA is committed to providing excellent service to HCV program
participants, owners, and to the community. SAHA’s standards is committed to:
• 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 SAHA’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
SAHA’s support systems and a high level of commitment to our employees and their
development.
SAHA 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.
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
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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.
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. SAHA is afforded choices in the operation of the program which are
included in this Administrative Plan, a document approved by the Board of Commissioners of
SAHA.
The HCV program offers mobility to eligible families because they may search for suitable
housing anywhere in SAHA’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, SAHA
issues the family a housing voucher. When the family finds a suitable housing unit and funding
is available, SAHA 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. SAHA 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, SAHA enters into a contractual relationship with HUD referred
to as a Consolidated Annual Contributions Contract. SAHA 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, SAHA, 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 SAHA
SAHA
Administers
Program
Owner /
Landlord
Family
(Program
Participant)
Voucher specifies
Family Obligations
Housing Assistance Payments
(HAP) Contract specifies Owner
and SAHA Obligations
Lease specifies Tenant
and Landlord
Obligations
Program Regulations and ACC
specifies SAHA 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 SAHA 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 Annual Contributions Contract, HUD-approved applications for funding,
SAHA’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.
- SAHA 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 SAHA;
• Comply with all applicable fair housing laws and do not discriminate against anyone;
• Maintain the housing unit in accordance with Housing Quality Standards (HQS) 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.
What Does the Family Do?
The family has the following responsibilities:
• Provide SAHA with complete and accurate information as determined by SAHA 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 SAHA;
• Allow SAHA 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 SAHA 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 SAHA of any changes in family composition;
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• Not commit fraud, bribery, or any other corrupt or criminal act in connection with any
housing programs.
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 982: Section 8 Tenant-Based Assistance: Housing Choice Voucher Program
• 24 CFR Part 983: Project-Based Vouchers
• 24 CFR Part 985: The Section 8 Management Assessment Program (SEMAP)
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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 SAHA’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.
SAHA 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 SAHA staff shall
be in compliance with the City of Santa Ana 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 SAHA’s waiting list, including any SAHA
admission preferences, procedures for removing applicant names from the waiting list, and
procedures for closing and reopening SAHA’s waiting list (Chapter 4);
• Issuing or denying vouchers, including SAHA’s policy governing the voucher term and any
extensions of the voucher term. If SAHA decides to allow extensions of the voucher term,
SAHA’s Administrative Plan must describe how SAHA determines whether to grant
extensions, and how SAHA determines the length of any extension (Chapter 5);
• Any special rules for use of available funds when HUD provides funding to SAHA for a
special purpose (e.g., desegregation), including funding for specified families or a specified
category of families (Chapter 4);
• 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);
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• 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);
• 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 SAHA 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); and
• SAHA screening of applicants for family behavior or suitability for tenancy (Chapter 3).
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. SAHA’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
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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 the plan at least annually or more often if needed, to determine if any
changes, revisions or additions are necessary.
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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 SAHA’s housing choice voucher (HCV) operations.
This chapter describes HUD regulations and SAHA policies related to these topics in three parts:
Part I: Nondiscrimination. This part presents the body of laws and regulations governing
the responsibilities of SAHA 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 SAHA 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. SAHA will comply fully with all
federal, state, and local nondiscrimination laws, and with rules and regulations governing fair
housing and equal opportunity in housing and employment, including:
• Title VI of the Civil Rights Act of 1964
• Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act
of 1974 and the Fair Housing Amendments Act of 1988)
• Executive Order 11063
• Section 504 of the Rehabilitation Act of 1973
• The Age Discrimination Act of 1975
• Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise
Section 504 and the Fair Housing Amendments govern)
• 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 Reauthorization Act of 2013 (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
No additional state or local nondiscrimination laws or ordinances apply.
2-I.B. NONDISCRIMINATION
Federal regulations prohibit discrimination against certain protected classes and other groups of
people. State and local requirements, as well as SAHA policies, can prohibit discrimination
based on other factors.
SAHA shall not discriminate because of race, color, sex, religion, familial status, age, disability
or national origin (called “protected classes”)
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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.
SAHA will not discriminate on the basis of marital status, gender identity, or sexual orientation
[FR Notice 02/03/12].
SAHA Policy
SAHA does not identify any additional protected classes.
SAHA 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
• 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
• 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
Providing Information to Families and Owners
SAHA must take steps to ensure that families and owners are fully aware of all applicable civil
rights laws. As part of the briefing process, SAHA 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.
Discrimination Complaints
If an applicant or participant believes that any family member has been discriminated against by
SAHA or an owner, the family should advise SAHA. HUD requires SAHA to make every
reasonable attempt to determine whether the applicant’s or participant’s assertions have merit
and take any warranted corrective action. In addition, SAHA is required to provide the applicant
or participant with information about how to file a discrimination complaint [24 CFR 982.304].
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Upon receipt of a housing discrimination complaint, SAHA is required to:
• Provide written notice of the complaint to those alleged and inform the complainant that such
notice was made
• Investigate the allegations and provide the complainant and those alleged with findings
and either a proposed corrective action or an explanation of why corrective action is
not warranted
• Keep records of all complaints, investigations, notices, and corrective actions
[Notice PIH 2014-20]
SAHA Policy
Applicants or participants who believe that they have been subject to unlawful discrimination
may notify SAHA either orally or in writing.
SAHA will attempt to remedy discrimination complaints made against SAHA.
SAHA will provide a copy of a discrimination complaint form to the complainant and
provide them with information on how to complete and submit the form to HUD’s Office of
Fair Housing and Equal Opportunity (FHEO).
SAHA will refer applicants/participants to the Orange County Legal Aid Society, Orange
County Fair Housing Council, or other non-profit agencies for assistance with Fair Housing
issues that are outside of our authority.
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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.
SAHA must ensure that persons with disabilities have full access to SAHA’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 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.
2-II.B. DEFINITION OF REASONABLE ACCOMMODATION
A person with a disability may require certain types of accommodation in order to have equal
access to the HCV program. The types of reasonable accommodations SAHA can provide
include changes, exceptions, or adjustments to a rule, policy, practice, or service.
Federal regulations stipulate that requests for accommodations will be considered reasonable if
they do not create an "undue financial and administrative burden" for SAHA, 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, SAHA 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 SAHA range) if SAHA determines this is necessary to enable a
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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 SAHA staff
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 SAHA 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 SAHA’s programs and services.
If the need for the accommodation is not readily apparent or known to SAHA, 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.
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, SAHA 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
SAHA’s programs and services.
If a person’s disability is obvious or otherwise known to SAHA, 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].
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If a family indicates that an accommodation is required for a disability that is not obvious or
otherwise known to SAHA, SAHA 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, SAHA 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]
• SAHA must request only information that is necessary to evaluate the disability-related need
for the accommodation. SAHA 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 SAHA does receive confidential information about a person’s specific
diagnosis, treatment, or the nature or severity of the disability, SAHA will dispose of it. In
place of the information, SAHA 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].
SAHA Policy
Acceptable documentation for a reasonable accommodation must be provided by 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.
The need for a reasonable accommodation will be reviewed and re-verified at the family’s annual
reexamination, or when a change is made that pertains to the family’s reasonable accommodation.
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].
SAHA 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 SAHA, or fundamentally alter the nature of SAHA’s HCV
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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 SAHA’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, SAHA 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 SAHA may verify the need for the requested
accommodation.
SAHA Policy
After a request for an accommodation is presented, the Reasonable Accommodation
Committee will respond, in writing, within 14 days.
If the request is denied 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.
2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION
IMPAIRMENTS
HUD regulations require SAHA to ensure that persons with disabilities related to hearing and
vision have reasonable access to SAHA's programs and services [24 CFR 8.6].
At the initial point of contact with each applicant, SAHA 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, SAHA makes use of the TTY
operator.
To meet the needs of persons with vision impairments, large-print and audio versions of key
program documents will be made available upon request as long as it would not impose an
undue financial and administrative burden or fundamentally alter the nature of SAHA’s
operations. When visual aids are used in public meetings or presentations, or with SAHA
staff, one-on-one assistance may 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.
Any requests must be submitted 7 days prior to a scheduled appointment.
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2-II.G. PHYSICAL ACCESSIBILITY
SAHA 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
SAHA’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 SAHA’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.
• SAHA Plan provides information about self-evaluation, needs assessment, and transition
plans.
The design, construction, or alteration of SAHA 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, SAHA will
include a current list of available accessible units known to SAHA 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.
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
SAHA’s informal review process and their right to request a hearing. In addition, the notice must
inform applicants with disabilities of their right to request reasonable accommodations to
participate in the informal hearing process.
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When a participant family’s assistance is terminated, the notice of termination must inform them
of SAHA’s informal hearing process and their right to request a hearing and reasonable
accommodation.
When reviewing reasonable accommodation requests, SAHA must consider whether any
mitigating circumstances can be verified to explain and overcome the problem that led to
SAHA’s decision to deny or terminate assistance. If a reasonable accommodation will allow the
family to meet the requirements, SAHA 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.
SAHA 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, SAHA 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
SAHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to
critical services while not imposing undue burdens on SAHA.
2-III.B. ORAL INTERPRETATION
SAHA will offer competent interpretation services free of charge, upon request, to the LEP person.
SAHA Policy
SAHA will utilize telephone interpreter services.
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 cost imposed substantially exceeds the benefits.
SAHA has bilingual staff to assist non-English speaking families in Spanish and Vietnamese
and will translate documents in Spanish and Vietnamese, as long as it would not impose an
undue financial and administrative burden or fundamentally alter the nature of SAHA’s
operations.
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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. The interpreter may be a family member or friend.
SAHA will not be liable for any misinterpretation of translated information.
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.
2-III.D. IMPLEMENTATION PLAN
After completing the four-factor analysis and deciding what language assistance services are
appropriate, SAHA shall determine whether it is necessary to develop a written implementation
plan to address the identified needs of the LEP populations it serves.
If SAHA 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 SAHA’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 SAHA) 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.
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.
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The HUD definition of a person with a disability is much narrower than the civil rights definition
of disability. The HUD definition of a person with a disability is used for purposes of receiving
the disabled family preference, the $400 elderly/disabled household deduction, the $480
dependent deduction, the allowance for medical expenses, or the allowance for disability
assistance expenses.
The definition of a person with a disability for purposes of granting a reasonable accommodation
request is much broader than the HUD definition of disability. Many people will not qualify as a
disabled person under the HCV program, yet an accommodation is needed to provide equal
opportunity.
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Chapter 3
ELIGIBILITY
INTRODUCTION
SAHA is responsible for ensuring that every individual and family admitted to the HCV program
meets all program eligibility requirements. This includes any individual approved to join the
family after the family has been admitted to the program. The family must provide any
information needed by SAHA to confirm eligibility and determine the level of the family’s
assistance.
To be eligible for the HCV program:
• The applicant family must:
- Qualify as a family as defined by HUD and SAHA.
- Have income at or below HUD-specified income limits.
- Qualify on the basis of citizenship or the eligible immigrant status of family members.
- Provide social security number information for household members as required.
- Consent to SAHA’s collection and use of family information as provided for in SAHA-
provided consent forms.
• SAHA must determine that the current or past behavior of household members does not
include activities that are prohibited by HUD or SAHA.
This chapter contains three parts:
Part I: Definitions of Family and Household Members. This part contains HUD and
SAHA definitions of family and household members and explains initial and ongoing
eligibility issues related to these members.
Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules
regarding citizenship, social security numbers, and family consent.
Part III: Denial of Assistance. This part covers factors related to an applicant’s past or
current conduct (e.g. criminal activity) that can cause SAHA to deny assistance.
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PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS
3-I.A. OVERVIEW
Some eligibility criteria and program rules vary depending upon the composition of the family
requesting assistance. In addition, some requirements apply to the family as a whole and others
apply to individual persons who will live in the assisted unit. This part provides information that
is needed to correctly identify family and household members, and to apply HUD's eligibility
rules.
3-I.B. FAMILY AND HOUSEHOLD [24 CFR 982.201(c); FR Notice 02/03/12;
Notice PIH 2014-20]
The terms family and household have different meanings in the HCV program.
Family
To be eligible for assistance, an applicant must qualify as a family. Family as defined by HUD
includes, but is not limited to the following, regardless actual or perceived sexual orientation,
gender identity, or marital status, a single person, who may be an elderly person, disabled person,
near-elderly person, or any other single person; or a group of persons residing together. Such
group includes, but is not limited to a family with or without children (a child who is temporarily
away from the home because of placement in foster care is considered a member of the family),
an elderly family, a near-elderly family, a disabled family, a displaced family, or the remaining
member of a tenant family. SAHA has the discretion to determine if any other group of persons
qualifies as a family.
Gender Identity means actual or perceived gender characteristics.
Sexual orientation means homosexuality, heterosexuality, or bisexuality.
SAHA Policy
A family also includes two or more individuals who are not related by blood, marriage,
adoption, or other operation of law but who either can demonstrate that they have lived
together previously or certify that each individual’s income and other resources will be
available to meet the needs of the family.
Each family must identify the individuals to be included in the family at the time of
application, and must notify SAHA if the family’s composition changes. Approval for
additional family members will only be considered if the change was reported to SAHA
prior to notification for an orientation or eligibility interview. Final approval for
additional family members will be given at the eligibility interview.
If the head of household is no longer interested or available at the time of eligibility, the
application is not transferable to any remaining family members and the application will
be removed.
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If the case of a deceased head of household with a surviving spouse on their application,
the application may be transferred to the spouse if a copy of the death and marriage
certificates are provided to SAHA.
Household
Household is a broader term that includes additional people who, with SAHA’s permission, live
in an assisted unit, such as live-in aides, foster children, and foster adults.
3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY
Family Breakup [24 CFR 982.315]
Except under the following conditions, SAHA has discretion to determine which members of an
assisted family continue to receive assistance if the family breaks up:
• If the family breakup results from an occurrence of domestic violence, dating violence,
sexual assault, or stalking, SAHA must ensure that the victim retains assistance. (For
documentation requirements and policies related to domestic violence, dating violence,
sexual assault, and stalking, see section 16-IX.D of this plan.)
• If a court determines the disposition of property between members of the assisted family,
SAHA is bound by the court’s determination of which family members continue to receive
assistance.
SAHA Policy
SAHA has discretion to determine which members of an assisted family continue to
receive assistance if the family breaks up. However, if a court determines the disposition
of property between members of the assisted family in a divorce or separation decree,
SAHA is bound by the court's determination of which family members continue to
receive assistance.
If a family breaks up into two otherwise eligible families while receiving assistance, only
one of the new families will continue to be assisted.
In the absence of a judicial decision, SAHA will determine which family will continue to
receive assistance taking into consideration the following factors: (1) the interest of any
minor children, including custody arrangements, (2) the interest of any ill, elderly, or
disabled family members, (3) the interest of any family member who is the victim of
domestic violence, dating violence, sexual assault, or stalking, including a family
member who was forced to leave an assisted unit as a result of such actual or threatened
abuse; and (4) the recommendations of social service professionals.
Remaining Member of a Tenant Family [24 CFR 5.403]
The HUD definition of family includes the remaining member of a tenant family, which is a
member of an assisted family who remains in the unit when other members of the family have
left the unit. Household members such as live-in aides, foster children, and foster adults do not
qualify as remaining members of a family.
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If dependents are the only “remaining members of a tenant family” and there is no family
member able to assume the responsibilities of the head of household, see Chapter 6, Section 6-
I.B, for the policy on “Caretakers for a Child.”
3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)]
Head of household means the adult member of the family who is considered the head for
purposes of determining income eligibility and rent. The head of household is responsible for
ensuring that the family fulfills all of its responsibilities under the program, alone or in
conjunction with a cohead or spouse.
SAHA Policy
The participant may designate any qualified family member as the head of household.
The head of household must have the legal capacity to enter into a lease under state and
local law. A minor who is emancipated under state law may be designated as head of
household.
3-I.E. SPOUSE, COHEAD, AND OTHER ADULT
A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13].
Spouse means the marriage partner of the head of household.
SAHA Policy
A marriage partner includes the partner in a "common law" marriage as defined in state
law. The term “spouse” does not apply to friends, roommates, or significant others who
are not marriage partners. A minor who is emancipated under state law may be
designated as a spouse.
A cohead is an individual in the household who is equally responsible with the head of
household for ensuring that the family fulfills all of its responsibilities under the program, but
who is not a spouse. A family can have only one cohead.
SAHA Policy
Minors who are emancipated under state law may be designated as a co-head.
Other adult means a family member, other than the head, spouse, or co-head, who is 18 years of
age or older. Foster adults and live-in aides are not considered other adults.
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3-I.F. DEPENDENT [24 CFR 5.603]
A dependent is a family member who is under 18 years of age or a person of any age who is a
person with a disability or a full-time student, except that the following persons can never be
dependents: the head of household, spouse, cohead, foster children/adults and live-in aides.
Identifying each dependent in the family is important because each dependent qualifies the
family for a dependent allowance as described in Chapter 6.
Joint Custody of Dependents
SAHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member
of the family, if they live with the applicant or participant family 51 percent or more of
the time.
When more than one applicant or participant family is claiming the same dependents as
family members, the family with primary custody at the time of the initial eligibility or
reexamination will be able to claim the dependents. If there is a dispute about which
family should claim them, SAHA will make the determination based on available
documents such as court orders, or an IRS return showing which family has claimed the
child for income tax purposes.
3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-29]
A full-time student (FTS) is a person who is attending school or vocational training on a full-time
basis. The time commitment or subject load that is needed to be full-time is defined by the
educational institution.
Identifying each FTS is important because: (1) each family member that is an FTS, other than the
head, spouse, or cohead, qualifies the family for a dependent allowance, and (2) the earned
income of such an FTS is treated differently from the income of other family members.
3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY
[24 CFR 5.100 and 5.403, FR Notice 02/03/12]
Elderly Persons
An elderly person is a person who is at least 62 years of age.
Near-Elderly Persons
A near-elderly person is a person who is 50-61 years of age.
Elderly Family
An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person.
Identifying elderly families is important because elderly families qualify for the elderly family
allowance as described in Chapter 6.
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3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403,
FR Notice 02/03/12]
Persons with Disabilities
Under the HCV program, special rules apply to persons with disabilities and to any family whose
head, spouse, or cohead is a person with disabilities. The technical definitions of individual with
handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter.
These definitions are used for a number of purposes including ensuring that persons with
disabilities are not discriminated against based upon disability.
As discussed in Chapter 2, SAHA must make all aspects of the HCV program accessible to
persons with disabilities and consider reasonable accommodations requested based upon a
person’s disability.
Disabled Family
A disabled family is one in which the head, spouse, or cohead is a person with disabilities.
Identifying disabled families is important because these families qualify for the disabled family
allowance as described in Chapter 6.
Even though persons with drug or alcohol dependencies are considered persons with disabilities,
this does not prevent SAHA from denying assistance for reasons related to alcohol and drug
abuse in accordance with the policies found in Part III of this chapter, or from terminating
assistance in accordance with the policies in Chapter 12.
3-I.J. GUESTS [24 CFR 5.100]
A guest is a person temporarily staying in the unit with the consent of a member of the household
who has expressed or implied authority to so consent.
SAHA Policy
A guest may remain in the assisted unit no more than 30 cumulative calendar days during
any 12-month period, subject to the lease term, whichever is shorter.
Children who are subject to a joint custody arrangement or for whom a family has
visitation privileges, that are not included as a family member because they live outside
of the assisted household 51 percent or more of the time, are not subject to the time
limitations of guests as described above.
3-I.K. FOSTER CHILDREN AND FOSTER ADULTS
Foster adults are usually persons with disabilities, unrelated to the tenant family, who are unable
to live alone [24 CFR 5.609].
The term foster child is not specifically defined by the regulations.
Foster children and foster adults who are living with an applicant or who have been approved by
SAHA to live with a participant family are considered household members but not family
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members. The income of foster children/adults is not counted in family annual income, and
foster children/adults do not qualify for a dependent deduction [24 CFR 5.603; HUD-50058 IB,
p. 13].
SAHA Policy
A foster child is a child that is in the legal guardianship or custody of a state, county, or
private adoption or foster care agency, yet is cared for by foster parents in their own
homes, under some kind of short-term or long-term foster care arrangement with the
custodial agency.
A foster child or foster adult may be allowed to reside in the unit if their presence would
not result in a violation of HQS standards and with landlord approval. [24 CFR 982.401]
Children that are temporarily absent from the home as a result of placement in foster care
are discussed in Section 3-I.L.
3-I.L. ABSENT FAMILY MEMBERS
Individuals may be absent from the family, either temporarily or permanently, for a variety of
reasons including educational activities, placement in foster care, employment, illness,
incarceration, and court order.
Definitions of Temporarily and Permanently Absent
SAHA Policy
Generally an individual who is or is expected to be absent from the assisted unit for 90
consecutive days or less is considered temporarily absent and continues to be considered
a family member. Generally an individual who is or is expected to be absent from the
assisted unit for more than 90 consecutive days is considered permanently absent and no
longer a family member. Exceptions to this general policy are discussed below.
Absent Students
SAHA Policy
When someone who has been considered a family member attends school away from
home, the person will continue to be considered a family member unless information
becomes available to SAHA indicating that the student has established a separate
household or the family declares that the student has established a separate household.
Students who attend school out-of-state or a long distance must return for the family’s
annual recertification appointment. Failure to be present at the annual recertification
appointment will result in the student being removed from the household.
Absences Due to Placement in Foster Care [24 CFR 5.403]
Children temporarily absent from the home as a result of placement in foster care are considered
members of the family.
SAHA Policy
If a child has been placed in foster care, SAHA will verify with the appropriate agency
whether and when the child is expected to be returned to the home. Unless the agency
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confirms that the child has been only temporarily removed from the home, the child will
not be counted as a family member.
Absent Head, Spouse, or Cohead
SAHA Policy
An employed head, spouse, or co-head absent from the unit more than 90 consecutive
days due to employment will continue to be considered a family member.
Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22]
If a family member is confined to a nursing home or hospital on a permanent basis, that person is
no longer considered a family member and the income of that person is not counted [HCV GB,
p. 5-22].
SAHA Policy
SAHA will request verification of the family member’s permanent absence from a
licensed medical professional. If the licensed medical professional cannot provide a
determination, the person will be considered permanently absent.
Return of Permanently Absent Family Members
SAHA Policy
The family must request SAHA approval for the return of any adult family members that
SAHA has determined to be permanently absent. SAHA will only approve adult
returning family members under the following circumstances:
- U.S. Military members returning to family within 90 days of separation
- College students returning within 90 days of graduation
- Family members removed for medical or disability issues
- Returning spouse
The individual is subject to the eligibility and screening requirements discussed
elsewhere in this chapter.
3-I.M. LIVE-IN AIDE
A live-in aide is a person who resides with one or more elderly persons, or near-elderly persons,
or persons with disabilities, and who: (1) is determined to be essential to the care and well-being
of the persons, (2) is not obligated for the support of the persons, and (3) would not be living in
the unit except to provide the necessary supportive services [24 CFR 5.403].
SAHA must approve a live-in aide if needed as a reasonable accommodation in accordance with
24 CFR 8, to make the program accessible to and usable by the family member with disabilities.
The income of a live-in aide is not counted in the calculation of annual income for the family [24
CFR 5.609(b)]. Relatives may be approved as live-in aides if they meet all of the criteria defining
a live-in aide. Because live-in aides are not family members, a relative who serves as a live-in
aide would not be considered a remaining member of a tenant family.
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SAHA Policy
A family’s request for a live-in aide must be made in writing. Written verification will be
required from a licensed professional, such as a doctor, that the live-in aide is essential
for the care and well-being of the elderly, near-elderly, or disabled family member. The
verification must include a description of services needed. For continued approval, the
family must submit a new written request, subject to SAHA approval at each annual
reexamination, or at any time there is a request to change a live-in aid.
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.
SAHA will not approve a particular person as a live-in aide, and may withdraw such
approval if [24 CFR 982.316(b)]:
• The person commits fraud, bribery or any other corrupt or criminal act in
connection with any federal housing program;
• The person commits drug-related criminal activity or violent criminal
activity; or
• The person currently owes rent or other amounts to SAHA or to another
PHA in connection with Section 8 or public housing assistance under the
1937 Act.
Within 14 days of receiving a request for a live-in aide, including all required
documentation related to the request, SAHA will notify the family of its decision in
writing.
The need for a reasonable accommodation will be reviewed and re-verified at the
family’s annual reexamination, or when a change is made that pertains to the family’s
reasonable accommodation and/or a change in live-in aide. At a family’s annual
recertification, the family must submit a new request for a live-in aide.
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PART II: BASIC ELIGIBILITY CRITERIA
3-II.A. INCOME ELIGIBILITY AND TARGETING
Income Limits
HUD establishes income limits for all areas of the country and publishes them annually in the
Federal Register. They are based upon estimates of median family income with adjustments for
family size. The income limits are used to determine eligibility for the program and for income
targeting purposes as discussed in this section.
Definitions of the Income Limits [24 CFR 5.603(b)]
Low-income family. A family whose annual income does not exceed 80 percent of the
median income for the area, adjusted for family size.
Very low-income family. A family whose annual income does not exceed 50 percent of the
median income for the area, adjusted for family size.
Extremely low-income family. A family whose annual income does not exceed the federal
poverty level or 30 percent of the median income for the area, whichever number is higher.
Area median income is determined by HUD, with adjustments for smaller and larger
families. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of
the median income for an area if HUD finds that such variations are necessary because of
unusually high or low family incomes.
Using Income Limits for Eligibility [24 CFR 982.201]
Income limits are used for eligibility only at admission. Income eligibility is determined by
comparing the annual income of an applicant to the applicable income limit for their family size.
In order to be income eligible, an applicant family must be one of the following:
• A very low-income family
• A low-income family that has been "continuously assisted" under the 1937 Housing Act. A
family is considered to be continuously assisted if the family is already receiving assistance
under any 1937 Housing Act program at the time the family is admitted to the HCV program
[24 CFR 982.4]
SAHA Policy
SAHA will consider a family to be continuously assisted if the family was leasing a unit
under any 1937 Housing Act program at the time they were issued a voucher by SAHA.
• A low-income family that qualifies for voucher assistance as a non-purchasing household
living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing
homeownership) developments, or other HUD-assisted multifamily homeownership
programs covered by 24 CFR 248.173
• A low-income or moderate-income family that is displaced as a result of the prepayment of a
mortgage or voluntary termination of a mortgage insurance contract on eligible low-income
housing as defined in 24 CFR 248.101
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HUD permits SAHA to establish additional categories of low-income families that may be
determined eligible. The additional categories must be consistent with SAHA plan and the
consolidated plans for local governments within SAHA’s jurisdiction.
SAHA Policy
Income eligibility will be established with documents provided at the applicant’s
eligibility interview.
SAHA will recognize a low-income or moderate-income family that is displaced due to
action by the City of Santa Ana Community Development Agency.
Using Income Limits for Targeting [24 CFR 982.201]
At least 75 percent of the families admitted to SAHA's program during SAHA’s fiscal year must
be extremely low-income families. HUD may approve exceptions to this requirement if SAHA
demonstrates that it has made all required efforts, but has been unable to attract an adequate
number of qualified extremely low-income families.
Families continuously assisted under the 1937 Housing Act and families living in eligible low-
income housing that are displaced as a result of prepayment of a mortgage or voluntary
termination of a mortgage insurance contract are not counted for income targeting purposes.
3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E]
Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein
referred to as citizens and nationals), or noncitizens that have eligible immigration status. At
least one family member must be a citizen, national, or noncitizen with eligible immigration
status in order for the family to qualify for any level of assistance.
All applicant families must be notified of the requirement to submit evidence of their citizenship
status when they apply. Where feasible, and in accordance with SAHA’s Limited English
Proficiency Plan, the notice must be in a language that is understood by the individual if the
individual is not proficient in English.
Declaration [24 CFR 5.508]
HUD requires each family member to declare whether the individual is a citizen, a national, or an
eligible noncitizen, except those members who elect not to contend that they have eligible
immigration status. Those who elect not to contend their status are considered to be ineligible
noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed
personally by the head, spouse, cohead, and any other family member 18 or older, and by a
parent or guardian for minors. The family must identify in writing any family members who elect
not to contend their immigration status (see Ineligible Noncitizens below). No declaration is
required for live-in aides, foster children, or foster adults.
U.S. Citizens and Nationals
In general, citizens and nationals are required to submit only a signed declaration as verification
of their status. However, HUD regulations permit SAHA to request additional documentation of
their status, such as a passport.
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SAHA Policy
Family members who provide citizenship or national status verification will not be
required to provide additional documentation unless SAHA receives information
indicating that an individual’s declaration may not be accurate.
Eligible Noncitizens
In addition to providing a signed declaration, those declaring eligible noncitizen status must sign
a verification consent form and cooperate with SAHA efforts to verify their immigration status
as described in Chapter 7. The documentation required for establishing eligible noncitizen status
varies depending upon factors such as the date the person entered the U.S., the conditions under
which eligible immigration status has been granted, the person’s age, and the date on which the
family began receiving HUD-funded assistance.
Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together
known as the Freely Associated States, or FAS, are eligible for housing assistance under section
141 of the Compacts of Free Association between the U.S. Government and the Governments of
the FAS [Public Law 106-504].
SAHA Policy
The original copy of one of the following documents is acceptable evidence of eligible
immigration status, subject to verification:
(1) Form 1-151, Alien Registration Receipt Card (issued to lawful permanent residents
prior to 1979). Form 1-151 will no longer be valid after March 20, 1996.
(2) Form 1-5,1, Alien Registration Receipt Card (for permanent resident aliens)
(3) Form 1-94, Arrival-Departure Record, with one of the following annotations:
(a) “Admitted as Refugee Pursuant to Section 207”
(b) “Section 208” or “Asylum”
(c) “Section 243(h)” or “Deportation stayed by Attorney General”
(d) “Paroled pursuant to Section 212 (d) (5) of the INA”
(4) If Form 1-94, Arrival-Departure Record, is not annotated, then accompanied by one
of the following documents:
(a) A final court decision granting asylum (but only if no appeal is taken)
(b) A letter from an INS asylum officer granting asylum (if application is filed
on or after October 1, 1990) or from an INS district director granting asylum
(if application filed before October 1, 1990)
(c) A court decision granting withholding of deportation
(d) A letter from an asylum officer granting withholding of deportation (if
application filed on or after October 1, 1990)
(5) Form 1-668, Temporary Resident Card, which must be annotated “Section 245A” or
“Section 210”
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(6) Form 1-688B, Employment Authorization Card, which must be annotated “Provision
of Law 274a.12(11)” or “Provision of Law 274a.12”
Ineligible Noncitizens
Those noncitizens who do not wish to contend their immigration status are required to have their
names listed on a noncontending family members listing, signed by the head, spouse, or cohead
(regardless of citizenship status), indicating their ineligible immigration status. SAHA is not
required to verify a family member’s ineligible status and is not required to report an individual’s
unlawful presence in the U.S. to the United States Citizenship and Immigration Services
(USCIS).
Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This
prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children
who accompany or follow to join the noncitizen student. Such prohibition does not extend to the
citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen
student. Such a family is eligible for prorated assistance as a mixed family.
Mixed Families
A family is eligible for assistance as long as at least one member is a citizen, national, or eligible
noncitizen. Families that include eligible and ineligible individuals are considered mixed
families. Such families will be given notice that their assistance will be prorated, and that they
may request a hearing if they contest this determination. See Chapter 6 for a discussion of how
rents are prorated, and Chapter 16 for a discussion of informal hearing procedures.
Ineligible Families [24 CFR 5.514(d), (e), and (f)]
A PHA may elect to provide assistance to a family before the verification of the eligibility of the
individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be
assisted prior to the affirmative establishment by SAHA that the individual or at least one family
member is eligible. Verification of eligibility for this purpose occurs when the individual or
family members have submitted documentation to SAHA in accordance with program
requirements [24 CFR 5.512(a)].
SAHA Policy
SAHA will not provide assistance to a family before the verification of a least one family
member.
When SAHA determines that an applicant family does not include any citizens, nationals,
or eligible noncitizens, following the verification process, the family will be sent a
written notice within 14 days of the determination.
The notice will explain the reasons for the denial of assistance, and will advise the family
of its right to request an appeal to the United States Citizenship and Immigration Services
(USCIS), or to request an informal hearing with SAHA. The informal hearing with
SAHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS
appeal process. The notice must also inform the applicant family that assistance may not
be delayed until the conclusion of the USCIS appeal process, but that it may be delayed
pending the completion of the informal hearing process.
Informal hearing procedures are contained in Chapter 16.
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Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)]
For new occupants joining the assisted family, SAHA must verify status at the first interim or
regular reexamination following the person’s occupancy, whichever comes first.
If an individual qualifies for a time extension for the submission of required documents, SAHA
must grant such an extension for no more than 30 days [24 CFR 5.508(h)].
Each family member is required to submit evidence of eligible status only one time during
continuous occupancy.
SAHA Policy
SAHA will verify the citizenship or eligible immigration status of applicants at the time
other eligibility factors are determined.
3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2012-10]
The applicant and all members of the applicant’s household must disclose the complete and
accurate social security number (SSN) assigned to each household member, and the
documentation necessary to verify each SSN. A detailed discussion of acceptable documentation
is provided in Chapter 7.
Note: These requirements do not apply to noncitizens who do not contend eligible immigration
status.
In addition, each participant who has not previously disclosed an SSN, has previously disclosed
an SSN that HUD or the SSA determined was invalid, or has been issued a new SSN must
submit their complete and accurate SSN and the documentation required to verify the SSN at the
time of the next interim or annual reexamination or recertification. Participants age 62 or older as
of January 31, 2010, whose determination of eligibility was begun before January 31, 2010, are
exempt from this requirement and remain exempt even if they move to a new assisted unit.
SAHA must deny assistance to an applicant family if they do not meet the SSN disclosure and
documentation requirements contained in 24 CFR 5.216.
3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230;
HCV GB, p. 5-13]
HUD requires each adult family member, and the head of household, spouse, or cohead,
regardless of age, to sign form HUD-9886, Authorization for the Release of Information/Privacy
Act Notice, and other consent forms as needed to collect information relevant to the family’s
eligibility and level of assistance. Chapter 7 provides detailed information concerning the
consent forms and verification requirements.
SAHA must deny admission to the program if any member of the applicant family fails to sign
and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts
B and F [24 CFR 982.552(b)(3)].
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3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION
[24 CFR 5.612, FR Notice 4/10/06]
Section 327 of Public Law 109-115 and the implementing regulation at 24 CFR 5.612
established new restrictions on the eligibility of certain students (both part- and full-time) who
are enrolled in institutions of higher education.
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran,
is not married, does not have a dependent child, and is not a person with disabilities receiving
HCV assistance as of November 30, 2005, the student’s eligibility must be examined along with
the income eligibility of the student’s parents. In these cases, both the student and the student’s
parents must be income eligible for the student to receive HCV assistance. If, however, a student
in these circumstances is determined independent from his/her parents in accordance with SAHA
policy, the income of the student’s parents will not be considered in determining the student’s
eligibility.
The new law does not apply to students who reside with parents who are applying to receive
HCV assistance. It is limited to students who are seeking assistance on their own, separately
from their parents.
Definitions
In determining whether and how the new eligibility restrictions apply to a student, SAHA will
rely on the following definitions [FR 4/10/06, p. 18148].
Dependent Child
In the context of the student eligibility restrictions, dependent child means a dependent child of a
student enrolled in an institution of higher education. The dependent child must also meet the
definition of dependent in 24 CFR 5.603, which states that the dependent must be a member of
the assisted family, other than the head of household or spouse, who is under 18 years of age, or
is a person with a disability, or is a full-time student. Foster children and foster adults are not
considered dependents.
Independent Student
SAHA Policy
SAHA will consider a student “independent” from his or her parents and the parents’
income will not be considered when determining the student’s eligibility if the following
four criteria are all met:
The individual is of legal contract age under state law.
The individual has established a household separate from his/her parents for at
least one year prior to application for occupancy or the individual meets the U.S.
Department of Education’s definition of independent student.
To be considered an independent student according to the Department of
Education, a student must meet one or more of the following criteria:
• Be at least 24 years old by December 31 of the award year for
which aid is sought
• Be an orphan or a ward of the court through the age of 18
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• Be a veteran of the U.S. Armed Forces
• Have one or more legal dependents other than a spouse (for
example, dependent children or an elderly dependent parent)
• Be a graduate or professional student
• Be married
The individual was not claimed as a dependent by his/her parents pursuant to IRS
regulations, as demonstrated on the parents’ most recent tax forms.
The individual provides a certification of the amount of financial assistance that
will be provided by his/her parents. This certification must be signed by the
individual providing the support and must be submitted even if no assistance is
being provided.
SAHA will verify that a student meets the above criteria in accordance with the
policies in Section 7-II.E.
Institution of Higher Education
SAHA will use the statutory definition under section 102 of the Higher Education Act of 1965 to
determine whether a student is attending an institution of higher education (see Exhibit 3-2).
Parents
SAHA Policy
For purposes of student eligibility restrictions, the definition of parents includes
biological or adoptive parents, stepparents (as long as they are currently married to
the biological or adoptive parent), and guardians (e.g., grandparents, aunt/uncle,
godparents, etc.).
Person with Disabilities
SAHA will use the statutory definition under section 3(b)(3)(E) of the 1937 Act to determine
whether a student is a person with disabilities (see Exhibit 3-1).
Veteran
SAHA Policy
A veteran is a person who served in the United States active military, naval, or air service
and who was discharged or released from such service under conditions other than
dishonorable. Form DD 214 must be provided at the time of application. The individual
must have served a minimum of 90 days.
Determining Student Eligibility
If a student is applying for assistance on his/her own, apart from his/her parents, SAHA must
determine whether the student is subject to the eligibility restrictions contained in 24 CFR 5.612.
If the student is subject to those restrictions, SAHA must ensure that: (1) the student is
individually eligible for the program, (2) either the student is independent from his/her parents or
the student’s parents are income eligible for the program, and (3) the “family” with which the
student is applying is collectively eligible for the program.
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SAHA Policy
For any student who is subject to the 5.612 restrictions, SAHA will:
Follow its usual policies in determining whether the student individually and the
student’s “family” collectively are eligible for the program
Determine whether the student is independent from his/her parents in accordance
with the definition of independent student in this section
If SAHA determines that the student, the student’s parents (if applicable), or the student’s
“family” is not eligible, SAHA will send a notice of denial in accordance with the
policies in Section 3-III.F, and the applicant family will have the right to request an
informal review in accordance with the policies in Section 16-III.B.
Determining Parental Income Eligibility
SAHA Policy
For any student who is subject to the 5.612 restrictions and who does not satisfy the
definition of independent student in this section, SAHA will determine the income
eligibility of the student’s parents as follows:
• If the student’s parents are married and living together, SAHA will obtain
income verifications from the parents.
• If the student’s parent is widowed or single, SAHA will obtain income
verification from that parent.
• If the student’s parents are divorced or separated, SAHA will obtain income
verification from each parent.
• If the student has been living with one of his/her parents and has not had
contact with or does not know where to contact his/her other parent, SAHA
will require the student to submit a certification under penalty of perjury
describing the circumstances and stating that the student does not receive
financial assistance from the other parent. SAHA will then obtain income
verification from the parent with whom the student has been living or had
contact.
• In determining the income eligibility of the student’s parents, SAHA will use
the income limits for the jurisdiction in which the parents live.
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PART III: DENIAL OF ASSISTANCE
3-III.A. OVERVIEW
A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied
assistance. In this section we will discuss other situations and circumstances in which denial of
assistance is mandatory for SAHA, and those in which denial of assistance is optional for SAHA.
Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35]
Denial of assistance includes any of the following:
• Not placing the family's name on the waiting list
• Denying or withdrawing a voucher
• Not approving a request for tenancy or refusing to enter into a HAP contract
• Refusing to process a request for or to provide assistance under portability procedures
Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b),
24 CFR 5.2005(b)]
HUD rules prohibit denial of program assistance to the program based on any of the
following criteria:
• Age, disability, race, color, religion, sex, or national origin (See Chapter 2 for additional
information about fair housing and equal opportunity requirements.)
• Where a family lives prior to admission to the program
• Where the family will live with assistance under the program. Although eligibility is not
affected by where the family will live, there may be restrictions on the family’s ability to
move outside SAHA’s jurisdiction under portability. (See Chapter 10.)
• Whether members of the family are unwed parents, recipients of public assistance, or
children born out of wedlock
• Whether the family includes children
• Whether a family decides to participate in a family self-sufficiency program
• Whether or not a qualified applicant is or has been a victim of domestic violence,
dating violence, sexual assault, or stalking if the applicant is otherwise qualified for
assistance (See section 3-III.G.)
3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a)]
HUD requires SAHA to deny assistance in the following cases:
• Any member of the household has been evicted from federally-assisted housing in the last 3
years for drug-related criminal activity. HUD permits, but does not require, SAHA to admit
an otherwise-eligible family if the household member has completed a SAHA-approved drug
rehabilitation program or the circumstances which led to eviction no longer exist (e.g., the
person involved in the criminal activity no longer lives in the household).
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SAHA Policy
SAHA will admit an otherwise-eligible family who was evicted from federally-assisted
housing within the past 3 years for drug-related criminal activity, if SAHA is able to
verify that the household member who engaged in the criminal activity has completed a
supervised drug rehabilitation program approved by SAHA, or the person who committed
the crime, will not be living in the assisted unit.
• SAHA determines that any household member is currently engaged in the use of illegal
drugs.
SAHA Policy
Currently engaged in is defined as any use of illegal drugs during the previous three
months. Drug-related criminal activity, defined by HUD, is the illegal manufacture, sale,
distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell,
distribute or use the drug [24 CFR 5.100]. In determining if the household member is
currently engaged in the use of illegal drugs, SAHA will consider all credible evidence,
including but not limited to, any record of convictions, arrests, or evictions of household
members related to the use of illegal drugs within no more than three months from the
date a criminal background check is conducted.
According to federal drug law, marijuana is categorized as a Schedule 1 substance under
the Controlled Substances Act. The manufacture, distribution, or possession of marijuana
is a federal criminal offense. State law is preempted by federal law due to the funding for
the Housing Choice Voucher Program being provided by the federal government. This
means that regardless of California’s stance on medical marijuana, participants in the
SAHA Housing Choice Voucher Program will be prohibited from the use of marijuana
even if for medical purposes.
• SAHA has reasonable cause to believe that any household member's current use or pattern of
use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health,
safety, or right to peaceful enjoyment of the premises by other residents.
SAHA Policy
In determining reasonable cause, SAHA will consider all credible evidence, including but
not limited to, any record of convictions, arrests, or evictions of household members
related to the use of illegal drugs or the abuse of alcohol within no more than the last
three months from the date a criminal background check is conducted. A conviction will
be given more weight than an arrest. SAHA will also consider evidence from treatment
providers or community-based organizations providing services to household members.
• Any household member has ever been convicted of drug-related criminal activity for the
production or manufacture of methamphetamine on the premises of federally assisted
housing
• Any household member is subject to a lifetime registration requirement under a state sex
offender registration program
SAHA Policy
SAHA will access a national data base in order to satisfy PIH Notice 2012-28.
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3-III.C. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE
HUD permits, but does not require, SAHA to deny assistance for the reasons discussed in this
section.
Criminal Activity [24 CFR 982.553]
HUD permits, but does not require, SAHA to deny assistance if SAHA determines that any
household member is currently engaged in, or has engaged in during a reasonable time before the
family would receive assistance, certain types of criminal activity.
SAHA Policy
SAHA will not implement any additional barrier that is not a statutorily mandated
prohibition which would limit a vulnerable population from accessing the program. This
policy is adopted in accordance with PIH Notice 2015-19, PIH Notice 2013-15, and
HUD’s goal to “help ex-offenders gain access to one of the most fundamental building
blocks of a stable life – a place to live.”
Previous Behavior in Assisted Housing [24 CFR 982.552(c)]
HUD authorizes SAHA to deny assistance based on the family’s previous behavior in assisted
housing:
SAHA Policy
SAHA will not deny assistance to an otherwise eligible family because the family
previously failed to meet its obligations under the Family Self-Sufficiency (FSS)
program.
SAHA will deny assistance to an applicant family if:
The family does not provide information that SAHA or HUD determines is
necessary in the administration of the program.
The family does not provide complete and true information to SAHA.
Any family member has committed fraud, bribery, or any other corrupt or
criminal act in connection with any federal housing program.
The family owes rent or other amounts to any PHA in connection with the HCV,
Certificate, Moderate Rehabilitation or public housing programs, unless the
family repays the full amount of the debt prior to being selected from the waiting
list.
If the family has not reimbursed any PHA for amounts paid to an owner under a
HAP contract for rent, damages to the unit, or other amounts owed by the family
under the lease, unless the family repays the full amount of the debt prior to being
selected from the waiting list.
The family has breached the terms of a repayment agreement entered into with
SAHA, unless the family repays the full amount of the debt covered in the
repayment agreement prior to being selected from the waiting list.
A family member has engaged in or threatened violent or abusive behavior toward
SAHA personnel.
Abusive or violent behavior towards SAHA personnel includes verbal as
well as physical abuse or violence. Use of racial epithets, or other
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language, written or oral, that is customarily used to intimidate may be
considered abusive or violent behavior.
Threatening refers to oral or written threats or physical gestures that
communicate intent to abuse or commit violence.
In making its decision to deny assistance, SAHA will consider the factors discussed in
Section 3-III.E. Upon consideration of such factors, SAHA may, on a case-by-case basis,
decide not to deny assistance.
3-III.D. SCREENING
Screening for Eligibility
PHAs are authorized to obtain criminal conviction records from law enforcement agencies to
screen applicants for admission to the HCV program. This authority assists SAHA in complying
with HUD requirements and SAHA policies to deny assistance to applicants who are engaging in
or have engaged in certain criminal activities. In order to obtain access to the records SAHA
must require every applicant family to submit a consent form signed by each adult household
member [24 CFR 5.903].
SAHA Policy
SAHA will perform a criminal background check through local law enforcement or other
agencies for every adult household member during initial eligibility.
If the results of the criminal background check indicate that there may be past criminal
activity, but the results are inconclusive, SAHA may request a fingerprint card and may
request information from the local law enforcement agency.
PHAs are required to perform criminal background checks necessary to determine whether any
household member is subject to a lifetime registration requirement under a state sex offender
program in the state where the housing is located, as well as in any other state where a household
member is known to have resided [24 CFR 982.553(a)(2)(i)].
SAHA Policy
SAHA will make use of private companies or any other source with national sex offender
data.
Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household,
is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH
2012-28].
If SAHA proposes to deny assistance based on a criminal record or on lifetime sex offender
registration information, SAHA must notify the household of the proposed action and must
provide the subject of the record and the applicant a copy of the record and an opportunity to
dispute the accuracy and relevance of the information prior to a denial of admission. [24 CFR
5.903(f) and 5.905(d)].
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Screening for Suitability as a Tenant [24 CFR 982.307]
SAHA has no liability or responsibility to the owner for the family’s behavior or suitability for
tenancy. SAHA has the authority to conduct additional screening to determine whether an
applicant is likely to be a suitable tenant.
SAHA Policy
SAHA will not conduct additional screening to determine an applicant family’s
suitability for tenancy.
The owner is responsible for screening and selection of the family to occupy the owner’s unit.
SAHA must inform the owner that screening and selection for tenancy is the responsibility of the
owner. An owner may consider a family’s history with respect to factors such as: payment of
rent and utilities, caring for a unit and premises, respecting the rights of other residents to the
peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or
property of others, and compliance with other essential conditions of tenancy.
HUD requires SAHA to provide prospective owners with the family's current and prior address
(as shown in SAHA records) and the name and address (if known) of the owner at the family's
current and prior addresses. HUD permits SAHA to provide owners with additional information,
as long as families are notified that the information will be provided, and the same type of
information is provided to all owners.
SAHA may not disclose to the owner any confidential information provided to SAHA by the
family in response to a request for documentation of domestic violence, dating violence, sexual
assault, or stalking except at the written request or with the written consent of the individual
providing the documentation
[24 CFR 5.2007(a)(4)].
SAHA Policy
SAHA will inform owners of their responsibility to screen prospective tenants. If
requested SAHA will provide owners with the last known owner’s name and phone
number, at the time of the initial HQS inspection or before. SAHA will not provide any
additional information to the owner, such as tenancy history or criminal history.
3-III.E. CRITERIA FOR DECIDING TO DENY ASSISTANCE
Evidence [24 CFR 982.553(c)]
SAHA Policy
SAHA will use the concept of the preponderance of the evidence as the standard for
making all admission decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more
convincing than the evidence which is offered in opposition to it; that is, evidence which
as a whole shows that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by
the greater weight of all evidence.
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Consideration of Circumstances [24 CFR 982.552(c)(2)]
HUD authorizes SAHA to consider all relevant circumstances when deciding whether to deny
assistance based on a family’s past history except in the situations for which denial of assistance
is mandatory (see Section 3-III.B).
SAHA Policy
SAHA will consider the following factors prior to making its decision:
• The seriousness of the case, especially with respect to how it would affect other
residents
• The effects that denial of assistance may have on other members of the family
who were not involved in the action or failure to act
• The extent of participation or culpability of individual family members, including
whether the culpable family member is a minor or a person with disabilities, or
(as discussed further in section 3-III.G) a victim of domestic violence, dating
violence, or stalking
• The length of time since the violation occurred, the family’s recent history and the
likelihood of favorable conduct in the future
• In the case of drug or alcohol abuse, whether the culpable household member is
participating in or has successfully completed a supervised drug or alcohol
rehabilitation program or has otherwise been rehabilitated successfully
SAHA will require the applicant to submit evidence of the household
member’s current participation in or successful completion of a supervised
drug or alcohol rehabilitation program, or evidence of otherwise having
been rehabilitated successfully.
Removal of a Family Member's Name from the Application
Should SAHA’s screening process reveal that an applicant’s household includes an individual
subject to state lifetime registered sex offender registration, SAHA must offer the family the
opportunity to remove the ineligible family member from the household. If the family is
unwilling to remove that individual from the household, SAHA must deny admission to the
family [Notice PIH 2012-28].
For other criminal activity, SAHA may permit the family to exclude the culpable family
members as a condition of eligibility. [24 CFR 982.552(c)(2)(ii)].
SAHA Policy
As a condition of receiving assistance, a family may agree to remove the culpable family
member from the application. In such instances, the head of household must certify that
the family member will not be permitted to visit, stay as a guest, or reside in the assisted
unit.
After admission to the program, the family must present evidence of the former family
member’s current address upon SAHA’s request.
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Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]
If the family includes a person with disabilities, SAHA’s decision concerning denial of
admission is subject to consideration of reasonable accommodation in accordance with 24 CFR
Part 8.
SAHA Policy
If the family indicates that the behavior of a family member with a disability is the reason
for the proposed denial of assistance, SAHA will determine whether the behavior is
related to the disability. If so, upon the family’s request, SAHA will determine whether
alternative measures are appropriate as a reasonable accommodation. SAHA will only
consider accommodations that can reasonably be expected to address the behavior that is
the basis of the proposed denial of assistance. See Chapter 2 for a discussion of
reasonable accommodation.
3-III.F. NOTICE OF ELIGIBILITY OR DENIAL
If the family is eligible for assistance, SAHA will notify the family in writing and schedule a
tenant briefing, as discussed in Chapter 5.
If SAHA determines that a family is not eligible for the program for any reason, the family must
be notified promptly. The notice must describe: (1) the reasons for which assistance has been
denied, (2) the family’s right to an informal review, and (3) the process for obtaining the
informal review [24 CFR 982.554 (a)]. See Chapter 16, for informal review policies and
procedures.
SAHA Policy
The family will be notified of a decision to deny assistance in writing within 14 days of
the determination.
If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR
5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with
an opportunity for the applicant to dispute the accuracy and relevance of the information before
SAHA can move to deny the application. In addition, a copy of the record must be provided to
the subject of the record [24 CFR 5.903(f) and 5.905(d)]. SAHA must give the family an
opportunity to dispute the accuracy and relevance of that record, in the informal review process
in accordance with program requirements [24 CFR 982.553(d)].
SAHA Policy
If based on a criminal record or sex offender registration information, an applicant family
appears to be ineligible SAHA will notify the family in writing of the proposed denial
and provide a copy of the record to the subject of the record. The family will be given 14
days to dispute the accuracy and relevance of the information. If the family does not
contact SAHA to dispute the information within that 14-day period, SAHA will proceed
with issuing the notice of denial of admission. A family that does not exercise their right
to dispute the accuracy of the information prior to issuance of the official denial letter
will still be given the opportunity to do so as part of the informal review process.
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Notice requirements related to denying assistance to noncitizens are contained in Section 3-II.B.
Notice policies related to denying admission to applicants who may be victims of domestic
violence, dating violence, sexual assault or stalking are contained in Section 3-III.G.
3-III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF
DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING
The Violence against Women Act of 2013 (VAWA) and the HUD regulation at 24 CFR
5.2005(b) prohibit PHAs from denying an applicant admission to the HCV program “on the basis
that the applicant is or has been a victim of domestic violence, dating violence, sexual assault or
stalking, if the applicant otherwise qualifies for assistance or admission.”
Definitions of key terms used in VAWA are provided in section 16-IX of this plan, where
general VAWA requirements and policies pertaining to notification, documentation, and
confidentiality are also located.
Notification
VAWA 2013 expanded notification requirements to include the obligation for PHAs to provide
applicants who are denied assistance with a notice of rights and the form HUD-50066 at the time
the applicant is denied.
SAHA Policy
SAHA acknowledges that a victim of domestic violence, dating violence, or stalking may
have an unfavorable history (e.g., a poor credit history, a record of previous damage to an
apartment, a prior arrest record) that would warrant denial under the SAHA policies.
Therefore, if SAHA makes a determination to deny assistance to an applicant family,
SAHA will include in its notice of denial the VAWA information described in section 16-
IX.C of this plan and will request that an applicant wishing to claim protection under
VAWA notify SAHA within 14 days.
Documentation
Victim Documentation [24 CFR 5.2007]
SAHA Policy
If an applicant claims the protections against denial of assistance that VAWA provides to
victims of domestic violence, dating violence, or stalking, SAHA will request in writing
that the applicant provide documentation supporting the claim in accordance with section
16-IX.D of this plan.
Perpetrator Documentation
SAHA Policy
If the perpetrator of the abuse is a member of the applicant family, the applicant must
provide additional documentation consisting of one of the following:
A signed statement (1) requesting that the perpetrator be removed from the
application and (2) certifying that the perpetrator will not be permitted to visit or
to stay as a guest in the assisted unit
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EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES
Person with Disabilities [24 CFR 5.403]
The term person with disabilities means a person who has any of the following types of
conditions:
• Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads:
Inability to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or
which has lasted or can be expected to last for a continuous period of not less than 12
months; or
In the case of an individual who has attained the age of 55 and is blind (within the
meaning of “blindness” as defined in section 416(i)(1) of this title), inability by reason of
such blindness to engage in substantial gainful activity, requiring skills or ability
comparable to those of any gainful activity in which he has previously engaged with
some regularity and over a substantial period of time.
• Has a developmental disability as defined in the Developmental Disabilities Assistance and
Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in
functional terms as follows:
(A) In General
The term “developmental disability” means a severe, chronic disability of an
individual that:
(i) is attributable to a mental or physical impairment or combination of mental and
physical impairments;
(ii) is manifested before the individual attains age 22;
(iii) is likely to continue indefinitely;
(iv) results in substantial functional limitations in 3 or more of the following areas of
major life activity: (I) Self-care, (II) Receptive and expressive language, (III)
Learning, (IV) Mobility, (V) Self-direction, (VI) Capacity for independent living,
(VII) Economic self-sufficiency; and
(v) reflects the individual’s need for a combination and sequence of special,
interdisciplinary, or generic services, individualized supports, or other forms of
assistance that are of lifelong or extended duration and are individually planned
and coordinated.
(B) Infants and Young Children
An individual from birth to age 9, inclusive, who has a substantial developmental delay
or specific congenital or acquired condition, may be considered to have a developmental
disability without meeting 3 or more of the criteria described in clauses (i) through (v) of
subparagraph (A) if the individual, without services and supports, has a high probability
of meeting those criteria later in life.
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• Has a physical, mental, or emotional impairment that is expected to be of long-continued and
indefinite duration; substantially impedes his or her ability to live independently, and is of
such a nature that the ability to live independently could be improved by more suitable
housing conditions.
People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the
etiologic agent for AIDS are not excluded from this definition.
A person whose disability is based solely on any drug or alcohol dependence does not qualify as
a person with disabilities for the purposes of this program.
For purposes of reasonable accommodation and program accessibility for persons with
disabilities, the term person with disabilities refers to an individual with handicaps.
Individual with Handicaps [24 CFR 8.3]
Individual with handicaps means any person who has a physical or mental impairment that
substantially limits one or more major life activities; has a record of such an impairment; or is
regarded as having such an impairment. The term does not include any individual who is an
alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from
participating in the program or activity in question, or whose participation, by reason of such
current alcohol or drug abuse, would constitute a direct threat to property or the safety of others.
As used in this definition, the phrase:
(1) Physical or mental impairment includes:
(a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss
affecting one or more of the following body systems: neurological; musculoskeletal;
special sense organs; respiratory, including speech organs; cardiovascular; reproductive;
digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or
(b) Any mental or psychological disorder, such as mental retardation, organic brain
syndrome, emotional or mental illness, and specific learning disabilities. The term
physical or mental impairment includes, but is not limited to, such diseases and
conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism,
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental
retardation, emotional illness, drug addiction and alcoholism.
(2) Major life activities means functions such as caring for one's self, performing manual tasks,
walking, seeing, hearing, speaking, breathing, learning and working.
(3) Has a record of such an impairment means has a history of, or has been misclassified as
having, a mental or physical impairment that substantially limits one or more major life
activities.
(4) Is regarded as having an impairment means:
(a) Has a physical or mental impairment that does not substantially limit one or more major life
activities but that is treated by a recipient as constituting such a limitation;
(b) Has a physical or mental impairment that substantially limits one or more major life activities
only as a result of the attitudes of others toward such impairment; or
(c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient
as having such an impairment.
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EXHIBIT 3-2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION
[20 U.S.C. 1001 and 1002]
Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of
1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006]
Institution of Higher Education shall have the meaning given this term in the Higher Education
Act of 1965 in 20 U.S.C. 1001 and 1002.
Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1001
(a) Institution of higher education. For purposes of this chapter, other than subchapter IV and
part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’
means an educational institution in any State that
(1) Admits as regular students only persons having a certificate of graduation from a school
providing secondary education, or the recognized equivalent of such a certificate;
(2) Is legally authorized within such State to provide a program of education beyond
secondary education;
(3) Provides an educational program for which the institution awards a bachelor’s degree or
provides not less than a 2-year program that is acceptable for full credit toward such a
degree;
(4) Is a public or other nonprofit institution; and
(5) Is accredited by a nationally recognized accrediting agency or association, or if not so
accredited, is an institution that has been granted preaccreditation status by such an
agency or association that has been recognized by the Secretary for the granting of
preaccreditation status, and the Secretary has determined that there is satisfactory
assurance that the institution will meet the accreditation standards of such an agency or
association within a reasonable time.
(b) Additional institutions included. For purposes of this chapter, other than subchapter IV and
part C of subchapter I of chapter 34 of Title 42, the term ‘‘institution of higher education’’
also includes—
(1) Any school that provides not less than a 1-year program of training to prepare students
for gainful employment in a recognized occupation and that meets the provision of
paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and
(2) A public or nonprofit private educational institution in any State that, in lieu of the
requirement in subsection (a)(1) of this section, admits as regular students persons who
are beyond the age of compulsory school attendance in the State in which the institution
is located.
(c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the
Secretary shall publish a list of nationally recognized accrediting agencies or associations
that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this
chapter, to be reliable authority as to the quality of the education or training offered.
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Definition of ‘‘Institution of Higher Education’’ From 20 U.S.C. 1002
(a) Definition of institution of higher education for purposes of student assistance programs
(1) Inclusion of additional institutions. Subject to paragraphs (2) through (4) of this
subsection, the term ‘‘institution of higher education’’ for purposes of subchapter IV of
this chapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the
institutions covered by the definition in section 1001 of this title—
(A) A proprietary institution of higher education (as defined in subsection (b) of this
section);
(B) A postsecondary vocational institution (as defined in subsection (c) of this section);
and
(C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside
the United States that is comparable to an institution of higher education as defined in
section 1001 of this title and that has been approved by the Secretary for the purpose
of part B of subchapter IV of this chapter.
(2) Institutions outside the United States
(A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the
Secretary shall establish criteria by regulation for the approval of institutions outside
the United States and for the determination that such institutions are comparable to an
institution of higher education as defined in section 1001 of this title (except that a
graduate medical school, or a veterinary school, located outside the United States
shall not be required to meet the requirements of section 1001 (a)(4) of this title).
Such criteria shall include a requirement that a student attending such school outside
the United States is ineligible for loans made, insured, or guaranteed under part B of
subchapter IV of this chapter unless—
(i) In the case of a graduate medical school located outside the United States—
(I)(aa) At least 60 percent of those enrolled in, and at least 60 percent of the
graduates of, the graduate medical school outside the United States were not
persons described in section 1091(a)(5) of this title in the year preceding the
year for which a student is seeking a loan under part B of subchapter IV of
this chapter; and
(bb) At least 60 percent of the individuals who were students or graduates of the
graduate medical school outside the United States or Canada (both nationals
of the United States and others) taking the examinations administered by the
Educational Commission for Foreign Medical Graduates received a passing
score in the year preceding the year for which a student is seeking a loan
under part B of subchapter IV of this chapter; or
(II) The institution has a clinical training program that was approved by a State as
of January 1, 1992; or
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(ii) In the case of a veterinary school located outside the United States that does not
meet the requirements of section 1001(a)(4) of this title, the institution’s students
complete their clinical training at an approved veterinary school located in the
United States.
(B) Advisory panel
(i) In general. For the purpose of qualifying as an institution under paragraph (1)(C)
of this subsection, the Secretary shall establish an advisory panel of medical
experts that shall—
(I) Evaluate the standards of accreditation applied to applicant foreign medical
schools; and
(II) Determine the comparability of those standards to standards for accreditation
applied to United States medical schools.
(ii) Special rule if the accreditation standards described in clause (i) are determined
not to be comparable, the foreign medical school shall be required to meet the
requirements of section 1001 of this title.
(C) Failure to release information. The failure of an institution outside the United States
to provide, release, or authorize release to the Secretary of such information as may
be required by subparagraph (A) shall render such institution ineligible for the
purpose of part B of subchapter IV of this chapter.
(D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate
in the programs under subchapter IV of this chapter and part C of subchapter I of
chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding
such loss of eligibility, continue to be eligible to receive a loan under part B while
attending such institution for the academic year succeeding the academic year in
which such loss of eligibility occurred.
(3) Limitations based on course of study or enrollment. An institution shall not be considered
to meet the definition of an institution of higher education in paragraph (1) if such
institution—
(A) Offers more than 50 percent of such institution’s courses by correspondence, unless
the institution is an institution that meets the definition in section 2471 (4)(C) of this
title;
(B) Enrolls 50 percent or more of the institution’s students in correspondence courses,
unless the institution is an institution that meets the definition in such section, except
that the Secretary, at the request of such institution, may waive the applicability of
this subparagraph to such institution for good cause, as determined by the Secretary in
the case of an institution of higher education that provides a 2-or 4-year program of
instruction (or both) for which the institution awards an associate or baccalaureate
degree, respectively;
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(C) Has a student enrollment in which more than 25 percent of the students are
incarcerated, except that the Secretary may waive the limitation contained in this
subparagraph for a nonprofit institution that provides a 2-or 4-year program of
instruction (or both) for which the institution awards a bachelor’s degree, or an
associate’s degree or a postsecondary diploma, respectively; or
(D) Has a student enrollment in which more than 50 percent of the students do not have a
secondary school diploma or its recognized equivalent, and does not provide a 2-or 4-
year program of instruction (or both) for which the institution awards a bachelor’s
degree or an associate’s degree, respectively, except that the Secretary may waive the
limitation contained in this subparagraph if a nonprofit institution demonstrates to the
satisfaction of the Secretary that the institution exceeds such limitation because the
institution serves, through contracts with Federal, State, or local government
agencies, significant numbers of students who do not have a secondary school
diploma or its recognized equivalent.
(4) Limitations based on management. An institution shall not be considered to meet the
definition of an institution of higher education in paragraph (1) if—
(A) The institution, or an affiliate of the institution that has the power, by contract or
ownership interest, to direct or cause the direction of the management or policies of
the institution, has filed for bankruptcy, except that this paragraph shall not apply to a
nonprofit institution, the primary function of which is to provide health care
educational services (or an affiliate of such an institution that has the power, by
contract or ownership interest, to direct or cause the direction of the institution’s
management or policies) that files for bankruptcy under chapter 11 of title 11 between
July 1, 1998, and December 1, 1998; or
(B) The institution, the institution’s owner, or the institution’s chief executive officer has
been convicted of, or has pled nolo contendere or guilty to, a crime involving the
acquisition, use, or expenditure of funds under subchapter IV of this chapter and part
C of subchapter I of chapter 34 of title 42, or has been judicially determined to have
committed fraud involving funds under subchapter IV of this chapter and part C of
subchapter I of chapter 34 of title 42.
(5) Certification. The Secretary shall certify an institution’s qualification as an institution of
higher education in accordance with the requirements of subpart 3 of part G of subchapter
IV of this chapter.
(6) Loss of eligibility. An institution of higher education shall not be considered to meet the
definition of an institution of higher education in paragraph (1) if such institution is
removed from eligibility for funds under subchapter IV of this chapter and part C of
subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of
subchapter IV of this chapter.
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(b) Proprietary institution of higher education
(1) Principal criteria. For the purpose of this section, the term ‘‘proprietary institution of
higher education’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment
in a recognized occupation;
(B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of this title;
(C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title;
(D) Is accredited by a nationally recognized accrediting agency or association recognized
by the Secretary pursuant to part G of subchapter IV of this chapter;
(E) Has been in existence for at least 2 years; and
(F) Has at least 10 percent of the school’s revenues from sources that are not derived
from funds provided under subchapter IV of this chapter and part C of subchapter I of
chapter 34 of title 42, as determined in accordance with regulations prescribed by the
Secretary.
(2) Additional institutions. The term ‘‘proprietary institution of higher education’’ also
includes a proprietary educational institution in any State that, in lieu of the requirement
in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who
are beyond the age of compulsory school attendance in the State in which the institution
is located.
(c) Postsecondary vocational institution.
(1) Principal criteria. For the purpose of this section, the term ‘‘postsecondary vocational
institution’’ means a school that—
(A) Provides an eligible program of training to prepare students for gainful employment
in a recognized occupation;
(B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this
title; and
(C) Has been in existence for at least 2 years.
(2) Additional institutions. The term ‘‘postsecondary vocational institution’’ also includes an
educational institution in any State that, in lieu of the requirement in paragraph (1) of
section 1001 (a) of this title, admits as regular students persons who are beyond the age
of compulsory school attendance in the State in which the institution is located.
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Chapter 4
APPLICATIONS, WAITING LIST AND TENANT SELECTION
INTRODUCTION
When a family wishes to receive assistance under the HCV program, the family must submit an
application that provides SAHA with the information needed to determine the family’s
eligibility. HUD requires SAHA to place all families that apply for assistance on a Waiting List.
When HCV assistance becomes available, SAHA must select families from the Waiting List in
accordance with HUD requirements and SAHA policies as stated in the administrative plan and
the annual plan.
SAHA is required to adopt clear policies and procedures for accepting applications, placing
families on the Waiting List, and selecting families from the Waiting List, and must follow these
policies and procedures consistently. The actual order in which families are selected from the
Waiting List can be affected if a family has certain characteristics designated by HUD or SAHA
that justify their selection. Examples of this are the selection of families for income targeting and
the selection of families that qualify for targeted funding.
HUD regulations require that all families have an equal opportunity to apply for and receive
housing assistance, and that SAHA affirmatively further fair housing goals in the administration
of the program [24 CFR 982.53, HCV GB p. 4-1]. Adherence to the selection policies described
in this chapter ensures that SAHA will be in compliance with all relevant fair housing
requirements, as described in Chapter 2.
This chapter describes HUD and SAHA policies for taking applications, managing the Waiting
List and selecting families for HCV assistance. The policies outlined in this chapter are
organized into three sections, as follows:
Part I: The Application Process. This part provides an overview of the application
process, and discusses how applicants can obtain and submit applications. It also
specifies how SAHA will handle the applications it receives.
Part II: Managing the Waiting List. This part presents the policies that govern how
SAHA’s Waiting List is structured, when it is opened and closed, and how the public is
notified of the opportunity to apply for assistance. It also discusses the process SAHA
will use to keep the Waiting List current.
Part III: Selection for HCV Assistance. This part describes the policies that guide SAHA
in selecting families for HCV assistance as such assistance becomes available. It also
specifies how in-person interviews will be used to ensure that SAHA has the information
needed to make a final eligibility determination.
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PART I: THE APPLICATION PROCESS
4-I.A. OVERVIEW
This part describes SAHA policies for making applications available, accepting applications
making preliminary determinations of eligibility, and the placement of applicants on the Waiting
List. This part also describes SAHA’s obligation to ensure the accessibility of the application
process to elderly persons, people with disabilities, and people with limited English proficiency
(LEP).
4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11 – 4-16, Notice PIH 2009-36]
Any family that wishes to receive HCV assistance must apply for admission to the program.
HUD permits SAHA to determine the format and content of HCV applications, as well how such
applications will be made available to interested families and how applications will be accepted
by SAHA. SAHA must include Form HUD-92006, Supplement to Application for Federally
Assisted Housing, as part of SAHA’s application.
SAHA Policy
During application intake SAHA will initially require families to provide only the
information needed to make an initial assessment of the family’s eligibility, and to
determine the family’s placement on the Waiting List. The family will be required to
provide all of the information necessary to establish family eligibility and level of
assistance at the eligibility interview.
During application intake, applications will only be available online. Staff will be
available to assist with online applications after receiving a request for reasonable
accommodation.
Completed applications must be submitted online. Applications must be completed in
order to be accepted by SAHA for processing. Incomplete or duplicate applications will
be rejected without further notification.
4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS
Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 – 4-13]
SAHA must take steps to ensure that the application process is accessible to those people who
might have difficulty complying with the normal, standard SAHA application process. This
could include people with disabilities, certain elderly individuals, as well as persons with limited
English proficiency (LEP). SAHA must provide reasonable accommodation to the needs of
individuals with disabilities. The application-taking facility and the application process must be
fully accessible, or SAHA must provide an alternate approach that provides full access to the
application process. Chapter 2 provides a full discussion of SAHA’s policies related to providing
reasonable accommodations for people with disabilities.
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Limited English Proficiency
PHAs are required to take reasonable steps to ensure equal access to their programs and activities
by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on
SAHA’s policies related to ensuring access to people with limited English proficiency (LEP).
4-I.D. PLACEMENT ON THE WAITING LIST
SAHA must review each complete application received and make a preliminary assessment of
the family’s eligibility. SAHA must accept applications from families for whom the list is open
unless there is good cause for not accepting the application (such as denial of assistance) for the
grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the family is determined to be
ineligible, SAHA must notify the family in writing [24 CFR 982.201(f)]. Where the family is not
determined to be ineligible, the family will be placed on a Waiting List of applicants.
No applicant has a right or entitlement to be listed on the Waiting List, or to any particular
position on the Waiting List [24 CFR 982.202(c)].
Ineligible for Placement on the Waiting List
SAHA Policy
If SAHA can determine from the information provided that a family is ineligible, the
family will not be placed on the Waiting List. Where a family is determined to be
ineligible, SAHA will send written notification of the ineligibility determination. The
notice will specify the reasons for ineligibility, and will inform the family of its right to
request an informal review and explain the process for doing so (see Chapter 16).
Eligible for Placement on the Waiting List
SAHA Policy
SAHA will send written notification of the preliminary eligibility and placement on the
Waiting List. Placement on the Waiting List does not indicate that the family is, in fact,
eligible for assistance. A final determination of eligibility will be made when the family
is selected from the Waiting List. Applicants will be placed on the Waiting List according
to any preference(s) for which they claimed.
SAHA has the option of limiting the number of applications accepted and/or performing
a lottery in preference categories.
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PART II: MANAGING THE WAITING LIST
4-II.A. OVERVIEW
SAHA must have policies regarding various aspects of organizing and managing the Waiting
List of applicant families. This includes opening the list to new applicants, closing the list to new
applicants, notifying the public of Waiting List openings and closings, updating Waiting List
information, purging the list of families that are no longer interested in or eligible for assistance,
as well as conducting outreach to ensure a sufficient number of applicants.
In addition, HUD imposes requirements on how a PHA may structure its Waiting List and how
families must be treated if they apply for assistance from a PHA that administers more than one
assisted housing program.
4-II.B. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 205]
SAHA’s HCV Waiting List must be organized in such a manner to allow SAHA to accurately
identify and select families for assistance in the proper order, according to the admissions
policies described in this plan.
The Waiting List must contain the following information for each applicant listed:
• Applicant name;
• Family unit size;
• Date and time of application;
• Qualification for any local preference;
• Racial or ethnic designation of the head of household.
HUD requires SAHA to maintain a single Waiting List for the HCV program unless it serves
more than one county or municipality. Such PHAs are permitted, but not required, to maintain a
separate Waiting List for each county or municipality served.
SAHA Policy
SAHA maintains a single Waiting List for the HCV program. However a separate
Waiting List may be established for project based vouchers that are designated for a
specific target population or a site.
HUD directs that a family that applies for assistance from the HCV program must be offered the
opportunity to be placed on the Waiting List for any public housing, project-based voucher or
moderate rehabilitation program SAHA operates if 1) the other programs’ Waiting Lists are
open, and 2) the family is qualified for the other programs.
HUD permits, but does not require, that PHAs maintain a single merged Waiting List for their
public housing, Section 8, and other subsidized housing programs.
A family’s decision to apply for, receive, or refuse other housing assistance must not affect the
family’s placement on the HCV Waiting List, or any preferences for which the family may
qualify.
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SAHA Policy
SAHA will not merge the HCV Waiting List with the waiting list for any other program
they operate.
4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.206]
Closing the Waiting List
A PHA is permitted to close the Waiting List if it has an adequate pool of families to use its
available HCV assistance. Alternatively, SAHA may elect to continue to accept applications only
from certain categories of families that meet particular preferences or funding criteria.
SAHA Policy
SAHA may close the Waiting List when the estimated waiting period for housing
assistance for applicants on the list exceeds 24 months or may open for a limited
timeframe. Where SAHA has particular preferences or funding criteria that require a
specific category of family, SAHA may elect to continue to accept applications from
these applicants while closing the Waiting List to others.
SAHA may determine after reviewing the community need and available funding that it
may be beneficial for the Waiting List to remain open indefinitely or for the Waiting List
to remain open for special purpose vouchers or specific preferences.
Reopening the Waiting List
If the Waiting List has been closed, it cannot be reopened until SAHA publishes a notice in local
newspapers of general circulation, minority media, and other suitable media outlets. The notice
must comply with HUD fair housing requirements and must specify who may apply, and where
and when applications will be received.
SAHA Policy
SAHA will announce the reopening of the Waiting List through a public notice prior to
the date applications will first be accepted. If the list is only being reopened for certain
categories of families, this information will be contained in the notice.
SAHA will give public notice by publishing the relevant information in suitable media
outlets including, but not limited to: The Orange County Register, Miniondas, La
Opinion, Unidos, and Nguoi Viet newspaper. Other publications may be used if it is
determined that it would be beneficial in reaching specific populations.
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4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-4]
SAHA must conduct outreach as necessary to ensure that SAHA has a sufficient number of
applicants on the Waiting List to use the HCV resources it has been allotted.
Because HUD requires SAHA to admit a specified percentage of extremely low-income families
to the program (see Chapter 4, Part III), SAHA may need to conduct special outreach to ensure
that an adequate number of such families apply for assistance [HCV GB, p. 4-20 to 4-21].
SAHA outreach efforts must comply with fair housing requirements. This includes:
• Analyzing the housing market area and the populations currently being served to identify
underserved populations
• Ensuring that outreach efforts are targeted to media outlets that reach eligible populations
that are underrepresented in the program
• Avoiding outreach efforts that prefer or exclude people who are members of a protected class
SAHA outreach efforts must be designed to inform qualified families about the availability of
assistance under the program. These efforts may include, as needed, any of the following
activities:
• Submitting press releases to local newspapers, including minority newspapers
• Developing informational materials and flyers to distribute to other agencies
• Providing application forms to other public and private agencies that serve the low income
population
• Developing partnerships with other organizations that serve similar populations, including
agencies that provide services for persons with disabilities
SAHA Policy
SAHA will monitor the characteristics of the population being served and the
characteristics of the population as a whole in SAHA’s jurisdiction. Targeted outreach
efforts will be undertaken if a comparison suggests that certain populations are being
underserved.
4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES
SAHA Policy
While the family is on the Waiting List, the family must immediately inform SAHA of
changes in mailing address and number of family members. The changes must be
submitted online. Any requests to add additional family members to the application must
be received prior to SAHA mailing an invitation for an orientation or the eligibility
interview. The final approval will be determined at the eligibility interview.
Failure to report address changes online that result in mail being returned will be cause
for removal from the Waiting List.
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4-II.F. UPDATING THE WAITING LIST [24 CFR 982.204]
HUD requires SAHA to establish policies to use when removing applicant names from the
Waiting List.
Purging the Waiting List
The decision to withdraw an applicant family that includes a person with disabilities from the
Waiting List is subject to reasonable accommodation. If the applicant did not respond to a PHA
request for information or updates, and SAHA determines that the family did not respond
because of the family member’s disability, SAHA must reinstate the applicant family to their
former position on the Waiting List [24 CFR 982.204(c)(2)].
SAHA Policy
The Waiting List will be purged as necessary to ensure that all applicants and applicant
information is current and timely. To purge the Waiting List, SAHA will send an update
request via first class mail to each family on the Waiting List to determine whether the
family continues to be interested in, and to qualify for, the program. This update request
will be sent to the last address that SAHA has on record for the family from the family’s
online application. The update request will provide a deadline by which the family must
respond and will state that failure to respond will result in the applicant’s name being
removed from the Waiting List.
The family’s response must be in writing and may be delivered in person, by mail, or by
fax. Responses should be postmarked or received by SAHA no later than the date
specified on the SAHA letter.
If the family fails to respond within the specified date on SAHA’s letter, the family will
be removed from the Waiting List without further notice.
If the notice is returned by the post office with no forwarding address, the applicant will
be removed from the Waiting List without further notice.
If the notice is returned by the post office with a forwarding address and the applicant has
not notified SAHA of the address change, the applicant will be removed from the
Waiting List without further notice.
If a family is removed from the Waiting List within the last twelve months for failure to
respond, SAHA may reinstate the family if it determines the lack of response was due to
SAHA error, or to circumstances beyond the family’s control.
Removal from the Waiting List
SAHA Policy
If at any time an applicant family is on the Waiting List, SAHA determines that the
family is not eligible for assistance (see Chapter 3), the family will be removed from the
Waiting List. If a family is removed from the Waiting List because SAHA has
determined the family is not eligible for assistance, a notice will be sent to the family’s
address of record provided on the initial application. e-. The notice will state the reasons
the family was removed from the Waiting List and will inform the family how to request
an informal review regarding SAHA’s decision (see Chapter 16) [24 CFR 982.201(f)].
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PART III: SELECTION FOR HCV ASSISTANCE
4-III.A. OVERVIEW
As vouchers become available, families on the Waiting List must be selected for assistance in
accordance with the policies described in this part.
The order in which families are selected from the Waiting List depends on the selection method
chosen by SAHA and is impacted in part by any selection preferences for which the family
qualifies. The availability of targeted funding also may affect the order in which families are
selected from the Waiting List.
SAHA must maintain a clear record of all information required to verify that the family is
selected from the Waiting List according to SAHA’s selection policies [24 CFR 982.204(b) and
982.207(e)].
4-III.B. SELECTION AND HCV FUNDING SOURCES
Special Admissions [24 CFR 982.203]
HUD may award funding for specifically-named families living in specified types of units (e.g.,
a family that is displaced by demolition of public housing; a non-purchasing family residing in a
HOPE 1 or 2 projects). In these cases, SAHA may admit such families whether or not they are on
the Waiting List, and, if they are on the Waiting List, without considering the family’s position
on the Waiting List. These families are considered non-Waiting List selections. SAHA must
maintain records showing that such families were admitted with special program funding.
Targeted Funding [24 CFR 982.204(e)]
HUD may award a PHA funding for a specified category of families on the Waiting List. SAHA
must use this funding only to assist the families within the specified category. In order to assist
families within a targeted funding category, SAHA may skip families that do not qualify within
the targeted funding category. Within this category of families, the order in which such families
are assisted is determined according to the policies provided in Section 4-III.C.
SAHA Policy
SAHA administers Non-Elderly Disabled vouchers (NED).
Regular HCV Funding
Regular HCV funding may be used to assist any eligible family on the Waiting List. Families are
selected from the Waiting List according to the policies provided in Section 4-III.C.
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4-III.C. SELECTION METHOD
PHAs must describe the method for selecting applicant families from the Waiting List, including
the system of admission preferences that SAHA will use [24 CFR 982.202(d)].
Local Preferences [24 CFR 982.207; HCV p. 4-16]
PHAs are permitted to establish local preferences, and to give priority to serving families that
meet those criteria. HUD specifically authorizes and places restrictions on certain types of local
preferences. HUD also permits SAHA to establish other local preferences, at its discretion. Any
local preferences established must be consistent with SAHA plan and the consolidated plan, and
must be based on local housing needs and priorities that can be documented by generally
accepted data sources.
SAHA Policy
Local preferences will be numerically ranked, with number 1 being the highest
preference, in the following order:
1. United States Military Veteran Preference: United States military veterans or
surviving spouses and dependent children of a United States military veteran, or
active military personnel, their spouse and their dependent children who live or
work in the City of Santa Ana at the time of application. The veteran must have
been discharged under conditions other than dishonorable and were/is eligible to
receive veteran’s benefits. Form DD-214 with a discharge status of other than
dishonorable, or equivalent verification, must be provided at their eligibility
interview appointment. The individual must have served a minimum of 90 days to
qualify for the preference. “Surviving spouse” means not divorced from, or not
remarried prior to or after the death of the veteran. A marriage and death
certificate will be required for a surviving spouse.
2. Residency Preference: Residency preference for families who live or work in the
City of Santa Ana at the time of application. At least two pieces of evidence must
be provided for families who live or work in the City of Santa Ana including but
not limited to a lease, utility bills, bank statements, or paycheck stubs.
Additionally, SAHA will offer priority to any family that has been terminated from its
HCV program due to insufficient program funding.
Homeless Individuals and Families Set-Aside Preference
In accordance with PIH Notice 2013-15, SAHA will accept direct referrals to the HCV
Program for the following target population:
• Homeless Individuals and Families: The number of homeless individuals and
families who can qualify for this preference and successfully lease a unit with
their voucher will be limited to 50% of the total number of vouchers that become
available through annual turnover in the previous calendar year. To qualify for
this preference, homeless individuals and families must be referred by agencies
with a contract or Memorandum of Understanding (MOU) in place with the
Housing Authority, or by Community Based Organizations (CBO’s) contracted
with the Housing Authority. The referring agency must provide a certification of
the family’s homeless status. Additionally, families already registered on the
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Waiting List who declare themselves as homeless, but are not referred by a CBO
must provide a certification of their homeless status from an agency that has an
MOU in place with the Housing Authority. This set-aside preference has been
documented by SAHA using generally accepted data sources.
The term, “residence,” includes homeless shelters and other dwelling places where
homeless people may be living, sleeping or receiving services in the City of Santa Ana.
Therefore, homeless individuals and families who qualify for this preference will qualify
as residents.
All preferences must be applicable and verifiable at the time of selection from the
Waiting List.
Income Targeting Requirement [24 CFR 982.201(b)(2)]
HUD requires that extremely low-income (ELI) families make up at least 75 percent of the
families admitted to the HCV program during SAHA’s fiscal year. ELI families are those with
annual incomes at or below the federal poverty level or 30 percent of the area median income,
whichever number is higher. To ensure this requirement is met, a PHA may skip non-ELI
families on the Waiting List in order to select an ELI family.
Low-income families admitted to the program that are “continuously assisted” under the 1937
Housing Act [24 CFR 982.4(b)], as well as low-income or moderate-income families admitted to
the program that are displaced as a result of the prepayment of the mortgage or voluntary
termination of an insurance contract on eligible low-income housing, are not counted for income
targeting purposes [24 CFR 982.201(b)(2)(v)].
SAHA Policy
SAHA will monitor progress in meeting the income targeting requirement throughout the
fiscal year. Extremely low-income families will be selected ahead of other eligible
families on an as-needed basis to ensure the income targeting requirement is met.
Order of Selection
SAHA system of preferences may select families based on local preferences according to the
date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a
PHA does not have enough funding to assist the family at the top of the Waiting List, it is not
permitted to skip down the Waiting List to a family that it can afford to subsidize when there are
not sufficient funds to subsidize the family at the top of the Waiting List [24 CFR 982.204(d)
and (e)].
SAHA Policy
Families will be selected from the Waiting List based on the local preference(s) for which
they qualify, and in accordance with SAHA’s hierarchy of preferences. Within each
preference category, families will be selected by assigned lottery number (score), if
lottery was performed when placed on the Waiting List. Documentation will be
maintained by SAHA 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 SAHA does not
have to ask higher placed families each time targeted selections are made.
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4-III.D. NOTIFICATION OF SELECTION
When a family has been selected from the Waiting List, SAHA must notify the family
[24 CFR 982.554(a)].
SAHA Policy
SAHA will notify the family by first class mail when it is selected from the Waiting List.
The notice will inform the family of the following:
Date, time, and location of the scheduled orientation or application interview,
including any procedures for rescheduling the interview.
Who is required to attend the interview.
Documents that must be provided at the interview, including information about
what constitutes acceptable documentation.
Other documents and information that should be brought to the interview.
If a notification letter is returned to SAHA with or without a forwarding address from the
US Postal Service, the family will be removed from the Waiting List.
4-III.E. THE APPLICATION INTERVIEW
HUD recommends that SAHA obtain the information and documentation needed to make an
eligibility determination though a face-to-face interview with a PHA representative [HCV GB,
pg. 4-16]. Being invited to attend an interview does not constitute admission to the program.
Assistance cannot be provided to the family until all SSN documentation requirements are met.
However, if SAHA determines that an applicant family is otherwise eligible to participate in the
program, the family may retain its place on the Waiting List for a period of time determined by
SAHA [Notice PIH 2012-10].
Reasonable accommodation must be made for persons with disabilities who are unable to attend
an interview due to their disability.
SAHA Policy
SAHA may invite applicants to an orientation prior to the family’s eligibility
appointment. The purpose of the Orientation is to:
• Verify that the family meets the preference qualification. This means that the
family is being called from the Waiting List in the proper order. If a family is
invited to attend an Orientation based on a preference stated on the Waiting List
application and the family no longer meets the preference, the family will be
removed from the Waiting List.
• Provide the family with information on documents and forms they will need to
bring to the eligibility interview.
• Explain the important features of the Housing Choice Voucher Program.
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• Schedule an appointment for the family to come back with all the required forms
and information. This appointment is a one-on-one meeting with a Housing
Specialist referred to as an Eligibility Interview.
SAHA offers Orientations in three languages: English, Spanish, and Vietnamese.
During the Orientation, SAHA provides several forms and documents for the family to
review and/or sign and submit to SAHA.
Families selected from the Waiting List are required to participate in an Eligibility
interview. The head of household, the spouse/co-head, and all adult household members
must attend the interview together.
The interview will be conducted only if the head of household or spouse/co-head
provides appropriate documentation of legal identity. (Chapter 7 provides a discussion of
proper documentation of legal identity). If the applicant does not provide the required
documentation, the appointment will be rescheduled for a Second and Final appointment.
The family must provide the information necessary to establish the family’s eligibility
and determine the appropriate level of assistance, as well as complete required forms,
provide required signatures, and submit required documentation. If any materials are
missing, SAHA will provide the family with a written list of items that must be
submitted.
Any required documents or information that the family is unable to provide at the
interview must be provided within 14 days of the interview (Chapter 7 provides details
about longer submission deadlines for particular items, including documentation of
Social Security numbers and eligible noncitizen status). If the required documents and
information are not provided within the required time frame, the family will be sent a
notice of denial (See Chapter 3).
An advocate, interpreter, or other assistant may assist the family with the application and
the interview process.
Interviews may be conducted in English, Spanish or Vietnamese.
If the family is unable to attend a scheduled interview, the family must contact SAHA in
advance of the interview to schedule a new appointment. In all circumstances, if a family
does not attend a second and final scheduled interview, SAHA will send another
notification letter removing the family from the Waiting List. The family will have 14
days to request a review if they do not agree with the decision. Applicants who fail to
attend a scheduled eligibility interview without SAHA approval will be denied assistance
based on the family’s failure to supply information needed to determine eligibility. A
notice of denial will be issued in accordance with policies contained in Chapter 3.
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4-III.F. COMPLETING THE APPLICATION PROCESS
SAHA must verify all information provided by the family (see Chapter 7). Based on verified
information, SAHA must make a final determination of eligibility (see Chapter 3) and must
confirm that the family qualified for any special admission, targeted funding admission, or
selection preference that affected the order in which the family was selected from the Waiting
List.
SAHA Policy
If SAHA determines that the family is ineligible, SAHA will send written notification of
the ineligibility within 14 days of the determination. The notice will specify the reasons
for ineligibility, and will inform the family of its right to request an informal review
(Chapter 16).
If SAHA determines that the family is eligible to receive assistance, SAHA will invite the
family to attend a voucher briefing in accordance with the policies in Chapter 5.
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Chapter 5
BRIEFINGS AND VOUCHER ISSUANCE
INTRODUCTION
This chapter explains the briefing and voucher issuance process. When a family is determined to
be eligible for the Housing Choice Voucher (HCV) program, SAHA must ensure that the family
fully understands the way the program operates and the family’s obligations under the program.
This is accomplished through both an oral briefing and provision of a briefing packet containing
the HUD-required documents and other information the family needs to know in order to lease a
unit under the program. Once the family is fully informed of the program’s requirements, SAHA
issues the family a voucher. The voucher includes the unit size for which the family qualifies
based on SAHA’s subsidy standards, as well as the issue and expiration date of the voucher. The
voucher is the document that authorizes the family to begin its search for a unit, and limits the
amount of time the family has to successfully locate an acceptable unit.
This chapter describes HUD regulations and SAHA policies related to these topics in two parts:
Part I: Briefings and Family Obligations. This part details the program’s requirements
for briefing families orally, and for providing written materials describing the program
and its requirements. It includes a particular focus on the family’s obligations under the
program.
Part II: Subsidy Standards and Voucher Issuance. This part discusses SAHA’s standards
for determining how many bedrooms a family of a given composition qualifies for,
which in turn affects the amount of subsidy the family can receive. It also discusses the
policies that dictate how vouchers are issued, and how long families have to locate a
unit.
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PART I: BRIEFINGS AND FAMILY OBLIGATIONS
5-I.A. OVERVIEW
HUD regulations require SAHA to conduct mandatory briefings for applicant families who
qualify for a voucher. The briefing provides a broad description of owner and family
responsibilities, explains SAHA’s procedures, and includes instructions on how to lease a unit.
This part describes how oral briefings will be conducted, specifies what written information will
be provided to families, and lists the family’s obligations under the program.
5-I.B. BRIEFING [24 CFR 982.301]
SAHA must give the family an oral briefing and provide the family with a briefing packet
containing written information about the program. Families may be briefed individually or in
groups. At the briefing, SAHA must ensure effective communication in accordance with Section
504 requirements (Section 504 of the Rehabilitation Act of 1973), and ensure that the briefing
site is accessible to individuals with disabilities. For a more thorough discussion of accessibility
requirements, refer to Chapter 2.
SAHA Policy
Briefings will be conducted in group meetings, or may be done individually as a
reasonable accommodation if approved by the Reasonable Accommodation Committee.
Generally, the head of household is required to attend the briefing. If the head of
household is unable to attend, SAHA may approve another adult family member to attend
the briefing.
Families that attend group briefings and still need individual assistance will be referred to
an appropriate SAHA staff person.
Briefings will be conducted in English, Spanish, and Vietnamese.
Notification and Attendance
SAHA Policy
Families will be notified of their eligibility for assistance at the time they are invited to
attend a briefing. The notice will identify who is required to attend the briefing, as well as
the date and time of the scheduled briefing.
If the notice is returned by the post office, they will be removed from the Waiting List.
Applicants who fail to attend a scheduled briefing will automatically be scheduled for a
second and final briefing. SAHA will notify the family of the date and time of the second
scheduled briefing with a minimum 14-day notice. Applicants who fail to attend two
scheduled briefings, without SAHA approval, will be denied assistance (see Chapter 3)
and removed from the Waiting List.
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Oral Briefing [24 CFR 982.301(a)]
Each briefing must provide information on the following subjects:
• How the Housing Choice Voucher program works;
• Family and owner responsibilities;
• Where the family can lease a unit, including renting a unit inside or outside SAHA’s
jurisdiction;
• An explanation of how portability works. SAHA may not discourage the family from
choosing to live anywhere in SAHA jurisdiction or outside SAHA jurisdiction under
portability, unless otherwise expressly authorized by statute, regulation, PIH Notice, or
court order;
• SAHA must inform the family of how portability may affect the family’s assistance through
screening, subsidy standards, payment standards, and any other elements of the portability
process which may affect the family’s assistance;
• The advantages of areas that do not have a high concentration of low-income families; and
• For families receiving welfare-to-work vouchers, a description of any local obligations of a
welfare-to-work family and an explanation that failure to meet the obligations is grounds for
denial of admission or termination of assistance.
Briefing Packet [24 CFR 982.301(b)]
Documents and information provided in the briefing packet must include the following:
• The term of the voucher, voucher suspensions, and SAHA’s policies on any extensions of the
term. If SAHA allows extensions, the packet must explain how the family can request an
extension.
• A description of the method used to calculate the housing assistance payment for a family,
including how SAHA determines the payment standard for a family, how SAHA determines
total tenant payment for a family, and information on the payment standard and utility
allowance schedule.
• An explanation of how SAHA determines the maximum allowable rent for an assisted unit.
• Where the family may lease a unit and an explanation of how portability works, including
information on how portability may affect the family’s assistance through screening, subsidy
standards, payment standards, and any other elements of the portability process that may
affect the family’s assistance.
• The HUD-required tenancy addendum, which must be included in the lease.
• The form the family must use to request approval of tenancy, and a description of the
procedure for requesting approval for a tenancy.
• A statement of SAHA policy on providing information about families to prospective owners.
• SAHA subsidy standards including when and how exceptions are made.
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• Materials (e.g., brochures) on how to select a unit and any additional information on
selecting a unit that HUD provides.
• The HUD pamphlet on lead-based paint entitled Protect Your Family from Lead in Your
Home.
• Information on federal, state and local equal opportunity laws and a copy of the housing
discrimination complaint form.
• A list of landlords known to SAHA who may be willing to lease a unit to the family or other
resources (e.g., newspapers, organizations, online search tools) known to SAHA that may
assist the family in locating a unit. PHAs must ensure that the list of landlords or other
resources covers areas outside of poverty or minority concentration.
• Notice that if the family includes a person with disabilities, the family may request a list of
available accessible units known to SAHA.
• The family obligations under the program, including any obligations of a welfare-to-work
family.
• The grounds on which SAHA may terminate assistance for a participant family because of
family action or failure to act.
• SAHA informal hearing procedures including when SAHA is required to offer a participant
family the opportunity for an informal hearing, and how to request the hearing.
If the PHA is located in a metropolitan area, the following additional information must be
included in the briefing packet in order to receive full points under SEMAP Indicator 7,
Expanding Housing Opportunities [24 CFR 985.3(g)]:
• Maps showing areas with housing opportunities outside areas of poverty or minority
concentration, both within its jurisdiction and its neighboring jurisdiction
• Information about the characteristics of these areas including job opportunities, schools,
transportation, and other services
• An explanation of how portability works, including a list of portability contact persons for
neighboring PHAs with names, addresses, and telephone numbers
Additional Items to Be Included in the Briefing Packet
In addition to items required by the regulations, PHAs may wish to include supplemental
materials to help explain the program to both participants and owners [HCV GB p. 8-7, Notice
PIH 2010-19].
SAHA Policy
SAHA will provide the following additional materials in the briefing packet:
Information on how to fill out and file a housing discrimination complaint
form
Information about the protections afforded by the Violence Against
Women Act of 2005 (VAWA) to victims of domestic violence, dating
violence, and stalking (see section 16-IX.C)
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Information about the protections afforded by the Protecting Tenants at
Foreclosure Act (PTFA) (see section 13-II.G)
“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 2010-19
5-I.C. FAMILY OBLIGATIONS
Obligations of the family are described in the housing choice voucher (HCV) regulations and on
the voucher itself. These obligations include responsibilities the family is required to fulfill, as
well as prohibited actions. SAHA must inform families of these obligations during the oral
briefing, and the same information must be included in the briefing packet. When the family’s
unit is approved and the HAP contract is executed, the family must meet those obligations in
order to continue participating in the program. Violation of any family obligation may result in
termination of assistance, as described in Chapter 12.
Time Frames for Reporting Changes Required By Family Obligations
SAHA Policy
The family is required to respond to a request or to report a change within 14 days. All
notices to SAHA must be in writing.
Family Obligations [24 CFR 982.551]
The family obligations of the voucher are listed as follows:
• The family must supply any information that SAHA or HUD determines to be necessary,
including submission of required evidence of citizenship or eligible immigration status.
• The family must supply any information requested by SAHA or HUD for use in a regularly
scheduled reexamination or interim reexamination of family income and composition.
• The family must disclose and verify social security numbers and sign and submit consent
forms for obtaining information.
• Any information supplied by the family must be true and complete.
• The family is responsible for any Housing Quality Standards (HQS) breach by the family
caused by failure to pay tenant-provided utilities or appliances, or damages to the dwelling
unit or premises beyond normal wear and tear caused by any member of the household or
guest.
• The family must allow SAHA to inspect the unit at reasonable times and after reasonable
notice, as described in Chapter 8 of this plan.
• The family must not commit any serious or repeated violation of the lease.
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SAHA Policy
SAHA will determine if a family has committed serious or repeated violations of the
lease based on available evidence, including but not limited to, a court-ordered eviction,
an owner’s notice to evict, or a notice of lease violation.
Serious and repeated lease violations will include, but not be limited to, nonpayment of
rent, disturbance of neighbors, destruction of property, or living or housekeeping habits
that cause damage to the unit or premises and criminal activity. Generally, the criterion
to be used is whether the reason for the eviction was through no fault of the tenant or
guests. Any incidents of, or criminal activity related to domestic violence, dating
violence, sexual assault, or stalking will be construe as serious or repeated lease
violations by the victim {24 CFR 5.2005(C)(1)}.
• The family must notify SAHA and the owner before moving out of the unit or terminating
the lease.
SAHA Policy
The family must comply with lease requirements regarding written notice to the owner.
The family must provide written notice to SAHA at the same time the owner is notified.
• The family must promptly give SAHA a copy of any owner eviction notice.
• The family must use the assisted unit for residence by the family. The unit must be the
family’s only residence.
• The composition of the assisted family residing in the unit must be approved by SAHA. The
family must promptly notify SAHA in writing of the birth, adoption, or court-awarded
custody of a child. The family must request SAHA approval to add any other family member
as an occupant of the unit.
SAHA Policy
The request to add a family member must be submitted in writing and approved prior to
the person moving into the unit. SAHA will determine eligibility of the new member in
accordance with the policies in Chapter 3.
• The family must promptly notify SAHA in writing if any family member no longer lives in
the unit.
• If SAHA has given approval, a foster child or a live-in aide may reside in the unit. SAHA has
the discretion to adopt reasonable policies concerning residency by a foster child or a live-in
aide, and to define when SAHA consent may be given or denied. For policies related to the
request and approval/disapproval of foster children, foster adults, and live-in aides, see
Chapter 3 (sections I.K and I.M), and Chapter 11 (section II.B).
• The family must not sublease the unit, assign the lease, or transfer the unit.
SAHA Policy
Subleasing includes receiving payment to cover rent and utility costs by a person living in
the unit who is not listed as a family member.
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• The family must supply any information requested by SAHA to verify that the family is
living in the unit or information related to family absence from the unit.
• The family must promptly notify SAHA when the family is absent from the unit.
SAHA Policy
Notice is required under this policy only when all family members will be absent from
the unit for an extended period. An extended period is defined as any period greater than
14 calendar days. Written notice must be provided to SAHA prior to the start of the
extended absence. Failure to notify SAHA may result in termination from the program.
• The family must pay utility bills and provide and maintain any appliances that the owner is
not required to provide under the lease [Form HUD-52646, Voucher].
• The family must not own or have any interest in the unit, (other than in a cooperative and
owners of a manufactured home leasing a manufactured home space).
• Family members must not commit fraud, bribery, or any other corrupt or criminal act in
connection with the program. (See Chapter 14, Program Integrity for additional information).
• Family members must not engage in drug-related criminal activity or violent criminal activity
or other criminal activity that threatens the health, safety or right to peaceful enjoyment of
other residents and persons residing in the immediate vicinity of the premises. See Chapter
12 for HUD and SAHA policies related to drug-related and violent criminal activity.
• Members of the household must not engage in abuse of alcohol in a way that threatens the
health, safety or right to peaceful enjoyment of the other residents and persons residing in the
immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and SAHA
policies related to alcohol abuse.
• An assisted family or member of the family must not receive HCV program assistance while
receiving another housing subsidy, for the same unit or a different unit under any other
federal, state or local housing assistance program.
• A family must not receive HCV program assistance while residing in a unit owned by a
parent, child, grandparent, grandchild, sister or brother of any member of the family, unless
SAHA has determined (and has notified the owner and the family of such determination) that
approving rental of the unit, notwithstanding such relationship, would provide reasonable
accommodation for a family member who is a person with disabilities. [Form HUD-52646,
Voucher]
SAHA Policy
The family may not receive mail for persons other than members of the assisted
household.
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PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE
5-II.A. OVERVIEW
SAHA must establish subsidy standards that determine the number of bedrooms needed for
families of different sizes and compositions. This part presents the policies that will be used to
determine the family unit size (also known as the voucher size) a particular family should
receive, and the policies that govern making exceptions to those standards. SAHA must also
establish policies related to the issuance of the voucher, to the voucher term, and to any
extensions of the voucher term.
5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE [24 CFR 982.402]
For each family, SAHA determines the appropriate number of bedrooms under SAHA subsidy
standards and enters the family unit size on the voucher that is issued to the family. The family
unit size does not dictate the size of unit the family must actually lease, nor does it determine
who within a household will share a bedroom/sleeping room.
The following requirements apply when SAHA determines family unit size:
• The subsidy standards must provide for the smallest number of bedrooms needed to house a
family without overcrowding.
• The subsidy standards must be consistent with space requirements under the housing quality
standards.
• The subsidy standards must be applied consistently for all families of like size and
composition.
• A child who is temporarily away from the home because of placement in foster care is
considered a member of the family in determining the family unit size.
• A family that consists of a pregnant woman (with no other persons) must be treated as a two-
person family.
• Any live-in aide (approved by SAHA to reside in the unit to care for a family member who is
disabled or is at least 50 years of age) must be counted in determining the family unit size;
• Unless a live-in-aide resides with a family, the family unit size for any family consisting of a
single person must be either a zero- or one-bedroom unit, as determined under SAHA
subsidy standards.
SAHA Policy
SAHA will assign one bedroom for each two persons within the household, except single
person households will be allocated one bedroom.
If a live-in aide is approved by SAHA to reside in the unit and has additional family
members, the additional family members will not be counted in determining the family
unit size.
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SAHA will reference the following chart in determining the appropriate voucher size for
a family:
Voucher Size Persons in Household
(Minimum – Maximum)
1 Bedroom 1 - 2
2 Bedrooms 3 - 4
3 Bedrooms 5 - 6
4 Bedrooms 7 - 8
5 Bedrooms 9 - 10
5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS
In determining family unit size for a particular family, SAHA may grant an exception to its
established subsidy standards if SAHA determines that the exception is justified by the age, sex,
health, handicap, or relationship of family members or other personal circumstances [24 CFR
982.402(b)(8)]. Reasons may include, but are not limited to:
•••• A need for an additional bedroom for medical equipment
•••• A need for a separate bedroom for reasons related to a family member’s disability, medical or
health condition
For a single person who is not elderly, disabled, or a remaining family member, an exception
cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)].
SAHA Policy
The family must request any exception to the subsidy standards in writing. The request
must explain the need or justification for a larger family unit size, and must include
appropriate documentation. Requests based on health-related reasons must be verified by
a licensed professional source (e.g., doctor or health professional), unless the disability
and the disability–related request for accommodation is readily apparent or otherwise
known. The family’s continued need for an additional bedroom will be re-verified at
annual reexamination.
SAHA will notify the family of its determination within 14 days of receiving the family’s
request. If a participant’s request is denied, the notice will inform the family of their right
to request an informal hearing.
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5-II.D. VOUCHER ISSUANCE [24 CFR 982.302]
When a family is selected from the waiting list (or as a special admission as described in Chapter
4), or when a participant family wants to move to another unit, SAHA issues a Housing Choice
Voucher, form HUD-52646. This chapter deals only with voucher issuance for applicants. For
voucher issuance associated with moves of program participants, please refer to Chapter 10.
The voucher is the family’s authorization to search for housing. It specifies the unit size for
which the family qualifies, and includes both the date of voucher issuance and date of expiration.
It contains a brief description of how the program works and explains the family obligations
under the program. The voucher is evidence that SAHA has determined the family to be eligible
for the program, and that SAHA expects to have money available to subsidize the family if the
family finds an approvable unit. However, SAHA does not have any liability to any party by the
issuance of the voucher, and the voucher does not give the family any right to participate in
SAHA’s housing choice voucher program [Voucher, form HUD-52646]
A voucher can be issued to an applicant family only after SAHA has determined that the family
is eligible for the program based on verification of information received within the 60 days prior
to issuance [24 CFR 982.201(e)] and after the family has attended an oral briefing [HCV 8-1].
SAHA Policy
Vouchers will be issued to eligible applicants immediately following the mandatory
voucher briefing.
SAHA should have sufficient funds to house an applicant before issuing a voucher. If funds are
insufficient to house the family at the top of the waiting list, SAHA must wait until it has
adequate funds before it calls another family from the list [HCV GB p. 8-10].
SAHA Policy
Prior to issuing any vouchers, SAHA will determine whether it has sufficient funding in
accordance with the policies in Part VIII of Chapter 16.
If SAHA determines that there is insufficient funding after a voucher has been issued, SAHA
may rescind the voucher and place the affected family back on the Waiting List.
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5-II.E. VOUCHER TERM AND EXTENSIONS
Voucher Term [24 CFR 982.303]
The initial term of a voucher must be at least 60 calendar days. The initial term must be stated on
the voucher [24 CFR 982.303(a)].
SAHA Policy
The initial term of the voucher will be 60 calendar days.
SAHA may determine to issue the voucher for a longer period (up to 120 days) for
families exercising portability or if the market has a low vacancy rate.
The family must submit a Request for Tenancy Approval and proposed lease within the
60-day period unless SAHA grants an extension.
Extensions of Voucher Term [24 CFR 982.303(b)]
SAHA has the authority to grant extensions of search time, to specify the length of an extension,
and to determine the circumstances under which extensions will be granted. There is no limit on
the number of extensions that SAHA can approve. Discretionary policies related to extension and
expiration of search time must be described in SAHA’s administrative plan [24 CFR 982.54].
PHAs must approve additional search time if needed as a reasonable accommodation to make the
program accessible to and usable by a person with disabilities. The extension period must be
reasonable for the purpose.
The family must be notified in writing of SAHA’s decision to approve or deny an extension.
SAHA’s decision to deny a request for an extension of the voucher term is not subject to
informal review [24 CFR 982.554(c)(4)].
SAHA Policy
SAHA will approve additional extensions only in the following circumstances:
It is necessary as a reasonable accommodation for a person with disabilities.
It is necessary due to reasons beyond the family’s control, as determined by
SAHA. Following is a list of extenuating circumstances that SAHA may consider
in making its decision. The presence of these circumstances does not guarantee
that an extension will be granted:
Serious illness or death in the family
Other family emergency
Obstacles due to employment
Family has already submitted requests for tenancy approval that were not
approved by SAHA
Family size or other special requirements make finding a unit difficult
Any request for an additional extension must include the reason(s) an additional
extension is necessary and a completed search log form. All requests for extensions to the
voucher term must be made in writing and submitted to SAHA prior to the expiration
date of the voucher (or extended term of the voucher). SAHA will not accept or review
any voucher extension requests received after the voucher expiration date. If the voucher
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expires on SAHA’s non-working day or holiday, the voucher will be valid until the next
working day.
SAHA will decide whether to approve or deny an extension request within 7 days of the
date the request is received, and will immediately provide the family written notice of its
decision.
Suspensions of Voucher Term [24 CFR 982.303(c)]
SAHA must provide for suspension of the initial or any extended term of the voucher from the
date the family submits a request for SAHA approval of the tenancy until the date SAHA notifies
the family in writing whether the request has been approved or denied.
SAHA Policy
When a Request for Tenancy Approval is received by SAHA, the term of the voucher
will be suspended while the request is being processed. SAHA will toll the voucher from
the date the Request for Tenant Approval (RTA) was received until the date SAHA
notifies the family in writing whether the request has been approved or denied.
Expiration of Voucher Term
Once a family’s housing choice voucher term (including any extensions) expires, the family is no
longer eligible to search for housing under the program. If the family still wishes to receive
assistance, SAHA may require that the family reapply, or may place the family on the waiting
list with a new application date but without requiring reapplication. Such a family does not
become ineligible for the program on the grounds that it was unable to locate a unit before the
voucher expired [HCV GB p. 8-13].
SAHA Policy
If the family’s voucher term or extension expires before the family has submitted an
RTA, the family will need to reapply for assistance. If an RTA that was submitted prior
to the expiration date of the voucher is subsequently canceled by the family (after the
voucher term has expired), the family will be required to reapply for assistance.
Within 14 days after the expiration of the voucher term or any extension, SAHA will
notify the family in writing that the voucher term has expired.
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Chapter 6
INCOME AND SUBSIDY DETERMINATIONS
[24 CFR Part 5, Subparts E and F; 24 CFR 982]
INTRODUCTION
A family’s income determines eligibility for assistance and is also used to calculate the family’s
payment and SAHA’s subsidy. SAHA will use the policies and methods described in this chapter
to ensure that only eligible families receive assistance and that no family pays more or less than
its obligation under the regulations. This chapter describes HUD regulations and SAHA policies
related to these topics in three parts as follows:
• Part I: Annual Income. HUD regulations specify the sources of income to include and
exclude to arrive at a family’s annual income. These requirements and SAHA policies for
calculating annual income are found in Part I.
• Part II: Adjusted Income. Once annual income has been established HUD regulations require
SAHA to subtract from annual income any of five mandatory deductions for which a family
qualifies. These requirements and SAHA policies for calculating adjusted income are found
in Part II.
• Part III: Calculating Family Share and SAHA Subsidy. This part describes the statutory
formula for calculating total tenant payment (TTP), the use of utility allowances, and the
methodology for determining SAHA subsidy and required family payment.
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PART I: ANNUAL INCOME
6-I.A. OVERVIEW
The general regulatory definition of annual income shown below is from 24 CFR 5.609.
5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other
family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period
following admission or annual reexamination effective date; and
(3) Which are not specifically excluded in paragraph [5.609(c)].
(4) Annual income also means amounts derived (during the 12-month period) from assets to
which any member of the family has access.
In addition to this general definition, HUD regulations establish policies for treating specific
types of income and assets. The full texts of those portions of the regulations are provided in
exhibits at the end of this chapter as follows:
• Annual Income Inclusions (Exhibit 6-1)
• Annual Income Exclusions (Exhibit 6-2)
• Treatment of Family Assets (Exhibit 6-3)
• Earned Income Disallowance for Persons with Disabilities (Exhibit 6-4)
• The Effect of Welfare Benefit Reduction (Exhibit 6-5)
Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual
income. The rest of this section describes how each source of income is treated for the purposes
of determining annual income. HUD regulations present income inclusions and exclusions
separately [24 CFR 5.609(b) and 24 CFR 5.609(c)]. In this plan, however, the discussions of
income inclusions and exclusions are integrated by topic (e.g., all policies affecting earned
income are discussed together in section 6-I.D). Verification requirements for annual income are
discussed in Chapter 7.
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6-I.B. HOUSEHOLD COMPOSITION AND INCOME
Income received by all family members must be counted unless specifically excluded by the
regulations. It is the responsibility of the head of household to report changes in family
composition. The rules on which sources of income are counted vary somewhat by family
member. The chart below summarizes how family composition affects income determinations.
Summary of Income Included and Excluded by Person
Live-in aides Income from all sources is excluded [24 CFR 5.609(c)(5)].
Foster child or foster adult Income from all sources is excluded [24 CFR 5.609(c)(2)].
Head, spouse, or cohead
Other adult family members
All sources of income not specifically excluded by the
regulations are included.
Children under 18 years of age
Employment income is excluded [24 CFR 5.609(c)(1)].
All other sources of income, except those specifically
excluded by the regulations, are included.
Full-time students 18 years of
age or older (not head, spouse,
or cohead)
Employment income above $480/year is excluded [24 CFR
5.609(c)(11)].
All other sources of income, except those specifically
excluded by the regulations, are included.
Temporarily Absent Family Members
The income of family members approved to live in the unit will be counted, even if the family
member is temporarily absent from the unit [HCV GB, p. 5-18].
SAHA Policy
Generally an individual who is or is expected to be absent from the assisted unit for 90
consecutive days or less is considered temporarily absent and continues to be considered
a family member. Generally an individual who is or is expected to be absent from the
assisted unit for more than 90 consecutive days is considered permanently absent and no
longer a family member. Exceptions to this general policy are discussed below.
Absent Students
SAHA Policy
When someone who has been considered a family member attends school away from
home, the person will continue to be considered a family member unless information
becomes available to SAHA indicating that the student has established a separate
household or the family declares that the student has established a separate household.
The student must be present at the annual recertification interview or they will be
removed from the household.
Absences Due to Placement in Foster Care
Children temporarily absent from the home as a result of placement in foster care are considered
members of the family [24 CFR 5.403].
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SAHA Policy
If a child has been placed in foster care, SAHA will verify with the appropriate agency
whether and when the child is expected to be returned to the home. Unless the agency
confirms that the child has been temporarily removed from the home, the child will not
be counted as a family member.
Absent Head, Spouse, or Cohead
SAHA Policy
An employed head, spouse, or co-head absent from the unit due to employment will
continue to be considered a family member.
Family Members Permanently Confined for Medical Reasons
If a family member is confined to a nursing home or hospital on a permanent basis, that person is
no longer considered a family member and the income of that person is not counted [HCV GB,
p. 5-22].
SAHA Policy
SAHA will request verification from a licensed medical professional and will use this to
make a determination. If the licensed medical professional cannot provide a
determination, the person generally will be considered permanently absent. The family
may present evidence that the family member is confined on a temporary basis and
request that the person be considered as a family member.
When an individual who has been counted as a family member is determined
permanently absent, the family is eligible for the medical expense deduction only if the
remaining head, spouse, or co-head qualifies as an elderly person or a person with
disabilities.
Joint Custody of Dependents
SAHA Policy
Dependents that are subject to a joint custody arrangement will be considered a member
of the family, if they live with the applicant or participant family 51 percent or more of
the time.
When more than one applicant or participant family is claiming the same dependents as
family members, the family with primary custody at the time of initial eligibility or
annual reexamination will be able to claim the dependents. If there is a dispute about
which family should claim them, SAHA will make the determination based on available
documents such as court orders, or an IRS tax return showing which family has claimed
the child for income tax purposes.
Caretakers for a Child
SAHA Policy
The approval of a caretaker is at the owner and SAHA’s discretion and subject to the
owner and SAHA’s screening criteria. If neither a parent nor a designated guardian
remains in a household receiving HCV assistance, SAHA will take the following actions.
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(1) If a responsible agency has determined that another adult is to be brought into the
assisted unit to care for a child for an indefinite period, the designated caretaker will
not be considered a family member until a determination of custody or legal
guardianship is made.
(2) If a caretaker has assumed responsibility for a child without the involvement of a
responsible agency or formal assignment of custody or legal guardianship, the
caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the
caretaker will be considered a family member unless information is provided that
would confirm that the caretaker’s role is temporary. In such cases SAHA will extend
the caretaker’s status as an eligible visitor.
(3) At any time that custody or guardianship legally has been awarded to a caretaker,
the voucher will be transferred to the caretaker, if said caretaker is income-eligible for
the program.
(4) During any period that a caretaker is considered a visitor, the income of the
caretaker is not counted in annual income and the caretaker does not qualify the
family for any deductions from income.
6-I.C. ANTICIPATING ANNUAL INCOME
SAHA is required to count all income “anticipated to be received from a source outside the
family during the 12-month period following admission or annual reexamination effective date”
[24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are provided below.
Basis of Annual Income Projection
SAHA generally will use current circumstances to determine anticipated income for the coming
12-month period. HUD authorizes SAHA to use other than current circumstances to anticipate
income when:
• An imminent change in circumstances is expected [HCV GB, p. 5-17]
• It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or
cyclic income) [24 CFR 5.609(d)]
• SAHA believes that past income is the best available indicator of expected future income [24
CFR 5.609(d)]
PHAs are required to use HUD’s Enterprise Income Verification (EIV) system in its entirety as a
third party source to verify employment and income information, and to reduce administrative
subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)].
HUD allows PHAs to use tenant-provided documents (pay stubs) to project income once EIV
data has been received in such cases where the family does not dispute the EIV employer data
and where SAHA does not determine it is necessary to obtain additional third-party data.
SAHA Policy
When EIV is obtained and the family does not dispute the EIV employer data, SAHA
will use current tenant-provided documents to project annual income. When the tenant-
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provided documents are pay stubs, SAHA will make every effort to obtain current and
consecutive pay stubs dated within the last 90 days.
SAHA will obtain written and/or oral third-party verification in accordance with the
verification requirements and policies in Chapter 7 in the following cases:
• If EIV or other UIV data is not available,
• If the family disputes the accuracy of the EIV employer data, and/or
• If SAHA determines additional information is need.
• In such cases, SAHA will review and analyze current data to anticipate annual
income.
• In all cases, the family file will be documented with a clear record of the reason
for the decision, and a clear audit trail will be left as to how SAHA annualized
projected income.
When SAHA cannot readily anticipate income based upon current circumstances (e.g., in
the case of seasonal employment, unstable working hours, or suspected fraud), SAHA
will review and analyze historical data for patterns of employment, paid benefits, and
receipt of others income and use the results of this analysis to establish annual income.
Any time current circumstances are not used to project annual income, a clear rationale
for the decision will be documented in the file. In all such cases, the family may present
information and documentation to SAHA to show why the historic pattern does not
represent the family’s anticipated income.
Known Changes in Income
If SAHA verifies an upcoming increase or decrease in income, annual income will be calculated
by applying each income amount to the appropriate part of the 12-month period.
Example: An employer reports that a full-time employee who has been receiving $8/hour will
begin to receive $8.25/hour in the eighth week after the effective date of the reexamination. In
such a case SAHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) +
($8.25 × 40 hours × 45 weeks).
The family may present information that demonstrates that implementing a change before its
effective date would create a hardship for the family. In such cases SAHA will calculate annual
income using current circumstances and then require an interim reexamination when the change
actually occurs. This requirement will be imposed even if SAHA’s policy on reexaminations
does not require interim reexaminations for other types of changes.
When tenant-provided third-party documents are used to anticipate annual income, they will be
dated within the last 60 days of the reexamination interview date.
Projecting Income
In HUD’s EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV
quarterly wages to project annual income.
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6-I.D. EARNED INCOME
Types of Earned Income Included in Annual Income
Wages and Related Compensation
The full amount, before any payroll deductions, of wages and salaries, overtime pay,
commissions, fees, tips and bonuses, and other compensation for personal services is included in
annual income [24 CFR 5.609(b)(1)].
SAHA Policy
For persons who regularly receive bonuses or commissions, SAHA will verify and then
average amounts received for the previous year preceding admission or reexamination.
The family may provide, and SAHA will consider, a credible justification for not using
this history to anticipate future bonuses or commissions. If a new employee has not yet
received any bonuses or commissions, SAHA will count only the amount estimated by
the employer. The file will be documented appropriately.
Some Types of Military Pay
All regular pay, special pay and allowances of a member of the Armed Forces are counted [24
CFR 5.609(b)(8)] except for the special pay to a family member serving in the Armed Forces
who is exposed to hostile fire [24 CFR 5.609(c)(7)].
Types of Earned Income Not Counted in Annual Income
Temporary, Nonrecurring, or Sporadic Income [24 CFR 5.609(c)(9)]
This type of income (including gifts) is not included in annual income. Sporadic income includes
temporary payments from the U.S. Census Bureau for employment lasting no longer than
180 days [Notice PIH 2009-19].
SAHA Policy
Sporadic income is income that is not received periodically and cannot be reliably
predicted. For example, the income of an individual who works occasionally as a
handyman would be considered sporadic if future work could not be anticipated and no
historic, stable pattern of income existed.
Children’s Earnings
Employment income earned by children (including foster children) under the age of 18 years is
not included in annual income [24 CFR 5.609(c)(1)]. (See Eligibility chapter for a definition of
foster children.)
Certain Earned Income of Full-Time Students
Earnings in excess of $480 for each full-time student 18 years old or older (except for the head,
spouse, or cohead) are not counted [24 CFR 5.609(c)(11)]. To be considered “full-time,” a
student must be considered “full-time” by an educational institution with a degree or certificate
program [HCV GB, p. 5-29].
Income of a Live-in Aide
Income earned by a live-in aide, as defined in [24 CFR 5.403], is not included in annual income
[24 CFR 5.609(c)(5)]. (See Eligibility chapter for a full discussion of live-in aides.)
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Income Earned under Certain Federal Programs
Income from some federal programs is specifically excluded from consideration as income [24
CFR 5.609(c)(17)], including:
• Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C.
5044(g), 5058)
• Awards under the federal work-study program (20 U.S.C. 1087 uu)
• Payments received from programs funded under Title V of the Older Americans Act of 1985
(42 U.S.C. 3056(f))
• Allowances, earnings, and payments to AmeriCorps participants under the National and
Community Service Act of 1990 (42 U.S.C. 12637(d))
• Allowances, earnings, and payments to participants in programs funded under the Workforce
Investment Act of 1998 (29 U.S.C. 2931)
Resident Service Stipend
Amounts received under a resident service stipend are not included in annual income. A resident
service stipend is a modest amount (not to exceed $200 per individual per month) received by a
resident for performing a service for SAHA or owner, on a part-time basis, that enhances the
quality of life in the development. Such services may include, but are not limited to, fire patrol,
hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of
SAHA’s governing board. No resident may receive more than one such stipend during the same
period of time [24 CFR 5.600(c)(8)(iv)].
State and Local Employment Training Programs
Incremental earnings and benefits to any family member resulting from participation in
qualifying state or local employment training programs (including training programs not
affiliated with a local government) and training of a family member as resident management staff
are excluded from annual income. Amounts excluded by this provision must be received under
employment training programs with clearly defined goals and objectives and are excluded only
for the period during which the family member participates in the training program [24 CFR
5.609(c)(8)(v)].
SAHA Policy
SAHA defines training program as “a learning process with goals and objectives,
generally having a variety of components, and taking place in a series of sessions over a
period to time. It is designed to lead to a higher level of proficiency, and it enhances the
individual’s ability to obtain employment. It may have performance standards to measure
proficiency. Training may include, but is not limited to: (1) classroom training in a
specific occupational skill, (2) on-the-job training with wages subsidized by the program,
or (3) basic education” [expired Notice PIH 98-2, p. 3].
SAHA defines incremental earnings and benefits as the difference between (1) the total
amount of welfare assistance and earnings of a family member prior to enrollment in a
training program and (2) the total amount of welfare assistance and earnings of the family
member after enrollment in the program [expired Notice PIH 98-2, pp. 3–4].
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In calculating the incremental difference, SAHA will use as the pre-enrollment income
the total annualized amount of the family member’s welfare assistance and earnings
reported on the family’s most recently completed HUD-50058.
End of participation in a training program must be reported in accordance with SAHA's
interim reporting requirements.
HUD-Funded Training Programs
Amounts received under training programs funded in whole or in part by HUD [24 CFR
5.609(c)(8)(i)] are excluded from annual income. Eligible sources of funding for the training
include operating subsidy, Section 8 administrative fees, and modernization, Community
Development Block Grant (CDBG), HOME program, and other grant funds received from HUD.
SAHA Policy
To qualify as a training program, the program must meet the definition of training
program provided above for state and local employment training programs.
Earned Income Tax Credit
Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26
U.S.C. 32(j)), are excluded from annual income [24 CFR 5.609(c)(17)]. Although many families
receive the EITC annually when they file taxes, an EITC can also be received throughout the
year. The prorated share of the annual EITC is included in the employee’s payroll check.
Earned Income Disallowance
The earned income disallowance for persons with disabilities is discussed in section 6-I.E below.
6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES
[24 CFR 5.617]
The earned income disallowance (EID) encourages people with disabilities to enter the work
force by not including the full value of increases in earned income for a period of time. The full
text of 24 CFR 5.617 is included as Exhibit 6-4 at the end of this chapter. Eligibility criteria and
limitations on the disallowance are summarized below.
Eligibility
This disallowance applies only to individuals in families already participating in the HCV
program (not at initial examination). To qualify, the family must experience an increase in
annual income that is the result of one of the following events:
• Employment of a family member who is a person with disabilities and who was previously
unemployed for one or more years prior to employment. Previously unemployed includes a
person who annually has earned not more than the minimum wage applicable to the
community multiplied by 500 hours. The applicable minimum wage is the federal minimum
wage unless there is a higher state or local minimum wage.
• Increased earnings by a family member who is a person with disabilities and whose earnings
increase during participation in an economic self-sufficiency or job-training program. A self-
sufficiency program includes a program designed to encourage, assist, train, or facilitate the
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economic independence of HUD-assisted families or to provide work to such families [24
CFR 5.603(b)].
• New employment or increased earnings by a family member who is a person with disabilities
and who has received benefits or services under Temporary Assistance for Needy Families
(TANF) or any other state program funded under Part A of Title IV of the Social Security
Act within the past six months. If the benefits are received in the form of monthly
maintenance, there is no minimum amount. If the benefits or services are received in a form
other than monthly maintenance, such as one-time payments, wage subsidies, or
transportation assistance, the total amount received over the six-month period must be at least
$500.
Calculation of the Disallowance
Calculation of the earned income disallowance for an eligible member of a qualified family
begins with a comparison of the member’s current income with his or her “prior income.”
SAHA Policy
SAHA defines prior income, or prequalifying income, as the family member’s last
certified income prior to qualifying for the EID.
The family member’s prior, or prequalifying, income remains constant throughout the period that
he or she is receiving the EID.
Initial 12-Month Exclusion
During the initial 12-month exclusion period, the full amount (100 percent) of any increase in
income attributable to new employment or increased earnings is excluded. The 12 months are
cumulative and need not be consecutive.
SAHA Policy
The initial EID exclusion period will begin on the first of the month following the date an
eligible member of a qualified family is first employed or first experiences an increase in
earnings.
Second 12-Month Exclusion and Phase-In
During the second 12-month exclusion period, the exclusion is reduced to half (50 percent) of
any increase in income attributable to employment or increased earnings. The 12 months are
cumulative and need not be consecutive.
Lifetime Limitation
The EID has a four-year (48-month) lifetime maximum. The four-year eligibility period begins at
the same time that the initial exclusion period begins and ends 48 months later. The one-time
eligibility for the EID applies even if the eligible individual begins to receive assistance from
another housing agency, if the individual moves between public housing and Section 8
assistance, or if there are breaks in assistance.
SAHA Policy
During the 48-month eligibility period, SAHA will schedule and conduct an interim
reexamination each time there is a change in the family member’s annual income that
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affects or is affected by the EID (e.g., when the family member’s income falls to a level
at or below his/her prequalifying income, when one of the exclusion periods ends, and at
the end of the lifetime maximum eligibility period). Acceptable proof will be required.
6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(2)]
Annual income includes “the net income from the operation of a business or profession.
Expenditures for business expansion or amortization of capital indebtedness shall not be used as
deductions in determining net income. An allowance for depreciation of assets used in a business
or profession may be deducted, based on straight line depreciation, as provided in Internal
Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business
or profession will be included in income, except to the extent the withdrawal is reimbursement of
cash or assets invested in the operation by the family” [24 CFR 5.609(b)(2)].
Business Expenses
Net income is “gross income less business expense” [HCV GB, p. 5-19].
SAHA Policy
To determine business expenses that may be deducted from gross income, SAHA will use
current applicable Internal Revenue Service (IRS) rules for determining allowable
business expenses [see IRS Publication 535], unless a topic is addressed by HUD
regulations or guidance as described below.
Business Expansion
HUD regulations do not permit SAHA to deduct from gross income expenses for business
expansion.
SAHA Policy
Business expansion is defined as any capital expenditures made to add new business
activities, to expand current facilities, or to operate the business in additional locations.
For example, purchase of a street sweeper by a construction business for the purpose of
adding street cleaning to the services offered by the business would be considered a
business expansion. Similarly, the purchase of a property by a hair care business to open
at a second location would be considered a business expansion.
Capital Indebtedness
HUD regulations do not permit SAHA to deduct from gross income the amortization of capital
indebtedness.
SAHA Policy
Capital indebtedness is defined as the principal portion of the payment on a capital asset
such as land, buildings, and machinery. This means SAHA will allow as a business
expense interest, but not principal, paid on capital indebtedness.
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Negative Business Income
If the net income from a business is negative, no business income will be included in annual
income; a negative amount will not be used to offset other family income.
Withdrawal of Cash or Assets from a Business
HUD regulations require SAHA to include in annual income the withdrawal of cash or assets
from the operation of a business or profession unless the withdrawal reimburses a family
member for cash or assets invested in the business by the family.
SAHA Policy
Acceptable investments in a business include cash loans and contributions of assets or
equipment. For example, if a member of an assisted family provided an up-front loan of
$2,000 to help a business get started, SAHA will not count as income any withdrawals
from the business up to the amount of this loan until the loan has been repaid.
Investments do not include the value of labor contributed to the business without
compensation.
Co-owned Businesses
SAHA Policy
If a business is co-owned with someone outside the family, the family must document the
share of the business it owns. If the family’s share of the income is lower than its share of
ownership, the family must document the reasons for the difference.
6-I.G. ASSETS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)]
Overview
There is no asset limitation for participation in the HCV program. However, HUD requires that
SAHA include in annual income the anticipated “interest, dividends, and other net income of any
kind from real or personal property” [24 CFR 5.609(b)(3)]. This section discusses how the
income from various types of assets is determined. For most types of assets, SAHA must
determine the value of the asset in order to compute income from the asset. Therefore, for each
asset type, this section discusses:
• How the value of the asset will be determined
• How income from the asset will be calculated
Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR
5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section
begins with a discussion of general policies related to assets and then provides HUD rules and
SAHA policies related to each type of asset.
General Policies
Income from Assets
SAHA generally will use current circumstances to determine both the value of an asset and the
anticipated income from the asset. As is true for all sources of income, HUD authorizes SAHA to
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use other than current circumstances to anticipate income when (1) an imminent change in
circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or
(3) SAHA believes that past income is the best indicator of anticipated income. For example, if a
family member owns real property that typically receives rental income but the property is
currently vacant, SAHA can take into consideration past rental income along with the prospects
of obtaining a new tenant.
SAHA Policy
Anytime current circumstances are not used to determine asset income, a clear rationale
for the decision will be documented in the file. In such cases the family may present
information and documentation to SAHA to show why the asset income determination
does not represent the family’s anticipated asset income.
Valuing Assets
The calculation of asset income sometimes requires SAHA to make a distinction between an
asset’s market value and its cash value.
• The market value of an asset is its worth in the market (e.g., the amount a buyer would pay
for real estate or the total value of an investment account).
• The cash value of an asset is its market value less all reasonable amounts that would be
incurred when converting the asset to cash.
SAHA Policy
Reasonable costs that would be incurred when disposing of an asset include, but are not
limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs
incurred in real estate transactions [HCV GB, p. 5-28].
Lump-Sum Receipts
Payments that are received in a single lump sum, such as inheritances, capital gains, lottery
winnings, insurance settlements, and proceeds from the sale of property, are generally considered
assets, not income. However, such lump-sum receipts are counted as assets only if they are
retained by a family in a form recognizable as an asset (e.g., deposited in a savings or checking
account) [RHIIP FAQs]. (For a discussion of lump-sum payments that represent the delayed start
of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.)
Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2012-29]
When net family assets are $5,000 or less, SAHA will include in annual income the actual
income anticipated to be derived from the assets. When the family has net family assets in excess
of $5,000, SAHA will include in annual income the greater of (1) the actual income derived from
the assets or (2) the imputed income. Imputed income from assets is calculated by multiplying
the total cash value of all family assets by an average passbook savings rate as determined by
SAHA.
• Note: The HUD field office no longer provides an interest rate for imputed asset income. The
“safe harbor” is now for SAHA to establish a passbook rate within 0.75 percent of a national
average.
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• SAHA must review its passbook rate annually to ensure that it remains within 0.75 percent of
the national average.
SAHA Policy
SAHA will initially set the imputed asset passbook rate at the national rate established by
the Federal Deposit Insurance Corporation (FDIC).
SAHA will review the passbook rate annually on or about October 1st. The rate will not
be adjusted unless the current SAHA rate is no longer within 0.75 percent of the national
rate. If it is no longer within the 0.75 percent of the national rate, the passbook rate will
be set at the current national rate. Any adjustments will be effective January 1st of each
year.
Determining Actual Anticipated Income from Assets
It may or may not be necessary for SAHA to use the value of an asset to compute the actual
anticipated income from the asset. When the value is required to compute the anticipated income
from an asset, the market value of the asset is used. For example, if the asset is a property for
which a family receives rental income, the anticipated income is determined by annualizing the
actual monthly rental amount received for the property; it is not based on the property’s market
value. However, if the asset is a savings account, the anticipated income is determined by
multiplying the market value of the account by the interest rate on the account.
Withdrawal of Cash or Liquidation of Investments
Any withdrawal of cash or assets from an investment will be included in income except to the
extent that the withdrawal reimburses amounts invested by the family. For example, when a
family member retires, the amount received by the family from a retirement investment plan is
not counted as income until the family has received payments equal to the amount the family
member deposited into the retirement investment plan.
Jointly Owned Assets
The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes “amounts derived
(during the 12-month period) from assets to which any member of the family has access.”
SAHA Policy
If an asset is owned by more than one person and any family member has unrestricted
access to the asset, SAHA will count the full value of the asset. A family member has
unrestricted access to an asset when he or she can legally dispose of the asset without the
consent of any of the other owners.
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If an asset is owned by more than one person, including a family member, but the family
member does not have unrestricted access to the asset, SAHA will prorate the asset
according to the percentage of ownership. If no percentage is specified or provided for by
state or local law, SAHA will prorate the asset evenly among all owners.
Assets Disposed Of for Less than Fair Market Value [24 CFR 5.603(b)]
HUD regulations require SAHA to count as a current asset any business or family asset that was
disposed of for less than fair market value during the two years prior to the effective date of the
examination/reexamination, except as noted below.
Minimum Threshold
The HCV Guidebook permits SAHA to set a threshold below which assets disposed of for less
than fair market value will not be counted [HCV GB, p. 5-27].
SAHA Policy
SAHA will include the value of assets by taking the difference between market value and
disposed of value minus any costs.
When the two-year period expires, the income assigned to the disposed asset(s) also
expires. If the two-year period ends between annual re-certifications, the family may
request an interim recertification to eliminate consideration of the asset(s). The family’s
request must be made 60 days prior to the end of the two year period.
Assets placed by the family in irrevocable trusts are considered assets disposed of for less
than fair market value except when the assets placed in trust were received through
settlements or judgments.
Separation or Divorce
The regulation also specifies that assets are not considered disposed of for less than fair market
value if they are disposed of as part of a separation or divorce settlement and the applicant or
tenant receives important consideration not measurable in dollar terms.
SAHA Policy
All assets disposed of as part of a separation or divorce settlement will be considered
assets for which important consideration not measurable in monetary terms has been
received. In order to qualify for this exemption, a family member must be subject to a
formal separation or divorce settlement agreement established through arbitration,
mediation, or court order.
Foreclosure or Bankruptcy
Assets are not considered disposed of for less than fair market value when the disposition is the
result of a foreclosure or bankruptcy sale.
Family Declaration
SAHA Policy
Families must sign a declaration form at initial certification and each annual
recertification identifying all assets that have been disposed of for less than fair market
value or declaring that no assets have been disposed of for less than fair market value.
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SAHA may verify the value of the assets disposed of if other information available to
SAHA does not appear to agree with the information reported by the family.
Types of Assets
Checking and Savings Accounts
For regular checking accounts and savings accounts, cash value has the same meaning as market
value. If a checking account does not bear interest, the anticipated income from the account is
zero.
SAHA Policy
In determining the value of a checking account, SAHA will use the average monthly
balance for the last six months.
In determining the value of a savings account, SAHA will use the current balance.
In determining the anticipated income from an interest-bearing checking or savings
account, SAHA will multiply the value of the account by the current rate of interest paid
on the account.
Checking and savings accounts will be counted in the total assets calculated if the total
assets are $5000 or greater. SAHA will use actual or imputed interest whichever is
greater.
Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds
Interest or dividends earned by investment accounts are counted as actual income from assets
even when the earnings are reinvested. The cash value of such an asset is determined by
deducting from the market value any broker fees, penalties for early withdrawal, or other costs of
converting the asset to cash.
SAHA Policy
In determining the market value of an investment account, SAHA will use the value of
the account on the most recent investment report.
How anticipated income from an investment account will be calculated depends on
whether the rate of return is known. For assets that are held in an investment account with
a known rate of return (e.g., savings certificates), asset income will be calculated based
on that known rate (market value multiplied by rate of earnings). When the anticipated
rate of return is not known (e.g., stocks), SAHA will calculate asset income based on the
earnings for the most recent reporting period.
Investment accounts will be counted in the total assets calculated if total assets are $5000
or greater.
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Equity in Real Property or Other Capital Investments
Equity (cash value) in a property or other capital asset is the estimated current market value of
the asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as
broker fees) that would be incurred in selling the asset [HCV GB, p. 5-25].
SAHA Policy
In determining the equity, SAHA will determine market value by examining recent sales
of at least three properties in the surrounding or similar neighborhood that poses
comparable factors that affect market value.
SAHA will first use the payoff amount for the loan (mortgage) as the unpaid balance to
calculate equity. If the payoff amount is not available, SAHA will use the basic loan
balance information to deduct from the market values in the equity calculation.
Equity in real property and other capital investments is considered in the calculation of asset
income except for the following types of assets:
• Equity accounts in HUD homeownership programs [24 CFR5.603(b)]
• The value of a home currently being purchased with assistance under the HCV program
Homeownership Option for the first 10 years after the purchase date of the home [24 CFR
5.603(b), Notice PIH 2012-3]
• Equity in owner-occupied cooperatives and manufactured homes in which the family lives
[HCV GB, p. 5-25]
• Equity in real property when a family member’s main occupation is real estate [HCV GB, p.
5-25]. This real estate is considered a business asset, and income related to this asset will be
calculated as described in section 6-I.F.
• Interests in Indian Trust lands [24 CFR 5.603(b)]
• Real property and capital assets that are part of an active business or farming operation [HCV
GB, p. 5-25]
SAHA must also deduct from the equity the reasonable costs for converting the asset to cash.
Using the formula for calculating equity specified above, the net cash value of real property is
the market value of the loan (mortgage) minus the expenses to convert to cash
[Notice PIH 2012-3].
SAHA Policy
For purposes of calculating expenses to convert to cash for real property, SAHA will use
ten percent of the market value of the home.
A family may have real property as an asset in two ways: (1) owning the property itself and (2)
holding a mortgage or deed of trust on the property. In the case of a property owned by a family
member, the anticipated asset income generally will be in the form of rent or other payment for
the use of the property. If the property generates no income, actual anticipated income from the
asset will be zero.
In the case of a mortgage or deed of trust held by a family member, the outstanding balance
(unpaid principal) is the cash value of the asset. The interest portion only of payments made to
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the family in accordance with the terms of the mortgage or deed of trust is counted as anticipated
asset income.
SAHA Policy
In the case of capital investments owned jointly with others not living in a family’s unit, a
prorated share of the property’s cash value will be counted as an asset unless SAHA
determines that the family receives no income from the property and is unable to sell or
otherwise convert the asset to cash.
Trusts
A trust is a legal arrangement generally regulated by state law in which one party (the creator or
grantor) transfers property to a second party (the trustee) who holds the property for the benefit
of one or more third parties (the beneficiaries).
Revocable Trusts
If any member of a family has the right to withdraw the funds in a trust, the value of the trust is
considered an asset [HCV GB, p. 5-25]. Any income earned as a result of investment of trust
funds is counted as actual asset income, whether the income is paid to the family or deposited in
the trust.
Nonrevocable Trusts
In cases where a trust is not revocable by, or under the control of, any member of a family, the
value of the trust fund is not considered an asset. However, any income distributed to the family
from such a trust is counted as a periodic payment or a lump-sum receipt, as appropriate [24 CFR
5.603(b)]. (Periodic payments are covered in section 6-I.H. Lump-sum receipts are discussed
earlier in this section.)
Retirement Accounts
Company Retirement/Pension Accounts
In order to correctly include or exclude as an asset any amount held in a company retirement or
pension account by an employed person, SAHA must know whether the money is accessible
before retirement [HCV GB, p. 5-26].
While a family member is employed, only the amount the family member can withdraw without
retiring or terminating employment is counted as an asset [HCV GB, p. 5-26].
After a family member retires or terminates employment, any amount distributed to the family
member is counted as a periodic payment or a lump-sum receipt, as appropriate [HCV GB, p. 5-
26], except to the extent that it represents funds invested in the account by the family member.
(For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an
asset only if it remains accessible to the family member.
IRA, Keogh, and Similar Retirement Savings Accounts
IRA, Keogh, and similar retirement savings accounts are counted as assets even though early
withdrawal would result in a penalty [HCV GB, p. 5-25].
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Personal Property
Personal property held as an investment, such as gems, jewelry, coin collections, antique cars,
etc., is considered an asset [HCV GB, p. 5-25].
SAHA Policy
In determining the value of personal property held as an investment, SAHA will use the
family’s estimate of the value. However, SAHA also may obtain an appraisal if
appropriate to confirm the value of the asset. The family must cooperate with the
appraiser but cannot be charged any costs related to the appraisal.
Generally, personal property held as an investment generates no income until it is
disposed of. If regular income is generated (e.g., income from renting the personal
property), the amount that is expected to be earned in the coming year is counted as
actual income from the asset.
SAHA will consider limited access to an asset as having no access.
Necessary items of personal property are not considered assets [24 CFR 5.603(b)].
SAHA Policy
Necessary personal property consists of items such as clothing, furniture, household
furnishings, jewelry that is not held as an investment, and vehicles, including those
specially equipped for persons with disabilities.
Life Insurance
The cash value of a life insurance policy available to a family member before death, such as a
whole life or universal life policy, is included in the calculation of the value of the family’s
assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends or
interest that the family could elect to receive, the anticipated amount of dividends or interest is
counted as income from the asset whether or not the family actually receives it.
6-I.H. PERIODIC PAYMENTS
Periodic payments are forms of income received on a regular basis. HUD regulations specify
periodic payments that are and are not included in annual income.
Periodic Payments Included in Annual Income
• Periodic payments from sources such as social security, unemployment and welfare
assistance, annuities, insurance policies, retirement funds, and pensions. However, periodic
payments from retirement accounts, annuities, and similar forms of investments are counted
only after they exceed the amount contributed by the family [24 CFR 5.609(b)(4) and (b)(3)].
• Disability or death benefits and lottery receipts paid periodically, rather than in a single lump
sum [24 CFR 5.609(b)(4) and HCV, p. 5-14].
Lump-Sum Payments for the Delayed Start of a Periodic Payment
Most lump-sums received as a result of delays in processing periodic payments, such as
unemployment or welfare assistance, are counted as income. However, lump-sum receipts for the
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delayed start of periodic social security or supplemental security income (SSI) payments are not
counted as income. Additionally, any deferred disability benefits that are received in a lump-sum
or in prospective monthly amounts from the Department of Veterans Affairs are to be excluded
from annual income [24 CFR 5.609(c)(14)].
SAHA Policy
When a delayed-start payment is received and reported during the period in which SAHA
is processing an annual reexamination, SAHA will adjust the family share and SAHA
subsidy retroactively for the period the payment was intended to cover. The family may
pay in full any amount due or request to enter into a repayment agreement with SAHA.
Treatment of Overpayment Deductions from Social Security Benefits
SAHA must make a special calculation of annual income when the Social Security
Administration (SSA) overpays an individual, resulting in a withholding or deduction from his or
her benefit amount until the overpayment is paid in full. The amount and duration of the
withholding will vary depending on the amount of the overpayment and the percent of the
benefit rate withheld. Regardless of the amount withheld or the length of the withholding period,
SAHA must use the reduced benefit amount after deducting only the amount of the overpayment
withholding from the gross benefit amount [Notice PIH 2012-10].
Periodic Payments Excluded from Annual Income
• Payments received for the care of foster children or foster adults (usually persons with
disabilities, unrelated to the assisted family, who are unable to live alone) [24 CFR
5.609(c)(2)]. Kinship guardianship assistance payments (Kin-GAP) and other similar
guardianship payments are treated the same as foster care payments and are likewise
excluded from annual income [Notice PIH 2012-1].
SAHA Policy
SAHA will exclude payments for the care of foster children and foster adults only if the
care is provided through an official arrangement with a local welfare agency [HCV GB,
P. 5-18].
• Amounts paid by a state agency to a family with a member who has a developmental
disability and is living at home to offset the cost of services and equipment needed to keep
the developmentally disabled family member at home [24 CFR 5.609(c)(16)].
• Amounts received under the Low-Income Home Energy Assistance Program (42 U.S.C.
1626(c)) [24 CFR 5.609(c)(17)].
• Amounts received under the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858q) [24 CFR 5.609(c)(17)].
• Earned Income Tax Credit (EITC) refund payments (26 U.S.C. 32(j)) [24 CFR 5.609(c)(17)].
Note: EITC may be paid periodically if the family elects to receive the amount due as part of
payroll payments from an employer.
• Lump-sums received as a result of delays in processing Social Security and SSI payments
(see section 6-I.H.) [24 CFR 5.609(c)(14)].
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• Lump-sums or prospective monthly amounts received as deferred disability benefits from the
Department of Veterans Affairs (VA) [24 CFR 5.609(c)(14)].
6-I.I. PAYMENTS IN LIEU OF EARNINGS
Payments in lieu of earnings, such as unemployment and disability compensation, worker’s
compensation, and severance pay, are counted as income [24 CFR 5.609(b)(5)] if they are
received either in the form of periodic payments or in the form of a lump-sum amount or
prospective monthly amounts for the delayed start of a periodic payment. If they are received in
a one-time lump sum (as a settlement, for instance), they are treated as lump-sum receipts [24
CFR 5.609(c)(3)]. (See also the discussion of periodic payments in section 6-I.H and the
discussion of lump-sum receipts in section 6-I.G.)
6-I.J. WELFARE ASSISTANCE
Overview
Welfare assistance is counted in annual income. Welfare assistance includes Temporary
Assistance for Needy Families (TANF) and any payments to individuals or families based on
need that are made under programs funded separately or jointly by federal, state, or local
governments [24 CFR 5.603(b)].
Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615]
SAHA must make a special calculation of annual income when the welfare agency imposes
certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided
as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was
receiving HCV assistance at the time the sanction was imposed.
Covered Families
The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public
assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’)
under a program for which Federal, State or local law requires that a member of the family must
participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR
5.615(b)]
Imputed Income
When a welfare agency imposes a sanction that reduces a family’s welfare income because the
family commits fraud or fails to comply with the agency’s economic self-sufficiency program or
work activities requirement, SAHA must include in annual income “imputed” welfare income.
SAHA must request that the welfare agency provide the reason for the reduction of benefits and
the amount of the reduction of benefits. The imputed welfare income is the amount that the
benefits were reduced as a result of the sanction.
This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the
lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable
to find employment even though the family member has complied with the welfare agency
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economic self-sufficiency or work activities requirements, or (3) because a family member has
not complied with other welfare agency requirements [24 CFR 5.615(b)(2)].
Offsets
The amount of the imputed welfare income is offset by the amount of additional income the
family begins to receive after the sanction is imposed. When the additional income equals or
exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR
5.615(c)(4)].
6-I.K. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)]
Annual income includes periodic and determinable allowances, such as alimony and child
support payments, and regular contributions or gifts received from organizations or from persons
not residing with an assisted family.
Alimony and Child Support
SAHA must count alimony or child support amounts awarded as part of a divorce or separation
agreement.
SAHA Policy
SAHA will count court-awarded amounts for alimony and child support unless SAHA
verifies that (1) the payments are not being made and (2) the family has made reasonable
efforts to collect amounts due, including filing with courts or agencies responsible for
enforcing payments [HCV GB, pp. 5-23 and 5-47].
Families are to seek all available income, including child support, as their circumstances
warrant. Participants are encouraged, but not required, to pursue independent legal action
if they are due, but are not currently receiving, child support.
Regular Contributions or Gifts
SAHA must count as income regular monetary and nonmonetary contributions or gifts from
persons not residing with an assisted family [24 CFR 5.609(b)(7)]. Temporary, nonrecurring, or
sporadic income and gifts are not counted [24 CFR 5.609(c)(9)].
SAHA Policy
Examples of regular contributions include: (1) regular payment of a family’s bills (e.g.,
utilities, telephone, rent, credit cards, and car payments), (2) cash or other liquid assets
provided to any family member on a regular basis, and (3) “in-kind” contributions such
as groceries and clothing provided to a family on a regular basis.
Nonmonetary contributions will be valued at the cost of purchasing the items, as
determined by SAHA. For contributions that may vary from month to month (e.g., utility
payments), SAHA will include an average amount based upon past history.
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6-I.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9) and FR 5/20/14]
In 2005, Congress passed a law (for Section 8 programs only) requiring that certain student
financial assistance be included in annual income. Prior to that, the full amount of student
financial assistance was excluded. For some students, the full exclusion still applies.
Student Financial Assistance Included in Annual Income [24 CFR 5.609(b)(9) and
FR 4/10/06]
The regulation requiring the inclusion of certain student financial assistance applies only to
students who satisfy all of the following conditions:
• They are enrolled in an institution of higher education, as defined under the Higher
Education Act (HEA) of 1965.
• They are seeking or receiving Section 8 assistance on their own—that is, apart from their
parents—through the HCV program, the project-based voucher program, or the moderate
rehabilitation program.
• They are under 24 years of age OR they have no dependent children.
For students who satisfy these three conditions, any financial assistance in excess of tuition and
any other required fees and charges received: (1) under the 1965 HEA, (2) from a private source,
or (3) from an institution of higher education, as defined under the 1965 HEA, must be included
in annual income.
To determine annual income in accordance with the above requirements, SAHA will use the
definitions of dependent child, institution of higher education, and parents in section 3-II.E,
along with the following definitions [FR 4/10/06, pp. 18148-18150]:
• Assistance under the Higher Education Act of 1965 includes Pell Grants, Federal Supplement
Educational Opportunity Grants, Academic Achievement Incentive Scholarships, State
Assistance under the Leveraging Educational Assistance Partnership Program, the Robert G.
Byrd Honors Scholarship Program, and Federal Work Study programs.
• Assistance from private sources means assistance from nongovernmental sources, including
parents, guardians, and other persons not residing with the student in an HCV assisted unit.
• Tuition will have the meaning given this term by the institution of higher education in which
the student is enrolled and will include any other fees and charges required by the institution
for enrollment [FR 5/20/14, p. 28939].
Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)]
Any student financial assistance not subject to inclusion under 24 CFR 5.609(b)(9) is fully
excluded from annual income under 24 CFR 5.609(c)(6), whether it is paid directly to the student
or to the educational institution the student is attending. This includes any financial assistance
received by:
• Students residing with parents who are seeking or receiving Section 8 assistance
• Students who are enrolled in an educational institution that does not meet the 1965 HEA
definition of institution of higher education
• Students who are over 23 AND have at least one dependent child, as defined in section 3-II.E
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• Students who are receiving financial assistance through a governmental program not
authorized under the 1965 HEA.
6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME
Other exclusions contained in 24 CFR 5.609(c) and updated by FR Notice 5/20/14 that have not
been discussed earlier in this chapter include the following:
• Reimbursement of medical expenses [24 CFR 5.609(c)(4)]
• Amounts received by participants in other publicly assisted programs which are specifically
for or in reimbursement of out-of-pocket expenses incurred and which are made solely to
allow participation in a specific program [24 CFR 5.609(c)(8)(iii)]
• Amounts received by a person with a disability that are disregarded for a limited time for
purposes of Supplemental Security Income eligibility and benefits because they are set aside
for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(c)(8)(ii)]
• Reparation payments paid by a foreign government pursuant to claims filed under the laws of
that government by persons who were persecuted during the Nazi era [24 CFR 5.609(c)(10)]
• Adoption assistance payments in excess of $480 per adopted child [24 CFR 5.609(c)(12)]
• Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(c)(15)]
• Amounts paid by a state agency to a family with a member who has a developmental
disability and is living at home to offset the cost of services and equipment needed to keep
the developmentally disabled family member at home [24 CFR 5.609(c)(16)]
• Amounts specifically excluded by any other federal statute [24 CFR 5.609(c)(17), FR Notice
5/20/14]. HUD publishes an updated list of these exclusions periodically. It includes:
(a) The value of the allotment provided to an eligible household under the Food Stamp Act
of 1977 (7 U.S.C. 2017 (b))
(b) Benefits under Section 1780 of the School Lunch Act and Child Nutrition Act of 1966,
including WIC
(c) Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C.
5044(g), 5058)
(d) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c))
(e) Income derived from certain submarginal land of the United States that is held in trust
for certain Indian tribes (25 U.S.C. 459e)
(f) Payments or allowances made under the Department of Health and Human Services’
Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f))
(g) Payments received under programs funded in whole or in part under the Workforce
Investment Act of 1998 (29 U.S.C. 2931)
(h) Deferred disability benefits from the Department of Veterans Affairs, whether received
as a lump sum or in monthly prospective amounts
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(i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians
(Pub. L. 94-540, 90 Stat. 2503-04)
(j) Payments, funds, or distributions authorized, established, or directed by the Seneca
Nation Settlement Act of 1990 (25 U.S.C. 1774f(b))
(k) A lump sum or periodic payment received by an individual Indian pursuant to the Class
Action Settlement Agreement in the United States District Court case entitled Elouise
Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of
that payment as provided in the Claims Resolution Act of 2010
(l) The first $2,000 of per capita shares received from judgment funds awarded by the
Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians
in trust or restricted lands, including the first $2,000 per year of income received by
individual Indians from funds derived from interests held in such trust or restricted lands
(25 U.S.C. 1407-1408)
(m) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to
Native American housing programs)
(n) Payments received from programs funded under Title V of the Older Americans Act of
1985 (42 U.S.C. 3056(f))
(o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund
or any other fund established pursuant to the settlement in In Re Agent Orange product
liability litigation, M.D.L. No. 381 (E.D.N.Y.)
(p) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with
spinal bifida, children of women Vietnam veterans born with certain birth defects, and
children of certain Korean service veterans born with spinal bifida
(q) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C.
1721)
(r) The value of any child care provided or arranged (or any amount received as payment
for such care or reimbursement for costs incurred for such care) under the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858q)
(s) Earned income tax credit (EITC) refund payments received on or after January 1, 1991
(26 U.S.C. 32(j))
(t) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of
Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433)
(u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965j,
including awards under federal work-study programs or under the Bureau of Indian
Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the
exception found in § 237 of Public Law 109–249 applies and requires that the amount of
financial assistance in excess of tuition and mandatory fees shall be considered income
in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those
persons with disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (See
See Section 6-I.L. for exceptions.)
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(v) Allowances, earnings and payments to AmeriCorps participants under the National and
Community Service Act of 1990 (42 U.S.C. 12637(d))
(w) Any amount of crime victim compensation (under the Victims of Crime Act) received
through crime victim assistance (or payment or reimbursement of the cost of such
assistance) as determined under the Victims of Crime Act because of the commission of
a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602)
(x) Any amounts in an "individual development account" as provided by the Assets for
Independence Act, as amended in 2002
(y) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH
2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements"
(25 U.S.C. 117b(a))
(z) Major disaster and emergency assistance received under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act and comparable disaster assistance provided by
states, local governments, and disaster assistance organizations
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PART II: ADJUSTED INCOME
6-II.A. INTRODUCTION
Overview
HUD regulations require PHAs to deduct from annual income any of five mandatory deductions
for which a family qualifies. The resulting amount is the family’s adjusted income. Mandatory
deductions are found in 24 CFR 5.611.
5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [SAHA]
must deduct the following amounts from annual income:
(1) $480 for each dependent;
(2) $400 for any elderly family or disabled family;
(3) The sum of the following, to the extent the sum exceeds three percent of annual income:
(i) Unreimbursed medical expenses of any elderly family or disabled family;
(ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member
of the family who is a person with disabilities, to the extent necessary to enable any member of
the family (including the member who is a person with disabilities) to be employed. This
deduction may not exceed the earned income received by family members who are 18 years of
age or older and who are able to work because of such attendant care or auxiliary apparatus; and
(4) Any reasonable child care expenses necessary to enable a member of the family to be
employed or to further his or her education.
This part covers policies related to these mandatory deductions. Verification requirements related
to these deductions are found in Chapter 7.
Anticipating Expenses
SAHA Policy
Generally, SAHA will use current circumstances to anticipate expenses. When possible,
for costs that are expected to fluctuate during the year (e.g., child care during school and
non-school periods and cyclical medical expenses), SAHA will estimate costs based on
historic data and known future costs.
If a family has an accumulated debt for medical or disability assistance expenses, SAHA
will include as an eligible expense the portion of the debt that the family expects to pay
during the period for which the income determination is being made. However, amounts
previously deducted will not be allowed even if the amounts were not paid as expected in
a preceding period. SAHA may require the family to provide documentation of payments
made in the preceding year.
6-II.B. DEPENDENT DEDUCTION
An allowance of $480 is deducted from annual income for each dependent [24 CFR 5.611(a)(1)].
Dependent is defined as any family member other than the head, spouse, or cohead who is under
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the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster
children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)].
6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION
A single deduction of $400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)]. An
elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or
older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person
with disabilities [24 CFR 5.403].
6-II.D. MEDICAL EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)]
Unreimbursed medical expenses may be deducted to the extent that, in combination with any
disability assistance expenses, they exceed three percent of annual income.
The medical expense deduction is permitted only for families in which the head, spouse, or
cohead is at least 62 or is a person with disabilities. If a family is eligible for a medical expense
deduction, the medical expenses of all family members are counted [VG, p. 28].
Definition of Medical Expenses
HUD regulations define medical expenses at 24 CFR 5.603(b) to mean “medical expenses,
including medical insurance premiums, that are anticipated during the period for which annual
income is computed, and that are not covered by insurance.”
SAHA Policy
The most current IRS Publication 502, Medical and Dental Expenses, will be used to
determine the costs that qualify as medical expenses.
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Summary of Allowable Medical Expenses from IRS Publication 502
Services of medical professionals
Surgery and medical procedures that are
necessary, legal, noncosmetic
Services of medical facilities
Hospitalization, long-term care, and in-
home nursing services
Prescription medicines and insulin, but
not nonprescription medicines even if
recommended by a doctor
Improvements to housing directly related
to medical needs (e.g., ramps for a wheel
chair, handrails)
Substance abuse treatment programs
Psychiatric treatment
Ambulance services and some costs of
transportation related to medical
expenses
The cost and care of necessary
equipment related to a medical
condition (e.g., eyeglasses/lenses,
hearing aids, crutches, and artificial
teeth)
Cost and continuing care of necessary
service animals
Medical insurance premiums or the cost
of a health maintenance organization
(HMO)
Note: This chart provides a summary of eligible medical expenses only. Detailed
information is provided in IRS Publication 502. Medical expenses are considered
only to the extent they are not reimbursed by insurance or some other source.
Families That Qualify for Both Medical and Disability Assistance Expenses
SAHA Policy
This policy applies only to families in which the head, spouse, or co-head is 62 or older
or is a person with disabilities.
When expenses anticipated by a family could be defined as either medical or disability
assistance expenses, SAHA will consider them medical expenses unless it is clear that the
expenses are incurred exclusively to enable a person with disabilities to work.
6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and
24 CFR 5.611(a)(3)(ii)]
Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member
may be deducted if they: (1) are necessary to enable a family member 18 years or older to work,
(2) are not paid to a family member or reimbursed by an outside source, (3) in combination with
any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned
income received by the family member who is enabled to work.
Earned Income Limit on the Disability Assistance Expense Deduction
A family can qualify for the disability assistance expense deduction only if at least one family
member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)].
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The disability expense deduction is capped by the amount of “earned income received by family
members who are 18 years of age or older and who are able to work” because of the expense [24
CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any
earned income disallowances or income exclusions are applied.
SAHA Policy
The family must identify the family members enabled to work as a result of the disability
assistance expenses. In evaluating the family’s request, SAHA will consider factors such
as how the work schedule of the relevant family members relates to the hours of care
provided, the time required for transportation, the relationship of the family members to
the person with disabilities, and any special needs of the person with disabilities that
might determine which family members are enabled to work.
When SAHA determines that the disability assistance expenses enable more than one
family member to work, the expenses will be capped by the sum of the family members’
incomes.
Eligible Disability Expenses
Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: “Auxiliary
apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to
enable a blind person to read or type, but only if these items are directly related to permitting the
disabled person or other family member to work” [HCV GB, p. 5-30].
HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30].
Eligible Auxiliary Apparatus
SAHA Policy
Expenses incurred for maintaining or repairing an auxiliary apparatus is eligible. In the
case of an apparatus that is specially adapted to accommodate a person with disabilities
(e.g., a vehicle or computer), the cost to maintain the special adaptations (but not
maintenance of the apparatus itself) is an eligible expense. The cost of service animals
trained to give assistance to persons with disabilities, including the cost of acquiring the
animal, veterinary care, food, grooming, and other continuing costs of care, will be
included.
Eligible Attendant Care
The family determines the type of attendant care that is appropriate for the person with
disabilities.
SAHA Policy
Attendant care includes, but is not limited to, reasonable costs for home medical care,
nursing services, in-home or center-based care services, interpreters for persons with
hearing impairments, and readers for persons with visual disabilities.
Attendant care expenses will be included for the period that the person enabled to work is
employed plus reasonable transportation time. The cost of general housekeeping and
personal services is not an eligible attendant care expense. However, if the person
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enabled to work is the person with disabilities, personal services necessary to enable the
person with disabilities to work are eligible.
If the care attendant also provides other services to the family, SAHA will prorate the
cost and allow only that portion of the expenses attributable to attendant care that enables
a family member to work. For example, if the care provider also cares for a child who is
not the person with disabilities, the cost of care must be prorated. Unless otherwise
specified by the care provider, the calculation will be based upon the number of hours
spent in each activity and/or the number of persons under care.
Payments to Family Members
No disability assistance expenses may be deducted for payments to a member of an assisted
family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the
assisted family may be deducted if they are not reimbursed by an outside source.
Necessary and Reasonable Expenses
The family determines the type of care or auxiliary apparatus to be provided and must describe
how the expenses enable a family member to work. The family must certify that the disability
assistance expenses are necessary and are not paid or reimbursed by any other source.
SAHA Policy
SAHA determines the reasonableness of the expenses based on typical costs of care or
apparatus in the locality. To establish typical costs, SAHA will collect information from
organizations that provide services and support to persons with disabilities. A family may
present, and SAHA will consider, the family’s justification for costs that exceed typical
costs in the area.
Families That Qualify for Both Medical and Disability Assistance Expenses
SAHA Policy
This policy applies only to families in which the head or spouse is 62 or older or is a
person with disabilities.
When expenses anticipated by a family could be defined as either medical or disability
assistance expenses, SAHA will consider them medical expenses unless it is clear that the
expenses are incurred exclusively to enable a person with disabilities to work.
6-II.F. CHILD CARE EXPENSE DEDUCTION
HUD defines child care expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the
family for the care of children under 13 years of age during the period for which annual income
is computed, but only where such care is necessary to enable a family member to actively seek
employment, be gainfully employed, or to further his or her education and only to the extent such
amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care.
In the case of child care necessary to permit employment, the amount deducted shall not exceed
the amount of employment income that is included in annual income.”
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Clarifying the Meaning of Child for This Deduction
Child care expenses do not include child support payments made to another on behalf of a minor
who is not living in an assisted family’s household [VG, p. 26]. However, child care expenses for
foster children that are living in the assisted family’s household are included when determining
the family’s child care expenses [HCV GB, p. 5-29].
Qualifying for the Deduction
Determining Who Is Enabled to Pursue an Eligible Activity
SAHA Policy
The family must identify the family member(s) enabled to pursue an eligible activity. The
term eligible activity in this section means any of the activities that may make the family
eligible for a child care deduction (seeking work, pursuing an education, or being
gainfully employed).
In evaluating the family’s request, SAHA will consider factors such as how the schedule
for the claimed activity relates to the hours of care provided, the time required for
transportation, the relationship of the family member(s) to the child, and any special
needs of the child that might help determine which family member is enabled to pursue
an eligible activity.
Seeking Work
SAHA Policy
If the child care expense being claimed is to enable a family member to seek
employment, the family must provide evidence of the family member’s efforts to obtain
employment at each reexamination. The deduction may be reduced or denied if the
family member’s job search efforts are not commensurate with the child care expense
being allowed by SAHA.
Furthering Education
SAHA Policy
If the child care expense being claimed is to enable a family member to further his or her
education, the member must be enrolled in school (academic or vocational) or
participating in a formal training program. The family member is not required to be a
full-time student, but the time spent in educational activities must be commensurate with
the child care claimed.
Being Gainfully Employed
SAHA Policy
If the child care expense being claimed is to enable a family member to be gainfully
employed, the family must provide evidence of the family member’s employment during
the time that child care is being provided. Gainful employment is any legal work activity
(full- or part-time) for which a family member is compensated.
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Earned Income Limit on Child Care Expense Deduction
When a family member looks for work or furthers his or her education, there is no cap on the
amount that may be deducted for child care – although the care must still be necessary and
reasonable. However, when child care enables a family member to work, the deduction is capped
by “the amount of employment income that is included in annual income” [24 CFR 5.603(b)].
The earned income used for this purpose is the amount of earned income verified after any
earned income disallowances or income exclusions are applied.
When the person who is enabled to work is a person with disabilities who receives the earned
income disallowance (EID) or a full-time student whose earned income above $480 is excluded,
child care costs related to enabling a family member to work may not exceed the portion of the
person’s earned income that actually is included in annual income. For example, if a family
member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is
included in annual income, child care expenses are limited to $5,000.
SAHA must not limit the deduction to the least expensive type of child care. If the care allows
the family to pursue more than one eligible activity, including work, the cap is calculated in
proportion to the amount of time spent working [HCV GB, p. 5-30].
SAHA Policy
When the child care expense being claimed is to enable a family member to work, only
one family member’s income will be considered for a given period of time. When more
than one family member works during a given period, SAHA generally will limit
allowable child care expenses to the earned income of the lowest-paid member. The
family may provide information that supports a request to designate another family
member as the person enabled to work.
Eligible Child Care Expenses
The type of care to be provided is determined by the assisted family. SAHA may not refuse to
give a family the child care expense deduction because there is an adult family member in the
household that may be available to provide child care [VG, p. 26].
Allowable Child Care Activities
SAHA Policy
For school-age children, costs attributable to public or private school activities during
standard school hours are not considered. Expenses incurred for supervised activities
after school or during school holidays (e.g., summer day camp, after-school sports
league) are allowable forms of child care.
The costs of general housekeeping and personal services are not eligible. Likewise, child
care expenses paid to a family member who lives in the family’s unit are not eligible;
however, payments for child care to relatives who do not live in the unit are eligible.
If a child care provider also renders other services to a family or child care is used to
enable a family member to conduct activities that are not eligible for consideration,
SAHA will prorate the costs and allow only that portion of the expenses that is
attributable to child care for eligible activities. For example, if the care provider also
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cares for a child with disabilities who is 13 or older, the cost of care will be prorated.
Unless otherwise specified by the child care provider, the calculation will be based upon
the number of hours spent in each activity and/or the number of persons under care.
Necessary and Reasonable Costs
Child care expenses will be considered necessary if: (1) a family adequately explains how the
care enables a family member to work, actively seek employment, or further his or her education,
and (2) the family certifies, and the child care provider verifies, that the expenses are not paid or
reimbursed by any other source.
SAHA Policy
Child care expenses will be considered for the time required for the eligible activity plus
reasonable transportation time. For child care that enables a family member to go to
school, the time allowed may include not more than one study hour for each hour spent in
class. To establish the reasonableness of child care costs, SAHA will use the schedule of
child care for costs that exceed typical costs in the area.
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PART III: CALCULATING FAMILY SHARE AND SAHA SUBSIDY
6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS
TTP Formula [24 CFR 5.628]
HUD regulations specify the formula for calculating the total tenant payment (TTP) for an
assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar:
• 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II)
• 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided
by 12)
• The welfare rent (in as-paid states only)
• A minimum rent between $0 and $50 that is established by SAHA
SAHA has authority to suspend and exempt families from minimum rent when a financial
hardship exists, as defined in section 6-III.B.
The amount that a family pays for rent and utilities (the family share) will never be less than the
family’s TTP but may be greater than the TTP depending on the rent charged for the unit the
family selects.
Welfare Rent [24 CFR 5.628]
SAHA Policy
Welfare rent does not apply in this locality.
Minimum Rent [24 CFR 5.630]
SAHA Policy
The minimum rent established by SAHA is $50.
Family Share [24 CFR 982.305(a)(5)]
If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant-paid
utilities) that exceeds SAHA’s applicable payment standard: (1) the family will pay more than
the TTP, and (2) at initial occupancy SAHA may not approve the tenancy if it would require the
family share to exceed 40 percent of the family’s monthly adjusted income. The income used for
this determination must have been verified no earlier than 60 days before the family’s voucher
was issued. (For a discussion of the application of payment standards, see section 6-III.C.)
SAHA Subsidy [24 CFR 982.505(b)]
SAHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the
lower of (1) the applicable payment standard for the family minus the family’s TTP or (2) the
gross rent for the family’s unit minus the TTP. (For a discussion of the application of payment
standards, see section 6-III.C.)
Utility Reimbursement [24 CFR 982.514(b)]
When SAHA subsidy for a family exceeds the rent to owner, the family is due a utility
reimbursement. HUD permits SAHA to pay the reimbursement to the family or directly to the
utility provider.
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SAHA Policy
SAHA will make utility reimbursements to the family. In the future SAHA may
implement a program to make utility reimbursements directly to the utility companies on
behalf of the family.
6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630]
SHA Policy
The financial hardship rules described below do apply in this jurisdiction because SAHA
has established a minimum rent of $50.00.
Overview
If SAHA establishes a minimum rent greater than zero, SAHA must grant an exemption from the
minimum rent if a family is unable to pay the minimum rent because of financial hardship.
The financial hardship exemption applies only to families required to pay the minimum rent. If a
family’s TTP is higher than the minimum rent, the family is not eligible for a hardship
exemption. If SAHA determines that a hardship exists, the family share is the highest of the
remaining components of the family’s calculated TTP.
HUD-Defined Financial Hardship
Financial hardship includes the following situations:
(1) The family has lost eligibility for or is awaiting an eligibility determination for a federal,
state, or local assistance program. This includes a family member who is a noncitizen
lawfully admitted for permanent residence under the Immigration and Nationality Act who
would be entitled to public benefits but for Title IV of the Personal Responsibility and Work
Opportunity Act of 1996.
SAHA Policy
A hardship will be considered to exist only if the loss of eligibility has an impact on the
family’s ability to pay the minimum rent.
For a family waiting for a determination of eligibility, the hardship period will end as of
the first of the month following (1) implementation of assistance, if approved, or (2) the
decision to deny assistance. A family whose request for assistance is denied may request
a hardship exemption based upon one of the other allowable hardship circumstances.
(2) The family would be evicted because it is unable to pay the minimum rent.
SAHA Policy
For a family to qualify under this provision, the cause of the potential eviction must be
the family’s failure to pay rent to the owner or tenant-paid utilities.
(3) Family income has decreased because of changed family circumstances, including the loss of
employment.
(4) A death has occurred in the family.
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SAHA Policy
In order to qualify under this provision, a family must describe how the death has created
a financial hardship (e.g., because of funeral-related expenses or the loss of the family
member’s income).
(5) The family has experienced other circumstances determined by SAHA.
SAHA Policy
SAHA defines temporary hardship as a hardship expected to last 90 days or less. Long
term hardship is defined as a hardship expected to last more than 90 days.
Implementation of Hardship Exemption
Determination of Hardship
When a family requests a financial hardship exemption, SAHA must suspend the minimum rent
requirement beginning the first of the month following the family’s request.
SAHA then determines whether the financial hardship exists and whether the hardship is
temporary or long-term.
SAHA Policy
SAHA defines temporary hardship as a hardship expected to last 90 days or less. Long
term hardship is defined as a hardship expected to last more than 90 days.
When the minimum rent is suspended, the family share reverts to the highest of the remaining
components of the calculated TTP. The example below demonstrates the effect of the minimum
rent exemption.
Example: Impact of Minimum Rent Exemption
Assume SAHA has established a minimum rent of $35.
Family Share – No Hardship Family Share – With Hardship
$0
$15
N/A
$35
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
$0
$15
N/A
$35
30% of monthly adjusted income
10% of monthly gross income
Welfare rent
Minimum rent
Minimum rent applies.
TTP = $35
Hardship exemption granted.
TTP = $15
SAHA Policy
To qualify for hardship exemption, a family must submit a request for a hardship
exemption in writing. The request must explain the nature of the hardship and how the
hardship has affected the family’s ability to pay the minimum rent. SAHA will make the
determination of hardship within 30 calendar days.
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No Financial Hardship
If SAHA determines there is no financial hardship, SAHA will reinstate the minimum rent and
require the family to repay the amounts suspended.
SAHA Policy
SAHA will require the family to repay the suspended amount within 30 calendar days of
the notice that a hardship exemption has not been granted.
Temporary Hardship
If SAHA determines that a qualifying financial hardship is temporary, SAHA must suspend the
minimum rent for the 90-day period beginning the first of the month following the date of the
family’s request for a hardship exemption.
At the end of the 90-day suspension period, the family must resume payment of the minimum
rent and must repay SAHA the amounts suspended. HUD requires SAHA to offer a reasonable
repayment agreement, on terms and conditions established by SAHA. SAHA also may determine
that circumstances have changed and the hardship is now a long-term hardship.
SAHA Policy
SAHA will enter into a repayment agreement in accordance with the procedures found in
Chapter 16 of this plan.
Long-Term Hardship
If SAHA determines that the financial hardship is long-term, SAHA must exempt the family
from the minimum rent requirement for so long as the hardship continues. The exemption will
apply from the first of the month following the family’s request until the end of the qualifying
hardship. When the financial hardship has been determined to be long-term, the family is not
required to repay the minimum rent.
SAHA Policy
The hardship period ends when any of the following circumstances apply:
(1) At an interim or annual reexamination, the family’s calculated TTP is greater than
the minimum rent.
(2) For hardship conditions based on loss of income, the hardship condition will
continue to be recognized until new sources of income are received that are at
least equal to the amount lost. For example, if a hardship is approved because a
family no longer receives a $60/month child support payment, the hardship will
continue to exist until the family receives at least $60/month in income from
another source or once again begins to receive the child support.
(3) For hardship conditions based upon hardship-related expenses, the minimum rent
exemption will continue to be recognized until the cumulative amount exempted
is equal to the expense incurred.
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6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505]
Overview
SAHA’s schedule of payment standards is used to calculate housing assistance payments for
HCV families. This section covers the application of SAHA’s payment standards. The
establishment and revision of SAHA’s payment standard schedule are covered in Chapter 16.
Payment standard is defined as “the maximum monthly assistance payment for a family assisted
in the voucher program (before deducting the total tenant payment by the family)” [24 CFR
982.4(b)].
The payment standard for a family is the lower of (1) the payment standard for the family unit
size, which is defined as the appropriate number of bedrooms for the family under SAHA’s
subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling
unit rented by the family.
If SAHA has established an exception payment standard for a designated part of an FMR area
and a family’s unit is located in the exception area, SAHA must use the appropriate payment
standard for the exception area.
SAHA is required to pay a monthly housing assistance payment (HAP) for a family that is the
lower of (1) the payment standard for the family minus the family’s TTP or (2) the gross rent for
the family’s unit minus the TTP.
If during the term of the HAP contract for a family’s unit, the owner lowers the rent, SAHA will
recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit
[HCV GB, p. 7-8].
Changes in Payment Standards
When SAHA revises its payment standards during the term of the HAP contract for a family’s
unit, it will apply the new payment standards in accordance with HUD regulations.
Decreases
If the amount on the payment standard schedule is decreased during the term of the HAP
contract, the lower payment standard generally will be used beginning at the effective date of the
family’s second regular reexamination following the effective date of the decrease in the
payment standard. SAHA will determine the payment standard for the family as follows:
Step 1: At the first regular reexamination following the decrease in the payment standard, SAHA
will determine the payment standard for the family using the lower of the payment standard for
the family unit size or the size of the dwelling unit rented by the family.
Step 2: SAHA will compare the payment standard from step 1 to the payment standard last used
to calculate the monthly housing assistance payment for the family. The payment standard used
by SAHA at the first regular reexamination following the decrease in the payment standard will
be the higher of these two payment standards. SAHA will advise the family that the application
of the lower payment standard will be deferred until the second regular reexamination following
the effective date of the decrease in the payment standard.
Step 3: At the second regular reexamination following the decrease in the payment standard, the
lower payment standard will be used to calculate the monthly housing assistance payment for the
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family unless SAHA has subsequently increased the payment standard, in which case the
payment standard will be determined in accordance with procedures for increases in payment
standards described below.
Increases
If the payment standard is increased during the term of the HAP contract, the increased payment
standard will be used to calculate the monthly housing assistance payment for the family
beginning on the effective date of the family’s first regular reexamination on or after the
effective date of the increase in the payment standard.
Families requiring or requesting interim reexaminations will not have their HAP payments
calculated using the higher payment standard until their next annual reexamination [HCV GB,
p. 7-8].
Changes in Family Unit Size
Irrespective of any increase or decrease in the payment standard, if the family unit size increases
or decreases during the HAP contract term, the new family unit size must be used to determine
the payment standard for the family beginning at the family’s first regular reexamination
following the change in family unit size.
Reasonable Accommodation
If a family requires a higher payment standard as a reasonable accommodation for a family
member who is a person with disabilities, SAHA is allowed to establish a higher payment
standard for the family within the basic range.
6-III.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.517]
Overview
A SAHA-established utility allowance schedule is used in determining family share and SAHA
subsidy. A family's utility allowance is determined by the size of dwelling unit leased by a
family or the voucher unit size for which the family qualifies using SAHA subsidy standards,
whichever is the lowest of the two [FR Notice 06/25/14]. See Chapter 5 for information on
SAHA’s subsidy standards.
For policies on establishing and updating utility allowances, see Chapter 16.
Reasonable Accommodation
HCV program regulations require a SAHA to approve a utility allowance amount higher than
shown on SAHA’s schedule if a higher allowance is needed as a reasonable accommodation for
a family member with a disability. For example, if a family member with a disability requires
such an accommodation, SAHA will approve an allowance for air-conditioning, even if SAHA
has determined that an allowance for air-conditioning generally is not needed.
The family must request the higher allowance and provide SAHA with an explanation of the
need for the reasonable accommodation and information about the amount of additional
allowance required [HCV GB, p. 18-8].
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Utility Allowance Revisions
At reexamination, SAHA must use SAHA current utility allowance schedule [24 CFR
982.517(d)(2)].
SAHA Policy
Revised utility allowances will be applied to a family’s rent and subsidy calculations at
the first annual reexamination that is effective after the allowance is adopted.
6-III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520]
HUD regulations prohibit assistance to ineligible family members. A mixed family is one that
includes at least one U.S. citizen or eligible immigrant and any number of ineligible family
members. SAHA must prorate the assistance provided to a mixed family. SAHA will first
determine assistance as if all family members were eligible and then prorate the assistance based
upon the percentage of family members that actually are eligible. For example, if SAHA subsidy
for a family is calculated at $500 and two of four family members are ineligible, SAHA subsidy
would be reduced to $250.
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EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS
24 CFR 5.609
(a) Annual income means all amounts,
monetary or not, which:
(1) Go to, or on behalf of, the family head or
spouse (even if temporarily absent) or to any
other family member; or
(2) Are anticipated to be received from a
source outside the family during the 12-month
period following admission or annual
reexamination effective date; and
(3) Which are not specifically excluded in
paragraph (c) of this section.
(4) Annual income also means amounts
derived (during the 12-month period) from
assets to which any member of the family has
access.
(b) Annual income includes, but is not limited
to:
(1) The full amount, before any payroll
deductions, of wages and salaries, overtime
pay, commissions, fees, tips and bonuses, and
other compensation for personal services;
(2) The net income from the operation of a
business or profession. Expenditures for
business expansion or amortization of capital
indebtedness shall not be used as deductions in
determining net income. An allowance for
depreciation of assets used in a business or
profession may be deducted, based on straight
line depreciation, as provided in Internal
Revenue Service regulations. Any withdrawal
of cash or assets from the operation of a
business or profession will be included in
income, except to the extent the withdrawal is
reimbursement of cash or assets invested in the
operation by the family;
(3) Interest, dividends, and other net income of
any kind from real or personal property.
Expenditures for amortization of capital
indebtedness shall not be used as deductions in
determining net income. An allowance for
depreciation is permitted only as authorized in
paragraph (b)(2) of this section. Any
withdrawal of cash or assets from an
investment will be included in income, except
to the extent the withdrawal is reimbursement
of cash or assets invested by the family. Where
the family has net family assets in excess of
$5,000, annual income shall include the
greater of the actual income derived from all
net family assets or a percentage of the value
of such assets based on the current passbook
savings rate, as determined by HUD;
(4) The full amount of periodic amounts
received from Social Security, annuities,
insurance policies, retirement funds, pensions,
disability or death benefits, and other similar
types of periodic receipts, including a lump-
sum amount or prospective monthly amounts
for the delayed start of a periodic amount
(except as provided in paragraph (c)(14) of
this section);
(5) Payments in lieu of earnings, such as
unemployment and disability compensation,
worker's compensation and severance pay
(except as provided in paragraph (c)(3) of this
section);
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(6) Welfare assistance payments.
(i) Welfare assistance payments made under
the Temporary Assistance for Needy Families
(TANF) program are included in annual
income only to the extent such payments:
(A) Qualify as assistance under the TANF
program definition at 45 CFR 260.311; and
(B) Are not otherwise excluded under
paragraph (c) of this section.
(ii) If the welfare assistance payment includes
an amount specifically designated for shelter
and utilities that is subject to adjustment by the
welfare assistance agency in accordance with
the actual cost of shelter and utilities, the
amount of welfare assistance income to be
included as income shall consist of:
(A) The amount of the allowance or grant
exclusive of the amount specifically
designated for shelter or utilities; plus
(B) The maximum amount that the welfare
assistance agency could in fact allow the
family for shelter and utilities. If the family's
welfare assistance is ratably reduced from the
standard of need by applying a percentage, the
amount calculated under this paragraph shall
be the amount resulting from one application
of the percentage.
(7) Periodic and determinable allowances,
such as alimony and child support payments,
and regular contributions or gifts received
from organizations or from persons not
residing in the dwelling;
(8) All regular pay, special pay and allowances
of a member of the Armed Forces (except as
provided in paragraph (c)(7) of this section)
1 Text of 45 CFR 260.31 follows.
(9) For section 8 programs only and as
provided in 24 CFR 5.612, any financial
assistance, in excess of amounts received for
tuition, that an individual receives under the
Higher Education Act of 1965 (20 U.S.C. 1001
et seq.), from private sources, or from an
institution of higher education (as defined
under the Higher Education Act of 1965 (20
U.S.C. 1002)), shall be considered income to
that individual, except that financial assistance
described in this paragraph is not considered
annual income for persons over the age of 23
with dependent children. For purposes of this
paragraph, “financial assistance” does not
include loan proceeds for the purpose of
determining income.
HHS DEFINITION OF
"ASSISTANCE"
45 CFR: GENERAL TEMPORARY
ASSISTANCE FOR NEEDY FAMILIES
260.31 What does the term “assistance”
mean?
(a)(1) The term “assistance” includes cash,
payments, vouchers, and other forms of
benefits designed to meet a family’s
ongoing basic needs (i.e., for food, clothing,
shelter, utilities, household goods, personal
care items, and general incidental
expenses).
(2) It includes such benefits even when they
are:
(i) Provided in the form of payments by a
TANF agency, or other agency on its
behalf, to individual recipients; and
(ii) Conditioned on participation in work
experience or community service (or any
other work activity under 261.30 of this
chapter).
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(3) Except where excluded under paragraph
(b) of this section, it also includes
supportive services such as transportation
and child care provided to families who are
not employed.
(b) [The definition of “assistance”]
excludes: (1) Nonrecurrent, short-term
benefits that:
(i) Are designed to deal with a specific
crisis situation or episode of need;
(ii) Are not intended to meet recurrent or
ongoing needs; and
(iii) Will not extend beyond four months.
(2) Work subsidies (i.e., payments to
employers or third parties to help cover the
costs of employee wages, benefits,
supervision, and training);
(3) Supportive services such as child care
and transportation provided to families who
are employed;
(4) Refundable earned income tax credits;
(5) Contributions to, and distributions from,
Individual Development Accounts;
(6) Services such as counseling, case
management, peer support, child care
information and referral, transitional
services, job retention, job advancement,
and other employment-related services that
do not provide basic income support; and
(7) Transportation benefits provided under a
Job Access or Reverse Commute project,
pursuant to section 404(k) of [the Social
Security] Act, to an individual who is not
otherwise receiving assistance.
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EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS
24 CFR 5.609
(c) Annual income does not include the
following:
(1) Income from employment of children
(including foster children) under the age of 18
years;
(2) Payments received for the care of foster
children or foster adults (usually persons with
disabilities, unrelated to the tenant family, who
are unable to live alone);
(3) Lump-sum additions to family assets, such
as inheritances, insurance payments (including
payments under health and accident insurance
and worker's compensation), capital gains and
settlement for personal or property losses
(except as provided in paragraph (b)(5) of this
section);
(4) Amounts received by the family that are
specifically for, or in reimbursement of, the
cost of medical expenses for any family
member;
(5) Income of a live-in aide, as defined in
Sec. 5.403;
(6) Subject to paragraph (b)(9) of this section,
the full amount of student financial assistance
paid directly to the student or to the
educational institution;
(7) The special pay to a family member
serving in the Armed Forces who is exposed to
hostile fire;
(8) (i) Amounts received under training
programs funded by HUD;
(ii) Amounts received by a person with a
disability that are disregarded for a limited
time for purposes of Supplemental Security
Income eligibility and benefits because they
are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other
publicly assisted programs which are
specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment,
clothing, transportation, child care, etc.) and
which are made solely to allow participation in
a specific program;
(iv) Amounts received under a resident service
stipend. A resident service stipend is a modest
amount (not to exceed $200 per month)
received by a resident for performing a service
for SAHA or owner, on a part-time basis, that
enhances the quality of life in the
development. Such services may include, but
are not limited to, fire patrol, hall monitoring,
lawn maintenance, resident initiatives
coordination, and serving as a member of
SAHA's governing board. No resident may
receive more than one such stipend during the
same period of time;
(v) Incremental earnings and benefits resulting
to any family member from participation in
qualifying State or local employment training
programs (including training programs not
affiliated with a local government) and
training of a family member as resident
management staff. Amounts excluded by this
provision must be received under employment
training programs with clearly defined goals
and objectives, and are excluded only for the
period during which the family member
participates in the employment training
program;
(9) Temporary, nonrecurring or sporadic
income (including gifts);
(10) Reparation payments paid by a foreign
government pursuant to claims filed under the
laws of that government by persons who were
persecuted during the Nazi era;
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(11) Earnings in excess of $480 for each full-
time student 18 years old or older (excluding
the head of household and spouse);
(12) Adoption assistance payments in excess
of $480 per adopted child;
(13) [Reserved]
(14) Deferred periodic amounts from
supplemental security income and social
security benefits that are received in a lump
sum amount or in prospective monthly
amounts, or any deferred Department of Veterans
Affairs disability benefits that are received in a
lump sum amount or prospective monthly
amounts.
(15) Amounts received by the family in the
form of refunds or rebates under State or local
law for property taxes paid on the
dwelling unit;
(16) Amounts paid by a State agency to a
family with a member who has a
developmental disability and is living at home
to offset the cost of services and equipment
needed to keep the developmentally disabled
family member at home; or
(17) Amounts specifically excluded by any
other Federal statute from consideration as
income for purposes of determining eligibility
or benefits under a category of assistance
programs that includes assistance under any
program to which the exclusions set forth in 24
CFR 5.609(c) apply. A notice will be
published in the Federal Register and
distributed to PHAs and housing owners
identifying the benefits that qualify for this
exclusion. Updates will be published and
distributed when necessary. [See Section
6-I.M. for a list of benefits that qualify for
this exclusion.]
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EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS
24 CFR 5.603(b) Net Family Assets
(1) Net cash value after deducting reasonable
costs that would be incurred in disposing of
real property, savings, stocks, bonds, and other
forms of capital investment, excluding
interests in Indian trust land and excluding
equity accounts in HUD homeownership
programs. The value of necessary items of
personal property such as furniture and
automobiles shall be excluded.
(2) In cases where a trust fund has been
established and the trust is not revocable by, or
under the control of, any member of the family
or household, the value of the trust fund will
not be considered an asset so long as the fund
continues to be held in trust. Any income
distributed from the trust fund shall be counted
when determining annual income under Sec.
5.609.
(3) In determining net family assets, PHAs or
owners, as applicable, shall include the value
of any business or family assets disposed of by
an applicant or tenant for less than fair market
value (including a disposition in trust, but not
in a foreclosure or bankruptcy sale) during the
two years preceding the date of application for
the program or reexamination, as applicable, in
excess of the consideration received therefor.
In the case of a disposition as part of a
separation or divorce settlement, the
disposition will not be considered to be for less
than fair market value if the applicant or tenant
receives important consideration not
measurable in dollar terms.
(4) For purposes of determining annual income
under Sec. 5.609, the term "net family assets''
does not include the value of a home currently
being purchased with assistance under part
982, subpart M of this title. This exclusion is
limited to the first 10 years after the purchase
date of the home.
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EXHIBIT 6-4: EARNED INCOME DISALLOWANCE FOR PERSONS WITH
DISABILITIES
24 CFR 5.617 Self-sufficiency incentives for persons with disabilities–Disallowance of
increase in annual income.
(a) Applicable programs. The disallowance of
increase in annual income provided by this
section is applicable only to the following
programs: HOME Investment Partnerships
Program (24 CFR part 92); Housing
Opportunities for Persons with AIDS (24 CFR
part 574); Supportive Housing Program (24
CFR part 583); and the Housing Choice
Voucher Program (24 CFR part 982).
(b) Definitions. The following definitions
apply for purposes of this section.
Disallowance. Exclusion from annual income.
Previously unemployed includes a person with
disabilities who has earned, in the twelve
months previous to employment, no more than
would be received for 10 hours of work per
week for 50 weeks at the established minimum
wage.
Qualified family. A family residing in housing
assisted under one of the programs listed in
paragraph (a) of this section or receiving
tenant-based rental assistance under one of the
programs listed in paragraph (a) of this
section.
(1) Whose annual income increases as a result
of employment of a family member who is a
person with disabilities and who was
previously unemployed for one or more years
prior to employment;
(2) Whose annual income increases as a result
of increased earnings by a family member who
is a person with disabilities during
participation in any economic self-sufficiency
or other job training program; or
(3) Whose annual income increases, as a
result of new employment or increased
earnings of a family member who is a person
with disabilities, during or within six months
after receiving assistance, benefits or services
under any state program for temporary
assistance for needy families funded under
Part A of Title IV of the Social Security Act,
as determined by the responsible entity in
consultation with the local agencies
administering temporary assistance for needy
families (TANF) and Welfare-to-Work
(WTW) programs. The TANF program is not
limited to monthly income maintenance, but
also includes such benefits and services as
one-time payments, wage subsidies and
transportation assistance-- provided that the
total amount over a six-month period is at least
$500.
(c) Disallowance of increase in annual
income—
(1) Initial twelve month exclusion. During the
cumulative twelve month period beginning on
the date a member who is a person with
disabilities of a qualified family is first
employed or the family first experiences an
increase in annual income attributable to
employment, the responsible entity must
exclude from annual income (as defined in the
regulations governing the applicable program
listed in paragraph (a) of this section) of a
qualified family any increase in income of the
family member who is a person with
disabilities as a result of employment over
prior income of that family member.
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(2) Second twelve month exclusion and Phase-
in. During the second cumulative twelve
month period after the date a member who is a
person with disabilities of a qualified family is
first employed or the family first experiences
an increase in annual income attributable to
employment, the responsible entity must
exclude from annual income of a qualified
family fifty percent of any increase in income
of such family member as a result of
employment over income of that family
member prior to the beginning of such
employment.
(3) Maximum four year disallowance. The
disallowance of increased income of an
individual family member who is a person
with disabilities as provided in paragraph
(c)(1) or (c)(2) is limited to a lifetime 48
month period. The disallowance only applies
for a maximum of twelve months for
disallowance under paragraph (c)(1) and a
maximum of twelve months for disallowance
under paragraph (c)(2), during the 48 month
period starting from the initial exclusion under
paragraph (c)(1) of this section.
(d) Inapplicability to admission. The
disallowance of increases in income as a result
of employment of persons with disabilities
under this section does not apply for purposes
of admission to the program (including the
determination of income eligibility or any
income targeting that may be applicable).
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EXHIBIT 6-5: THE EFFECT OF WELFARE BENEFIT REDUCTION
24 CFR 5.615
Public housing program and Section 8 tenant-based assistance program: How welfare
benefit reduction affects family income.
(a) Applicability. This section applies to
covered families who reside in public housing
(part 960 of this title) or receive Section 8
tenant-based assistance (part 982 of this title).
(b) Definitions. The following definitions
apply for purposes of this section:
Covered families. Families who receive
welfare assistance or other public assistance
benefits ("welfare benefits'') from a State or
other public agency ("welfare agency'') under a
program for which Federal, State, or local law
requires that a member of the family must
participate in an economic self-sufficiency
program as a condition for such assistance.
Economic self-sufficiency program. See
definition at Sec. 5.603.
Imputed welfare income. The amount of
annual income not actually received by a
family, as a result of a specified welfare
benefit reduction, that is nonetheless included
in the family's annual income for purposes of
determining rent.
Specified welfare benefit reduction.
(1) A reduction of welfare benefits by the
welfare agency, in whole or in part, for a
family member, as determined by the welfare
agency, because of fraud by a family member
in connection with the welfare program; or
because of welfare agency sanction against a
family member for noncompliance with a
welfare agency requirement to participate in an
economic self-sufficiency program.
(2) "Specified welfare benefit reduction'' does
not include a reduction or termination of
welfare benefits by the welfare agency:
(i) at expiration of a lifetime or other time
limit on the payment of welfare benefits;
(ii) because a family member is not able to
obtain employment, even though the family
member has complied with welfare agency
economic self-sufficiency or work activities
requirements; or
(iii) because a family member has not
complied with other welfare agency
requirements.
(c) Imputed welfare income.
(1) A family's annual income includes the
amount of imputed welfare income (because of
a specified welfare benefits reduction, as
specified in notice to SAHA by the welfare
agency), plus the total amount of other annual
income as determined in accordance with Sec.
5.609.
(2) At the request of SAHA, the welfare
agency will inform SAHA in writing of the
amount and term of any specified welfare
benefit reduction for a family member, and the
reason for such reduction, and will also inform
SAHA of any subsequent changes in the term
or amount of such specified welfare benefit
reduction. SAHA will use this information to
determine the amount of imputed welfare
income for a family.
(3) A family's annual income includes imputed
welfare income in family annual income, as
determined at SAHA's interim or regular
reexamination of family income and
composition, during the term of the welfare
benefits reduction (as specified in information
provided to SAHA by the welfare agency).
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(4) The amount of the imputed welfare income
is offset by the amount of additional income a
family receives that commences after the time
the sanction was imposed. When such
additional income from other sources is at
least equal to the imputed
(5) SAHA may not include imputed welfare
income in annual income if the family was not
an assisted resident at the time of sanction.
(d) Review of SAHA decision.
(1) Public housing. If a public housing tenant
claims that SAHA has not correctly calculated
the amount of imputed welfare income in
accordance with HUD requirements, and if
SAHA denies the family's request to modify
such amount, SAHA shall give the tenant
written notice of such denial, with a brief
explanation of the basis for SAHA
determination of the amount of imputed
welfare income. SAHA notice shall also state
that if the tenant does not agree with SAHA
determination, the tenant may request a
grievance hearing in accordance with part 966,
subpart B of this title to review SAHA
determination. The tenant is not required to
pay an escrow deposit pursuant to Sec.
966.55(e) for the portion of tenant rent
attributable to the imputed welfare income in
order to obtain a grievance hearing on SAHA
determination.
(2) Section 8 participant. A participant in the
Section 8 tenant-based assistance program
may request an informal hearing, in
accordance with Sec. 982.555 of this title, to
review SAHA determination of the amount of
imputed welfare income that must be included
in the family's annual income in accordance
with this section. If the family claims that such
amount is not correctly calculated in
accordance with HUD requirements, and if
SAHA denies the family's request to modify
such amount, SAHA shall give the family
written notice of such denial, with a brief
explanation of the basis for SAHA
determination of the amount of imputed
welfare income. Such notice shall also state
that if the family does not agree with SAHA
determination, the family may request an
informal hearing on the determination under
SAHA hearing procedure.
(e) SAHA relation with welfare agency.
(1) SAHA must ask welfare agencies to inform
SAHA of any specified welfare benefits
reduction for a family member, the reason for
such reduction, the term of any such reduction,
and any subsequent welfare agency
determination affecting the amount or term of
a specified welfare benefits reduction. If the
welfare agency determines a specified welfare
benefits reduction for a family member, and
gives SAHA written notice of such reduction,
the family's annual incomes shall include the
imputed welfare income because of the
specified welfare benefits reduction.
(2) SAHA is responsible for determining the
amount of imputed welfare income that is
included in the family's annual income as a
result of a specified welfare benefits reduction
as determined by the welfare agency, and
specified in the notice by the welfare agency to
SAHA. However, SAHA is not responsible for
determining whether a reduction of welfare
benefits by the welfare agency was correctly
determined by the welfare agency in
accordance with welfare program requirements
and procedures, nor for providing the
opportunity for review or hearing on such
welfare agency determinations.
(3) Such welfare agency determinations are
the responsibility of the welfare agency, and
the family may seek appeal of such
determinations through the welfare agency's
normal due process procedures. SAHA shall
be entitled to rely on the welfare agency notice
to SAHA of the welfare agency's
determination of a specified welfare benefits
reduction.
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Chapter 7
VERIFICATION
[24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2010-19]
INTRODUCTION
SAHA must verify all information that is used to establish the family’s eligibility and level of
assistance and is required to obtain written authorization from the family in order to collect the
information. Applicants and program participants must cooperate with the verification process as
a condition of receiving assistance. SAHA must not pass on the cost of verification to the family.
SAHA will follow the verification guidance provided by HUD in Notice PIH 2010-19 and any
subsequent guidance issued by HUD. This chapter summarizes those requirements and provides
supplementary SAHA policies.
Part I describes the general verification process. Part II provides more detailed requirements
related to family information. Part III provides information on income and assets, and Part IV
covers mandatory deductions.
Verification policies, rules and procedures will be modified as needed to accommodate persons
with disabilities. All information obtained through the verification process will be handled in
accordance with the records management policies of SAHA.
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PART I: GENERAL VERIFICATION REQUIREMENTS
7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516 AND
982.551, 24 CFR 5.230]
The family must supply any information that SAHA or HUD determines is necessary to the
administration of the program and must consent to SAHA verification of that information [24
CFR 982.551].
Consent Forms
It is required that all adult applicants and participants sign form HUD-9886, Authorization for
Release of Information. The purpose of form HUD-9886 is to facilitate automated data collection
and computer matching from specific sources and provides the family's consent only for the
specific purposes listed on the form. HUD and SAHA may collect information from State Wage
Information Collection Agencies (SWICAs) and current and former employers of adult family
members. Only HUD is authorized to collect information directly from the Internal Revenue
Service (IRS) and the Social Security Administration (SSA). Adult family members must sign
other consent forms as needed to collect information relevant to the family’s eligibility and level
of assistance.
Penalties for Failing to Consent [24 CFR 5.232]
If any family member who is required to sign a consent form fails to do so, SAHA will deny
admission to applicants and terminate assistance of participants. The family may request an
informal review (applicants) or informal hearing (participants) in accordance with SAHA
procedures.
7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS
HUD’s Verification Hierarchy [Notice PIH 2010-19]
HUD mandates the use of the EIV system and offers administrative guidance on the use of other
methods to verify family information and specifies the circumstances in which each method will
be used. In general HUD requires SAHA to use the most reliable form of verification that is
available and to document the reasons when SAHA uses a lesser form of verification.
SAHA Policy
In order of priority, the forms of verification that SAHA will use are:
• Upfront Income Verification (UIV) using HUD’s Enterprise Income
Verification (EIV) system
• Upfront Income Verification (UIV) using non-HUD system
• Written third Party Verification (may be provided by applicant or participant)
• Written Third Party Verification Form
• Oral Third Party Verification
• Self-Certification (Use as a last resort when unable to obtain any type of third
party verification)
Each of the verification methods is discussed in subsequent sections below.
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Requirements for Acceptable Documents
SAHA Policy
Any documents used for verification must be dated within 60 days of the interview date
with SAHA. The documents must not be damaged, altered or in any way illegible.
Print-outs from Web pages are considered original documents.
Any family self-certifications must be made in a format acceptable to SAHA.
File Documentation
SAHA must document in the file how the figures used in income and rent calculations were
determined. All verification attempts, information obtained, and decisions reached during the
verification process will be recorded in the family’s file in sufficient detail to demonstrate that
SAHA has followed all of the verification policies set forth in this plan. The record should be
sufficient to enable a staff member or HUD reviewer to understand the process followed and
conclusions reached.
SAHA Policy
SAHA will document in the family file the following:
Reported family annual income
Value of assets
Expenses related to deductions from annual income
Other factors influencing adjusted income
When SAHA is unable to obtain third-party verification, SAHA will document in the family file
the reason that third-party verification was not available [24 CFR 982.516(a) (2); Notice PIH
2010-19].
7-I.C. UP-FRONT INCOME VERIFICATION (UIV)
Up-front income verification (UIV) refers to SAHA’s use of the verification tools available from
independent sources that maintain computerized information about earnings and benefits. UIV
will be used to the extent that these systems are available to SAHA.
There may be legitimate differences between the information provided by the family and UIV-
generated information. If the family disputes the accuracy of UIV data, no adverse action can be
taken until SAHA has independently verified the UIV information and the family has been
granted an opportunity to contest any adverse findings through the informal review/hearing
process of SAHA.
See Chapter 6 for SAHA’s policy on the use of UIV/EIV to project annual income.
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Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System
(Mandatory)
PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant
employment and income information during mandatory reexaminations or recertifications of
family composition and income in accordance with 24 CFR 5.236 and administrative guidance
issued by HUD. The EIV system contains data showing earned income, unemployment benefits,
social security benefits, and SSI benefits for participant families. The following policies apply to
the use of HUD’s EIV system.
EIV Income Reports
The data shown on income reports is updated quarterly. Data may be between 3 and 6 months
old at the time reports are generated.
SAHA Policy
SAHA will obtain income reports for annual re-examinations on a monthly basis.
Reports will be generated as part of the regular re-examination process.
Income reports will be compared to family provided information as part of the annual re-
examination process. Income reports may be used in the calculation of annual income as
described in Chapter 6-I.C. Income reports will also be used to meet the regulatory
requirements for third party verifications, as described above. Policies for resolving
discrepancies between income reports and family provided information will be resolved
as described in Chapter 6-I.C. and in this chapter.
Income reports will be used in interim reexaminations to identify any discrepancies
between reported income and income shown in the EIV system, and as necessary to
verify and calculate earned income, unemployment benefits, Social Security and or SSI
benefits. EIV will also be used to verify that families claiming zero income are not
receiving income from any of these sources.
EIV income reports will be retained in participant files with the applicable annual or
interim re-examination documents.
When SAHA determines through income reports and third-party verification that a family
has concealed or under-reported income, corrective action will be taken pursuant to the
policies in Chapter 14, Program Integrity.
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EIV Identity Verification
The EIV system verifies tenant identities against SSA records. These records are compared to
PIC data for a match on social security number, name, and date of birth.
PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the
availability of income information in EIV [Notice PIH 2012-10].
When identity verification for a participant fails, a message will be displayed within the EIV
system and no income information will be displayed.
SAHA Policy
SAHA will identify participants whose identity verification has failed by reviewing
EIV’s Identity Verification Report on a monthly basis.
SAHA will attempt to resolve PIC/SSA discrepancies by obtaining appropriate
documentation from the participant. When SAHA determines that the discrepancies exist
due to staff error such as spelling errors or incorrect birth dates, the errors will be
corrected promptly.
Upfront Income Verification Using Non-HUD Systems (Optional)
In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront
verification sources.
SAHA Policy
SAHA will inform all applicants and participants of its use of the following EIV
resources during the admission and reexamination process.
In addition to mandatory use of the EIV system, SAHA will also utilize other up-front
verification sources, such as The Work Number (an automated verification system) and
state government databases, to validate tenant-reported income.
7-I.D. THIRD-PARTY WRITTEN AND ORAL VERIFICATION
HUD’s current verification hierarchy defines two types of written third-party verification. The
more preferable form, “written third-party verification,” consists of an original document
generated by a third-party source, which may be received directly from a third-party source or
provided to SAHA by the family. If written third-party verification is not available, SAHA must
attempt to obtain a “written third-party verification form.” This is a standardized form used to
collect information from a third party.
Written Third-Party Verification [Notice PIH 2010-19]
Written third-party verification documents must be original and authentic and may be supplied
by the family or received from a third-party source.
Examples of acceptable tenant-provided documents include, but are not limited to: pay stubs,
payroll summary reports, employer notice or letters of hire and termination, SSA benefit
verification letters, bank statements, child support payment stubs, welfare benefit letters and/or
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printouts, and unemployment monetary benefit notices.
SAHA is required to obtain, at minimum, two current and consecutive pay stubs for determining
annual income from wages.
SAHA may reject documentation provided by the family if the document is not an original, if the
document appears to be forged, or if the document is altered, mutilated, or illegible.
SAHA Policy
Third party documents provided by the family must be dated within 60 days of the
interview date with SAHA.
If SAHA determines that third-party documents provided by the family are not
acceptable, SAHA will explain the reason to the family and request additional
documentation.
As verification of earned income, SAHA will generally request pay stubs covering the
last 3 months.
Written Third-Party Verification Form
When upfront verification is not available and the family is unable to provide written third-party
documents, SAHA must request a written third-party verification form. HUD’s position is that
this traditional third-party verification method presents administrative burdens and risks which
may be reduced through the use of family-provided third-party documents.
PHAs may mail, fax, or e-mail third-party written verification form requests to third-party
sources.
SAHA Policy
SAHA may mail, fax, e-mail third-party written verification requests and will accept
third-party responses using any of these methods. SAHA will send a written request for
verification as needed to each required source within 7 days of securing a family’s
authorization for the release of the information. If a response has not been received by
the 15th day, SAHA will send a second request, or will request third-party oral
verification.
Oral Third-Party Verification [Notice PIH 2010-19]
For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the
family, by telephone or in person.
Oral third-party verification is mandatory if neither form of written third-party verification is
available.
Third-party oral verification may be used when requests for written third-party verification forms
have not been returned within a reasonable time—e.g., 10 business days.
PHAs should document in the file the date and time of the telephone call or visit, the name of the
person contacted, the telephone number, as well as the information confirmed.
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SAHA Policy
SAHA staff will document in the file the date and time of the telephone call or visit, the
name of the person contacted, the telephone number, as well as the information/facts
provided.
When any source responds verbally to the initial written request for verification, SAHA
staff will accept the verbal response as oral verification but will also request that the
source complete and return any verification forms that were provided.
When Third-Party Verification is Not Required [Notice PIH 2010-19]
Third-party verification may not be available in all situations. HUD has acknowledged that it
may not be cost-effective or reasonable to obtain third-party verification of income, assets, or
expenses when these items would have a minimal impact on the family’s total tenant payment.
SAHA Policy
If the family cannot provide original documents, SAHA will pay the service charge
required to obtain third-party verification, unless it is not cost effective in which case a
self-certification will be acceptable as the only means of verification. SAHA will also
consider that third-party verification is not available when there is a service charge for
verifying an asset or expense. The cost of verification will not be passed on to the
family.
The cost of postage and envelopes to obtain third-party verification of income, assets and
expenses is not an unreasonable cost [VG. P. 18].
Primary Documents
Third-party verification is not required when legal documents are the primary source, such as a
birth certificate or other legal documentation of birth.
Imputed Assets
HUD permits PHAs to accept a self-certification from a family as verification of assets disposed
of for less than fair market value [HCV GB, p. 5-28].
SAHA Policy
SAHA will not accept a self-certification from a family as verification of assets disposed
of for less than fair market value.
7-I.E. SELF-CERTIFICATION
Self-certification, or “tenant declaration,” is used as a last resort when SAHA is unable to obtain
third-party verification.
When SAHA relies on a tenant declaration for verification of income, assets, or expenses, the
family’s file must be documented to explain why third-party verification was not available.
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SAHA Policy
When information cannot be verified by a third party or by review of documents, family
members will be required to submit self-certifications attesting to the accuracy of the
information they have provided to SAHA. SAHA staff must document the family’s file to
explain why third-party verification was not available when SAHA relies on tenant
declaration for verification of income, assets, or expenses.
SAHA may require a family to certify that a family member does not receive a particular
type of income or benefit.
The self-certification must be made in a format acceptable to SAHA and must be signed
by the family member whose information or status is being verified.
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PART II: VERIFYING FAMILY INFORMATION
7-II.A. VERIFICATION OF LEGAL IDENTITY
SAHA Policy
SAHA will require families to furnish verification of legal identity for each household
member.
Verification of Legal Identity for Adults Verification of Legal Identity for
Children
Certificate of birth, naturalization papers
Church issued baptismal certificate
Current, valid driver's license or
Department of Motor Vehicles
identification card
U.S. military discharge (DD 214)
Current U.S. passport
Current Employer identification card
Certificate of birth
Adoption papers
Custody agreement
Health and Human Services ID
Certified school records
If a document submitted by a family is illegible or otherwise questionable, more than one
of these documents may be required.
If none of these documents can be provided and at SAHA’s discretion, a third party who
knows the person may attest to the person’s identity. The certification must be provided
in a format acceptable to SAHA and be signed in the presence of a SAHA representative
or SAHA notary public.
Legal identity will be verified for all applicants at the time of eligibility determination
and in cases where SAHA has reason to doubt the identity of a person representing him
or herself to be a participant.
7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2012-10]
The family must provide documentation of a valid social security number (SSN) for each
member of the household, with the exception of individuals who do not contend eligible
immigration status. Exemptions also include, existing program participants who were at least 62
years of age as of January 31, 2010, and had not previously disclosed an SSN.
Note that an individual who previously declared to have eligible immigration status may not
change his or her declaration for the purpose of avoiding compliance with the SSN disclosure
and documentation requirements or penalties associated with noncompliance with these
requirements. Nor may the head of household opt to remove a household member from the
family composition for this purpose.
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SAHA must accept the following documentation as acceptable evidence of the social security
number:
• An original SSN card issued by the Social Security Administration (SSA)
• An original SSA-issued document, which contains the name and SSN of the
individual
• An original document issued by a federal, state, or local government agency, which
contains the name and SSN of the individual
SAHA may only reject documentation of an SSN provided by an applicant or participant if the
document is not an original document or if the original document has been altered, mutilated, is
illegible, or appears to be forged.
SAHA Policy
SAHA will explain to the applicant or participant the reasons the document is not
acceptable and request that the individual obtain and submit acceptable documentation of
the SSN within 90 days.
SAHA will grant one additional 90-days extension if needed for reasons beyond the
participant’s control such as delayed processing of the SSN application by the SSA,
natural disaster, fire, death in the family, or other emergency. If the individual fails to
comply with SSN disclosure and documentation requirements upon expiration of the
provided time period, SAHA will terminate the individual’s assistance.
In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required
documentation must be provided within 90 calendar days from the date of admission into the
program. SAHA must grant one additional 90-day extension if it determines that the applicant’s
failure to comply was due to circumstances that were beyond the applicant’s control and could
not have been reasonably foreseen.
When a participant requests to add a new household member who is at least 6 years of age, or
who is under the age of 6 and has an SSN, the participant must provide the complete and
accurate SSN assigned to each new member at the time of reexamination or recertification, in
addition to the documentation required to verify it. SAHA may not add the new household
member until such documentation is provided.
When a participant requests to add a new household member who is under the age of 6 and has
not been assigned an SSN, the participant must provide the SSN assigned to each new child and
the required documentation within 90 calendar days of the child being added to the household. A
90-day extension will be granted if SAHA determines that the participant’s failure to comply was
due to unforeseen circumstances and was outside of the participant’s control. During the period
SAHA is awaiting documentation of the SSN, the child will be counted as part of the assisted
household.
SAHA Policy
SAHA will grant one additional 90-day extension if needed for reasons beyond the
participants control such as delayed processing of the SSN application by the SSA,
natural disaster, fire, death in the family, or other emergency.
Social security numbers must be verified only once during continuously-assisted occupancy.
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SAHA Policy
SAHA will verify each disclosed SSN by:
• Obtaining documentation from applicants and participants that is acceptable as
evidence of social security numbers
• Making a copy of the original documentation submitted, returning it to the
individual, and retaining a copy in the file
Once the individual’s verification status is classified as “verified,” SAHA may, at its discretion,
remove and destroy copies of documentation accepted as evidence of social security numbers.
The retention of the EIV Summary Report or Income Report is adequate documentation of an
individual’s SSN.
SAHA Policy
Once an individual’s status is classified as “verified” in HUD’s EIV system, SAHA will
remove and destroy copies of documentation accepted as evidence of social security
numbers.
7-II.C. DOCUMENTATION OF AGE
A birth certificate or other official record of birth is the preferred form of age verification for all
family members. For elderly family members an original document that provides evidence of the
receipt of social security retirement benefits is acceptable.
SAHA Policy
If an official record of birth or evidence of social security retirement benefits cannot be
provided, SAHA will require the family to submit other documents that support the
reported age of the family member (e.g., school records, driver's license if birth year is
recorded) and to provide a self-certification.
Age must be verified only once during continuously-assisted occupancy.
7-II.D. FAMILY RELATIONSHIPS
Applicants and program participants are required to identify the relationship of each household
member to the head of household. Definitions of the primary household relationships are
provided in the Eligibility chapter.
SAHA Policy
Family relationships are verified only to the extent necessary to determine a family’s
eligibility and level of assistance. Certification by the head of household normally is
sufficient verification of family relationships.
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Marriage
SAHA Policy
In the case of a common law marriage, the couple must demonstrate that they hold
themselves to be married (e.g., by telling the community they are married, calling each
other husband and wife, using the same last name, filing joint income tax returns).
Certification by the head of household is normally sufficient verification. If SAHA has
reasonable doubts about a marital relationship, SAHA will require the family to
document the marriage.
Separation or Divorce
SAHA Policy
A certified copy of a divorce decree, signed by a court officer, may be required to
document that a couple is divorced.
A copy of a court-ordered maintenance or other court record may be required to
document a separation.
Absence of Adult Member
SAHA Policy
If an adult member who was formerly a member of the household is reported to be
permanently absent, the family must provide evidence to support that the person is no
longer a member of the family (e.g., documentation of another address at which the
person resides such as a lease or utility bill).
Foster Children and Foster Adults
SAHA Policy
Third-party verification from the state or local government agency responsible for the
placement of the individual with the family is required.
7-II.E. VERIFICATION OF STUDENT STATUS
General Requirements
SAHA Policy
SAHA requires families to provide verification of student status at the time of eligibility
appointment for all family members of school age. Verification of status is also required
for all students who are 18 years of age or older. This information will be verified only if:
o The family claims full-time student status for an adult other than the head, spouse,
or co-head, or
o The family claims a childcare deduction to enable a family member to further his
or her education.
o The family includes a student enrolled in an institution of higher education.
Verification of full-time student status includes all of the following:
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o Written verification from the registrar’s office or other school official.
o School records indicating enrollment in sufficient credits to qualify as full-time by
the educational institution.
o Final report of units completed will be required to provide at the family’s annual
re-examination or as needed.
Full-time students that are over eighteen (18) years of age and are employed are required to
provide an official transcript from each institution of higher education at the family’s annual
re-examination or as needed.
Restrictions on Assistance to Students Enrolled in Institutions of Higher Education
This section applies only to students who are seeking assistance on their own, separately from
their parents. It does not apply to students residing with parents who are seeking or receiving
HCV assistance.
SAHA Policy
In accordance with the verification hierarchy described in section 7-1.B, SAHA will
determine whether the student is exempt from the restrictions in 24 CFR 5.612 by
verifying any one of the following exemption criteria:
• The student is enrolled at an educational institution that does not meet the
definition of institution of higher education in the Higher Education Act of
1965 (see Section Exhibit 3-2).
• The student is at least 24 years old.
• The student is a veteran, as defined in Section 3-II.E.
• The student is married.
• The student has at least one dependent child, as defined in Section 3-II.E.
• The student is a person with disabilities, as defined in Section 3-II.E, and was
receiving assistance prior to November 30, 2005.
If SAHA cannot verify at least one of these exemption criteria, SAHA will conclude that
the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to
verifying the student’s income eligibility, SAHA will then proceed to verify either the
student’s parents’ income eligibility (see section 7-III.J) or the student’s independence
from his/her parents (see below).
Independent Student
SAHA Policy
SAHA will verify a student’s independence from his/her parents to determine that the
student’s parents’ income is not relevant for determining the student’s eligibility by doing
all of the following:
• Either reviewing or verifying previous address information to determine
whether the student has established a household separate from his/her parents
for at least one year or reviewing and verifying documentation relevant to
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determining whether the student meets the U.S. Department of Education’s
definition of independent student (see Section 3-II.E).
• Reviewing prior year income tax returns to verify whether a parent has
claimed the student as a dependent.
• Requesting and obtaining written certification directly from the student’s
parents identifying the amount of support they will be providing to the
student, even if the amount of support is $0.
7-II.F. DOCUMENTATION OF DISABILITY
SAHA must verify the existence of a disability in order to allow certain income disallowances
and deductions from income. SAHA is not permitted to inquire about the nature or extent of a
person’s disability [24 CFR 100.202(c)]. SAHA may not inquire about a person’s diagnosis or
details of treatment for a disability or medical condition. If SAHA receives a verification
document that provides such information, SAHA will not place this information in the tenant
file. Under no circumstances will SAHA request a participant’s medical record(s). For more
information on health care privacy laws, see the Department of Health and Human Services’
website at http://www.hhs.gov/ocr/privacy/.
The above cited regulation does not prohibit the following inquiries, provided these inquiries are
made of all applicants, whether or not they are persons with disabilities [VG, p. 24]:
• Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy
• Inquiry to determine whether an applicant is qualified for a dwelling available only to
persons with disabilities or to persons with a particular type of disability
• Inquiry to determine whether an applicant for a dwelling is qualified for a priority available
to persons with disabilities or to persons with a particular type of disability
• Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a
controlled substance
• Inquiring whether an applicant has been convicted of the illegal manufacture or distribution
of a controlled substance
Family Members Receiving SSA Disability Benefits
Verification of the receipt of disability benefits from the Social Security Administration (SSA) is
sufficient verification of disability for the purpose of qualifying for waiting list preferences (if
applicable) or certain income disallowances and deductions [VG, p. 23].
SAHA Policy
For family members claiming disability who receive disability benefits from the SSA,
SAHA will attempt to obtain information about disability benefits through the HUD
Enterprise Income Verification (EIV) system when it is available. If documentation from
HUD’s EIV System is not available, SAHA will request a current (dated within the last
60 days) SSA benefit verification letter from each family member claiming disability
status. If the family is unable to provide the document(s), SAHA will ask the family to
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request a benefit verification letter by either calling SSA at 1-800-772-1213, or by
requesting it from www.ssa.gov. Once the applicant or participant receives the benefit
verification letter they will be required to provide it to SAHA.
Family Members Not Receiving SSA Disability Benefits
Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based
on the individual’s claimed disability are not sufficient verification that the individual meets
HUD’s definition of disability in 24 CFR 5.403.
SAHA Policy
For family members claiming disability who do not receive disability benefits from the
SSA, a licensed professional must provide third-party verification that the family member
meets the HUD definition of disability. See the Eligibility chapter for the HUD definition
of disability. The licensed professional will verify whether the family member does or
does not meet the HUD definition.
7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508]
Overview
Housing assistance is not available to persons who are not citizens, nationals, or eligible
immigrants. Prorated assistance is provided for "mixed families" containing both eligible and
ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter.
This verifications chapter discusses HUD and SAHA verification requirements related to
citizenship status.
The family must provide a certification that identifies each family member as a U.S. citizen, a
U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents
discussed below for each family member. Once eligibility to receive assistance has been verified
for an individual it need not be collected or verified again during continuously-assisted
occupancy. [24 CFR 5.508(g)(5)]
U.S. Citizens and Nationals
HUD requires a declaration for each family member who claims to be a U.S. citizen or national.
The declaration must be signed personally by any family member 18 or older and by a guardian
for minors.
SAHA may request verification of the declaration by requiring presentation of a birth certificate,
United States passport or other appropriate documentation.
SAHA Policy
Family members who claim U.S. citizenship or national status will not be required to
provide additional documentation unless SAHA receives information indicating that an
individual’s declaration may not be accurate.
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Eligible Immigrants
Documents Required
All family members claiming eligible immigration status must declare their status in the same
manner as U.S. citizens and nationals.
The documentation required for eligible noncitizens varies depending upon factors such as the
date the person entered the U.S., the conditions under which eligible immigration status has been
granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit
7-1 at the end of this chapter summarizes documents family members must provide.
SAHA Verification [HCV GB, pp. 5-3 and 5-7]
For family members age 62 or older who claim to be eligible immigrants, proof of age is
required in the manner described in 7-II.C. of this plan. No further verification of eligible
immigration status is required.
For family members under the age of 62 who claim to be eligible immigrants, SAHA must verify
immigration status with the United States Citizenship and Immigration Services (USCIS).
SAHA will follow all USCIS protocols for verification of eligible immigration status.
SAHA will accept the following documents as evidence of eligible immigration status, subject to
verification:
(1) Form 1-151, Alien Registration Receipt Card (issued to lawful permanent residents
prior to 1979). Form 1-151 will no longer be valid after March 20, 1996.
(2) Form 1-5,1, Alien Registration Receipt Card (for permanent resident aliens)
(3) Form 1-94, Arrival-Departure Record, with one of the following annotations:
(a) “Admitted as Refugee Pursuant to Section 207”
(b) “Section 208” or “Asylum”
(c) “Section 243(h)” or “Deportation stayed by Attorney General”
(d) “Paroled pursuant to Section 212 (d) (5) of the INA”
(4) If Form 1-94, Arrival-Departure Record, is not annotated, then accompanied by one
of the following documents:
(a) A final court decision granting asylum (but only if no appeal is taken)
(b) A letter from an INS asylum officer granting asylum (if application is filed
on or after October 1, 1990) or from an INS district director granting asylum
(if application filed before October 1, 1990)
(c) A court decision granting withholding of deportation
(d) A letter from an asylum officer granting withholding of deportation (if
application filed on or after October 1, 1990)
(5) Form 1-668, Temporary Resident Card, which must be annotated “Section 245A” or
“Section 210”
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(6) Form 1-688B, Employment Authorization Card, which must be annotated “Provision
of Law 274a.12(11)” or “Provision of Law 274a.12”
7-II.H. VERIFICATION OF PREFERENCE STATUS
SAHA must verify any preferences claimed by an applicant that determined placement on the
Waiting List.
SAHA Policy
1. United States Military Veteran Preference: The veteran must have been
discharged under conditions other than dishonorable and were/is eligible to
receive veteran’s benefits. Form DD-214 with a discharge status of other than
dishonorable, or equivalent verification, must be provided at their eligibility
interview appointment. The individual must have served a minimum of 90 days to
qualify for the preference. “Surviving spouse” means not divorced from, or not
remarried prior to or after the death of the veteran. A marriage and death
certificate will be required for a surviving spouse.
2. Residency Preference: At least two pieces of evidence must be provided for
families who live or work in the City of Santa Ana including but not limited to a
lease, utility bills, bank statements, or paycheck stubs.
SAHA will offer priority to any family that has been terminated from its HCV program
due to insufficient program funding. SAHA will verify this preference using termination
records.
Homeless Individuals and Families Set-Aside Preference
In accordance with PIH Notice 2013-15, SAHA will accept direct referrals to the HCV
Program for the following target population:
• Homeless Individuals and Families: To qualify for this preference, homeless
individuals and families must be referred by agencies with a contract or
Memorandum of Understanding (MOU) in place with the Housing Authority, or
by Community Based Organizations (CBO’s) contracted with the Housing
Authority. The referring agency must provide a certification of the family’s
homeless status. Additionally, families already registered on the Waiting List who
declare themselves as homeless, but are not referred by a CBO must provide a
certification of their homeless status from an agency that has an MOU in place
with the Housing Authority.
All preferences must be applicable and verifiable at the time of selection from the
Waiting List.
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PART III: VERIFYING INCOME AND ASSETS
Chapter 6, Part I of this plan describes in detail the types of income that are included and
excluded and how assets and income from assets are handled. Any assets and income reported by
the family must be verified. This part provides SAHA policies that supplement the general
verification procedures specified in Part I of this chapter.
7-III.A. EARNED INCOME
Tips
SAHA Policy
Unless tip income is included in a family member’s W-2 by the employer, persons who
work in industries where tips are standard will be required to sign a certified estimate of
tips received for the prior year and tips anticipated to be received in the coming year.
Wages
SAHA Policy
For wages other than tips, the family must provide originals for past six months of
consecutive pay stubs or whatever is applicable for initial eligibility and three months
consecutive pay stubs or whatever is applicable for reexaminations.
7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME
SAHA Policy
Business owners and self-employed persons will be required to provide:
• A statement of income and expenses must be submitted and the business owner or
self-employed person must certify to its accuracy.
• All schedules completed for filing federal and local taxes in the preceding year.
• If accelerated depreciation was used on the tax return or financial statement, an
accountant's calculation of depreciation expense, computed using straight-line
depreciation rules.
• SAHA will provide a format for any person who is unable to provide such a
statement to record income and expenses for the coming year. The business
owner/self-employed person will be required to submit the information requested
and to certify to its accuracy at all future reexaminations.
• At any reexamination, SAHA may request documents that support submitted
financial statements such as manifests, appointment books, cash books, or bank
statements.
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• If the family member has been self-employed for three (3) to twelve (12) months
SAHA will require the family to provide documentation of income and expenses
for this period and use that information to project income.
7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS
Social Security/SSI Benefits
SAHA Policy
To verify the SS/SSI benefits of applicants, SAHA will request a current (dated within
the last 60 days) SSA benefit verification letter from each family member that receives
social security benefits. If the family is unable to provide the document(s), SAHA will
ask the family to request a benefit verification letter by either calling SSA at 1-800-772-
1213, or by requesting it from www.ssa.gov. Once the applicant has received the benefit
verification letter they will be required to provide it to SAHA.
To verify the SS/SSI benefits of participants, SAHA will obtain information about social
security/SSI benefits through the HUD EIV System and confirm with the participant(s)
that the current listed benefit amount is correct. If the participant disputes the EIV-
reported benefit amount, or if benefit information is not available in HUD systems,
SAHA will request a current SSA benefit verification letter from each family member
that receives social security benefits. If the family is unable to provide the document(s)
SAHA will ask the family to request a benefit verification letter by either calling SSA at
1-800-772-1213, or by requesting it from www.ssa.gov. Once the participant has
received the benefit verification letter they will be required to provide it to SAHA.
7-III.D. ALIMONY OR CHILD SUPPORT
SAHA Policy
The way SAHA will seek verification for alimony and child support differs depending on
whether the family declares that it receives regular payments.
If the family declares that it receives regular payments, verification will be
sought in the following order:
Receipts and/or payment stubs for the 90 days prior to SAHA’s
appointment or as needed.
Third-party verification form/printout from the state or local child support
enforcement agency for record of payments for the past 12 months and
request that the entity disclose any known information about the likelihood
of future payments.
Third-party verification form from the person paying the support.
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Family's self-certification of amount received and of the likelihood of
support payments being received in the future, or that support payments
are not being received.
A separation or settlement agreement or a divorce decree stating amount
and type of support and payment schedules
7-III.E. ASSETS AND INCOME FROM ASSETS
Assets Disposed of for Less than Fair Market Value
The family must certify whether any assets have been disposed of for less than fair market value
in the preceding two years. SAHA needs to verify only those certifications that warrant
documentation [HCV GB, p. 5-28].
SAHA Policy
SAHA will verify the value of assets disposed of only if the amount reported by the
family in the reexamination appears obviously in error on its market value.
Example 1: An elderly participant reported a $10,000 certificate of deposit at the last
annual reexamination and SAHA verified this amount. Now the person reports that she
has given this $10,000 to her son. SAHA has a reasonable estimate of the value of the
asset; therefore, re-verification of the value of the asset is not necessary.
Example 2: A family member has disposed of its 1/4 share of real property located in a
desirable area and has valued her share at approximately 5,000. Based upon market
conditions, this declaration does not seem realistic. Therefore, SAHA will verify the
value of this asset.
7-III.F. NET INCOME FROM RENTAL PROPERTY
SAHA Policy
The family must provide:
• A current executed lease for the property that shows the rental amount or certification
from the current tenant.
• A self-certification from the family members engaged in the rental of property
providing an estimate of expenses for the coming year and the most recent IRS Form
1040 with Schedule E (Rental Income). If Schedule E was not prepared, SAHA will
require the family members involved in the rental of property to provide a self-
certification of income and expenses for the previous year and may request
documentation to support the statement including: tax statements, insurance invoices,
bills for reasonable maintenance and utilities, and bank statements or amortization
schedules showing monthly interest expense.
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7-III.G. RETIREMENT ACCOUNTS
SAHA Policy
SAHA will accept written third-party documents supplied by the family as evidence of
the status of retirement accounts.
The type of document that will be accepted depends upon the family member’s
retirement status:
o Before retirement, SAHA will accept a copy of document provided from the
entity holding the account with a date that shows it is the most recently scheduled
statement for the account but in no case earlier than 120 days from the effective
date of the re-examination.
o SAHA will send third party verification to determine if family has access to the
account to determine penalties, early withdrawal fees, and any related fees.
o SAHA will consider limited access as having no access.
o Upon retirement, SAHA will accept a copy of document provided from the entity
holding the account that reflects any distributions of the account balance, any
lump sums taken and any regular payments.
o After retirement, SAHA will accept a copy of document provided from the entity
holding the account dated no earlier than 90 days before that reflects any
distributions of the account balance, any lump sums taken and any regular
payments.
7-III.H. INCOME FROM EXCLUDED SOURCES
A detailed discussion of excluded income is provided in Chapter 6, Part I.
HUD guidance on verification of excluded income draws a distinction between income which is
fully excluded and income which is only partially excluded.
For fully excluded income, SAHA is not required to follow the verification hierarchy, document
why third-party verification is not available, or report the income on the 50058. Fully excluded
income is defined as income that is entirely excluded from the annual income determination (for
example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04].
PHAs may accept a family’s signed application or reexamination form as self-certification of
fully excluded income. They do not have to require additional documentation. However, if there
is any doubt that a source of income qualifies for full exclusion, PHAs have the option of
requiring additional verification.
For partially excluded income, SAHA is required to follow the verification hierarchy and all
applicable regulations, and to report the income on the 50058. Partially excluded income is
defined as income where only a certain portion of what is reported by the family qualifies to be
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excluded and the remainder is included in annual income (for example, the income of an adult
full-time student, or income excluded under the earned income disallowance).
SAHA Policy
SAHA will accept the family’s self-certification as verification of fully excluded income.
SAHA may request additional documentation if necessary to document the income
source.
SAHA will verify the source and amount of partially excluded income as described in
Part 1 of this chapter.
7-III.I. ZERO ANNUAL INCOME STATUS
SAHA Policy
SAHA will require a self-certification statement of zero income from all adult family
members that are not attending school or any type of training.
For zero income families SAHA requires these families to undergo a file review every 90
days.
7-III.J. STUDENT FINANCIAL ASSISTANCE
Any financial assistance, in excess of amounts received for tuition, that a person attending an
institution of higher education receives under the Higher Education Act of 1965, from private
sources, or from an institution of higher education must be considered income unless the student
is over the age of 23 with dependent children or is residing with parents who are seeking or
receiving HCV assistance [24 CFR 5.609(b)(9) and FR 4/10/06].
For students over the age of 23 with dependent children or students residing with parents who are
seeking or receiving HCV assistance, the full amount of student financial assistance is excluded
from annual income [24 CFR 5.609(c)(6)]. The full amount of student financial assistance is also
excluded for students attending schools that do not qualify as institutions of higher education (as
defined in Exhibit 3-2). Excluded amounts are verified only if, without verification, SAHA
would not be able to determine whether or to what extent the income is to be excluded (see
section 7-III.H).
SAHA Policy
For a student subject to having a portion of his/her student financial assistance included
in annual income in accordance with 24 CFR 5.609(b)(9), SAHA will request written
third-party verification of both the source and the amount. Family-provided documents
from the educational institution attended by the student will be requested, as well as
documents generated by any other person or entity providing such assistance, as reported
by the student.
In addition, SAHA will request written verification of the student’s tuition amount.
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If SAHA is unable to obtain third-party written verification of the requested information,
SAHA will pursue other forms of verification following the verification hierarchy in
Section 7-I.B.
7-III.K. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY
RESTRICTIONS
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran,
is not married, does not have a dependent child, and is not a person with disabilities receiving
HCV assistance as of November 30, 2005, the income of the student’s parents must be
considered when determining income eligibility, unless the student is determined independent
from his or her parents in accordance with SAHA policy [24 CFR 5.612 and FR 4/10/06,
p. 18146].
This provision does not apply to students residing with parents who are seeking or receiving
HCV assistance. It is limited to students who are seeking or receiving assistance on their own,
separately from their parents.
SAHA Policy
If SAHA is required to determine the income eligibility of a student’s parents, SAHA
will request an income declaration and certification of income from the appropriate
parent(s) (as determined in Section 3-II.E). SAHA will send the request directly to the
parents, who will be required to certify to their income under penalty of perjury. The
parents will be required to submit the information directly to SAHA. The required
information must be submitted (postmarked) within 14 days of the date of SAHA’s
request or within any extended timeframe approved by SAHA.
SAHA reserves the right to request and review supporting documentation at any time if it
questions the declaration or certification. Supporting documentation may include, but is
not limited to, Internal Revenue Service (IRS) tax returns, consecutive and original pay
stubs, bank statements, pension benefit statements, benefit award letters, and other
official and authentic documents from a federal, state, or local agency.
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PART IV: VERIFYING MANDATORY DEDUCTIONS
7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS
The dependent and elderly/disabled family deductions require only that SAHA verify that the
family members identified as dependents or elderly/disabled persons meet the statutory
definitions. No further verifications are required.
Dependent Deduction
See Chapter 6 (6-II.B.) for a full discussion of this deduction. SAHA must verify that:
• Any person under the age of 18 for whom the dependent deduction is claimed is not the head,
spouse, or cohead of the family and is not a foster child
• Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult
or live-in aide, and is a person with a disability or a full time student
Elderly/Disabled Family Deduction
See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (6-II.C.) for
a discussion of the deduction. SAHA must verify that the head, spouse, or cohead is 62 years of
age or older or a person with disabilities.
7-IV.B. MEDICAL EXPENSE DEDUCTION
Policies related to medical expenses are found in 6-II.D. The amount of the deduction will be
verified following the standard verification procedures described in Part I.
Amount of Expense
SAHA Policy
Medical expenses will be verified through:
• Written third-party documents provided by the family, such as pharmacy
printouts or receipts.
• SAHA will make a best effort to determine what expenses from the past are
likely to continue to occur in the future. SAHA will also accept evidence of
monthly payments or total payments that will be due for medical expenses
during the upcoming 12 months. SAHA will use monthly payments or total
balance whichever is less.
In addition, SAHA must verify that:
• The household is eligible for the deduction.
• The costs to be deducted are qualified medical expenses.
• The expenses are not paid for or reimbursed by any other source.
• Costs incurred in past years are counted only once.
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Eligible Household
The medical expense deduction is permitted only for households in which the head, spouse, or
cohead is at least 62, or a person with disabilities. SAHA must verify that the family meets the
definition of an elderly or disabled family provided in the Eligibility chapter and as described in
Chapter 7 (7-IV.A.) of this plan.
Qualified Expenses
To be eligible for the medical expenses deduction, the costs must qualify as medical expenses.
See Chapter 6 (6-II.D.) for SAHA’s policy on what counts as a medical expense.
Unreimbursed Expenses
To be eligible for the medical expenses deduction, the costs must not be reimbursed by another
source.
SAHA Policy
The family will be required to certify that the medical expenses are not paid or
reimbursed to the family from any source. If expenses are verified through a third party,
the third party must certify that the expenses are not paid or reimbursed from any other
source.
Expenses Incurred in Past Years
SAHA Policy
When anticipated costs are related to on-going payment of medical bills incurred in past
years, SAHA will verify:
o The anticipated repayment schedule
o The amounts paid in the past, and
o The amounts to be repaid have been deducted from the family’s annual income in
past years.
7-IV.C. DISABILITY ASSISTANCE EXPENSES
Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction
will be verified following the standard verification procedures described in Part I.
Amount of Expense
Attendant Care
SAHA Policy
SAHA will accept written third-party documents provided by the family.
If family-provided documents are not available, SAHA will provide a third-party
verification form directly to the care provider requesting the needed information.
Expenses for attendant care will be verified through:
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• Written third-party documents provided by the family, such as receipts or
cancelled checks.
• Third-party verification form signed by the provider, if family-provided
documents are not available
Auxiliary Apparatus
SAHA Policy
Expenses for auxiliary apparatus will be verified through:
• Written third-party documents provided by the family, such as billing
statements for purchase of auxiliary apparatus, or other evidence of monthly
payments or total payments that will be due for the apparatus during the
upcoming 12 months.
• Third-party verification form signed by the provider, if family-provided
documents are not available.
In addition, SAHA must verify that:
• The family member for whom the expense is incurred is a person with disabilities (as
described in 7-II.F above).
• The expense permits a family member, or members, to work (as described in 6-II.E.).
• The expense is not reimbursed from another source (as described in 6-II.E.).
Family Member is a Person with Disabilities
To be eligible for the disability assistance expense deduction, the costs must be incurred for
attendant care or auxiliary apparatus expense associated with a person with disabilities. SAHA
will verify that the expense is incurred for a person with disabilities (See 7-II.F.).
Family Member(s) Permitted to Work
SAHA must verify that the expenses claimed actually enable a family member, or members,
(including the person with disabilities) to work.
SAHA Policy
SAHA will request third-party verification from a licensed medical professional
indicating that the person with disabilities requires attendant care or an auxiliary
apparatus to be employed, or that the attendant care or auxiliary apparatus enables
another family member, or members, to work (See 6-II.E.). This documentation may be
provided by the family.
If third-party verification has been attempted and is either unavailable or proves
unsuccessful, the family must certify that the disability assistance expense frees a family
member, or members (possibly including the family member receiving the assistance), to
work.
Unreimbursed Expenses
To be eligible for the disability expenses deduction, the costs must not be reimbursed by another
source.
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SAHA Policy
The family will be required to certify that attendant care or auxiliary apparatus expenses
are not paid by or reimbursed to the family from any source.
7-IV.D. CHILD CARE EXPENSES
Policies related to child care expenses are found in Chapter 6 (6-II.F). The amount of the
deduction will be verified following the standard verification procedures described in Part I of
this chapter. In addition, SAHA must verify that:
• The child is eligible for care (12 or younger).
• The costs claimed are not reimbursed.
• The costs enable a family member to work, actively seek work, or further their education.
• The costs are for an allowable type of child care.
• The costs are reasonable.
Eligible Child
To be eligible for the child care deduction, the costs must be incurred for the care of a child
under the age of 13. SAHA will verify that the child being cared for (including foster children) is
under the age of 13 (See 7-II.C.).
Unreimbursed Expense
To be eligible for the child care deduction, the costs must not be reimbursed by another source.
SAHA Policy
The family and the child care provider will be required to certify that, the child care
expenses are not paid by or reimbursed to the family from any source.
Pursuing an Eligible Activity
SAHA must verify that the family member(s) that the family has identified as being enabled to
seek work, pursue education, or be gainfully employed, are actually pursuing those activities.
SAHA Policy
Information to be gathered
SAHA will verify information about how the schedule for the claimed activity relates to
the hours of care provided, the time required for transportation, the time required for
study (for students), the relationship of the family member(s) to the child, and any special
needs of the child that might help determine which family member is enabled to pursue
an eligible activity.
Seeking Work
Whenever possible SAHA will use documentation from a state or local agency that
monitors work-related requirements (e.g., TANF or unemployment). In such cases SAHA
will request family-provided verification from the agency of the member’s job seeking
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efforts to date and require the family to submit to SAHA any reports provided to the other
agency.
In the event third-party verification is not available, SAHA will provide the family with a
form on which the family member must record job search efforts. SAHA will review this
information at each subsequent reexamination for which this deduction is claimed.
Furthering Education
SAHA will request third-party documentation to verify that the person permitted to
further his or her education by the child care is enrolled and provide information about
the timing of classes for which the person is registered. The documentation may be
provided by the family.
Gainful Employment
SAHA will seek third-party verification of the work schedule of the person who is
permitted to work by the child care. In cases in which two or more family members could
be permitted to work, the work schedules for all relevant family members may be
verified. The documentation may be provided by the family.
Allowable Type of Child Care
The type of care to be provided is determined by the family, but must fall within certain
guidelines, as discussed in Chapter 6.
SAHA Policy
SAHA will verify that the type of child care selected by the family is allowable, as
described in Chapter 6 (6-II.F).
SAHA will verify that the fees paid to the child care provider cover only child care costs
(e.g., no housekeeping services or personal services) and are paid only for the care of an
eligible child (e.g., prorate costs if some of the care is provided for ineligible family
members).
SAHA will verify that the child care provider is not an assisted family member.
Verification will be made through the head of household’s declaration of family members
who are expected to reside in the unit.
Reasonableness of Expenses
Only reasonable child care costs can be deducted.
SAHA Policy
The actual costs the family incurs will be compared with SAHA’s established standards
of reasonableness for the type of care in the locality to ensure that the costs are
reasonable.
If the family presents a justification for costs that exceed typical costs in the area, SAHA
will request additional documentation, as required, to support a determination that the
higher cost is appropriate.
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EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS
FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-10]
• All noncitizens claiming eligible status must sign a declaration of eligible immigrant status
on a form acceptable to SAHA.
• Except for persons 62 or older, all noncitizens must sign a verification consent form
• Additional documents are required based upon the person's status.
Elderly Noncitizens
• A person 62 years of age or older who claims eligible immigration status also must provide
proof of age such as birth certificate, passport, or documents showing receipt of SS old-age
benefits.
All other Noncitizens
• Noncitizens that claim eligible immigration status also must present the applicable USCIS
document. Acceptable USCIS documents are listed below.
• Form I-551 Alien Registration Receipt
Card (for permanent resident aliens)
• Form I-94 Arrival-Departure Record
annotated with one of the following:
• “Admitted as a Refugee Pursuant to
Section 207”
• “Section 208” or “Asylum”
• “Section 243(h)” or “Deportation
stayed by Attorney General”
• “Paroled Pursuant to Section 221 (d)(5)
of the USCIS”
• Form I-94 Arrival-Departure Record with
no annotation accompanied by:
• A final court decision granting asylum
(but only if no appeal is taken);
• A letter from a USCIS asylum officer
granting asylum (if application is filed
on or after 10/1/90) or from a USCIS
district director granting asylum
(application filed before 10/1/90);
• A court decision granting withholding
of deportation; or
• A letter from an asylum officer granting
withholding or deportation (if
application filed on or after 10/1/90).
• Form I-688 Temporary Resident Card
annotated “Section 245A” or Section 210”.
Form I-688B Employment Authorization Card
annotated “Provision of Law 274a. 12(11)” or
“Provision of Law 274a.12”.
• A receipt issued by the USCIS indicating that an application for issuance of a replacement
document in one of the above listed categories has been made and the applicant’s entitlement
to the document has been verified; or
• Other acceptable evidence. If other documents are determined by the USCIS to constitute
acceptable evidence of eligible immigration status, they will be announced by notice
published in the Federal Register
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Chapter 8
HOUSING QUALITY STANDARDS AND RENT REASONABLENESS
DETERMINATIONS
[24 CFR 982 Subpart I and 24 CFR 982.507]
INTRODUCTION
HUD requires that all units occupied by families receiving Housing Choice Voucher (HCV)
assistance meet HUD's Housing Quality Standards (HQS) and permits SAHA to establish
additional requirements. The use of the term "HQS" in this plan refers to the combination of both
HUD and SAHA-established requirements.
All units must pass an HQS inspection prior to the approval of a lease and at least once every 24
months during the term of the contract, and at other times as needed, to determine that the unit
meets HQS. Effective July 1, 2014, PHAs may establish a policy for performing unit inspections
biennially rather than annually. This policy could apply to some or all assisted units. PHAs still
have the option to inspect every unit annually. See Section 8-II.G for further details.
HUD also requires PHAs to determine that rents for units under the program are reasonable
when compared to comparable unassisted units in the market area.
This chapter explains HUD and SAHA requirements related to housing quality and rent
reasonableness as follows:
Part I. Physical Standards. This part discusses the physical standards required of units
occupied by HCV-assisted families and identifies decisions about the acceptability of the
unit that may be made by the family based upon the family's preference. It also identifies
life-threatening conditions that must be addressed on an expedited basis.
Part II. The Inspection Process. This part describes the types of inspections SAHA will
make and the steps that will be taken when units do not meet HQS.
Part III. Rent Reasonableness Determinations. This part discusses the policies SAHA will
use to make rent reasonableness determinations.
Special HQS requirements for homeownership, manufactured homes, and other special housing
types are discussed in Chapter 15 to the extent that they apply in this jurisdiction.
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PART I: PHYSICAL STANDARDS
8-I.A. GENERAL HUD REQUIREMENTS
HUD Performance and Acceptability Standards
HUD's performance and acceptability standards for HCV-assisted housing are provided in
24 CFR 982.401. These standards cover the following areas:
• Sanitary facilities
• Food preparation and refuse disposal
• Space and Security
• Thermal Environment
• Illumination and electricity
• Structure and materials
• Interior Air Quality
• Water Supply
• Lead-based paint
• Access
• Site and neighborhood
• Sanitary condition
• Smoke Detectors
A summary of HUD performance criteria is provided in Exhibit 8-1. Additional guidance on
these requirements is found in the following HUD resources:
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form
HUD-52580-A (9/00)
• HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973;
the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the
Fair Housing Act of 1988.
Tenant Preference Items
HUD requires SAHA to enforce minimum HQS but also recognizes that certain judgments about
the acceptability of the unit are left to the family. For example, SAHA must ensure that the unit
contains the required sanitary facilities, but the family decides whether the cosmetic appearance
of the facilities is acceptable. Exhibit 8-2 summarizes those items that are considered tenant
preferences.
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Modifications to Provide Accessibility
Under the Fair Housing Act of 1988 an owner must not refuse the request of a family that
contains a person with a disability to make necessary and reasonable modifications to the unit.
Such modifications are at the family's expense. The owner may require restoration of the unit to
its original condition if the modification would interfere with the owner or next occupant's full
enjoyment of the premises. The owner may not increase a customarily required security deposit.
However, the landlord may negotiate a restoration agreement that requires the family to restore
the unit and, if necessary to ensure the likelihood of restoration, may require the tenant to pay a
reasonable amount into an interest bearing escrow account over a reasonable period of time. The
interest in any such account accrues to the benefit of the tenant. The owner may also require
reasonable assurances that the quality of the work will be acceptable and that any required
building permits will be obtained. [24 CFR 100.203; Notice 2003-31].
Modifications to units to provide access for a person with a disability must meet all applicable
HQS requirements and conform to the design, construction, or alteration of facilities contained in
the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice
2003-31] See Chapter 2 of this plan for additional information on reasonable accommodations
for persons with disabilities.
SAHA Policy
Any owner that intends to negotiate a restoration agreement or require an escrow account
must submit the agreement(s) to SAHA for review.
8-I.B. ADDITIONAL LOCAL REQUIREMENTS
SAHA may impose variations to the HQS as long as the additional criteria are not likely to
adversely affect the health or safety of participant families or severely restrict housing choices
for families. HUD approval is required for variations to the HQS. HUD approval is not required
if the variations are clarifications of HUD's acceptability criteria or performance standards
[24 CFR 982.401(a)(4)].
Thermal Environment [HCV GB p.10-7]
SAHA must define a “healthy living environment” for the local climate. This may be done by
establishing a temperature that the heating system must be capable of maintaining, that is
appropriate for the local climate.
SAHA Policy
The heating system must be capable of maintaining an interior temperature of 65 degrees
Fahrenheit between October 1 and May 1.
Clarifications of HUD Requirements
SAHA Policy
As permitted by HUD, SAHA has adopted the following specific requirements that
elaborate on HUD standards.
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Walls
In areas where plaster or drywall is sagging, severely cracked, or otherwise
damaged, it must be repaired or replaced.
Windows
Window sashes must be in good condition, solid and intact, and properly fitted to
the window frame. Damaged or deteriorated sashes must be replaced.
Windows must be weather-stripped as needed to ensure a weather-tight seal.
Window screens must be in good condition (applies only if screens are present).
Doors
All exterior doors must be weather-tight to avoid any air or water infiltration, be
lockable, have no holes, have all trim intact, and have a threshold.
All interior doors must have no holes, have all trim intact, and be openable
without the use of a key.
Floors
All wood floors must be sanded to a smooth surface and sealed. Any loose or
warped boards must be resecured and made level. If they cannot be leveled, they
must be replaced.
All floors must be in a finished state. Raw wood or unsealed concrete is not
permitted.
All floors should have some type of base shoe, trim, or sealing for a "finished
look." Vinyl base shoe is permitted.
Sinks
All sinks and commode water lines must have shut off valves, unless faucets are
wall mounted.
All sinks must have functioning stoppers.
Toilets
All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid
must fit properly.
Security
If window security bars or security screens are present on emergency exit
windows, they must be equipped with a quick release system. The owner is
responsible for ensuring that the family is instructed on the use of the quick
release system.
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8-I.C. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a)]
HUD requires SAHA to define life-threatening conditions and to notify the owner or the family
(whichever is responsible) of the corrections required. The responsible party must correct life-
threatening conditions within 24 hours of SAHA notification.
SAHA Policy
The following are considered life threatening conditions:
o Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent
danger of falling.
o Natural or LP gas or fuel oil leaks.
o Any electrical problem or condition that could result in shock or fire.
o Utilities not in service, including no running hot water.
o Absence of a functioning toilet in the unit.
o Inoperable smoke detectors or carbon monoxide detectors.
If an owner fails to correct life threatening conditions as required by SAHA, the housing
assistance payment will be abated and the HAP contract will be terminated. See 8-II-G.
If a family fails to correct a family caused life threatening condition as required by
SAHA, SAHA may terminate the family’s assistance. See 8-II.H.
The owner will be required to repair an inoperable smoke detector or carbon monoxide
detector unless SAHA determines that the family has intentionally disconnected it (by
removing batteries or other means). In this case, the family will be required to repair the
smoke detector within 24 hours.
8-I.D. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404]
Family Responsibilities
The family is responsible for correcting the following HQS deficiencies:
• Tenant-paid utilities not in service
• Failure to provide or maintain appliances owned by the family
• Damage to the unit or premises caused by a household member or guest beyond normal wear
and tear that results in a breach of the HQS. "Normal wear and tear" is defined as items
which could not be charged against the tenant's security deposit under state law or court
practice.
Owner Responsibilities
The owner is responsible for all HQS violations not listed as a family responsibility above, even
if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the
family's actions constitute a serious or repeated lease violation the owner may take legal action to
evict the family.
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8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ENVIRONMENTAL
INTERVENTION BLOOD LEAD LEVEL [24 CFR 35.1225]
If a SAHA is notified by a public health department or other medical health care provider, or
verifies information from a source other than a public health department or medical health care
provider, that a child of less than 6 years of age, living in an HCV-assisted unit has been
identified as having an environmental intervention blood lead level, SAHA must complete a risk
assessment of the dwelling unit. The risk assessment must be completed in accordance with
program requirements, and the result of the risk assessment must be immediately provided to the
owner of the dwelling unit. In cases where the public health department has already completed
an evaluation of the unit, this information must be provided to the owner.
Within 30 days after receiving the risk assessment report from SAHA, or the evaluation from the
public health department, the owner is required to complete the reduction of identified lead-
based paint hazards in accordance with the lead-based paint regulations [24 CFR 35.1325 and
35.1330]. If the owner does not complete the “hazard reduction” as required, the dwelling unit is
in violation of HQS and SAHA will take action in accordance with Section 8-II.G.
SAHA reporting requirements, and data collection and record keeping responsibilities related to
children with an environmental intervention blood lead level are discussed in Chapter 16.
8-I.F. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.401, 24 CFR 982.403]
A dwelling unit must:
• Provide adequate space and security for the family
• Have at least one bedroom or living/sleeping room for each two persons
A unit that does not meet these HQS space standards is defined as overcrowded.
A living room may be used as sleeping (bedroom) space, but no more than two persons may
occupy the space [HCV GB p. 10-6]. A bedroom or living/sleeping room must have at least:
• One window
• Two electrical outlets in proper operating condition (permanent overhead or wall-mounted
light fixtures may count as one of the required electrical outlets)
If SAHA determines that a unit is overcrowded because of an increase in family size or a change
in family composition, SAHA must issue the family a new voucher, and the family and SAHA
must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental
by the family, SAHA must terminate the HAP contract in accordance with its terms.
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PART II: THE INSPECTION PROCESS
8-II.A. OVERVIEW [24 CFR 982.405]
Types of Inspections
SAHA conducts the following types of inspections as needed. Each type of inspection is
discussed in the paragraphs that follow.
• Initial Inspections. SAHA conducts initial inspections in response to a request from the
family to approve a unit for participation in the HCV program. The unit must pass the HQS
inspection on or before the effective date of the HAP Contract.
• Annual/Biennial Inspections. HUD requires SAHA to inspect each unit under lease at least
annually or biennially, depending on SAHA policy, to confirm that the unit still meets HQS.
The inspection may be conducted in conjunction with the family's annual reexamination but
also may be conducted separately.
• Special Inspections. A special inspection may be requested by the owner, the family, or a
third party as a result of problems identified with a unit between annual inspections.
• Quality Control Inspections. HUD requires that a sample of units be inspected by a
supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure
that inspections are performed in compliance with the HQS.
Inspection of SAHA-Owned Units [24 CFR 982.352(b)]
SAHA must obtain the services of an independent entity to perform all HQS inspections in cases
where an HCV family is receiving assistance in a SAHA-owned unit. A SAHA-owned unit is
defined as a unit that is owned by SAHA that administers the assistance under the consolidated
ACC (including a unit owned by an entity substantially controlled by SAHA). The independent
agency must communicate the results of each inspection to the family and SAHA. The
independent agency must be approved by HUD, and may be the unit of general local government
for SAHA jurisdiction (unless SAHA is itself the unit of general local government or an agency
of such government).
Inspection Costs
SAHA may not charge the family or owner for unit inspections or reinspections [24 CFR
982.405(e)]. In the case of inspections of SAHA-owned units, SAHA may compensate the
independent agency from ongoing administrative fee for inspections performed. SAHA and the
independent agency may not charge the family any fee or charge for the inspection [24
CFR.982.352(b)].
Notice and Scheduling
The family must allow SAHA to inspect the unit at reasonable times with reasonable notice
[24 CFR 982.551(d)].
SAHA Policy
Both the family and the owner will be given reasonable notice of all inspections. Except
in the case of a life threatening emergency, reasonable notice is considered to be not less
than 48 hours. Inspections may be scheduled between 8:30 a.m. and 4:00 p.m. Generally
inspections will be conducted on SAHA’s working days only. In the case of a life
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threatening emergency, SAHA will notify the owner and tenant in writing or via phone
that an inspection will be conducted on the next working day, given the nature of the
emergency.
Owner and Family Inspection Attendance
HUD permits SAHA to set policy regarding family and owner presence at the time of inspection
[HCV GB p. 10-27].
SAHA Policy
When a family occupies the unit at the time of inspection an adult must be present for the
inspection. The presence of the owner or the owner's representative is encouraged but is
not required.
At initial inspection of a vacant unit, SAHA will inspect the unit in the presence of the
owner or owner's representative. The presence of a family representative is permitted, but
is not required.
8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)]
Timing of Initial Inspections
HUD requires the unit to pass HQS before the effective date of the lease and HAP Contract.
HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection,
determine whether the unit satisfies HQS, and notify the owner and the family of the
determination within 15 days of submission of the Request for Tenancy Approval (RTA). For
PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and
determination must be completed within 15 days. The 15-day period is suspended for any period
during which the unit is not available for inspection [982.305(b)(2)].
SAHA Policy
SAHA will complete the initial inspection, determine whether the unit satisfies HQS, and
notify the owner and the family of the determination within 14 days of submission of the
Request for Tenancy Approval (RTA) or of the date when unit becomes available for
inspection, whichever is later
Inspection Results and Reinspections
SAHA Policy
If any HQS violations are identified, the owner will be notified of the deficiencies and be
given a time frame to correct them. If requested by the owner, the time frame for
correcting the deficiencies may be extended by SAHA for good cause. SAHA will re-
inspect the unit within 7 days of the date the owner notifies SAHA that the required
corrections have been made.
If the time period for correcting the deficiencies (or any SAHA-approved extension) has
elapsed, or the unit fails HQS at the time of the re-inspection, SAHA will notify the
owner and the family that the unit has been rejected and that the family must search for
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another unit. SAHA may agree to conduct a second re-inspection, for good cause, at the
request of the family and owner.
Following a failed re-inspection, the family may submit a new Request for Tenancy
Approval for the unit if the family has not found another unit by the time the owner
completes all repairs and the family continues to wish to live in the unit.
Utilities
Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in
working order including those utilities that the family will be responsible for paying.
SAHA Policy
Utilities must be in service for testing at the time of the initial inspection. SAHA may not
conduct an inspection if the utilities are not in service.
Appliances
SAHA Policy
If the family is responsible for supplying the stove and/or refrigerator, SAHA will allow
the stove and refrigerator to be placed in the unit after the unit has met all other HQS
requirements. The required appliances must be in place before the HAP contract is
executed by SAHA. SAHA will execute the HAP contract based upon a confirmation
from the family that the appliances have been installed and are working.
8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [FR Notice 6/25/14]
SAHA Policy
Each unit under HAP contract must be inspected within 12 months of the last full HQS
inspection.
SAHA will accept the results of inspections performed by HUD or for other housing
programs such as the HOME or the LIHTC Program.
Scheduling the Inspection
SAHA Policy
If an adult or an adult family member cannot be present on the scheduled date, the family
must request that SAHA reschedule the inspection. SAHA and the family will agree on a
new inspection date that generally should take place within 14 days of the originally-
scheduled date. SAHA may schedule an inspection more than 14 days after the original
date for good cause.
If the family misses the first scheduled appointment without requesting a new inspection
date, SAHA will automatically schedule a second and final inspection. If the family
misses two scheduled inspections without SAHA approval, SAHA will consider the
family to have violated its obligation to make the unit available for inspection. This may
result in termination of the family’s assistance in accordance with Chapter 12.
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8-II.D. SPECIAL INSPECTIONS [HCV GB, p. 10-30]
SAHA will conduct a special inspection if the owner, family, or another source reports HQS
violations in the unit. If the reported condition is not life-threatening (i.e., SAHA would require
the owner to make the repair within no more than 30 calendar days), then SAHA must inspect
the unit within 15 days of when SAHA received the complaint.
SAHA Policy
During a special inspection, SAHA generally will inspect only those deficiencies that
were reported. However, the inspector will record any additional HQS deficiencies that
are observed and will require the responsible party to make the necessary repairs.
If the annual inspection has been scheduled or is due within 90 days of the date the
special inspection is scheduled SAHA may elect to conduct a full annual inspection.
8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); HCV GB, p. 10-32]
HUD requires a SAHA supervisor or other qualified person to conduct quality control
inspections of a sample of units to ensure that each inspector is conducting accurate and
complete inspections and that there is consistency in the application of the HQS.
The unit sample must include only units that have been inspected within the preceding 3 months.
The selected sample will include (1) each type of inspection (initial, annual, and special), (2)
inspections completed by each inspector, and (3) units from a cross-section of neighborhoods.
SAHA Policy
Quality control inspection are conducted on a monthly basis. Units randomly selected to
be inspected have passed initial or annual inspections within the last 60 days and are
randomly selected using the www.Randomizer.org website. Quality control inspections
provide feedback on inspector performance and assist in identifying training needs.
When rating an individual inspector’s performance the QC inspector will consider
whether the failed items present occurred after the original inspection. If so, such items
will not be considered an oversight by the original inspector.
A QC inspection tracking system will list by month, the address, ZIP code, of selected
units, along with original inspector’s name, date of original inspection, and any
discrepancies found.
8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP
CONTRACT
Notification of Corrective Actions
The owner and the family will be notified in writing of the results of all inspections. When an
inspection identifies HQS failures, SAHA will determine (1) whether or not the failure is a life-
threatening condition and (2) whether the family or owner is responsible.
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SAHA Policy
When life threatening conditions are identified, SAHA will immediately notify both
parties by telephone, facsimile, or email that the corrective actions must be taken within
24 hours of SAHA’s notice. The notice will specify who is responsible for correcting the
violation and will also inform both parties that SAHA will conduct a re-inspection on the
next working day.
When deficiencies that are not life threatening are identified, SAHA will send the owner
and the family a written notification of the inspection results within 5 days of the
inspection. The written notice will specify who is responsible for correcting the violation,
and the time frame within which the failure must be corrected. No more than 30 days will
be allowed for the correction, (or any SAHA-approved extension).
The notice of inspection results will inform the owner that if life threatening conditions
are not corrected within 24 hours, and non-life threatening conditions are not corrected
within the specified time frame (or any SAHA-approved extension), the owner’s HAP
will be abated in accordance with SAHA policy (see 8-II.G.). Likewise, in the case of
family caused deficiencies, the notice will inform the family that if corrections are not
made within the specified time frame (or any SAHA-approved extension, if applicable)
the family’s assistance will be terminated in accordance with SAHA policy (see Chapter
12).
Extensions
For conditions that are life-threatening, SAHA cannot grant an extension to the 24 hour
corrective action period. For conditions that are not life-threatening, SAHA may grant an
exception to the required time frames for correcting the violation, if SAHA determines that an
extension is appropriate [24 CFR 982.404].
SAHA Policy
Extensions will be granted in cases where SAHA has determined that the owner has made
a good faith effort to correct the deficiencies and is unable to for reasons beyond the
owner’s control. Reasons may include, but are not limited to:
o A repair cannot be completed because required parts or services are not available.
o A repair cannot be completed because of weather conditions.
o A reasonable accommodation is needed because the family includes a person with
disabilities.
o Any repairs that cannot be completed because of a delay due to Homeowner’s
Association (HOA) action or in-action.
The length of the extension will be determined on a case by case basis, but will not
exceed 60 days, except in the case of delays caused by weather conditions. In the case of
weather conditions, or the HOA’s delayed action, extensions may be continued until the
weather has improved sufficiently to make repairs possible or when the HOA has
approved the repairs to be completed. The necessary repairs must be made within 14
days, once the weather conditions have subsided. A re-inspection will be conducted the
next working day following the repair completion.
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Reinspections
SAHA Policy
SAHA will conduct a re-inspection giving the owner and family sufficient notice prior to
the end of the correction period (or any SAHA-approved extension). As permitted by
HUD, SAHA may develop procedures for owner/tenant self-certification of repairs to the
unit. Falsifying this certification will result in termination of the HAP contract and
termination of assistance to the participant.
The family and owner will be given reasonable notice of the re-inspection appointment. If
the deficiencies have not been corrected by the time of the re-inspection, SAHA will send
a notice of abatement to the owner, or in the case of family caused violations, a notice of
termination to the family, in accordance with SAHA policies. If SAHA is unable to gain
entry to the unit in order to conduct the scheduled re-inspection, SAHA will consider the
family to have violated its obligation to make the unit available for inspection. This may
result in termination of the family’s assistance in accordance with Chapter 12.
8-II.G. ENFORCING OWNER COMPLIANCE
If the owner fails to maintain the dwelling unit in accordance with HQS, SAHA must take
prompt and vigorous action to enforce the owner obligations.
HAP Abatement
If an owner fails to correct HQS deficiencies by the time specified by SAHA, HUD requires
SAHA to abate housing assistance payments no later than the first of the month following the
specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive
payments will be made to the owner for the period of time the rent was abated. Owner rents are
not abated as a result of HQS failures that are the family's responsibility.
SAHA Policy
SAHA will inspect abated units within 2 working days of the owner's notification that the
work has been completed. Payment will resume effective on the day the unit passes
inspection.
During any abatement period the family continues to be responsible for its share of the rent. The
owner must not seek payment from the family for abated amounts and may not use the abatement
as cause for eviction.
HAP Contract Termination
SAHA must decide how long any abatement period will continue before the HAP contract will
be terminated. SAHA should not terminate the contract until the family finds another unit,
provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner
reasonable notice of the termination. SAHA will issue a voucher to permit the family to move to
another unit as described in Chapter 10.
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SAHA Policy
The maximum length of time that a HAP payment may be abated is 60 days. However, if
the owner completes corrections and notifies SAHA before the termination date of the
HAP contract, SAHA may rescind the termination notice if (1) the family still resides in
the unit and wishes to remain in the unit and (2) the unit passes inspection. If after 30
days of abatement and owner has not completed repairs, SAHA will advise family to
search for another unit.
Reasonable notice of HAP contract termination by SAHA is 30 days.
8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)]
Families are responsible for correcting any HQS violations listed in paragraph 8.I.D. If the
family fails to correct a violation within the period allowed by SAHA (and any extensions),
SAHA will terminate the family’s assistance, according to the policies described in Chapter 12.
If the owner carries out a repair for which the family is responsible under the lease, the owner
may bill the family for the cost of the repair.
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PART III: RENT REASONABLENESS [24 CFR 982.507]
8-III.A. OVERVIEW
Except in the case of certain LIHTC- and HOME-assisted units, no HAP contract can be
approved until SAHA has determined that the rent for the unit is reasonable. The purpose of the
rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV
program.
HUD regulations define a reasonable rent as one that does not exceed the rent charged for
comparable, unassisted units in the same market area. HUD also requires that owners not charge
more for assisted units than for comparable units on the premises. This part explains the method
used to determine whether a unit’s rent is reasonable.
SAHA-Owned Units [24 CFR 982.352(b)]
In cases where an HCV family is receiving assistance in a SAHA-owned unit, SAHA must
obtain the services of an independent entity to determine rent reasonableness in accordance with
program requirements, and to assist the family in negotiating the contract rent when the family
requests assistance. A SAHA-owned unit is defined as a unit that is owned by SAHA that
administers the assistance under the consolidated ACC (including a unit owned by an entity
substantially controlled by SAHA). The independent agency must communicate the results of the
rent reasonableness determination to the family and SAHA. The independent agency must be
approved by HUD, and may be the unit of general local government for SAHA jurisdiction
(unless SAHA is itself the unit of general local government or an agency of such government).
8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED
Owner-Initiated Rent Determinations
SAHA must make a rent reasonableness determination at initial occupancy and whenever the
owner requests a rent adjustment.
The owner and family first negotiate the rent for a unit. SAHA (or independent agency in the
case of SAHA-owned units) will assist the family with the negotiations upon request. At initial
occupancy SAHA must determine whether the proposed rent is reasonable before a HAP
Contract is signed. The owner must not change the rent during the initial lease term. Subsequent
requests for rent adjustments must be consistent with the lease between the owner and the family.
Rent increases will not be approved unless any failed items identified by the most recent HQS
inspection have been corrected.
SAHA Policy
After the initial occupancy period, the owner may request a rent adjustment in accordance
with the owner’s lease. For rent increase requests after initial lease-up, SAHA may
request owners to provide information about the rents charged for other units on the
premises, if the premises includes more than 4 units. In evaluating the proposed rents in
comparison to other units on the premises SAHA will consider unit size and length of
tenancy in the other units.
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SAHA will determine whether the requested increase is reasonable within 14 days of
receiving the request from the owner. The owner will be notified of the determination in
writing.
All rents adjustments will be effective the first of the month following the 60 days’ notice
received by SAHA from the owner or on the date specified by the owner, whichever is
later.
SAHA- and HUD-Initiated Rent Reasonableness Determinations
HUD requires SAHA to make a determination of rent reasonableness (even if the owner has not
requested a change) if there is a 5 percent decrease in the Fair Market Rent that goes into effect
at least 60 days before the contract anniversary date. HUD also may direct SAHA to make a
determination at any other time. SAHA may decide that a new determination of rent
reasonableness is needed at any time.
SAHA Policy
In addition to the instances described above, SAHA will make a determination of rent
reasonableness at any time after the initial occupancy period if: (1) SAHA determines
that the initial rent reasonableness determination was an error or (2) SAHA determines
that the information provided by the owner about the unit or other units on the same
premises was incorrect.
LIHTC- and HOME-Assisted Units [24 CFR 982.507(c)]
For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD’s
HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is
not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted
units in the project that are not occupied by families with tenant-based assistance.
For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non-voucher
families, the PHA must perform a rent comparability study in accordance with program
regulations. In such cases, the rent shall not exceed the lesser of: (1) the reasonable rent as
determined from the rent comparability study; or (2) the payment standard established by the
PHA for the unit size involved.
8-III.C. HOW COMPARABILITY IS ESTABLISHED
Factors to Consider
HUD requires PHAs to take into consideration the factors listed below when determining rent
comparability. SAHA may use these factors to make upward or downward adjustments to the
rents of comparison units when the units are not identical to the HCV-assisted unit.
• Location and age
• Unit size including the number of rooms and square footage of rooms
• The type of unit including construction type (e.g., single family, duplex, garden, low-rise,
high-rise)
• The quality of the units including the quality of the original construction, maintenance and
improvements made
• Amenities, services, and utilities included in the rent
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Units that Must Not Be Used as Comparables
Comparable units must represent unrestricted market rents. Therefore, units that receive some
form of federal, state, or local assistance that imposes rent restrictions cannot be considered
comparable units. These include units assisted by HUD through any of the following programs:
Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest
Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program-
assisted units in which the rents are subsidized; units subsidized through federal, state, or local
tax credits; units subsidized by the Department of Agriculture rural housing programs, and units
that are rent-controlled by local ordinance.
Note: Notice PIH 2011-46, issued August 17, 2011, provides further guidance on the issue of
what constitutes an assisted unit.
Rents Charged for Other Units on the Premises
The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the
form itself, about the rent charged for other unassisted comparable units on the premises if the
premises include more than 4 units.
By accepting SAHA payment each month the owner certifies that the rent is not more than the
rent charged for comparable unassisted units on the premises. If asked to do so, the owner must
give SAHA information regarding rents charged for other units on the premises.
8-III.D . SAHA RENT REASONABLENESS METHODOLOGY
How Market Data Is Collected
SAHA Policy
SAHA will use GoSection8.com as an outside vendor who specializes in rent reasonable
data collection.
At any time SAHA may also collect and maintain data on market rents in SAHA's
jurisdiction. Information sources include newspapers, realtors, market surveys, inquiries
of owners and other available sources. The data will be maintained by bedroom size and
market areas. Market areas may be defined by zip codes, census tract, neighborhood, and
identifiable natural or man-made boundaries. The data will be updated on an ongoing
basis and rent information that is more than 12 months old will be updated or eliminated
from the database.
How Rents Are Determined
SAHA Policy
SAHA will use GoSection8.com as an outside vendor who specializes in rent reasonable
data collection.
SAHA will notify the owner of the rent SAHA can approve based upon its analysis of
rents for comparable units. The owner may submit information about other comparable
units in the market area. SAHA will confirm the accuracy of the information provided
and consider this additional information when making rent determinations. The owner
must submit any additional information within 10 business days of SAHA’s request for
information or the owner’s request to submit information.
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EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY STANDARDS
Note: This document provides an overview of HQS. For more detailed information see the
following documents:
• 24 CFR 982.401, Housing Quality Standards (HQS)
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form
HUD-52580-A (9/00)
Sanitary Facilities
The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be
usable in privacy and must be in proper operating condition and adequate for personal
cleanliness and disposal of human waste.
Food Preparation and Refuse Disposal
The dwelling unit must have space and equipment suitable for the family to store, prepare, and
serve food in a sanitary manner.
Space and Security
The dwelling unit must provide adequate space and security for the family. This includes having
at least one bedroom or living/sleeping room for each two persons.
Thermal Environment
The unit must have a safe system for heating the dwelling unit. Air conditioning is not required
but if provided must be in proper operating condition. The dwelling unit must not contain
unvented room heaters that burn gas, oil, or kerosene. Portable electric room heaters or kitchen
stoves with built-in heating units are not acceptable as a primary source of heat for units located
in climatic areas where permanent heat systems are required.
Illumination and Electricity
Each room must have adequate natural or artificial illumination to permit normal indoor
activities and to support the health and safety of occupants. The dwelling unit must have
sufficient electrical sources so occupants can use essential electrical appliances. Minimum
standards are set for different types of rooms. Once the minimum standards are met, the number,
type and location of electrical sources are a matter of tenant preference.
Structure and Materials
The dwelling unit must be structurally sound. Handrails are required when four or more steps
(risers) are present, and protective railings are required when porches, balconies, and stoops are
thirty inches or more off the ground. The elevator servicing the unit must be working [if there is
one]. Manufactured homes must have proper tie-down devices capable of surviving wind loads
common to the area.
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Interior Air Quality
The dwelling unit must be free of air pollutant levels that threaten the occupants’ health. There
must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable
window or other adequate ventilation. Any sleeping room must have at least one window. If a
window was designed to be opened, it must be in proper working order.
Water Supply
The dwelling unit must be served by an approved public or private water supply that is sanitary
and free from contamination. Plumbing fixtures and pipes must be free of leaks and threats to
health and safety.
Lead-Based Paint
Lead-based paint requirements apply to dwelling units built prior to 1978 that are occupied or
can be occupied by families with children under six years of age, excluding zero bedroom
dwellings. Owners must:
• Disclose known lead-based paint hazards to prospective tenants before the lease is signed,
• provide all prospective families with "Protect Your Family from Lead in Your Home",
• Stabilize deteriorated painted surfaces and conduct hazard reduction activities when
identified by SAHA
• Notify tenants each time such an activity is performed
• Conduct all work in accordance with HUD safe practices
• As part of ongoing maintenance ask each family to report deteriorated paint.
For units occupied by environmental intervention blood lead level (lead poisoned) children under
six years of age, a risk assessment must be conducted (paid for by SAHA). If lead hazards are
identified during the risk assessment, the owner must complete hazard reduction activities.
See HCV GB p. 10-15 for a detailed description of these requirements. For additional
information on lead-based paint requirements see 24 CFR 35, Subparts A, B, M, and R.
Access
Use and maintenance of the unit must be possible without unauthorized use of other private
properties. The building must provide an alternate means of exit in case of fire.
Site and Neighborhood
The site and neighborhood must be reasonably free from disturbing noises and reverberations,
excessive trash or vermin, or other dangers to the health, safety, and general welfare of the
occupants.
Sanitary Condition
The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent
infestation. The unit must have adequate barriers to prevent infestation.
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Smoke Detectors
Smoke detectors must be installed in accordance with and meet the requirements of the National
Fire Protection Association Standard (NFPA) 74 (or its successor standards). If the dwelling unit
is occupied by any person with a hearing impairment, smoke detectors must have an appropriate
alarm system as specified in NFPA 74 (or successor standards).
Hazards and Heath/Safety
The unit, interior and exterior common areas accessible to the family, the site, and the
surrounding neighborhood must be free of hazards to the family's health and safety.
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EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS
RELATED TO HOUSING QUALITY
Note: This document provides an overview of unit and site characteristics and conditions for
which the family determines acceptability. For more detailed information see the following
documents:
• Housing Choice Voucher Guidebook, Chapter 10.
• HUD Housing Inspection Manual for Section 8 Housing
• HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form
HUD-52580-A (9/00)
Provided the minimum housing quality standards have been met, HUD permits the family to
determine whether the unit is acceptable with regard to the following characteristics.
• Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and
quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the
location of the sanitary facilities within the unit; and the adequacy of the water heater.
• Food Preparation and Refuse Disposal. The family selects size and type of equipment it
finds acceptable. When the family is responsible for supplying cooking appliances, the
family may choose to use a microwave oven in place of a conventional oven, stove, or range.
When the owner is responsible for providing cooking appliances, the owner may offer a
microwave oven in place of an oven, stove, or range only if other subsidized and
unsubsidized units on the premises are furnished with microwave ovens only. The adequacy
of the amount and type of storage space, the cosmetic conditions of all equipment, and the
size and location of the kitchen are all determined by the family.
• Space and Security. The family may determine the adequacy of room sizes and room
locations. The family is also responsible for deciding the acceptability of the type of door and
window locks.
• Energy conservation items. The family may determine whether the amount of insulation,
presence of absence of storm doors and windows and other energy conservation items are
acceptable.
• Illumination and Electricity. The family may determine whether the location and the number
of outlets and fixtures (over and above those required to meet HQS standards) are acceptable
or if the amount of electrical service is adequate for the use of appliances, computers, or
stereo equipment.
• Structure and Materials. Families may determine whether minor defects, such as lack of
paint, or worn flooring or carpeting will affect the livability of the unit.
• Indoor Air. Families may determine whether window and door screens, filters, fans, or other
devices for proper ventilation are adequate to meet the family’s needs. However, if screens
are present they must be in good condition.
• Sanitary Conditions. The family determines whether the sanitary conditions in the unit,
including minor infestations, are acceptable.
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• Neighborhood conditions. Families may determine whether neighborhood conditions such as
the presence of drug activity, commercial enterprises, and convenience to shopping will
affect the livability of the unit.
Families have no discretion with respect to lead-based paint standards and smoke detectors.
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Chapter 9
GENERAL LEASING POLICIES
INTRODUCTION
Chapter 9 covers the lease-up process from the family's submission of a Request for Tenancy
Approval to execution of the HAP contract.
In order for SAHA to assist a family in a particular dwelling unit, or execute a Housing
Assistance Payments (HAP) contract with the owner of a dwelling unit, SAHA must determine
that all the following program requirements are met:
• The unit itself must qualify as an eligible unit [24 CFR 982.305(a)]
• The unit must be inspected by SAHA and meet the Housing Quality Standards (HQS) [24
CFR 982.305(a)]
• The lease offered by the owner must be approvable and must include the required Tenancy
Addendum [24 CFR 982.305(a)]
• The rent to be charged by the owner for the unit must be reasonable [24 CFR 982.305(a)]
• The owner must be an eligible owner, approvable by SAHA, with no conflicts of interest [24
CFR 982.306]
• For families initially leasing a unit only: Where the gross rent of the unit exceeds the
applicable payment standard for the family, the share of rent to be paid by the family cannot
exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]
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9-I.A. TENANT SCREENING
SAHA has no liability or responsibility to the owner or other persons for the family’s behavior or
suitability for tenancy [24 CFR 982.307(a)(1)].
SAHA may elect to screen applicants for family behavior or suitability for tenancy. See Chapter
3 for a discussion of SAHA’s policies with regard to screening applicant families for program
eligibility [24 CFR 982.307(a)(1)].
The owner is responsible for screening and selection of the family to occupy the owner’s unit. At
or before SAHA approval of the tenancy, SAHA must inform the owner that screening and
selection for tenancy is the responsibility of the owner [24 CFR 982.307(a)(2)]. SAHA must also
inform the owner or manager or his/her rights and obligations under the Violence against
Women Act of 2013 (VAWA) [24 CFR 5.2005(a)(2)].
SAHA must provide the owner with the family’s current and prior address (as shown in SAHA
records) and the name and address (if known to SAHA) of the landlord at the family’s current
and prior address [24 CFR 982.307(b)(1)].
SAHA is permitted, but not required, to offer the owner other information in SAHA’s possession
about the tenancy history or drug trafficking of family members [24 CFR 982.307(b)(2)].
SAHA’s policy on providing information to the owner must be included in the family’s briefing
packet [24 CFR 982.307(b)(3)].
SAHA may not disclose to the owner any confidential information provided by the family in
response to a SAHA request for documentation of domestic violence, dating violence, sexual
assault, or stalking except at the written request or with the written consent of the individual
providing the documentation [24 CFR 5.2007(b)(4)].
SAHA Policy
SAHA’s policy on providing information to the owner will be included in the family’s
briefing packet [24 CFR 982.307(b) (3)].
9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517]
After the family is issued a voucher, the family must locate an eligible unit, with an owner or
landlord willing to participate in the voucher program. Once a family finds a suitable unit and the
owner is willing to lease the unit under the program, the owner and the family must request
SAHA to approve the assisted tenancy in the selected unit.
The owner and the family must submit two documents to SAHA:
• Completed Request for Tenancy Approval (RTA) – Form HUD-52517
• Copy of the proposed lease, including the HUD-prescribed Tenancy Addendum – Form
HUD-52641-A
The RTA contains important information about the rental unit selected by the family, including
the unit address, number of bedrooms, structure type, year constructed, utilities included in the
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rent, and the requested beginning date of the lease, necessary for SAHA to determine whether to
approve the assisted tenancy in this unit.
Owners must certify to the most recent amount of rent charged for the unit and provide an
explanation for any difference between the prior rent and the proposed rent.
Owners must certify that they are not the parent, child, grandparent, grandchild, sister or brother
of any member of the family, unless SAHA has granted a request for reasonable accommodation
for a person with disabilities who is a member of the tenant household.
For units constructed prior to 1978, owners must either 1) certify that the unit, common areas,
and exterior have been found to be free of lead-based paint by a certified inspector; or 2) attach a
lead-based paint disclosure statement.
Both the RTA and the proposed lease must be submitted no later than the expiration date stated
on the voucher. [HCV GB p.8-15].
SAHA Policy
The RTA must be signed by both the family and the owner.
The owner may submit the RTA on behalf of the family.
The completed RTA (including the proposed dwelling lease) must be submitted as hard
copies, in-person, by mail, or by fax.
The family may not submit, and SAHA will not process, more than one (1) RTA at a
time.
When the family submits the RTA, SAHA will review the RTA for completeness.
• If the RTA is incomplete (including lack of signature by family, owner, or both),
or if the dwelling lease is not submitted with the RTA, SAHA will notify the
family and the owner of the deficiencies.
• Missing information and/or missing documents may not be accepted and SAHA
will not accept missing information over the phone.
When the family submits the RTA and proposed lease, SAHA will also review the terms
of the RTA for consistency with the terms of the proposed lease.
• If the terms of the RTA are not consistent with the terms of the proposed lease,
SAHA will notify the family and the owner of the discrepancies.
• Corrections to the terms of the RTA and/or the proposed lease will only be
accepted as hard copies, in-person, by mail or by fax. SAHA will not accept
corrections by phone.
Because of the time sensitive nature of the tenancy approval process, SAHA will attempt
to communicate with the owner and family by phone, fax, or email. SAHA will use mail
when the parties cannot be reached by phone, fax, or email.
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9-I.C. OWNER PARTICIPATION
SAHA does not formally approve an owner to participate in the HCV program. However, there
are a number of criteria where SAHA may deny approval of an assisted tenancy based on past
owner behavior, conflict of interest, or other owner-related issues. There are also criteria for
which SAHA must disapprove an owner. No owner has a right to participate in the HCV
program [24 CFR 982.306(e)]
See Chapter 13 for a full discussion of owner qualification to participate in the HCV program.
9-I.D. ELIGIBLE UNITS
There are a number of criteria that a dwelling unit must meet in order to be eligible for assistance
under the voucher program. Generally, a voucher-holder family may choose any available rental
dwelling unit on the market in SAHA’s jurisdiction. This includes the dwelling unit they are
currently occupying.
Ineligible Units [24 CFR 982.352(a)]
SAHA may not assist a unit under the voucher program if the unit is a public housing or Indian
housing unit; a unit receiving project-based assistance under section 8 of the 1937 Act (42 U.S.C.
1437f); nursing homes, board and care homes, or facilities providing continual psychiatric,
medical, or nursing services; college or other school dormitories; units on the grounds of penal,
reformatory, medical, mental, and similar public or private institutions; a unit occupied by its
owner or by a person with any interest in the unit.
SAHA-Owned Units [24 CFR 982.352(b)]
Otherwise eligible units that are owned or substantially controlled by SAHA issuing the voucher
may also be leased in the voucher program. In order for a SAHA-owned unit to be leased under
the voucher program, the unit must not be ineligible housing and SAHA must inform the family,
both orally and in writing, that the family has the right to select any eligible unit available for
lease and that the family is free to select a SAHA-owned unit without any pressure or steering by
SAHA.
SAHA Policy
SAHA does not have any eligible SAHA-owned units available for leasing under the
Housing Choice Voucher program.
Special Housing Types [24 CFR 982 Subpart M]
HUD regulations permit, but do not generally require, SAHA to permit families to use voucher
assistance in a number of special housing types in accordance with the specific requirements
applicable to those programs. These special housing types include single room occupancy (SRO)
housing, congregate housing, group home, shared housing, manufactured home space (where the
family owns the manufactured home and leases only the space), cooperative housing and
homeownership option. See Chapter 15 for specific information and policies on any of these
housing types that SAHA has chosen to allow.
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The regulations do require SAHA to permit use of any special housing type if needed as a
reasonable accommodation so that the program is readily accessible to and usable by persons
with disabilities.
Duplicative Assistance [24 CFR 982.352(c)]
A family may not receive the benefit of HCV tenant-based assistance while receiving the benefit
of any of the following forms of other housing subsidy, for the same unit or for a different unit:
• Public or Indian housing assistance;
• Other Section 8 assistance (including other tenant-based assistance);
• Assistance under former Section 23 of the United States Housing Act of 1937 (before
amendment by the Housing and Community Development Act of 1974);
• Section 101 rent supplements;
• Section 236 rental assistance payments;
• Tenant-based assistance under the HOME Program;
• Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the
Rural Development Administration);
• Any local or State rent subsidy;
• Section 202 supportive housing for the elderly;
• Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for
non-elderly persons with disabilities (Section 162 assistance); or
• Any other duplicative federal, State, or local housing subsidy, as determined by HUD. For
this purpose, 'housing subsidy' does not include the housing component of a welfare
payment, a social security payment received by the family, or a rent reduction because of a
tax credit.
Housing Quality Standards (HQS) [24 CFR 982.305 and 24 CFR 982.401]
In order to be eligible, the dwelling unit must be in decent, safe and sanitary condition. This
determination is made using HUD’s Housing Quality Standards (HQS) and/or equivalent state or
local standards approved by HUD. See Chapter 8 for a full discussion of the HQS standards, as
well as the process for HQS inspection at initial lease-up.
Unit Size
In order to be eligible, the dwelling unit must be appropriate for the number of persons in the
household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer
bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the
unit meets the applicable HQS space requirements [24 CFR 982.402(d)]. The family must be
allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of
bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of
subsidy standards.
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SAHA Policy
Families will be allowed to lease units one-bedroom smaller or one-bedroom larger than
their eligible voucher size.
Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507]
In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be
reasonable in relation to comparable unassisted units in the area and must not be in excess of
rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a
full discussion of rent reasonableness and the rent reasonableness determination process.
Rent Burden [24 CFR 982.508]
Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable
payment standard for the family, the family share cannot exceed 40 percent of the family’s
adjusted monthly income. The term “family share” refers to the amount the family pays toward
rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP)
for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent,
the use of payment standards, and calculation of family income, family share of rent and HAP.
9-I.E. LEASE AND TENANCY ADDENDUM
The family and the owner must execute a written dwelling lease agreement for the assisted unit.
This written lease is a contract between the tenant family and the owner; SAHA is not a party to
this contract.
The tenant must have legal capacity to enter a lease under State and local law. 'Legal capacity'
means that the tenant is bound by the terms of the lease and may enforce the terms of the lease
against the owner [24 CFR 982.308(a)]
Lease Form and Tenancy Addendum [24 CFR 982.308]
If the owner uses a standard lease form for rental to unassisted tenants in the locality or the
premises, the lease must be in such standard form. If the owner does not use a standard lease
form for rental to unassisted tenants, the owner may use another form of lease. The HAP contract
prescribed by HUD contains the owner's certification that if the owner uses a standard lease form
for rental to unassisted tenants, the lease for the assisted tenants is in such standard form.
All provisions in the HUD-required Tenancy Addendum must be added word-for-word to the
owner's standard lease form. The Tenancy Addendum includes the HUD requirements for the
tenancy. Because it is a part of the lease, the tenant shall have the right to enforce the Tenancy
Addendum against the owner. If there is a conflict between the owner’s lease and the Tenancy
Addendum, the terms of the Tenancy Addendum shall prevail over any other provisions of
the lease.
SAHA Policy
SAHA does not provide a model lease or standard dwelling lease for owners to use.
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Lease Information [24 CFR 982.308(d)]
The assisted dwelling lease must contain all of the required information as listed below:
• The names of the owner and the tenant:
• The unit rented (address, apartment number, and any other information needed to identify the
contract unit)
• The term of the lease (initial term and any provisions for renewal)
• The amount of the monthly rent to owner
• A specification of what utilities and appliances are to be supplied by the owner, and what
utilities and appliances are to be supplied by the family
Term of Assisted Tenancy
The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309].
The initial lease term is also stated in the HAP contract.
The HUD program regulations permit SAHA to approve a shorter initial lease term if certain
conditions are met.
SAHA Policy
SAHA may approve an initial lease term of less than one (1) year.
During the initial term of the lease, the owner may not raise the rent to owner [24 CFR 982.309].
Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV
Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms,
except that they must be in the dwelling lease if they exist.
The PHA may execute the HAP contract even if there is less than one year remaining from the
beginning of the initial lease term to the end of the last expiring funding increment under the
consolidated ACC. [24 CFR 982.309(b)].
Security Deposit [24 CFR 982.313 (a) and (b)]
The owner may collect a security deposit from the tenant. SAHA may prohibit security deposits
in excess of private market practice, or in excess of amounts charged by the owner to unassisted
tenants. However, if SAHA chooses to do so, language to this effect must be added to Part A of
the HAP contract [Form HUD-52641].
SAHA Policy
SAHA will allow the owner to collect any security deposit amount the owner determines
is appropriate and legal under California tenant-landlord law. Therefore, no modifications
to the HAP contract will be necessary.
Separate Non-Lease Agreements between Owner and Tenant
Owners may not demand or accept any rent payment from the family in excess of the rent to the
owner as approved by SAHA minus SAHA’s housing assistance payments to the owner [24 CFR
982.451(b)(4)].
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The owner may not charge the tenant extra amounts for items customarily included in rent in the
locality, or provided at no additional cost to unsubsidized tenants in the premises [24 CFR
982.510(c)].
SAHA Policy
SAHA permits owners and families to execute separate, non-lease agreements for
services, appliances (other than range and refrigerator) and other items that are not
included in the lease.
Any items, appliances, or other services that are customarily provided to unassisted
families as part of the dwelling lease with those families, or are permanently installed in
the dwelling unit must be included in the dwelling lease for the assisted family. These
items, appliances or services cannot be placed under a separate non-lease agreement
between the owner and family. Side payments for additional rent, or for items, appliances
or services customarily provided to unassisted families as part of the dwelling lease for
those families, are prohibited.
Any items, appliances, or other services that are not customarily provided to unassisted
families as part of the dwelling lease with those families, are not permanently installed in
the dwelling unit and where the family has the sole option of not utilizing the item,
appliance or service, may be included in a separate non-lease agreement between the
owner and the family.
The family is not liable and cannot be held responsible under the terms of the assisted
dwelling lease for any charges pursuant to a separate non-lease agreement between the
owner and the family. Non-payment of any charges pursuant to a separate non-lease
agreement between the owner and the family cannot be a cause for eviction or
termination of tenancy under the terms of the assisted dwelling lease.
Separate non-lease agreements that involve additional items, appliances or other services
may be considered amenities offered by the owner and may be taken into consideration
when determining the reasonableness of the rent for the property.
SAHA Review of Lease
SAHA will review the dwelling lease for compliance with all applicable requirements.
SAHA Policy
If the dwelling lease is incomplete or incorrect, SAHA will notify the family and the
owner of the deficiencies. Missing and/or corrected lease information will only be
accepted as hard copies, in-person, by mail, or by fax. SAHA will not accept missing and
corrected information over the phone.
Because the initial leasing process is time-sensitive, SAHA will attempt to communicate with the
owner and family by phone, fax, or email. SAHA will use mail when the parties can’t be reached
by phone, fax, or email. SAHA is permitted, but is not required, to review the lease to determine
if the lease complies with State and local law and is permitted to decline to approve the tenancy
if SAHA determines that the lease does not comply with State or local law [24 CFR 982.308(c)]
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SAHA Policy
SAHA will not review the owner’s lease for compliance with state/local law and will
refer the family to the Orange County Fair Housing Council or Public Law Center if they
express any concerns.
9-I.F. TENANCY APPROVAL [24 CFR 982.305]
After receiving the family's Request for Tenancy Approval, with proposed dwelling lease,
SAHA must promptly notify the family and owner whether the assisted tenancy is approved.
Prior to approving the assisted tenancy and execution of a HAP contract, SAHA must ensure that
all required actions and determinations, discussed in Part I of this chapter have been completed.
These actions include ensuring that the unit is eligible; the unit has been inspected by SAHA and
meets the Housing Quality Standards (HQS); the lease offered by the owner is approvable and
includes the required Tenancy Addendum; the rent to be charged by the owner for the unit must
is reasonable; where the family is initially leasing a unit and the gross rent of the unit exceeds the
applicable payment standard for the family, the share of rent to be paid by the family does not
exceed 40 percent of the family’s monthly adjusted income [24 CFR 982.305(a)]; the owner is an
eligible owner, not disapproved by SAHA, with no conflicts of interest [24 CFR 982.306]; the
family and the owner have executed the lease, including the Tenancy Addendum, and the lead-
based paint disclosure information [24 CFR 982.305(b)].
SAHA Policy
SAHA will complete its determination within 14 days of receiving all required
information.
If the terms of the RTA/proposed lease are changed for any reason, including but not
limited to negotiation with SAHA, SAHA will obtain corrected copies of the RTA and
proposed lease, signed by the family and the owner. Corrections to the RTA/proposed
lease will only be accepted as hard copies, in-person, by mail, or by fax. SAHA will not
accept corrections over the phone.
If SAHA determines that the tenancy cannot be approved for any reason, the owner and
the family will be notified by telephone or in writing and given the opportunity to address
any reasons for disapproval. SAHA will instruct the owner and family of the steps that
are necessary to approve the tenancy. Where the tenancy is not approvable because the
unit is not approvable, the family must continue to search for eligible housing within the
timeframe of the issued voucher.
If the tenancy is not approvable due to rent affordability (including rent burden and rent
reasonableness), SAHA will attempt to negotiate the rent with the owner. If a new,
approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to
negotiate an approvable rent, the family must continue to search for eligible housing
within the timeframe of the issued voucher.
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9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.305]
The HAP contract is a written agreement between SAHA and the owner of the dwelling unit.
Under the HAP contract, SAHA agrees to make housing assistance payments to the owner on
behalf of the family, and the owner agrees to comply with all program requirements as stated in
the HAP contract. The HAP contract form is prescribed by HUD.
If SAHA has given approval for the family of the assisted tenancy, the owner and SAHA must
execute the HAP contract.
The term of the HAP contract must be the same as the term of the lease [24 CFR 982.451(a)(2)].
SAHA is permitted to execute a HAP contract even if the funding currently available does not
extend for the full term of the HAP contract.
SAHA must make a best effort to ensure that the HAP contract is executed before the beginning
of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days
from the beginning of the lease term.
SAHA may not pay any housing assistance payment to the owner until the HAP contract has
been executed. If the HAP contract is executed during the period of 60 calendar days from the
beginning of the lease term, SAHA will pay housing assistance payments after execution of the
HAP contract (in accordance with the terms of the HAP contract), to cover the portion of the
lease term before execution of the HAP contract (a maximum of 60 days).
Any HAP contract executed after the 60 day period is void, and SAHA may not pay any housing
assistance payment to the owner.
SAHA Policy
The owner and the assisted family will execute the dwelling lease and the owner must
provide a copy to SAHA.
The owner and SAHA will execute the HAP contract. SAHA will not execute the HAP
contract until the owner has submitted IRS form W-9. SAHA will ensure that the owner
receives a copy of the executed HAP contract. Payment will not be made until SAHA
has received all required paperwork and the HAP contract is fully executed.
See Chapter 13 for a discussion of the HAP contract and contract provisions.
9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.308]
If the tenant and the owner agree to any changes in the lease, such changes must be in writing,
and the owner must immediately give SAHA a copy of such changes. The lease, including any
changes, must remain in accordance with the requirements of this chapter.
Generally, SAHA approval of tenancy and execution of a new HAP contract are not required for
changes in the lease. However, under certain circumstances, the execution of a new lease and
HAP contract are required. These circumstances include:
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• Changes in lease requirements governing tenant or owner responsibilities for utilities or
appliances
• Changes in lease provisions governing the term of the lease
• The family moves to a new unit, even if the unit is in the same building or complex
In these cases, if the HCV assistance is to continue, the family must submit a new Request for
Tenancy Approval (RTA) along with a new dwelling lease containing the proposed changes. A
new tenancy must then be approved in accordance with this chapter.
Where the owner is changing the amount of the rent to owner, the owner must notify SAHA at
least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. SAHA will agree
to such an increase only if the amount of the rent to owner is considered reasonable according to
the rent reasonableness standards discussed in Chapter 8. If the requested rent is not found to be
reasonable, the owner must either reduce the requested rent increase, or terminate the tenancy in
accordance with the terms of the lease.
No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)].
SAHA Policy
Where the owner is requesting a rent increase, SAHA will determine whether the
requested increase is reasonable within 14 days of receiving the request from the owner.
The owner will be notified of the determination in writing.
Approved rent increases will go into effect on the first of the month following the 60 day
period after the owner notifies SAHA of the rent change or on the date specified by the
owner, whichever is later.
If SAHA was not properly notified, the effective date of the rent increase will be delayed
accordingly.
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Chapter 10
MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY
INTRODUCTION
Freedom of housing choice is a hallmark of the housing choice voucher (HCV) program. In
general, HUD regulations impose few restrictions on where families may live or move with HCV
assistance. This chapter sets forth HUD regulations and SAHA policies governing moves within
or outside SAHA’s jurisdiction in two parts:
Part I: Moving with Continued Assistance. This part covers the general rules that apply to
all moves by a family assisted under the PHA’s HCV program, whether the family moves
to another unit within SAHA’s jurisdiction or to a unit outside SAHA’s jurisdiction under
portability.
Part II: Portability. This part covers the special rules that apply to moves by a family
under portability, whether the family moves out of or into SAHA’s jurisdiction. This part
also covers the special responsibilities that SAHA has under portability regulations and
procedures.
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PART I: MOVING WITH CONTINUED ASSISTANCE
10-I.A. ALLOWABLE MOVES
HUD lists six regulatory conditions under which an assisted family is allowed to move to a new
unit with continued assistance. Permission to move is subject to the restrictions set forth in
section 10-I.B.
• The family has a right to terminate the lease on notice to the owner (for the owner’s breach or
otherwise) and has given a notice of termination to the owner in accordance with the lease
[24 CFR 982.354(b)(3)]. If the family terminates the lease on notice to the owner, the family
must give the PHA a copy of the notice at the same time [24 CFR 982.354(d)(1)].
• The lease for the family’s unit has been terminated by mutual agreement of the owner and the
family [24 CFR 982.354(b)(1)(ii)].
SAHA Policy
If the family and the owner mutually agree to terminate the lease for the assisted unit, the
family must give SAHA a copy of the termination agreement within 5 days.
• The owner has given the family a notice to vacate, has commenced an action to evict the
family, or has obtained a court judgment or other process allowing the owner to evict the
family [24 CFR 982.354(b)(2)]. The family must give the PHA a copy of any owner eviction
notice [24 CFR 982.551(g)].
• The family or a member of the family is or has been the victim of domestic violence, dating
violence, sexual assault, or stalking and the move is needed to protect the health or safety of
the family or family member [24 CFR 982.354(b)(4)]. This condition applies even when the
family has moved out of its unit in violation of the lease, with or without prior notification to
SAHA, if the family or family member who is the victim reasonably believed that he or she
was imminently threatened by harm from further violence if he or she remained in the unit
[24 CFR 982.354(b)(4), 24 CFR 982.353(b)].
SAHA Policy
If a family requests permission to move with continued assistance on a claim that the
move is necessary to protect the health or safety of a family member who is or has been
the victim of domestic violence, dating violence, or stalking, SAHA will request
documentation in accordance with Chapter 16-IX.D of this plan.
SAHA reserves the right to waive the documentation requirement if it determines that a
statement or other corroborating evidence from the family or family member will suffice.
In such cases SAHA will document the waiver in the family’s file.
• SAHA has terminated the HAP contract for the family’s unit for the owner’s breach [24 CFR
982.354(b)(1)(i)].
• SAHA determines that the family’s current unit does not meet the HQS space standards
because of an increase in family size or a change in family composition. In such cases,
SAHA must issue the family a new voucher, and the family and SAHA must try to find an
acceptable unit as soon as possible. If an acceptable unit is available for the family, SAHA
must terminate the HAP contract for the family’s old unit in accordance with the HAP
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contract terms and must notify both the family and the owner of the termination. The HAP
contract terminates at the end of the calendar month that follows the calendar month in which
SAHA gives notice to the owner. [24 CFR 982.403(a) and (c)]
10-I.B. RESTRICTIONS ON MOVES
A family’s right to move is generally contingent upon the family’s compliance with program
requirements [24 CFR 982.1(b)(2)]. HUD specifies two conditions under which a PHA may
deny a family permission to move and two ways in which a PHA may restrict moves by a family.
Denial of Moves
HUD regulations permit SAHA to deny a family permission to move under the following
conditions:
Insufficient Funding
SAHA may deny a family permission to move either within or outside SAHA’s jurisdiction if
SAHA does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)].
However, Notice PIH 2012-42 significantly restricts the ability of PHAs to deny permission to
move due to insufficient funding and places further requirements on PHAs regarding moves
denied due to lack of funding. The requirements found in this notice are mandatory.
SAHA Policy
SAHA will deny a family permission to move on the grounds that SAHA does not have
sufficient funding for continued assistance if (a) the move is initiated by the family, the
owner or SAHA: (b) SAHA can demonstrate that the move will, in fact, result in higher
subsidy costs; and (c) SAHA can demonstrate, in accordance with the policies in Part
VIII of Chapter 16, that it does not have sufficient funding in its annual budget to
accommodate the higher subsidy costs.
SAHA will create a list of families whose moves have been denied due to insufficient
funds, the families on this list will take precedence over families on the waiting list.
SAHA will use the same procedures for notifying families with open requests to move
when funds become available as it uses for notifying families on the waiting list (see
section 4-III.D).
SAHA will inform the family of its policy regarding moves denied due to insufficient
funding in a letter to the family at the time the move is denied.
Grounds for Denial or Termination of Assistance
SAHA may deny a family permission to move if it has grounds for denying or terminating the
family’s assistance [24 CFR 982.354(e)(2)].
SAHA Policy
If SAHA has grounds for denying or terminating a family’s assistance, SAHA will act on
those grounds in accordance with the regulations and policies set forth in Chapters 3 and
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12, respectively. In general, it may not deny a family permission to move for this reason;
however, it retains the discretion to do so under special circumstances.
Restrictions on Elective Moves [24 CFR 982.354(c)]
HUD regulations permit the PHA to prohibit any elective move by a participant family during
the family’s initial lease term. They also permit SAHA to prohibit more than one elective move
by a participant family during any 12-month period. However, such prohibitions, if adopted, do
not apply when the family or a member of the family is or has been the victim of domestic
violence, dating violence, sexual assault, or stalking and the move is needed to protect the health
or safety of the family or family member. (For the policy on documentation of abuse, see section
10-I.A.) In addition, SAHA may not establish a policy permitting moves only at reexamination
[Notice PIH 2012-42].
SAHA Policy
SAHA will deny a family permission to move during the family’s initial lease term.
SAHA will also deny a family permission to make more than one elective move during
any 12-month period, unless the family shows just cause and secures a mutual recession
of the lease from the landlord.
SAHA will consider exceptions to these policies for the following reasons: to protect the
health or safety of a family member (e.g., lead-based paint hazards, domestic violence,
witness protection programs), to accommodate a change in circumstances for head-of-
household or spouse (e.g., new employment or school attendance in a distant area/25
miles or more), or to address an emergency situation over which a family has no control.
In addition, SAHA may allow exceptions to these policies for purposes of reasonable
accommodation of a family member who is a person with disabilities (see Chapter 2).
SAHA may deny portability to a family who owes monies to SAHA under the terms of a
repayment agreement and require the family to pay in full before giving permission to
exercise portability.
10-I.C. MOVING PROCESS
Notification
If a family wishes to move to a new unit, the family must notify the owner and SAHA before
moving out of the old unit or terminating the lease on notice to the owner [24 CFR
982.354(d)(2)]. If the family wishes to move to a unit outside the PHA’s jurisdiction under
portability, the notice to SAHA must specify the area where the family wishes to move [24 CFR
982.354(d)(2), Notice PIH 2012-42]. The notices must be in writing [24 CFR 982.5].
Approval
SAHA Policy
Upon receipt of a family’s notification that it wishes to move, SAHA will determine
whether the move is approvable in accordance with the regulations and policies set forth
in sections 10-I.A and 10-I.B. Following receipt of the family’s notification, SAHA will
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send out written approval within 7 days to confirm the move out date with a scheduled
appointment date for the move briefing.
Reexamination of Family Income and Composition
SAHA Policy
For families approved to move to a new unit within SAHA’s jurisdiction, SAHA will not
perform a new annual reexamination in accordance with policies set forth in Chapter 11
of this plan.
For families moving into or families approved to move out of SAHA’s jurisdiction under
portability, SAHA will follow the policies set forth in Part II of this chapter.
Voucher Issuance and Briefing
SAHA Policy
For families approved to move to a new unit within SAHA’s jurisdiction, SAHA will
issue a new voucher within 14 days of SAHA’s written approval to move. A move
briefing is conducted when the voucher is issued. During the briefing, the following
information will be provided to the tenant: voucher term, expiration, extension, last HAP
paid, HAP extension request, move policies, Lead-Based Paint, portability procedure,
RFTA issuance and housing search log. SAHA will also follow the policies set forth in
Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new
unit within the term of the voucher and any approved extensions, the family may remain
in its current unit with continued voucher assistance if the owner agrees and SAHA
approves. Otherwise, the family will lose their housing assistance.
For families moving into or families approved to move out of SAHA’s jurisdiction under
portability, SAHA will follow the policies set forth in Part II of this chapter.
Housing Assistance Payments [24 CFR 982.311(d)]
When a family moves out of an assisted unit, SAHA may not make any housing assistance
payment to the owner for any month after the month the family moves out. The owner may keep
the housing assistance payment for the month when the family moves out of the unit.
If a participant family moves from an assisted unit with continued tenant-based assistance, the
term of the assisted lease for the new assisted unit may begin during the month the family moves
out of the first assisted unit. Overlap of the last housing assistance payment (for the month when
the family moves out of the old unit) and the first assistance payment for the new unit, is not
considered to constitute a duplicative housing subsidy.
SAHA Policy
SAHA will recoup any HAP paid to the owner after the family has moved out of the unit.
If a family moves from an assisted unit with continued tenant-based assistance, the term
of the assisted lease for the new assisted unit may begin during the month the family
moves out of the first assisted unit. Overlapping of the last housing assistance payment
(for the month when the family moves out of the old unit) and the first assistance
payment for the new unit is not considered a duplicate housing subsidy. Any overlapping
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of HAP must be submitted in writing prior to the date the tenant moves out of the
assisted-unit and may only be approved with prior approval from SAHA.
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PART II: PORTABILITY
10-II.A. OVERVIEW
Within the limitations of the regulations and this plan, a participant family or an applicant family
that has been issued a voucher has the right to use tenant-based voucher assistance to lease a unit
anywhere in the United States providing that the unit is located within the jurisdiction of a PHA
administering a tenant-based voucher program [24 CFR 982.353(b)]. The process by which a
family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another
PHA is known as portability. The PHA that issues the voucher is called the initial PHA. The
PHA that has jurisdiction in the area to which the family wants to move is called the
receiving PHA.
The receiving PHA has the option of administering the family’s voucher for the initial PHA or
absorbing the family into its own program. Under the first option, the receiving PHA provides all
housing services for the family and bills the initial PHA for the family’s housing assistance
payments and the fees for administering the family’s voucher. Under the second option, the
receiving PHA pays for the family’s assistance with its own program funds, and the initial PHA
has no further relationship with the family. The initial PHA must contact the receiving PHA via
email or other confirmed delivery method to determine whether the receiving PHA will
administer or absorb the initial PHA’s voucher. Based on the receiving PHA’s response, the
initial PHA must determine whether they will approve or deny the portability request [Notice
PIH 2012-42].
PHAs commonly act as both the initial and receiving PHA because families may move into or
out of their jurisdiction under portability. Each role involves different responsibilities. The PHA
will follow the rules and policies in section 10-II.B when it is acting as the initial PHA for a
family. It will follow the rules and policies in section 10-II.C when it is acting as the receiving
PHA for a family.
In administering portability, the initial PHA and the receiving PHA must comply with financial
procedures required by HUD, including the use of HUD-required forms [24 CFR 982.355(e)(5)].
PHAs must also comply with billing and payment deadlines. HUD may reduce an administrative
fee to an initial or receiving PHA if the PHA does not comply with HUD portability
requirements [24 CFR 982.355(e)(7)].
10-II.B. INITIAL PHA ROLE
Allowable Moves under Portability
A family may move with voucher assistance only to an area where there is at least one PHA
administering a voucher program [24 CFR 982.353(b)]. If there is more than one PHA in the
area, the initial PHA provides the family with the contact information for the receiving PHAs
that serve the area, and the family selects the receiving PHA. The family must inform the initial
PHA which PHA it has selected. If the family prefers not to select the receiving PHA, the initial
PHA will select the receiving PHA on behalf of the family (24 CFR 982.255(b).
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Applicant families that have been issued vouchers as well as participant families may qualify to
lease a unit outside the PHA’s jurisdiction under portability. HUD regulations and PHA policy
determine whether a family qualifies.
Applicant Families
Under HUD regulations, most applicant families qualify to lease a unit outside the PHA’s
jurisdiction under portability. However, HUD gives SAHA discretion to deny a portability move
by an applicant family for the same two reasons that it may deny any move by a participant
family: insufficient funding and grounds for denial or termination of assistance. If SAHA intends
to deny a family permission to move under portability due to insufficient funding, SAHA must
notify HUD within 10 business days of the determination to deny the move [24 CFR
982.355(e)].
SAHA Policy
In determining whether or not to deny an applicant family permission to move under
portability because SAHA lacks sufficient funding or has grounds for denying assistance
to the family, SAHA will follow the policies established in section 10-I.B of this chapter.
In addition, SAHA may establish a policy denying the right to portability to nonresident
applicants during the first 12 months after they are admitted to the program [24 CFR
982.353(c)].
SAHA Policy
If neither the head of household nor the spouse/co-head of an applicant family had a
domicile (legal residence) in SAHA’s jurisdiction at the time the family’s application for
assistance was submitted, the family must live in SAHA’s jurisdiction with voucher
assistance for at least 12 months before requesting portability.
SAHA will consider exceptions to this policy for purposes of reasonable accommodation
(see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, or
stalking. However, any exception to this policy is subject to the approval of the receiving
PHA [24 CFR 982.353(c) (3)].
For purposes of homeless individuals and families, the term, “residence,” includes
homeless shelters and other dwelling places where homeless people may be living,
sleeping or receiving services in the City of Santa Ana. Therefore, homeless individuals
and families who qualify for this local preference will qualify as residents.
Participant Families
The initial PHA must not provide portable assistance for a participant if a family has moved out
of its assisted unit in violation of the lease [24 CFR 982.353(b)]. The Violence against Women
Act of 2013 (VAWA) creates an exception to this prohibition for families who are otherwise in
compliance with program obligations but have moved to protect the health or safety of a family
member who is or has been a victim of domestic violence, dating violence, sexual assault, or
stalking and who reasonably believed he or she was imminently threatened by harm from further
violence if he or she remained in the unit [24 CFR 982.353(b)].
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SAHA Policy
SAHA will determine whether a participant family may move out of SAHA’s jurisdiction
with continued assistance in accordance with the regulations and policies set forth here
and in sections 10-I.A and 10-I.B of this chapter. SAHA will notify the family of its
determination in accordance with the approval policy set forth in section 10-I.C of this
chapter.
Determining Income Eligibility
Applicant Families
An applicant family may lease a unit in a particular area under portability only if the family is
income eligible for admission to the voucher program in that area [24 CFR 982.353(d)(1)]. The
family must specify the area to which the family wishes to move [24 CFR 982.355(c)(1)].
The initial PHA is responsible for determining whether the family is income eligible in the area
to which the family wishes to move [24 CFR 982.353(d)(1), 24 CFR 982.355(9)]. If the
applicant family is not income eligible in that area, the PHA must inform the family that it may
not move there and receive voucher assistance [Notice PIH 2012-42].
Participant Families
The income eligibility of a participant family is not redetermined if the family moves to a new
jurisdiction under portability [24 CFR 982.353(d)(2)].
Reexamination of Family Income and Composition
No new reexamination of family income and composition is required for an applicant family.
SAHA Policy
For a participant family approved to move out of SAHA’s jurisdiction under portability,
SAHA generally will conduct a reexamination of family income and composition only if
the family’s annual reexamination must be completed on or before the initial billing
deadline specified on HUD-52665 form, Family Portability Information.
SAHA will make any exceptions to this policy necessary to remain in compliance with
HUD regulations.
Briefing
The regulations and policies on briefings set forth in Chapter 5 of this plan require SAHA to
provide information on portability to all applicant families that qualify to lease a unit outside
SAHA’s jurisdiction under the portability procedures. Therefore, no special briefing is required
for these families.
SAHA Policy
No formal briefing will be required for a participant family wishing to move outside
SAHA’s jurisdiction under portability because this information is already provided in the
move briefing. However, SAHA will provide the family with the same oral and written
explanation of portability that it provides to families who elect the portability option.
SAHA will provide the name, address, and phone number for the contact for the PHA in
the jurisdiction to which the family wishes to move. SAHA will advise the family that
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they will be under the receiving PHA’s policies and procedures, including subsidy
standards and voucher extension policies.
Voucher Issuance and Term
An applicant family has no right to portability until after the family has been issued a voucher
[24 CFR 982.353(b)]. In issuing vouchers to applicant families, SAHA will follow the
regulations and procedures set forth in Chapter 5.
SAHA Policy
For families approved to move under portability, SAHA will issue a new voucher within
14 days of SAHA’s written approval to move.
The initial term of the voucher will be 60 days.
Voucher Extensions and Expiration
SAHA Policy
SAHA may not approve any extensions to a voucher issued to an applicant or participant
family.
To receive or continue receiving assistance under the initial PHA’s voucher program, a
family that moves to another PHA’s jurisdiction under portability must be under HAP
contract in the receiving PHA’s jurisdiction within 60 days following the expiration date
of the initial PHA’s voucher term (including any extensions). (See below under “Initial
Billing Deadline” for one exception to this policy.)
Preapproval Contact with the Receiving PHA
Prior to approving a family’s request to move under portability, the initial PHA must contact the
receiving PHA via e-mail or other confirmed delivery method to determine whether the receiving
PHA will administer or absorb the family’s voucher. Based on the receiving PHA’s response, the
initial PHA must determine whether it will approve or deny the move [Notice PIH 2012-42].
SAHA Policy
SAHA will use e-mail, when possible, to contact the receiving PHA regarding whether
they will administer or absorb the family’s voucher.
Initial Notification to the Receiving PHA
After approving a family’s request to move under portability, the initial PHA must promptly
notify the receiving PHA via email or other confirmed delivery method to expect the family [24
CFR 982.355(c)(3); 24 CFR 982.355(c)(7)]. The initial PHA must also advise the family how to
contact and request assistance from the receiving PHA [24 CFR 982.355(c)(6)].
SAHA Policy
Because the portability process is time-sensitive, SAHA will notify the receiving PHA by
phone, fax, or e-mail to expect the family. SAHA will also ask the receiving PHA to
provide any information the family may need upon arrival, including the name, fax, and
email and telephone number of the staff person responsible for business with incoming
portable families and procedures related to appointments for voucher issuance. SAHA
will pass this information along to the family. SAHA will also ask for the name, address,
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telephone number, fax and email of the person responsible for processing the billing
information.
Sending Documentation to the Receiving PHA
The initial PHA is required to send the receiving PHA the following documents:
• Form HUD-52665, Family Portability Information, with Part I filled out
[Notice PIH 2012-42]
• A copy of the family’s voucher [Notice PIH 2012-42]
• A copy of the family’s most recent form HUD-50058, Family Report, or, if necessary in the
case of an applicant family, family and income information in a format similar to that of form
HUD-50058 [24 CFR 982.355(c)(7), Notice PIH 2012-42]
• Copies of the income verifications backing up the form HUD-50058, including a copy of the
family’s current EIV data [24 CFR 982.355(c)(7), Notice PIH 2012-42]
SAHA Policy
In addition to these documents, SAHA will provide the following information, if
available, to the receiving PHA:
• Documentation of SSNs for all nonexempt household members who’s SSNs have
not been verified through EIV system
• Documentation of legal identity
• Documentation of citizenship or eligible immigration status
• Documentation of participation in the earned income disallowance (EID) benefit
• Documentation of participation in the Family Self-Sufficiency (FSS) program
• Copies of family’s asset verifications
• Copies of school verification of all adult family members
SAHA will notify the family in writing regarding any information provided to the
receiving PHA [HCV GB, p. 13-3].
Initial Billing Deadline [Notice PIH 2012-42, Letter to Executive Directors, 9/15/15]
The deadline for submission of initial billing is 90 days following the expiration date of the
voucher issued to the family by the initial PHA. If the initial PHA does not receive a billing
notice by the deadline and does not intend to honor a late billing submission, it must contact the
receiving PHA to determine the status of the family. If the receiving PHA reports that the family
is not yet under HAP contract, the initial PHA may refuse to accept a late billing submission. If
the receiving PHA reports that the family is under HAP contract and the receiving PHA cannot
absorb the family, the initial PHA must accept a late billing submission; however, it may report
to HUD the receiving PHA’s failure to comply with the deadline.
SAHA Policy
If SAHA has not received an initial billing notice from the receiving PHA by the deadline
specified on form HUD-52665, it will contact the receiving PHA by phone, fax, or e-mail
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on the next business day. If the PHA reports that the family is not yet under HAP
contract, SAHA will inform the receiving PHA that it will not honor a late billing
submission and will return any subsequent billings that it receives on behalf of the
family. SAHA will send the receiving PHA a written confirmation of its decision by mail.
SAHA will allow an exception to this policy if the family includes a person with
disabilities and the late billing is a result of a reasonable accommodation granted to the
family by the receiving PHA.
Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2012-42]
If the receiving PHA is administering the family’s voucher, the receiving PHA bills the initial
PHA for housing assistance payments and administrative fees. When reimbursing for
administrative fees, the initial PHA must promptly reimburse the receiving PHA for the lesser of
80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA’s
ongoing administrative fee for each program unit under contract on the first day of the month for
which the receiving PHA is billing the initial PHA under portability. If the administrative fees
are prorated for the HCV program, the proration will apply to the amount of the administrative
fee for which the receiving PHA may bill [24 CFR 982.355(e)(2)].
The initial PHA is responsible for making billing payments in a timely manner. The first billing
amount is due within 30 calendar days after the initial PHA receives Part II of form HUD-52665
from the receiving PHA. Subsequent payments must be received by the receiving PHA no later
than the fifth business day of each month. The payments must be provided in a form and manner
that the receiving PHA is able and willing to accept.
The initial PHA may not terminate or delay making payments under existing portability billing
arrangements as a result of overleasing or funding shortfalls. The PHA must manage its tenant-
based program in a manner that ensures that it has the financial ability to provide assistance for
families that move out of its jurisdiction under portability and are not absorbed by receiving
PHAs as well as for families that remain within its jurisdiction.
SAHA Policy
SAHA will utilize direct deposit to ensure the payment is received by the deadline unless
the receiving PHA notifies SAHA that direct deposit is not acceptable to them.
Annual Updates of Form HUD-50058
If the initial PHA is being billed on behalf of a portable family, it should receive an updated form
HUD-50058 each year from the receiving PHA. If the initial PHA fails to receive an updated
50058 by the family’s annual reexamination date, the initial PHA should contact the receiving
PHA to verify the status of the family.
SAHA Policy
SAHA will not make any HAP payment if the receiving PHA fail to send an updated
annual certification HUD-50058 form.
Denial or Termination of Assistance [24 CFR 982.355(c)(17)]
At any time, either the initial PHA or the receiving PHA may make a determination to deny or
terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553.
(For PHA policies on denial and termination, see Chapters 3 and 12, respectively.)
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10-II.C. RECEIVING PHA ROLE
If a family has a right to lease a unit in the receiving PHA’s jurisdiction under portability, the
receiving PHA must provide assistance for the family [24 CFR 982.355(10)]. HUD may
determine in certain instances that a PHA is not required to accept incoming portable families,
such as a PHA in a declared disaster area. However, the PHA must have approval in writing
from HUD before refusing any incoming portable families [24 CFR 982.355(b)].
Administration of the voucher must be in accordance with the receiving PHA’s policies. This
requirement also applies to policies of Moving to Work agencies. The receiving PHA procedures
and preferences for selection among eligible applicants do not apply to the family, and the
receiving PHA waiting list is not used [24 CFR 982.355(c)(10)]. The family’s unit, or voucher,
size is determined in accordance with the subsidy standards of the receiving PHA [24 CFR
982.355(c)(12)], and the receiving PHA’s policies on extensions of the voucher term apply [24
CFR 982.355(c)(14)].
Responding to Initial PHA’s Request [24 CFR 982.355(c)]
The receiving PHA must respond via e-mail or other confirmed delivery method to the initial
PHA’s inquiry to determine whether the family’s voucher will be billed or absorbed [24 CFR
982.355(c)(3)]. If the receiving PHA informs the initial PHA that it will be absorbing the
voucher, the receiving PHA cannot reverse its decision at a later date without consent of the
initial PHA (24 CFR 982.355(c)(4).
SAHA Policy
SAHA will use e-mail, when possible, to notify the initial PHA whether they will
administer or absorb the family’s voucher.
Initial Contact with Family
When a family moves into the PHA’s jurisdiction under portability, the family is responsible for
promptly contacting the PHA and complying with the PHA’s procedures for incoming portable
families. The family’s failure to comply may result in denial or termination of the receiving
PHA’s voucher [24 CFR 982.355(c)(8)].
If the voucher issued to the family by the initial PHA has expired, the receiving PHA must
contact the initial PHA to determine if it will extend the voucher [24 CFR 982.355(c)(13)].
If for any reason the receiving PHA refuses to process or provide assistance to a family under the
portability procedures, the family must be given the opportunity for an informal review or
hearing [Notice PIH 2012-42]. (For more on this topic, see later under “Denial or Termination
of Assistance.”)
Briefing
HUD allows the receiving PHA to require a briefing for an incoming portable family as long as
the requirement does not unduly delay the family’s search [Notice PIH 2012-42].
SAHA Policy
SAHA will provide the family with an individual move briefing (as described in Chapter
5) within 14 days of receiving all of the portability documents from the initial housing
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authority and, will orally inform the family about SAHA’s payment and subsidy
standards, procedures for requesting approval of a unit, the unit inspection process, and
the leasing process.
Income Eligibility and Reexamination
The receiving PHA does not redetermine eligibility for a portable family that was already
receiving assistance in the initial PHA’s voucher program [24 CFR 982.355(c)(9)]. If the
receiving PHA opts to conduct a new reexamination for a current participant family, the
receiving PHA may not delay issuing the family a voucher or otherwise delay approval of a unit
[24 CFR 982.355(c)(11)].
SAHA Policy
For any family moving into its jurisdiction under portability, SAHA will conduct a new
reexamination of family income and composition. However, SAHA will not delay issuing
the family a voucher for this reason. Nor will SAHA delay approving a unit for the
family until the reexamination process is complete unless the family is an applicant and
SAHA cannot otherwise confirm that the family is income eligible for admission to the
program in the area where the unit is located.
In conducting its own reexamination, SAHA may rely upon any verification provided by
the initial PHA to the extent that they (a) accurately reflect the family’s current
circumstances and (b) were obtained within the last 120 days. Any new information may
be verified by documents provided by the family and adjusted, if necessary, when third
party verification is received.
Voucher Issuance
When a family moves into its jurisdiction under portability, the receiving PHA is required to
issue the family a voucher [24 CFR 982.355(c)(13)]. The family must submit a request for
tenancy approval to the receiving PHA during the term of the receiving PHA’s voucher [24 CFR
982.355(c)(15)].
Timing of Voucher Issuance
HUD expects the receiving PHA to issue the voucher within two weeks after receiving the
family’s paperwork from the initial PHA if the information is in order, the family has contacted
the receiving PHA, and the family complies with the receiving PHA’s procedures [Notice
PIH 2012-42].
SAHA Policy
When a family chooses to port into SAHA’s jurisdiction, SAHA will issue the family a
voucher based on the paperwork provided by the initial PHA unless the family’s
paperwork from the initial PHA is incomplete, the family’s voucher from the initial PHA
has expired or the family does not comply with SAHA’s procedures. SAHA will update
the family’s information when verification has been completed.
Voucher Term
The term of the receiving PHA’s voucher may not expire before 30 calendar days from the
expiration of the initial PHA’s voucher [24 CFR 982.355(c)(13)]
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SAHA Policy
SAHA will issue a voucher with the same expiration date as the initial PHA’s voucher.
However, SAHA’s voucher will not expire before 30 calendar days from the expiration of
the initial PHA’s voucher.
Voucher Extensions [24 CFR 982.355(c)(14), Notice 2012-42]
Once the receiving PHA issues the portable family a voucher, the receiving PHA’s policies on
extensions of the voucher term apply. The receiving PHA must inform the initial PHA of any
extension granted to the term of the voucher. It must also bear in mind the billing deadline
provided by the initial PHA. Unless willing and able to absorb the family, the receiving PHA
should ensure that any voucher expiration date would leave sufficient time to process a request
for tenancy approval, execute a HAP contract, and deliver the initial billing to the initial PHA.
SAHA Policy
SAHA generally will not extend the term of the voucher that it issues to an incoming
portable family unless SAHA plans to absorb the family into SAHA’s program, in which
case it will follow the policies on voucher extension set forth in section 5-II.E.
SAHA will consider an exception to this policy as a reasonable accommodation upon
request from a person with disabilities (see Chapter 2).
Voucher Suspensions [24 CFR 982.303, 24 CFR 982.355(c)(15)]
If the family submits a request for tenancy approval during the term of the receiving PHA’s
voucher, the PHA must suspend the term of that voucher. The term of the voucher stops from the
date that the family submits a request for PHA approval of the tenancy until the date the PHA
notifies the family in writing whether the request has been approved or denied [24 CFR 982.4(b)]
(see Section 5-II.E).
Notifying the Initial PHA
The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit
under the program or if the family fails to submit a request for tenancy approval for an eligible
unit within the term of the receiving PHA’s voucher [24 CFR 982.355(c)(16)]. The receiving
PHA is required to use Part II of form HUD-52665, Family Portability Information, for this
purpose [Notice PIH 2012-42]. (For more on this topic and the deadline for notification, see
below under “Administering a Portable Family’s Voucher.”)
If an incoming portable family ultimately decides not to lease in the jurisdiction of the receiving
PHA but instead wishes to return to the initial PHA’s jurisdiction or to search in another
jurisdiction, the receiving PHA must refer the family back to the initial PHA. In such a case the
voucher of record for the family is once again the voucher originally issued by the initial PHA.
Any extension of search time provided by the receiving PHA’s voucher is only valid for the
family’s search in the receiving PHA’s jurisdiction [Notice PIH 2012-42].
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Administering a Portable Family’s Voucher
Portability Billing [24 CFR 982.355(e)]
To cover assistance for a portable family that was not absorbed, the receiving PHA bills the
initial PHA for housing assistance payments and administrative fees. The amount of the housing
assistance payment for a portable family in the receiving PHA’s program is determined in the
same manner as for other families in the receiving PHA’s program.
The receiving PHA may bill the initial PHA for the lesser of 80 percent of the initial PHA’s
ongoing administrative fee or 100 percent of the receiving PHA’s ongoing administrative fee for
each program unit under contract on the first day of the month for which the receiving PHA is
billing the initial PHA under portability. If the administrative fees are prorated for the HCV
program, the proration will apply to the amount of the administrative fee for which the receiving
PHA may bill (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA’s
prorated ongoing administrative fee or 100 percent of the receiving PHA’s ongoing
administrative fee).
If both PHAs agree, the PHAs may negotiate a different amount of reimbursement.
SAHA Policy
Unless SAHA negotiates a different amount of reimbursement with the initial PHA,
SAHA will bill the initial PHA the maximum amount of administrative fees allowed,
ensuring any administrative fee proration has been properly applied.
Initial Billing Deadline
If a portable family’s search for a unit is successful and the receiving PHA intends to administer
the family’s voucher, the receiving PHA must submit its initial billing notice (Part II of form
HUD-52665) (a) no later than 10 business days following the date the receiving PHA executes a
HAP contract on behalf of the family and (b) in time that the notice will be received no later
than 60 days following the expiration date of the family’s voucher issued by the initial PHA
[Notice PIH 2012-42]. A copy of the family’s form HUD-50058, Family Report, completed by
the receiving PHA must be attached to the initial billing notice. The receiving PHA may send
these documents by mail, fax, or e-mail.
SAHA Policy
SAHA will send its notice of lease-up by fax or e-mail, if necessary, to meet the billing
deadline but will also send the initial billing notice by regular mail. If the receiving PHA
fails to send the initial billing within 10 days following the date the HAP contract is
executed, it is required to absorb the family into its own program unless (a) the initial
PHA is willing to accept the late submission or (b) HUD requires the initial PHA to
honor the late submission (e.g., because the receiving PHA is over-leased) [Notice PIH
2012-42]
If the receiving PHA fails to send the initial billing within 10 business days following the date
the HAP contract is executed, it is required to absorb the family into its own program unless (a)
the initial PHA is willing to accept the late submission or (b) HUD requires the initial PHA to
honor the late submission (e.g., because the receiving PHA is overleased) [Notice PIH 2012-42].
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Ongoing Notification Responsibilities [Notice PIH 2012-42, HUD-52665]
Annual Reexamination. The receiving PHA must send the initial PHA a copy of a portable
family’s updated form HUD-50058 after each annual reexamination for the duration of time the
receiving PHA is billing the initial PHA on behalf of the family, regardless of whether there is a
change in the billing amount.
SAHA Policy
SAHA will send a copy of the updated HUD-50058 together with HUD-52665 by regular
mail to the initial PHA within 14 days of SAHA’s notice to the tenant and the owner of
the reexamination results.
Change in Billing Amount. The receiving PHA is required to notify the initial PHA, using form
HUD-52665, of any change in the billing amount for the family as a result of:
• A change in the HAP amount (because of a reexamination, a change in the applicable
payment standard, a move to another unit, etc.)
• An abatement or subsequent resumption of the HAP payments
• Termination of the HAP contract
• Payment of a damage/vacancy loss claim for the family
• Termination of the family from the program
The timing of the notice of the change in the billing amount should correspond with the
notification to the owner and the family in order to provide the initial PHA with advance notice
of the change. Under no circumstances should the notification be later than 10 business days
following the effective date of the change in the billing amount. If the receiving PHA fails to
send Form HUD-52665 within 10 days of effective date of billing changes, the initial PHA is not
responsible for any increase prior to notification.
Late Payments [Notice PIH 2012-42]
If the initial PHA fails to make a monthly payment for a portable family by the fifth business day
of the month, the receiving PHA must promptly notify the initial PHA in writing of the
deficiency. The notice must identify the family, the amount of the billing payment, the date the
billing payment was due, and the date the billing payment was received (if it arrived late). The
receiving PHA must send a copy of the notification to the Office of Public Housing (OPH) in the
HUD area office with jurisdiction over the receiving PHA. If the initial PHA fails to correct the
problem by the second month following the notification, the receiving PHA may request by
memorandum to the director of the OPH with jurisdiction over the receiving PHA that HUD
transfer the unit in question. A copy of the initial notification and any subsequent
correspondence between the PHAs on the matter must be attached. The receiving PHA must
send a copy of the memorandum to the initial PHA. If the OPH decides to grant the transfer, the
billing arrangement on behalf of the family ceases with the transfer, but the initial PHA is still
responsible for any outstanding payments due to the receiving PHA.
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Overpayments [Notice PIH 2012-42]
In all cases where the receiving PHA has received billing payments for billing arrangements no
longer in effect, the receiving PHA is responsible for returning the full amount of the
overpayment (including the portion provided for administrative fees) to the initial PHA.
In the event that HUD determines billing payments have continued for at least three months
because the receiving PHA failed to notify the initial PHA that the billing arrangement was
terminated, the receiving PHA must take the following steps:
• Return the full amount of the overpayment, including the portion provided for administrative
fees, to the initial PHA.
• Once full payment has been returned, notify the Office of Public Housing in the HUD area
office with jurisdiction over the receiving PHA of the date and the amount of reimbursement
to the initial PHA.
At HUD’s discretion, the receiving PHA will be subject to the sanctions spelled out in Notice
PIH 2012-42.
Denial or Termination of Assistance
At any time, the receiving PHA may make a determination to deny or terminate assistance to a
portable family for family action or inaction [24 CFR 982.355(c)(17)].
In the case of a termination, the PHA should provide adequate notice of the effective date to the
initial PHA to avoid having to return a payment. In no event should the receiving PHA fail to
notify the initial PHA later than 10 business days following the effective date of the termination
of the billing arrangement [HUD-52665; Notice PIH 2012-42].
SAHA Policy
If SAHA elects to deny or terminate assistance for a portable family, SAHA will notify
the initial PHA within 10 business days after the informal review or hearing if the denial
or termination is upheld. SAHA will base its denial or termination decision on the
policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing
will be held in accordance with the policies in Chapter 16. The receiving PHA will
furnish the initial PHA with a copy of the review or hearing decision.
Absorbing a Portable Family
The receiving PHA may absorb an incoming portable family into its own program when the
PHA executes a HAP contract on behalf of the family or at any time thereafter providing that
the PHA has funding available under its annual contributions contract (ACC) [24 CFR
982.355(d)(1), Notice PIH 2012-42].
If the receiving PHA absorbs a family from the point of admission, the admission will be
counted against the income targeting obligation of the receiving PHA [24 CFR
982.201(b)(2)(vii)].
If the receiving PHA absorbs a family after providing assistance for the family under a billing
arrangement with the initial PHA, HUD encourages the receiving PHA to provide adequate
advance notice to the initial PHA to avoid having to return an overpayment. The receiving PHA
must specify the effective date of the absorption of the family [Notice PIH 2012-42].
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SAHA Policy
If SAHA decides to absorb a portable family upon the execution of a HAP contract on
behalf of the family, SAHA will notify the initial PHA by the initial billing deadline
specified on form HUD-52665. The effective date of the HAP contract will be the
effective date of the absorption.
If SAHA decides to absorb a family after that, it will provide the initial PHA with a
minimum of 30 days’ advance notice.
Following the absorption of an incoming portable family, the family is assisted with funds
available under the consolidated ACC for the receiving PHA’s voucher program [24 CFR
982.355(d)], and the receiving PHA becomes the initial PHA in any subsequent moves by the
family under portability [24 CFR 982.355(e)(4)].
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Chapter 11
REEXAMINATIONS
INTRODUCTION
SAHA is required to reexamine each family’s income and composition at least annually, and to
adjust the family’s level of assistance accordingly. Interim reexaminations are also needed in
certain situations. This chapter discusses both annual and interim reexaminations, and the
recalculation of family share and subsidy that occurs as a result. HUD regulations and SAHA
policies concerning reexaminations are presented in three parts:
Part I: Annual Reexaminations. This part discusses the process for conducting annual
reexaminations.
Part II: Interim Reexaminations. This part details the requirements for families to report
changes in family income and composition between annual reexaminations.
Part III: Recalculating Family Share and Subsidy Amount. This part discusses the
recalculation of family share and subsidy amounts based on the results of annual and
interim reexaminations.
Policies governing reasonable accommodation, family privacy, required family cooperation, and
program abuse, as described elsewhere in this plan, apply to both annual and interim
reexaminations.
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PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516]
11-I.A. OVERVIEW
SAHA must conduct a reexamination of family income and composition at least annually. This
includes gathering and verifying current information about family composition, income, and
expenses. Based on this updated information, the family’s income and rent must be recalculated.
This part discusses the schedule for annual reexaminations, the information to be collected and
verified, and annual reexamination effective dates.
11-I.B. SCHEDULING ANNUAL REEXAMINATIONS
SAHA must establish a policy to ensure that the annual reexamination for each family is
completed within a 12-month period, and may require reexaminations more frequently [HCV GB
p. 12-1].
SAHA Policy
SAHA will begin the annual reexamination process approximately 120 days in advance
of its scheduled effective date. Generally, SAHA will schedule annual reexamination
effective dates to coincide with the family’s anniversary date.
Anniversary date is defined as 12 months from the effective date of the family’s last
annual reexamination or, during a family’s first year in the program, from the effective
date of the family’s initial examination (admission).
SAHA also may schedule an annual reexamination for completion prior to the
anniversary date for administrative purposes.
Notification of and Participation in the Annual Reexamination Process
SAHA is required to obtain the information needed to conduct annual reexaminations. How that
information will be collected is left to the discretion of SAHA. However, PHAs should give
tenants who were not provided the opportunity the option to complete Form HUD-92006 at this
time [Notice PIH 2009-36].
SAHA Policy
Families are required to participate in an annual reexamination interview, which must be
attended by all family members age 18 and older. If participation in an in-person
interview poses a hardship because of a family member’s disability, the family should
contact SAHA to request a reasonable accommodation (see Chapter 2).
Notification of annual reexamination interviews will be sent by first-class mail and will
contain the date, time, and location of the interview. In addition, it will inform the family
of the information and documentation that must be brought to the interview.
If the family is unable to attend a scheduled interview, the family should contact SAHA
in advance of the interview to schedule a new appointment. If a family does not attend
the scheduled interview, SAHA will send a second notification with a new interview
appointment time.
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If a family fails to attend two scheduled interviews without SAHA approval, or if the
notice is returned by the post office, a notice of termination (see Chapter 12) will be sent
to the family’s address of record, and to any alternate address provided in the family’s
file.
An advocate, interpreter, or other assistant may assist the family in the interview process.
The family and SAHA must execute a certification attesting to the role and assistance of
any such third party.
11-I.C. CONDUCTING ANNUAL REEXAMINATIONS
As part of the annual reexamination process, families are required to provide updated
information to SAHA regarding the family’s income, expenses, and composition [24 CFR
982.551(b)].
SAHA Policy
Families will be asked to bring all required information (as described in the
reexamination notice) to the reexamination appointment. The required information will
include a SAHA-designated Personal Declaration Questionnaire, an Authorization for the
Release of Information/Privacy Act Notice, as well as supporting documents or forms
related to the family’s income, expenses, and family composition.
Any required documents or information that the family is unable to provide at the time of
the interview must be provided within 14 days of the interview. If the family is unable to
obtain the information or materials within the required time frame, the family may
request an extension.
If the family does not provide the required documents or information within the required
time period (plus any extensions), the family will be sent a notice of termination (See
Chapter 12).
At their annual reexamination appointment, the family must provide a new certification
of the continued need for a live-in-aide and/or an additional bedroom if either is approved
as a reasonable accommodation.
Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or
any member of the tenant’s household, is subject to a lifetime sex offender registration
requirement in any state [Notice PIH 2012-28].
SAHA Policy
At the annual reexamination, SAHA will ask whether the tenant, or any member of the
tenant’s household, is subject to a lifetime sex offender registration requirement in any
state. SAHA will use the Dru Sjodin National Sex Offender database to verify the
information provided by the tenant.
If SAHA proposes to terminate assistance based on lifetime sex offender registration
information, SAHA must notify the household of the proposed action and must provide the
subject of the record and the tenant a copy of the record and an opportunity to dispute the
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accuracy and relevance of the information prior to termination. [24 CFR 5.903(f) and 5.905(d)].
(See Chapter 12.)
The information provided by the family generally must be verified in accordance with the
policies in Chapter 7. Unless the family reports a change, or SAHA has reason to believe a
change has occurred in information previously reported by the family, certain types of
information that are verified at admission typically do not need to be re-verified on an annual
basis. These include:
• Legal identity
• Age
• Social security numbers
• A person’s disability status
• Citizenship or immigration status
If adding a new family member to the unit causes overcrowding according to the housing quality
standards (HQS) (see Chapter 8), SAHA must issue the family a new voucher, and the family
and SAHA must try to find an acceptable unit as soon as possible. If an acceptable unit is
available for rental by the family, SAHA must terminate the HAP contract in accordance with its
terms [24 CFR 982.403].
11-I.D. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS
[24 CFR 982.552(b)(5)]
Section 327 of Public Law 109-115 established new restrictions on the ongoing eligibility of
certain students (both part- and full-time) who are enrolled in institutions of higher education.
If a student enrolled in an institution of higher education is under the age of 24, is not a veteran,
is not married, does not have a dependent child, and is not a person with disabilities receiving
HCV assistance as of November 30, 2005, the student’s eligibility must be reexamined along
with the income eligibility of the student’s parents on an annual basis. In these cases, both the
student and the student’s parents must be income eligible for the student to continue to receive
HCV assistance. If, however, a student in these circumstances is determined independent from
his or her parents in accordance with SAHA policy, the income of the student’s parents will not
be considered in determining the student’s ongoing eligibility.
Students who reside with parents in an HCV assisted unit are not subject to this provision. It is
limited to students who are receiving assistance on their own, separately from their parents.
SAHA Policy
During the annual reexamination process, SAHA will determine the ongoing eligibility of
each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing
the student’s individual income as well as the income of the student’s parents. If the
student has been determined “independent” from his/her parents based on the policies in
Sections 3-II.E and 7-II.E, the parents’ income will not be reviewed.
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If the student is no longer income eligible based on his/her own income or the income of
his/her parents, the student’s assistance will be terminated in accordance with the policies
in Section 12-I.D.
If the student continues to be income eligible based on his/her own income and the
income of his/her parents (if applicable), SAHA will process a reexamination in
accordance with the policies in this chapter.
11-I.E. EFFECTIVE DATES
SAHA must establish policies concerning the effective date of changes that result from an annual
reexamination [24 CFR 982.516].
SAHA Policy
In general, an increase in the family share of the rent that results from an annual
reexamination will take effect on the family’s anniversary date, and the family will be
notified at least 30 days in advance.
If a family moves to a new unit, the increase will take effect on the effective date of the
new lease and HAP contract, and no 30-day notice is provided.
If the family causes a delay in processing the annual reexamination, increases in the
family share of the rent will be applied retroactively, to the scheduled effective date of
the annual reexamination. The family will be responsible for any overpaid subsidy and
may be offered a repayment agreement in accordance with the policies in Chapter 16.
In general, a decrease in the family share of the rent that results from an annual
reexamination will take effect on the family’s anniversary date.
If a family moves to a new unit, the decrease will take effect on the effective date of the
new lease and HAP contract.
If the family causes a delay in processing the annual reexamination, decreases in the
family share of the rent will be applied prospectively, from the first day of the month
following completion of the reexamination processing.
Delays in reexamination processing are considered to be caused by the family if the
family fails to provide information requested by SAHA by the date specified, and this
delay prevents SAHA from completing the reexamination as scheduled.
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PART II: INTERIM REEXAMINATIONS [24 CFR 982.516]
11-II.A. OVERVIEW
Family circumstances may change between annual reexaminations. HUD and SAHA policies
dictate what kinds of information about changes in family circumstances must be reported, and
under what circumstances SAHA must process interim reexaminations to reflect those changes.
HUD regulations also permit SAHA to conduct interim reexaminations of income or family
composition at any time. When an interim reexamination is conducted, only those factors that
have changed are verified and adjusted [HCV GB, p. 12-10].
In addition to specifying what information the family must report, HUD regulations permit the
family to request an interim determination if other aspects of the family’s income or composition
changes. SAHA must complete the interim reexamination within a reasonable time after the
family’s request.
This part includes HUD and SAHA policies describing what changes families are required to
report, what changes families may choose to report, and how SAHA will process both SAHA-
and family-initiated interim reexaminations.
11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION
The family is required to report all changes in family composition. SAHA must adopt policies
prescribing when and under what conditions the family must report changes in income and
housing composition. However, due to family obligations under the program, SAHA has limited
discretion in this area.
SAHA Policy
SAHA will conduct interim reexaminations to account for any changes in household
composition that occur between annual reexaminations.
New Family Members Not Requiring SAHA Approval
The addition of a family member as a result of birth, adoption, or court-awarded custody does
not require SAHA approval. However, the family is required to promptly notify SAHA of the
addition [24 CFR 982.551(h)(2)].
SAHA Policy
The family must inform SAHA of the birth, adoption or court-awarded custody of a child
within 14 days.
New Family and Household Members Requiring Approval
With the exception of children who join the family as a result of birth, adoption, or court-
awarded custody, a family must request SAHA approval to add a new family member [24 CFR
982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)].
When any new family member is added, SAHA must conduct a reexamination to determine any
new income or deductions associated with the additional family member and to make appropriate
adjustments in the family share of the rent and the HAP payment [24 CFR 982.516(e)].
If a change in family size causes a violation of Housing Quality Standards (HQS) space
standards (see Chapter 8), SAHA must issue the family a new voucher, and the family and
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SAHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available
for rental by the family, SAHA must terminate the family’s HAP contract in accordance with its
terms [24 CFR 982.403].
SAHA Policy
Families must request SAHA approval to add a new family member, live-in aide, foster
child, or foster adult. This includes any person not on the lease who is expected to stay in
the unit for more than 30 days (consecutive or cumulative) within a twelve month period,
and thereby no longer qualifies as a “guest.” Requests must be made in writing and
approved by SAHA prior to the individual moving in the unit.
SAHA will not approve the return of adult family members who have left the assisted
unit to establish a separate family unit.
SAHA will review requests for additional adult family members and only grant as a
reasonable accommodation.
SAHA will not approve the addition of a foster child or foster adult if it will cause a
violation of HQS occupancy standards. However, if foster child/children are blood
related to the head-of-household, SAHA may grant additional bedrooms.
If SAHA determines an individual meets SAHA’s eligibility criteria and documentation
requirements, SAHA will provide written approval to the family.
If SAHA determines that an individual does not meet SAHA’s eligibility criteria and
documentation requirements, SAHA will notify the family in writing of its decision to
deny approval of the new family or household member and the reasons for the denial.
SAHA will make its determination within 14 days of receiving all information required to
verify the individual’s eligibility.
Departure of a Family or Household Member
Families must promptly notify SAHA if any family member no longer lives in the unit
[24 CFR 982.551(h)(3)]. Because household members are considered when determining the
family unit (voucher) size [24 CFR 982.402], SAHA also needs to know when any live-in aide,
foster child, or foster adult ceases to reside in the unit.
SAHA Policy
If a household member ceases to reside in the unit, the family must inform SAHA within
14 days. This requirement also applies to a family member who has been considered
temporarily absent at the point that SAHA concludes the individual is permanently
absent. SAHA will request proof of new residency for departing family member.
If a live-in aide, foster child, or foster adult ceases to reside in the unit, the family must
inform SAHA within 14 days.
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11-II.C. CHANGES AFFECTING INCOME OR EXPENSES
Interim reexaminations can be scheduled either because SAHA has reason to believe that
changes in income or expenses may have occurred, or because the family reports a change.
When a family reports a change, SAHA may take different actions depending on whether the
family reported the change voluntarily, or because it was required to do so.
SAHA-Initiated Interim Reexaminations
SAHA-initiated interim reexaminations are those that are scheduled based on circumstances or
criteria defined by SAHA. They are not scheduled because of changes reported by the family.
SAHA Policy
SAHA will conduct interim reexaminations in each of the following instances:
• For families receiving the Earned Income Disallowance (EID), SAHA will
conduct an interim reexamination at the start and conclusion of the second 12
month exclusion period (50 percent phase-in period).
• If the family has reported zero income, SAHA will conduct an interim
reexamination every 3 months to re-verify income as long as the family continues
to report that they have no income.
• If at the time of the annual reexamination, tenant-provided documents were used
on a provisional basis due to the lack of third-party verification, and third-party
verification becomes available, SAHA will conduct an interim reexamination.
• SAHA may conduct an interim reexamination at any time in order to correct an
error in a previous reexamination, or to investigate a tenant fraud complaint.
Family-Initiated Interim Reexaminations
SAHA must adopt policies prescribing when and under what conditions the family must report
changes in family income or expenses [24 CFR 982.516(c)]. In addition, HUD regulations
require that the family be permitted to obtain an interim reexamination any time the family has
experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)].
Required Reporting
HUD regulations give SAHA the freedom to determine the circumstances under which families
will be required to report changes affecting income.
SAHA Policy
Families are required to report all increases in earned income of all family members,
including new employment, within 14 days of the date the change takes effect.
If a family reports a decrease of income, an interim reexamination will be performed. If a
family reports an increase, an interim reexamination will be performed if the amount of
the increase is greater than $1,200 per year (FSS excluded) or the family is paying the
$50 minimum rent.
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Optional Reporting
The family may request an interim reexamination any time the family has experienced a change
in circumstances since the last determination [24 CFR 982.516(b)(2)]. SAHA must process the
request if the family reports a change that will result in a reduced family income [HCV GB, p.
12-9].
If a family reports a decrease in income from the loss of welfare benefits due to fraud or non-
compliance with a welfare agency requirement to participate in an economic self-sufficiency
program, the family’s share of the rent will not be reduced [24 CFR 5.615]. For more
information regarding the requirement to impute welfare income see Chapter 6.
SAHA Policy
If a family reports a change that it was not required to report and that would result in a
decrease in the family share of rent, SAHA will conduct an interim reexamination. See
Section 11-II.D. for effective dates.
Families may report changes in income or expenses at any time.
11-II.D. PROCESSING THE INTERIM REEXAMINATION
Method of Reporting
SAHA Policy
The family must notify SAHA of changes in writing with appropriate documentation.
SAHA provides a Change Report Form for this purpose.
Generally, the family will not be required to attend an interview for an interim
reexamination. However, if SAHA determines that an interview is warranted, the family
may be required to attend.
Based on the type of change reported, SAHA will determine if additional documentation
will be required to submit. The family must submit any required information or
documents within 14 days of receiving a request from SAHA. This time frame may be
extended for good cause with SAHA approval. SAHA will accept required
documentation by mail, by fax, or in person.
Effective Dates
SAHA must establish the time frames in which any changes that result from an interim
reexamination will take effect [24 CFR 982.516(d)]. The changes may be applied either
retroactively or prospectively, depending on whether there is to be an increase or a decrease in
the family share of the rent, and whether the family reported any required information within the
required time frames [HCV GB, p. 12-10].
SAHA Policy
If the family share of the rent is to increase:
The increase generally will be effective on the first of the month following a 30
day notice to the family.
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If a family fails to report a change within the required time frames, or fails to
provide all required information within the required time frames, the increase will
be applied retroactively, to the date it would have been effective had the
information been provided on a timely basis. The family will be responsible for
any overpaid subsidy and may be offered a repayment agreement in accordance
with the policies in Chapter 16.
If the family share of the rent is to decrease:
The decrease will be effective on the first day of the month following the month
in which the change was reported and all required documentation was submitted.
In cases where the change cannot be verified until after the date the change would
have become effective, the change will be made retroactively, unless the delay is
caused by the family.
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PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT
11-III.A. OVERVIEW
After gathering and verifying required information for an annual or interim reexamination,
SAHA must recalculate the family share of the rent and the subsidy amount, and notify the
family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic
policies that govern these calculations are provided in Chapter 6, this part lays out policies that
affect these calculations during a reexamination.
11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES
In order to calculate the family share of the rent and HAP amount correctly, changes in payment
standards, subsidy standards, or utility allowances may need to be updated and included in
SAHA’s calculations.
Specific policies governing how subsidy standards, payment standards, and utility allowances are
applied are discussed below.
Payment Standards [24 CFR 982.505]
The family share of the rent and HAP calculations must use the correct payment standard for the
family, taking into consideration the family unit size, the size of unit, and the area in which the
unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the
appropriate payment standard.
When SAHA changes its payment standards or the family’s situation changes, new payment
standards are applied at the following times:
• If SAHA’s payment standard amount changes during the term of the HAP contract, the date
on which the new standard is applied depends on whether the standard has increased or
decreased:
- If the payment standard amount has increased, the increased payment standard will be
applied at the first annual reexamination following the effective date of the increase in
the payment standard.
- If the payment standard amount has decreased, the decreased payment standard will be
applied at the second annual reexamination following the effective date of the decrease in
the payment standard.
• If the family moves to a new unit, or a new HAP contract is executed due to changes in the
lease (even if the family remains in place) the current payment standard applicable to the
family will be used when the new HAP contract is processed.
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Subsidy Standards [24 CFR 982.505(c)(4)]
If there is a change in the family unit size that would apply to a family during the HAP contract
term, either due to a change in family composition, or a change in SAHA’s subsidy standards
(see Chapter 5), the new family unit size must be used to determine the payment standard
amount for the family at the family’s first annual reexamination following the change in family
unit size.
Utility Allowances [24 CFR 982.517(d)]
The family share of the rent and HAP calculations must reflect any changes in the family’s utility
arrangement with the owner, or in SAHA’s utility allowance schedule [HCV GB, p. 12-5].
Chapter 16 discusses how utility allowance schedules are established.
When there are changes in the utility arrangement with the owner, SAHA must use the utility
allowances in effect at the time the new lease and HAP contract are executed.
At reexamination, SAHA must use SAHA current utility allowance schedule [24 CFR
982.517(d)(2)].
SAHA Policy
Revised utility allowances will be applied to a family’s rent and subsidy calculations at
the first annual reexamination after the allowance is adopted.
11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT
SAHA must notify the owner and family of any changes in the amount of the HAP payment
[HUD-52641, HAP Contract]. The notice must include the following information [HCV GB, p.
12-6]:
• The amount and effective date of the new HAP payment
• The amount and effective date of the new family share of the rent
• The amount and effective date of the new tenant rent to owner
The family must be given an opportunity for an informal hearing regarding SAHA’s
determination of their annual or adjusted income, and the use of such income to compute the
housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16).
SAHA Policy
The notice to the family will include the new and prior rent amounts for the owner and
the family. The notice also will state the procedures for requesting an informal hearing.
11-III.D. DISCREPANCIES
During an annual or interim reexamination, SAHA may discover that information previously
reported by the family was in error, or that the family intentionally misrepresented information.
In addition, SAHA may discover errors made by SAHA. When errors resulting in the
overpayment or underpayment of subsidy are discovered, corrections will be made in accordance
with the policies in Chapter 13.
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Chapter 12
TERMINATION OF ASSISTANCE AND TENANCY
HUD regulations specify mandatory and optional grounds for which SAHA can terminate a
family’s assistance. They also specify the circumstances under which an owner may terminate
the tenancy of an assisted family. This chapter describes the policies that govern mandatory and
optional terminations of assistance, and termination of tenancy by the owner. It is presented in
three parts:
Part I: Grounds for Termination of Assistance. This part describes the various
circumstances under which assistance under the program can be terminated by the family
or by SAHA.
Part II: Approach to Termination of Assistance. This part describes the policies and the
process that SAHA will use in evaluating decisions on whether to terminate assistance
due to actions or inactions of the family where termination is an option. It specifies the
alternatives that SAHA may consider in lieu of termination, the criteria SAHA will use
when deciding what action to take, and the steps SAHA must take when terminating a
family’s assistance.
Part III: Termination of Tenancy by the Owner. This part describes the HUD policies that
govern the owner’s right to terminate an assisted tenancy.
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PART I: GROUNDS FOR TERMINATION OF ASSISTANCE
12-I.A. OVERVIEW
HUD requires SAHA to terminate assistance for certain actions and inactions of the family and
when the family no longer requires assistance due to increases in family income. HUD permits
SAHA to terminate assistance for certain other actions or inactions of the family. In addition, a
family may decide to withdraw from the program and terminate their HCV assistance at any time
by notifying SAHA.
12-I.B. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.455]
As a family’s income increases, the amount of the housing assistance payment decreases. If the
amount of assistance provided by SAHA is reduced to zero, the family's assistance terminates
automatically 180 days after the last HAP payment.
SAHA Policy
If a participating family receiving zero housing assistance experiences a change in
circumstances that would cause the HAP payment to rise above zero, the family must
notify SAHA of the changed circumstances and request an interim reexamination before
the expiration of the 180-day period.
12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE
The family may request that SAHA terminate housing assistance payments on behalf of the
family at any time.
SAHA Policy
The request to terminate assistance must be made in writing and signed by the head of
household, spouse, or co-head. Before terminating the family’s assistance, SAHA will
follow the notice requirements in Section 12-II.E.
12-I.D. MANDATORY TERMINATION OF ASSISTANCE
HUD requires SAHA to terminate assistance in the following circumstances.
Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]
SAHA must terminate assistance whenever a family is evicted from a unit assisted under the
HCV program for a serious or repeated violation of the lease. As discussed further in section 12-
II.E, incidents of actual or threatened domestic violence, dating violence, sexual assault, or
stalking may not be construed as serious or repeated violations of the lease by the victim or
threatened victim of such violence or stalking.
SAHA Policy
A family will be considered evicted if the family moves after a legal eviction order has
been issued, whether or not physical enforcement of the order was necessary.
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If a family moves after the owner has given the family an eviction notice for serious or
repeated lease violations but before a legal eviction order has been issued, termination of
assistance is not mandatory. However, SAHA will determine whether the family has
committed serious or repeated violations of the lease based on available evidence and
may terminate assistance or take any of the alternative measures described in Section 12-
II.C. In making its decision, SAHA will consider the factors described in sections 12-
II.D and 12-II.E. Upon consideration of such alternatives and factors, SAHA may on a
case by case basis choose not to terminate assistance.
Serious and repeated lease violations will include, but not be limited to, nonpayment of
rent, disturbance of neighbors, destruction of property, or living or housekeeping habits
that cause damage to the unit or premises, and criminal activity. Generally, the criteria to
be used are whether the reason for the eviction was through no fault of the tenant or
guests.
Failure to Provide Consent [24 CFR 982.552(b)(3)]
SAHA must terminate assistance if any family member fails to sign and submit any consent form
they are required to sign for a regular or interim reexamination. See Chapter 7 for a complete
discussion of consent requirements.
Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)]
SAHA must terminate assistance if (1) a family fails to submit required documentation within
the required timeframe concerning any family member’s citizenship or immigration status; (2) a
family submits evidence of citizenship and eligible immigration status in a timely manner, but
United States Citizenship and Immigration Services (USCIS) primary and secondary verification
does not verify eligible immigration status of the family; or (3) a family member, as determined
by SAHA, has knowingly permitted another individual who is not eligible for assistance to reside
(on a permanent basis) in the unit.
For (3) above, such termination must be for a period of at least 24 months. This does not apply to
ineligible noncitizens already in the household where the family’s assistance has been prorated.
See Chapter 7 for a complete discussion of documentation requirements.
Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c),
Notice PIH 2012-10]
SAHA must terminate assistance if a participant family fails to disclose the complete and
accurate social security numbers of each household member and the documentation necessary to
verify each social security number.
However, if the family is otherwise eligible for continued program assistance, and SAHA
determines that the family’s failure to meet the SSN disclosure and documentation requirements
was due to circumstances that could not have been foreseen and were outside of the family’s
control, SAHA may defer the family’s termination and provide the opportunity to comply with
the requirement within a period not to exceed 90 calendar days from the date SAHA determined
the family to be noncompliant.
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SAHA Policy
SAHA will defer the family’s termination and provide the family with the opportunity to
comply with the requirement for a period of 90 calendar days for circumstances beyond
the participant’s control such as delayed processing of the SSN application by the SSA,
natural disaster, fire, death in the family, or other emergency, if there is a reasonable
likelihood that the participant will be able to disclose an SSN by the deadline.
Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)]
SAHA must terminate assistance if any household member has ever been convicted of the
manufacture or production of methamphetamine on the premises of federally-assisted housing.
Lifetime Registered Sex Offenders [Notice PIH 2012-28]
Should SAHA discover that a member of an assisted household was subject to a lifetime
registration requirement at admission and was erroneously admitted after June 25, 2001, SAHA
must immediately terminate assistance for the household member.
In this situation, SAHA must offer the family the opportunity to remove the ineligible family
member from the household. If the family is unwilling to remove that individual from the
household, SAHA must terminate assistance for the household.
Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and
FR 4/10/06]
If a student enrolled at an institution of higher education is under the age of 24, is not a veteran,
is not married, does not have dependent children, is not residing with his/her parents in an HCV
assisted household, and is not a person with disabilities receiving HCV assistance as of
November 30, 2005, SAHA must the terminate the student’s assistance if, at the time of
reexamination, either the student’s income or the income of the student’s parents (if applicable)
exceeds the applicable income limit.
If a participant household consists of both eligible and ineligible students, the eligible students
shall not be terminated, but must be issued a voucher to move with continued assistance in
accordance with program regulations and SAHA policies, or must be given the opportunity to
lease in place if the terminated ineligible student members elect to move out of the assisted unit.
Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2010-9]
SAHA must immediately terminate program assistance for deceased single member households.
12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS
Mandatory Policies [24 CFR 982.553(b) and 982.551(l)]
HUD requires SAHA to establish policies that permit SAHA to terminate assistance if SAHA
determines that:
• Any household member is currently engaged in any illegal use of a drug, or has a pattern of
illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the
premises by other residents
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• Any household member’s abuse or pattern of abuse of alcohol may threaten the health,
safety, or right to peaceful enjoyment of the premises by other residents
• Any household member has violated the family’s obligation not to engage in any drug-
related criminal activity
• Any household member has violated the family’s obligation not to engage in violent criminal
activity
Use of Illegal Drugs and Alcohol Abuse
SAHA Policy
SAHA will terminate a family’s assistance if any household member is currently engaged
in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the
health, safety, or right to peaceful enjoyment of the premises by other residents.
SAHA will terminate assistance if any household member’s abuse or pattern of abuse of
alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by
other residents.
Currently engaged in is defined as any use of illegal drugs in the assisted-unit.
SAHA will consider all credible evidence, including but not limited to, any record of
arrests, convictions, or eviction of household members related to the use of illegal drugs
or abuse of alcohol.
In making its decision to terminate assistance, SAHA will consider alternatives as
described in Section 12-II.C and other factors described in Section 12-II.D. Upon
consideration of such alternatives and factors, SAHA may, on a case-by-case basis,
choose not to terminate assistance.
Drug-Related and Violent Criminal Activity [24 CFR 5.100]
Drug means a controlled substance as defined in section 102 of the Controlled Substances Act
(21 U.S.C. 802).
Drug-related criminal activity is defined by HUD as the illegal manufacture, sale, distribution, or
use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the
drug.
Violent criminal activity means any criminal activity that has as one of its elements the use,
attempted use, or threatened use of physical force substantial enough to cause, or be reasonably
likely to cause, serious bodily injury or property damage.
SAHA Policy
SAHA will terminate a family’s assistance if any household member has violated the
family’s obligation not to engage in any drug-related or violent criminal activity during
participation in the HCV program.
SAHA will consider all credible evidence, including but not limited to, any record of
arrests and/or convictions of household members related to drug-related or violent
criminal activity, and any eviction or notice to evict based on drug-related or violent
criminal activity.
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In making its decision to terminate assistance, SAHA will consider alternatives as
described in Section 12-II.C and other factors described in Section 12-II.D. Upon
consideration of such alternatives and factors, SAHA may, on a case-by-case basis,
choose not to terminate assistance.
Other Authorized Reasons for Termination of Assistance
[24 CFR 982.552(c), 24 CFR 5.2005(c)]
HUD permits SAHA to terminate assistance under a number of other circumstances. It is left to
the discretion of SAHA whether such circumstances in general warrant consideration for the
termination of assistance. As discussed further in section 12-II.E, the Violence against Women
Act of 2013 explicitly prohibits PHAs from considering incidents of, or criminal activity directly
related to, domestic violence, dating violence, sexual assault, or stalking as reasons for
terminating the assistance of a victim of such abuse.
SAHA Policy
SAHA will terminate a family’s assistance if:
The family has failed to comply with any family obligations under the program.
See Exhibit 12-1 for a listing of family obligations and related SAHA policies.
Any family member has been evicted from federally-assisted housing in the last
five years.
Any family member has committed fraud, bribery, or any other corrupt or
criminal act in connection with any federal housing program.
The family currently owes rent or other amounts to any PHA in connection with
the HCV, Certificate, Moderate Rehabilitation or public housing programs.
The family has breached the terms of a repayment agreement entered into with
SAHA.
A family member has engaged in or threatened violent or abusive behavior toward
SAHA personnel.
Abusive or violent behavior towards SAHA personnel includes verbal as
well as physical abuse or violence. Use of racial epithets, or other
language, written or oral, that is customarily used to intimidate may be
considered abusive or violent behavior.
Threatening refers to oral or written threats or physical gestures that
communicate intent to abuse or commit violence.
In making its decision to terminate assistance, SAHA will consider alternatives as
described in Section 12-II.C and other factors described in Sections 12-II.D and 12-II.E.
Upon consideration of such alternatives and factors, SAHA may, on a case-by-case basis,
choose not to terminate assistance.
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Family Absence from the Unit [24 CFR 982.312]
The family may be absent from the unit for brief periods. SAHA must establish a policy on how
long the family may be absent from the assisted unit. However, the family may not be absent
from the unit for a period of more than 180 consecutive calendar days for any reason. Absence in
this context means that no member of the family is residing in the unit.
SAHA Policy
If the family is planning on being absent from the unit in excess of 15 days, the family
must notify SAHA.
If the family is absent from the unit for more than 30 days for medical reasons, the family
must provide written verification from a physician or other licensed health care provider.
If the family is absent from the unit for more than 60 consecutive calendar days, the
family’s assistance will be terminated. Notice of termination will be sent in accordance
with Section 12-II.F.
Insufficient Funding [24 CFR 982.454]
SAHA may terminate HAP contracts if SAHA determines, in accordance with HUD
requirements, that funding under the consolidated ACC is insufficient to support continued
assistance for families in the program.
SAHA Policy
SAHA will determine whether there is sufficient funding to pay for currently assisted
families according to the policies in Part VIII of Chapter 16. If SAHA determines there is
a shortage of funding, prior to terminating any HAP contracts, SAHA will determine if
any other actions can be taken to reduce program costs. Those include but are not limited
to the following:
o Deny portability to higher payment standard areas
o Lower payment standards
o Develop separate utility allowance schedule for energy efficient units
If after implementing all reasonable cost cutting measures there remains insufficient
funding available to provide continued assistance for current participants, SAHA will
terminate HAP contracts as a last resort.
Prior to terminating any HAP contracts, SAHA will inform the local HUD field office.
SAHA will terminate the minimum number needed in order to reduce HAP costs to a
level within SAHA’s annual budget authority.
If SAHA must terminate HAP contracts due to insufficient funding, SAHA will do so in
accordance with the following criteria and instructions:
SAHA will terminate HAP contracts after performing a lottery to place participants in
order, excluding elderly, disabled, and project based families. These families will be
placed at the top of the waiting list and as funding becomes available they will be
reinstated to the program if all eligibility criteria are still met.
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PART II: APPROACH TO TERMINATION OF ASSISTANCE
12-II.A. OVERVIEW
SAHA is required by regulation to terminate a family’s assistance for certain actions or inactions
of the family. For other types of actions or inactions of the family, the regulations give SAHA
the authority to either terminate the family’s assistance or to take another action. This part
discusses the various actions SAHA may choose to take when it has discretion, and outlines the
criteria SAHA will use to make its decision about whether or not to terminate assistance. It also
specifies the requirements for the notification to the family of SAHA’s intent to terminate
assistance.
12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)]
Termination of assistance for a participant may include any or all of the following:
• Terminating housing assistance payments under a current HAP contract,
• Refusing to enter into a new HAP contract or approve a lease, or
• Refusing to process a request for or to provide assistance under portability procedures.
12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE
Change in Household Composition
As a condition of continued assistance, SAHA may require that any household member who
participated in or was responsible for an offense no longer resides in the unit [24 CFR
982.552(c)(2)(ii)].
SAHA Policy
As a condition of continued assistance, the head of household must certify that the
culpable family member has vacated the unit and will not be permitted to visit or to stay
as a guest in the assisted unit. The family must present evidence of the former family
member’s current address upon SAHA request.
Repayment of Family Debts
SAHA Policy
If a family owes amounts to SAHA, as a condition of continued assistance, SAHA will
require the family to repay the full amount or to enter into a repayment agreement, within
30 days of receiving notice from SAHA of the amount owed. See Chapter 16 for policies
on repayment agreements.
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12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE
Evidence
For criminal activity, HUD permits SAHA to terminate assistance if a preponderance of the
evidence indicates that a household member has engaged in the activity, regardless of whether
the household member has been arrested or convicted [24 CFR 982.553(c)].
SAHA Policy
SAHA will use the concept of the preponderance of the evidence as the standard for
making all termination decisions.
Preponderance of the evidence is defined as evidence which is of greater weight or more
convincing than the evidence which is offered in opposition to it; that is, evidence which
as a whole shows that the fact sought to be proved is more probable than not.
Preponderance of the evidence may not be determined by the number of witnesses, but by
the greater weight of all evidence
Consideration of Circumstances [24 CFR 982.552(c)(2)(i)]
SAHA is permitted, but not required, to consider all relevant circumstances when determining
whether a family’s assistance should be terminated.
SAHA Policy
SAHA will consider the following factors when making its decision to terminate
assistance:
The seriousness of the case, especially with respect to how it would affect other
residents
The effects that termination of assistance may have on other members of the
family who were not involved in the action or failure
The extent of participation or culpability of individual family members, including
whether the culpable family member is a minor or a person with disabilities or (as
discussed further in section 12-II.E) a victim of domestic violence dating
violence, or stalking
The length of time since the violation occurred, the family’s recent history and the
likelihood of favorable conduct in the future
In the case of drug or alcohol abuse, whether the culpable household member is
participating in or has successfully completed a supervised drug or alcohol
rehabilitation program or has otherwise been rehabilitated successfully. SAHA
will require the participant to submit evidence of the household member’s current
participation in or successful completion of a supervised drug or alcohol
rehabilitation program, or evidence of otherwise having been rehabilitated
successfully.
In the case of program abuse, the dollar amount of the overpaid assistance and
whether or not a false certification was signed by the family.
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Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)]
If the family includes a person with disabilities, SAHA’s decision to terminate the family’s
assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR
Part 8.
SAHA Policy
If a family indicates that the behavior of a family member with a disability is the reason
for a proposed termination of assistance, SAHA will determine whether the behavior is
related to the disability. If so, upon the family’s request, SAHA will determine whether
alternative measures are appropriate as a reasonable accommodation. SAHA will only
consider accommodations that can reasonably be expected to address the behavior that is
the basis of the proposed termination of assistance. See Chapter 2 for a discussion of
reasonable accommodation.
12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING
VIOLENCE, SEXUAL ASSAULT OR STALKING
This section describes the protections against termination of assistance that the Violence against
Women Act of 2013 (VAWA) provides for victims of domestic violence, dating violence, sexual
assault and stalking. For general VAWA requirements, key VAWA definitions, and SAHA
policies pertaining to notification, documentation, and confidentiality, see section 16-IX of
this plan.
VAWA Protections against Termination
VAWA provides four specific protections against termination of HCV assistance for victims of
domestic violence, dating violence, sexual assault or stalking. (Note: The second, third, and
fourth protections also apply to terminations of tenancy or occupancy by owners participating in
the HCV program, as do the limitations discussed under the next heading.)
First, VAWA provides that a SAHA may not terminate assistance to a family that moves out of
an assisted unit in violation of the lease, with or without prior notification to SAHA, if the move
occurred to protect the health or safety of a family member who is or has been the victim of
domestic violence, dating violence, sexual assault or stalking and who reasonably believed he or
she was imminently threatened by harm from further violence if he or she remained in the unit
[24 CFR 982.354(b)(4)].
Second, it provides that an incident or incidents of actual or threatened domestic violence, dating
violence, sexual assault or stalking may not be construed either as a serious or repeated lease
violation by the victim or as good cause to terminate the assistance of the victim [24 CFR
5.2005(c)(1)].
Third, it provides that criminal activity directly related to domestic violence, dating violence,
sexual assault or stalking may not be construed as cause for terminating the assistance of a tenant
if a member of the tenant’s household, a guest, or another person under the tenant’s control is the
one engaging in the criminal activity and the tenant or affiliated individual or other individual is
the actual or threatened victim of the domestic violence, dating violence, or stalking [24 CFR
5.2005(c)(2)].
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Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who
engages in criminal acts of physical violence against family members or others without
terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)].
Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)]
VAWA does not limit the authority of a SAHA to terminate the assistance of a victim of abuse
for reasons unrelated to domestic violence, dating violence, sexual assault or stalking so long as
SAHA does not subject the victim to a more demanding standard than it applies to other program
participants [24 CFR 5.2005(d)(1)].
Likewise, VAWA does not limit the authority of a SAHA to terminate the assistance of a victim
of domestic violence, dating violence, sexual assault or stalking if SAHA can demonstrate an
actual and imminent threat to other tenants or those employed at or providing service to the
assisted property if the victim is not terminated from assistance [24 CFR 5.2005(d)(2)].
HUD regulations define actual and imminent threat to mean words, gestures, actions, or other
indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame,
and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In
determining whether an individual would pose an actual and imminent threat, the factors to be
considered include:
• The duration of the risk
• The nature and severity of the potential harm
• The likelihood that the potential harm will occur
• The length of time before the potential harm would occur [24 CFR 5.2005(e)]
Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a
SAHA to terminate the victim’s assistance “only when there are no other actions that could be
taken to reduce or eliminate the threat” [24 CFR 5.2005(d)(3)].
SAHA Policy
In determining whether a participant who is a victim of domestic violence, dating
violence, or stalking is an actual and imminent threat to other tenants or those employed
at or providing service to a property, SAHA will consider the following, and any other
relevant, factors:
o Whether the threat is toward an employee or tenant other than the victim of
domestic violence, dating violence, or stalking
o Whether the threat is a physical danger beyond a speculative threat
o Whether the threat to other tenants or employees can be eliminated in some other
way, such as by helping the victim relocate to a confidential location
If the participant wishes to contest SAHA’s determination that he or she is an actual and
imminent threat to other tenants or employees, the participant may do so as part of the
informal hearing.
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Documentation of Abuse [24 CFR 5.2007]
SAHA Policy
When an individual facing termination of assistance for reasons related to domestic
violence, dating violence, or stalking claims protection under VAWA, SAHA will request
that the individual provide documentation supporting the claim in accordance with the
policies in Chapter 16-IX.D of this plan.
SAHA reserves the right to waive the documentation requirement if it determines that a
statement or other corroborating evidence from the individual will suffice. In such cases
SAHA will document the waiver in the individual’s file.
Terminating the Assistance of a Domestic Violence Perpetrator
Although VAWA provides protection against termination of assistance for victims of domestic
violence, it does not provide such protection for perpetrators. VAWA gives SAHA the explicit
authority to “terminate assistance to any individual who is a tenant or lawful occupant and who
engages in criminal acts of physical violence against family members or others” without
terminating assistance to “or otherwise penalizing the victim of such violence who is also a
tenant or lawful occupant” [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated
lease or other eviction action by an owner against an individual family member. Further, this
authority supersedes any local, state, or other federal law to the contrary. However, if SAHA
chooses to exercise this authority, it must follow any procedures prescribed by HUD or by
applicable local, state, or federal law regarding termination of assistance. This means that SAHA
must follow the same rules when terminating assistance to an individual as it would when
terminating the assistance of an entire family [3/16/07 Federal Register notice on the
applicability of VAWA to HUD programs].
SAHA Policy
SAHA will terminate assistance to a family member if SAHA determines that the family
member has committed criminal acts of physical violence against other family members
or others. This action will not affect the assistance of the remaining, non-culpable family
members.
In making its decision, SAHA will consider all credible evidence, including, but not
limited to, a signed certification (form HUD-50066) or other documentation of abuse
submitted to SAHA by the victim in accordance with section16-IX-D. SAHA will also
consider the factors in section 12-II.D. Upon such consideration, SAHA may, on a case-
by-case basis, choose not to terminate the assistance of the culpable family member.
If SAHA does terminate the assistance of the culpable family member, it will do so in
accordance with applicable law, HUD regulations, and the policies in this plan.
12-II.F. TERMINATION NOTICE
HUD regulations require PHAs to provide written notice of termination of assistance to a family
only when the family is entitled to an informal hearing. However, since the family’s HAP
contract and lease will also terminate when the family’s assistance terminates [form HUD-
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52641], it is a good business practice to provide written notification to both owner and family
anytime assistance will be terminated, whether voluntarily or involuntarily.
SAHA Policy
Whenever a family’s assistance will be terminated, SAHA will send a written notice of
termination to the family and to the owner. The notice will state the date on which the
termination will become effective. This date generally will be at least 30 calendar days
following the date of the termination notice, but exceptions will be made whenever HUD
regulations, other SAHA policies, or circumstances surrounding the termination require.
When SAHA notifies an owner that a family’s assistance will be terminated, SAHA will,
if appropriate, advise the owner of his/her right to offer the family a separate, unassisted
lease.
If a family whose assistance is being terminated is entitled to an informal hearing, the notice of
termination that SAHA sends to the family must meet the additional HUD and SAHA notice
requirements discussed in section 16-III.C of this plan. VAWA 2013 expands notification
requirements to require PHAs to provide notice of VAWA rights and the HUD 50066 form
whena SAHA terminates a household’s housing benefits.
SAHA Policy
Whenever SAHA decides to terminate a family’s assistance because of the family’s
action or failure to act, SAHA will include in its termination notice the VAWA
information described in Section 16-IX.C of this plan and will request that a family
member wishing to claim protection under VAWA notify SAHA within 14 days.
Still other notice requirements apply in two situations:
• If a criminal record is the basis of a family’s termination, SAHA must provide a copy of the
record to the subject of the record and the tenant so that they have an opportunity to dispute
the accuracy and relevance of the record [24 CFR 982.553(d)(2)].
• If immigration status is the basis of a family’s termination, as discussed in section 12-I.D, the
special notice requirements in section 16-III.D must be followed.
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PART III: TERMINATION OF TENANCY BY THE OWNER
12-III.A. OVERVIEW
Termination of an assisted tenancy is a matter between the owner and the family; SAHA is not
directly involved. However, the owner is under some constraints when terminating an assisted
tenancy. Termination of tenancy for certain reasons will also result in termination of assistance
as discussed in this section.
12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24
CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum]
During the term of the lease, the owner is not permitted to terminate the tenancy except for
serious or repeated violations of the lease, certain violations of state or local law, or other
good cause.
Serious or Repeated Lease Violations
The owner is permitted to terminate the family’s tenancy for serious or repeated violations of the
terms and conditions of the lease, except when the violations are related to incidents of actual or
threatened domestic violence, dating violence, sexual assault or stalking and the victim is
protected from eviction by the Violence against Women Act of 2013 (see section 12-II.E). A
serious lease violation includes failure to pay rent or other amounts due under the lease.
However, SAHA’s failure to make a HAP payment to the owner is not a violation of the lease
between the family and the owner.
Violation of Federal, State, or Local Law
The owner is permitted to terminate the tenancy if a family member violates federal, state, or
local law that imposes obligations in connection with the occupancy or use of the premises.
Criminal Activity or Alcohol Abuse
The owner may terminate tenancy during the term of the lease if any covered person—meaning
any member of the household, a guest, or another person under the tenant’s control—commits
any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100):
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment
of the premises by, other residents (including property management staff residing on the
premises)
• Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment
of their residences by, persons residing in the immediate vicinity of the premises
• Any violent criminal activity on or near the premises
• Any drug-related criminal activity on or near the premises
However, in the case of criminal activity directly related to domestic violence, dating violence,
sexual assault or stalking, if the tenant or an affiliated individual is the victim, the criminal
activity may not be construed as cause for terminating the victim’s tenancy (see section 12-II.E).
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The owner may terminate tenancy during the term of the lease if any member of the
household is:
• Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an
attempt to commit a crime that is a felony under the laws of the place from which the
individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or
• Violating a condition of probation or parole imposed under federal or state law.
The owner may terminate tenancy during the term of the lease if any member of the household
has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment
of the premises by other residents.
Evidence of Criminal Activity
The owner may terminate tenancy and evict by judicial action a family for criminal activity by a
covered person if the owner determines the covered person has engaged in the criminal activity,
regardless of whether the covered person has been arrested or convicted for such activity and
without satisfying the standard of proof used for a criminal conviction. This is the case except in
certain incidents where the criminal activity directly relates to domestic violence, dating
violence, sexual assault, or stalking, and the tenant or an affiliated individual is the victim or
threatened victim of the domestic violence, dating violence, sexual assault, or stalking.
Other Good Cause
During the initial lease term, the owner may not terminate the tenancy for “other good cause”
unless the owner is terminating the tenancy because of something the family did or failed to do.
During the initial lease term or during any extension term, other good cause includes the
disturbance of neighbors, destruction of property, or living or housekeeping habits that cause
damage to the unit or premises.
After the initial lease term, “other good cause” for termination of tenancy by the owner includes:
• Failure by the family to accept the offer of a new lease or revision
• The owner’s desire to use the unit for personal or family use, or for a purpose other than as a
residential rental unit
• A business or economic reason for termination of the tenancy (such as sale of the property,
renovation of the unit, or desire to lease the unit at a higher rent)
After the initial lease term, the owner may give the family notice at any time, in accordance with
the terms of the lease.
12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy
Addendum]
The owner must give the tenant a written notice that specifies the grounds for termination of
tenancy during the term of the lease. The tenancy does not terminate before the owner has given
this notice, and the notice must be given at or before commencement of the eviction action.
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The notice of grounds may be included in, or may be combined with, any owner eviction notice
to the tenant.
Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used
under state or local law to commence an eviction action. The owner may only evict the tenant
from the unit by instituting a court action. The owner must give SAHA a copy of any eviction
notice at the same time the owner notifies the family. The family is also required to give SAHA a
copy of any eviction notice (see Chapter 5).
SAHA Policy
If the eviction action is finalized in court, the owner must provide SAHA with
documentation related to the eviction, including notice of the eviction date, as soon as
possible, but no later than 5 business days following the court-ordered eviction.
12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h),
24 CFR 982.310(h)(4)]
An owner who has grounds to terminate a tenancy is not required to do so, and may consider all
of the circumstances relevant to a particular case before making a decision. These might include:
• The nature of the offending action
• The seriousness of the offending action;
• The effect on the community of the termination, or of the owner’s failure to terminate the
tenancy;
• The extent of participation by the leaseholder in the offending action;
• The effect of termination of tenancy on household members not involved in the offending
activity;
• The demand for assisted housing by families who will adhere to lease responsibilities;
• The extent to which the leaseholder has shown personal responsibility and taken all
reasonable steps to prevent or mitigate the offending action;
• The effect of the owner's action on the integrity of the program.
The owner may require a family to exclude a household member in order to continue to reside in
the assisted unit, where that household member has participated in or been culpable for action or
failure to act that warrants termination.
In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a
household member who is no longer engaged in such behavior, the owner may consider whether
such household member is participating in or has successfully completed a supervised drug or
alcohol rehabilitation program, or has otherwise been rehabilitated successfully (42 U.S.C.
13661). For this purpose, the owner may require the tenant to submit evidence of the household
member's current participation in, or successful completion of, a supervised drug or alcohol
rehabilitation program or evidence of otherwise having been rehabilitated successfully.
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The owner's termination of tenancy actions must be consistent with the fair housing and equal
opportunity provisions in 24 CFR 5.105.
An owner’s decision to terminate tenancy for incidents related to domestic violence, dating
violence, sexual assault or stalking is limited by the Violence against Women Act of 2013
(VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.)
12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY’S ASSISTANCE
If a termination is not due to a serious or repeated violation of the lease, and if SAHA has no
other grounds for termination of assistance, SAHA may issue a new voucher so that the family
can move with continued assistance (see Chapter 10).
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EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS
Following is a listing of a participant family’s obligations under the HCV program:
• The family must supply any information that SAHA or HUD determines to be necessary,
including submission of required evidence of citizenship or eligible immigration status.
• The family must supply any information requested by SAHA or HUD for use in a regularly
scheduled reexamination or interim reexamination of family income and composition.
• The family must disclose and verify social security numbers and sign and submit consent
forms for obtaining information.
• Any information supplied by the family must be true and complete.
• The family is responsible for any Housing Quality Standards (HQS) breach by the family
caused by failure to pay tenant-provided utilities or appliances, or damages to the dwelling
unit or premises beyond normal wear and tear caused by any member of the household or
guest.
SAHA Policy
Damages beyond normal wear and tear will be considered to be damages which could be
assessed against the participant and the security deposit.
• The family must allow SAHA to inspect the unit at reasonable times and after reasonable
notice, as described in Chapter 8 of this plan.
• The family must not commit any serious or repeated violation of the lease.
SAHA Policy
SAHA will determine if a family has committed serious or repeated violations of the
lease based on available evidence, including but not limited to, a court-ordered eviction,
or an owner’s notice to evict.
Serious and repeated lease violations will include, but not be limited to, nonpayment of
rent, disturbance of neighbors, destruction of property, or living or housekeeping habits
that cause damage to the unit or premises and criminal activity. Generally, the criterion to
be used is whether the reason for the eviction was through no fault of the tenant or guests.
Any incidents of, or criminal activity related to, domestic violence, dating violence, or
stalking will not be construed as serious or repeated lease violations by the victim [24
CFR 5.2005(C)(1)].
• The family must notify SAHA and the owner before moving out of the unit or terminating
the lease.
SAHA Policy
The family must comply with lease requirements regarding written notice to the owner.
The family must provide written notice to SAHA at the same time the owner is notified.
• The family must promptly give SAHA a copy of any owner eviction notice.
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• The family must use the assisted unit for residence by the family. The unit must be the
family’s only residence.
• The composition of the assisted family residing in the unit must be approved by SAHA. The
family must promptly notify SAHA in writing of the birth, adoption, or court-awarded
custody of a child. The family must request SAHA approval to add any other family member
as an occupant of the unit.
SAHA Policy
The request to add a family member must be submitted in writing and approved prior to
the person moving into the unit. SAHA will determine eligibility of the new member in
accordance with the policies in Chapter 3 of this plan.
Only SAHA approved family members may receive mail at the assisted unit.
• The family must promptly notify SAHA in writing if any family member no longer lives in
the unit.
• If SAHA has given approval, a foster child or a live-in aide may reside in the unit. SAHA has
the discretion to adopt reasonable policies concerning residency by a foster child or a live-in
aide, and to define when SAHA consent may be given or denied. For policies related to the
request and approval/disapproval of foster children, foster adults, and live-in aides, see
Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B).
• The family must not sublease the unit, assign the lease, or transfer the unit.
SAHA Policy
Subleasing includes receiving payment to cover rent and utility costs by a person living in
the unit who is not an approved family member.
• The family must supply any information requested by SAHA to verify that the family is
living in the unit or information related to family absence from the unit.
• The family must promptly notify SAHA when the family is absent from the unit.
SAHA Policy
Notice is required under this provision only when all family members will be absent from
the unit for an extended period. An extended period is defined as any period greater than
30 calendar days. Written notice must be provided to SAHA at the start of the extended
absence.The family must pay utility bills and provide and maintain any appliances that
the owner is not required to provide under the lease [Form HUD-52646, Voucher].
• The family must not own or have any interest in the unit, (other than in a cooperative and
owners of a manufactured home leasing a manufactured home space).
• Family members must not commit fraud, bribery, or any other corrupt or criminal act in
connection with the program. (See Chapter 14, Program Integrity for additional information).
• Family members must not engage in drug-related criminal activity or violent criminal activity
or other criminal activity that threatens the health, safety or right to peaceful enjoyment of
other residents and persons residing in the immediate vicinity of the premises. See Chapter
12 for HUD and SAHA policies related to drug-related and violent criminal activity.
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• Members of the household must not engage in abuse of alcohol in a way that threatens the
health, safety or right to peaceful enjoyment of the other residents and persons residing in the
immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and SAHA
policies related to alcohol abuse.
• An assisted family or member of the family must not receive HCV program assistance while
receiving another housing subsidy, for the same unit or a different unit under any other
federal, state or local housing assistance program.
• A family must not receive HCV program assistance while residing in a unit owned by a
parent, child, grandparent, grandchild, sister or brother of any member of the family, unless
SAHA has determined (and has notified the owner and the family of such determination) that
approving rental of the unit, notwithstanding such relationship, would provide reasonable
accommodation for a family member who is a person with disabilities. [Form HUD-52646,
Voucher]
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Chapter 13
OWNERS
INTRODUCTION
Owners play a major role in the HCV program by supplying decent, safe, and sanitary housing
for participating families.
The term “owner” refers to any person or entity with the legal right to lease or sublease a unit to
a participant in the HCV program [24 CFR 982.4(b)]. The term “owner” includes a principal or
other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the
owner.
Owners have numerous responsibilities under the program, including screening and leasing to
families, maintaining the dwelling unit, enforcing the lease, and complying with various
contractual obligations.
The chapter is organized in two parts:
Part I: Owners in the HCV Program. This part discusses the role of an owner in SAHA’s
HCV program and highlights key owner rights and responsibilities.
Part II: HAP Contracts. This part explains provisions of the HAP contract and the
relationship between SAHA and the owner as expressed in the HAP contract.
For detailed information about HCV program responsibilities and processes, including SAHA
policies in key areas, owners will need to refer to several other chapters in this plan. Where
appropriate, Chapter 13 will reference the other chapters.
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PART I. OWNERS IN THE HCV PROGRAM
13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6]
Recruitment
PHAs are responsible for ensuring that very low income families have access to all types and
ranges of affordable housing in SAHA’s jurisdiction, particularly housing outside areas of
poverty or minority concentration. A critical element in fulfilling this responsibility is for SAHA
to ensure that a sufficient number of owners, representing all types and ranges of affordable
housing in SAHA’s jurisdiction, are willing to participate in the HCV program.
To accomplish this objective, PHAs must identify and recruit new owners to participate in the
program.
SAHA Policy
SAHA will conduct owner outreach to ensure that owners are familiar with the program
and its advantages. SAHA will actively recruit property owners with property located
outside areas of poverty and minority concentration. These outreach strategies will
include:
Distributing printed material about the program to property owners and managers
Holding bi-annual owner information meetings.
Participating in community based organizations comprised of private property and
apartment owners and managers (e.g. the Apartment Association)
Developing working relationships with owners and real estate brokers associations
Outreach strategies will be monitored for effectiveness, and adapted accordingly.
Retention
In addition to recruiting owners to participate in the HCV program, SAHA must also provide the
kind of customer service that will encourage participating owners to remain active in the
program.
SAHA Policy
In order to minimize vacancy losses for owners, all SAHA activities such as determining
rent reasonableness, rent negotiations and unit approval will be completed within 14 days
of when SAHA receives a completed RFTA packet and/or when the unit becomes
available for inspection, whichever is later.
SAHA will provide owners with a handbook that explains the program, including HUD
and SAHA policies and procedures, in easy-to-understand language.
SAHA will give special attention to helping new owners succeed through activities such
as:
Providing owners with a designated SAHA contact person.
Direct deposit for issuance of HAP.
Free listing of vacant units on www.GoSection8.com
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Coordinating inspection and leasing activities between SAHA, the owner, and the
family.
Initiating telephone contact with owners to explain the inspection process, and
provide an inspection booklet and other resource materials about HUD Housing
Quality Standards.
Providing other written information about how the program operates, including
answers to frequently asked questions.
Providing monthly electronic newsletters via email to update owners when
changes occur to the HCV program by HUD or SAHA
Additional services may be undertaken on an as-needed basis, and as resources permit.
13-I.B. BASIC HCV PROGRAM REQUIREMENTS
HUD requires SAHA to assist families in their housing search by providing the family with a list
of landlords or other parties known to SAHA who may be willing to lease a unit to the family, or
to help the family find a unit. Although SAHA cannot maintain a list of owners that are pre-
qualified to participate in the program, owners may indicate to SAHA their willingness to lease a
unit to an eligible HCV family, or to help the HCV family find a unit [24 CFR 982.301(b)(11)].
SAHA Policy
SAHA will provide an online software module at www.Gosection8.com for owners and
property managers to list their properties and allow families to search for available units.
When a family approaches an owner to apply for tenancy, the owner is responsible for screening
the family and deciding whether to lease to the family, just as the owner would with any
potential unassisted tenant. SAHA has no liability or responsibility to the owner or other persons
for the family’s behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant
family screening policies and process.
If the owner is willing, the family and the owner must jointly complete a Request for Tenancy
Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the
specified unit, and which documents the owner’s willingness to lease to the family and to follow
the program’s requirements. When submitted to SAHA, this document is the first step in the
process of obtaining approval for the family to receive the financial assistance it will need in
order to occupy the unit. Also submitted with the RTA is a copy of the owner’s proposed
dwelling lease, including the HUD-required Tenancy Addendum (Form HUD-52641-A). See
Chapter 9 for more detail on request for tenancy approval policies and process.
HUD regulations stipulate requirements for the approval of an assisted tenancy.
The owner must be qualified to participate in the program [24 CFR 982.306]. Some owners are
precluded from participating in the program, or from renting to a particular family, either
because of their past history with this or another federal housing program, or because of certain
conflicts of interest. Owner qualifications are discussed later in this chapter.
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The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain
types of dwelling units cannot be assisted under the HCV program. Other types may be assisted
under certain conditions. See chapter 9 for more detail on unit eligibility policies and process.
The selected unit must meet HUD’s Housing Quality Standards (HQS) and/or equivalent state or
local standards approved by HUD [24 CFR 982.305(a)]. SAHA will inspect the owner’s
dwelling unit at least annually to ensure that the unit continues to meet HQS requirements. See
chapter 8 for a discussion of the HQS standards and policies for HQS inspections at initial lease-
up and throughout the family’s tenancy. SAHA must determine that the proposed rent for the
unit is reasonable [24 CFR 982.305(a)]. The rent must be reasonable in relation to comparable
unassisted units in the area and must not be in excess of rents charged by the owner for
comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and
policies on rent reasonableness, rent comparability and the rent reasonableness determination
process.
At initial lease-up of a unit, if the gross rent exceeds the applicable payment standard, SAHA
must ensure that the family share does not exceed 40 percent of the family’s monthly adjusted
income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income,
family share of rent and HAP.
The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are
encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy
Addendum includes the HUD requirements governing the tenancy and must be added word-for-
word to the owner’s lease. See chapter 9 for a discussion of the dwelling lease and tenancy
addendum, including lease terms and provisions.
SAHA and the owner must execute a Housing Assistance Payment (HAP) Contract (Form HUD-
52641). The HAP contract format is prescribed by HUD. See chapter 9 for a discussion of the
HUD requirements for execution of the HAP contract.
13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.452]
The basic owner responsibilities in the HCV program are outlined in the regulations as follows:
• Complying with all of the owner’s obligations under the housing assistance payments (HAP)
contract and the lease
• Performing all management and rental functions for the assisted unit, including selecting a
voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit
• Maintaining the unit in accordance with the Housing Quality Standards (HQS), including
performance of ordinary and extraordinary maintenance
• Complying with equal opportunity requirements
• Preparing and furnishing to SAHA information required under the HAP contract
• Collecting the security deposit, the tenant rent, and any charges for unit damage by
the family.
• Enforcing tenant obligations under the dwelling lease
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• Paying for utilities and services that are not the responsibility of the family as specified in
the lease
• Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a
disabled person [24 CFR 100.203]
• Complying with the Violence against Women Reauthorization Act of 2013 (VAWA) when
screening prospective HCV tenants or terminating the tenancy of an HCV family (see 24
CFR Part 5, Subpart L; 24 CFR 982.310(h)(4); and 24 CFR 982.452(b)(1))
13-I.D. OWNER QUALIFICATIONS
SAHA does not formally approve an owner to participate in the HCV program. However, there
are a number of criteria where SAHA may deny approval of an assisted tenancy based on past
owner behavior, conflict of interest, or other owner-related issues. No owner has a right to
participate in the HCV program [24 CFR 982.306(e)].
Owners Barred from Participation [24 CFR 982.306(a) and (b)]
SAHA must not approve the assisted tenancy if SAHA has been informed that the owner has
been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24.
HUD may direct SAHA not to approve a tenancy request if a court or administrative agency has
determined that the owner violated the Fair Housing Act or other federal equal opportunity
requirements, or if such an action is pending.
Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2]
SAHA must not approve a tenancy if the owner is the parent, child, grandparent, grandchild,
sister, or brother of any member of the family. SAHA may make an exception as a reasonable
accommodation for a family member with a disability. The owner is required to certify that no
such relationship exists. This restriction applies at the time that the family receives assistance
under the HCV program for occupancy of a particular unit. Current contracts on behalf of owners
and families that are related may continue, but any new leases or contracts for these families may
not be approved.
Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19]
SAHA must not approve a tenancy in which any of the following classes of persons has any
interest, direct or indirect, during tenure or for one year thereafter:
• Any present or former member or officer of SAHA (except a participant commissioner)
• Any employee of SAHA, or any contractor, subcontractor or agent of SAHA, who formulates
policy or who influences decisions with respect to the programs
• Any public official, member of a governing body, or State or local legislator, who exercises
functions or responsibilities with respect to the programs
• Any member of the Congress of the United States
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HUD may waive the conflict of interest requirements, except for members of Congress, for good
cause. SAHA must submit a waiver request to the appropriate HUD Field Office for
determination.
Any waiver request submitted by SAHA must include the following [HCV Guidebook pp.11-2
and 11-3]:
• Complete statement of the facts of the case;
• Analysis of the specific conflict of interest provision of the HAP contract and justification as
to why the provision should be waived;
• Analysis of and statement of consistency with state and local laws. The local HUD office,
SAHA, or both parties may conduct this analysis. Where appropriate, an opinion by the
state’s attorney general should be obtained;
• Opinion by the local HUD office as to whether there would be an appearance of impropriety
if the waiver were granted;
• Statement regarding alternative existing housing available for lease under the HCV program
or other assisted housing if the waiver is denied;
• If the case involves a hardship for a particular family, statement of the circumstances and
discussion of possible alternatives;
• If the case involves a public official or member of the governing body, explanation of his/her
duties under state or local law, including reference to any responsibilities involving the HCV
program;
• If the case involves employment of a family member by SAHA or assistance under the HCV
program for an eligible SAHA employee, explanation of the responsibilities and duties of the
position, including any related to the HCV program;
• If the case involves an investment on the part of a member, officer, or employee of SAHA,
description of the nature of the investment, including disclosure/divestiture plans.
Where SAHA has requested a conflict of interest waiver, SAHA may not execute the HAP
contract until HUD has made a decision on the waiver request.
SAHA Policy
In considering whether to request a conflict of interest waiver from HUD, SAHA will
consider certain factors such as consistency of the waiver with state and local laws; the
existence of alternative housing available to families; the individual circumstances of a
particular family; the specific duties of individuals whose positions present a possible
conflict of interest; the nature of any financial investment in the property and plans for
disclosure/divestiture; and the possible appearance of impropriety.
Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)]
HUD regulations permit SAHA to disapprove a request for tenancy for various actions and
inactions of the owner.
If SAHA disapproves a request for tenancy because an owner is not qualified, it may not
terminate the HAP contract for any assisted families that are already living in the owner’s
properties unless the owner has violated the HAP contract for those units [HCV GB p. 11-4].
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SAHA Policy
SAHA will refuse to approve a request for tenancy if SAHA becomes aware that any of
the following are true:
The owner has violated obligations under a HAP contract under Section 8 of the
1937 Act (42 U.S.C. 1437f);
The owner has committed fraud, bribery or any other corrupt or criminal act in
connection with any federal housing program;
The owner has engaged in any drug-related criminal activity or any violent
criminal activity;
The owner has a history or practice of non-compliance with HQS for units leased
under the tenant-based programs, or with applicable housing quality standards for
units leased with project-based Section 8 assistance or leased under any other
federal housing program;
The owner has a history or practice of failing to terminate tenancy of tenants of
units assisted under Section 8 or any other federally assisted housing program for
activity engaged in by the tenant, any member of the household, a guest or
another person under the control of any member of the household that: (i)
Threatens the right to peaceful enjoyment of the premises by other residents; (ii)
Threatens the health or safety of other residents, of employees of SAHA, or of
owner employees or other persons engaged in management of the housing; (iii)
Threatens the health or safety of, or the right to peaceful enjoyment of their
residences, by persons residing in the immediate vicinity of the premises; or (iv)
Is engaged in drug-related criminal activity or violent criminal activity;
The owner has a history or practice of renting units that fail to meet state or local
housing codes; or
The owner has not paid state or local real estate taxes, fines, or assessments.
In considering whether to disapprove owners for any of the discretionary reasons listed
above, SAHA will consider any mitigating factors. Such factors may include, but are not
limited to, the seriousness of the violation in relation to program requirements, the impact
on the ability of families to lease units under the program, health and safety of
participating families, among others. Upon consideration of such circumstances, SAHA
may, on a case-by-case basis, choose to approve an owner.
Legal Ownership of Unit
The following represents SAHA policy on legal ownership of a dwelling unit to be assisted
under the HCV program.
SAHA Policy
SAHA will only enter into a contractual relationship with the legal owner of a qualified
unit. No tenancy will be approved without acceptable documentation of legal ownership
(e.g., deed of trust, proof of property taxes for most recent year). If the owner requests a
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different party to receive HAP from SAHA, the owner must provide legal documentation
to authorize (management agreement or power-of attorney).
13-I.E. NON-DISCRIMINATION [HAP Contract – Form HUD-52641]
The owner must not discriminate against any person because of race, color, religion, sex,
national origin, age, familial status, or disability, in connection with any actions or
responsibilities under the HCV program and the HAP contract with SAHA.
The owner must cooperate with SAHA and with HUD in conducting any equal opportunity
compliance reviews and complaint investigations in connection with the HCV program and the
HAP contract with SAHA.
See Chapter 2 for a more thorough discussion of Fair Housing and Equal Opportunity
requirements in the HCV program.
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PART II. HAP CONTRACTS
13-II.A. OVERVIEW
The HAP contract represents a written agreement between SAHA and the owner of the dwelling
unit occupied by a HCV assisted family. The contract spells out the owner’s responsibilities
under the program, as well as SAHA’s obligations. Under the HAP contract, SAHA agrees to
make housing assistance payments to the owner on behalf of the family approved by SAHA to
occupy the unit.
The HAP contract is used for all HCV program tenancies except for assistance under the
Section 8 homeownership program, and assistance to families that own a manufactured home
and use their assistance to lease the space for the manufactured home. See chapter 15 for a
discussion of any special housing types included in SAHA’s HCV program.
When SAHA has determined that the unit meets program requirements and the tenancy is
approvable, SAHA and owner must execute the HAP contract. See chapter 9 for a discussion of
the leasing process, including provisions for execution of the HAP contract.
3-II.B. HAP CONTRACT CONTENTS
The HAP contract format is required by HUD, specifically Housing Assistance Payment (HAP)
Contract, Form HUD-52641.
The HAP contract contains three parts.
Part A of the contract includes basic contract information: the names of the tenant and all
household members, the address of the contract unit, start and end dates of initial lease term, the
amount of initial monthly rent to owner, the amount of initial housing assistance payment, the
utilities and appliances to be supplied by owner and tenant, and the signatures of SAHA
representative and owner [HCV Guidebook, pp. 11-10 and 11-11].
In general, the HAP contract cannot be modified. However, PHAs do have the discretion to add
language to Part A of the HAP contract which prohibits the owner from collecting a security
deposit in excess of private market practices or in excess of amounts charged to unassisted
tenants. SAHA policy on the amount of security deposit an owner may collect is found in
Chapter 9.
PHAs also have the discretion to add language to Part A of the HAP contract that defines when
the housing assistance payment by SAHA is deemed received by the owner (e.g., upon mailing
by SAHA or actual receipt by the owner).
SAHA Policy
SAHA has not adopted a policy that defines when the housing assistance payment by
SAHA is deemed received by the owner. Therefore, no modifications to the HAP
contract will be necessary.
Part B is the body of the contract. It describes in detail program requirements affecting the owner
and owner roles and responsibilities under the HCV program. Most of the requirements
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contained in Part B of the HAP contract are outlined elsewhere in this plan. Topics addressed in
Part B include:
• Lease of Contract Unit
• Maintenance, Utilities, and Other Services
• Term of HAP Contract
• Provision and Payment of Utilities and Appliances
• Rent to Owner: Reasonable Rent
• SAHA Payment to Owner
• Prohibition of Discrimination
• Owner’s Breach of HAP Contract
• SAHA and HUD Access to Premises and Owner’s Records
• Exclusion of Third Party Rights
• Conflict of Interest
• Assignment of the HAP Contract
• Written Notices
• Entire Agreement Interpretation
Part C of the contract includes the Tenancy Addendum (Form HUD-52641-A). The addendum
sets forth the tenancy requirements for the program and the composition of the household, as
approved by SAHA. The tenant has the right to enforce the Tenancy Addendum against the
owner. The terms of the Tenancy Addendum prevail over any other provisions of the lease.
13-II.C. HAP CONTRACT PAYMENTS
General
During the term of the HAP contract, and subject to the provisions of the HAP contract, SAHA
must make monthly HAP payments to the owner on behalf of the family, at the beginning of
each month. If a lease term begins after the first of the month, the HAP payment for the first
month is prorated for a partial month.
The amount of the HAP payment is determined according to the policies described in Chapter 6,
and is subject to change during the term of the HAP contract. SAHA must notify the owner and
the family in writing of any changes in the HAP payment.
HAP payments can be made only during the lease term, and only while the family is residing in
the unit.
The monthly HAP payment by SAHA is credited toward the monthly rent to owner under the
family’s lease. The total of the rent paid by the tenant and the HAP payment is equal to the rent
to owner as specified in the lease.
The family is not responsible for payment of the HAP payment, and SAHA is not responsible for
payment of the family share of rent.
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The family’s share of the rent cannot be more than the difference between the rent to owner and
the HAP payment. The owner may not demand or accept any rent payment from the tenant in
excess of this maximum [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra
amounts for items customarily included in rent in the locality, or provided at no additional cost to
unsubsidized tenants in the premises [24 CFR 982.510(c)]. See chapter 9 for a discussion of
separate, non-lease agreements for services, appliances and other items that are not included in
the lease.
If the owner receives any excess HAP from SAHA, the excess amount must be returned
immediately. If SAHA determines that the owner is not entitled to all or a portion of the HAP,
SAHA may deduct the amount of overpayment from any amounts due to the owner, including
amounts due under any other Section 8 HCV contract. See Chapter 16 for additional detail on
owner reimbursement of HAP overpayments.
SAHA Policy
SAHA will not initiate HAP payments until the HAP contract is executed.
Owner Certification of Compliance
Unless the owner complies with all provisions of the HAP contract, the owner is not entitled to
receive housing assistance payments under the HAP contract [HAP Contract – Form
HUD-52641].
By endorsing the monthly check from SAHA, the owner certifies to compliance with the terms
of the HAP contract. This includes certification that the owner is maintaining the unit and
premises in accordance with HQS; that the contract unit is leased to the tenant family and, to the
best of the owner’s knowledge, the family resides in the unit as the family’s only residence; the
rent to owner does not exceed rents charged by the owner for comparable unassisted units on the
premises; and that the owner does not receive (other than rent to owner) any additional payments
or other consideration for rent of the contract unit during the HAP term.
Late HAP Payments [24 CFR 982.451(a)(5)]
SAHA is responsible for making HAP payments promptly when due to the owner, in accordance
with the terms of the HAP contract. After the first two calendar months of the HAP contract
term, the HAP contract provides for late penalties if SAHA fails to make the HAP payment on
time.
Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with
generally accepted local rental market practices and law governing penalties for late payment by
tenants; 2) it is the owner’s normal business practice to charge late payment penalties for both
assisted and unassisted families; and 3) the owner charges the assisted family for late payment of
the family’s share of the rent.
SAHA is not required to pay a late payment penalty if HUD determines that the payment is late
for reasons beyond SAHA’s control. In addition, late payment penalties are not required if
SAHA intentionally delays or denies payment as a remedy to an owner breach of the HAP
contract [HCV Guidebook p. 11-7].
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SAHA Policy
SAHA will pay $25.00as a late fee to the owner for housing assistance payments that are
not mailed or deposited into the bank by the tenth business day of the month, if requested
by the owner in writing.
Termination of HAP Payments [24 CFR 982.311(b)]
SAHA must continue making housing assistance payments to the owner in accordance with the
HAP contract as long as the tenant continues to occupy the unit and the HAP contract is not
violated.
HAP payments terminate when the HAP contract terminates or when the tenancy is terminated in
accordance with the terms of the lease.
If the owner has initiated eviction proceedings against the family and the family continues to
reside in the unit, SAHA must continue to make housing assistance payments to the owner until
the owner has obtained a court judgment or other process allowing the owner to evict the tenant.
SAHA Policy
The owner must inform SAHA in writing when the owner has initiated eviction
proceedings against the family and the family continues to reside in the unit.
The owner must inform SAHA in writing when the owner has obtained a court judgment
or other process allowing the owner to evict the tenant, and provide SAHA with a copy of
such judgment or determination.
After the owner has obtained a court judgment or other process allowing the owner to
evict the tenant, SAHA will continue to make HAP payments to the owner until the
family actually moves from the unit or until the family is physically evicted from the unit,
whichever is earlier. The owner must inform SAHA of the date when the family actually
moves from the unit or the family is physically evicted from the unit.
13-II.D. BREACH OF HAP CONTRACT [24 CFR 982.453]
Any of the following actions by the owner constitutes a breach of the HAP contract:
• If the owner violates any obligations under the HAP contract including failure to maintain the
unit in accordance with HQS
• If the owner has violated any obligation under any other HAP contract under Section 8
• If the owner has committed fraud, bribery or any other corrupt or criminal act in connection
with any federal housing program
• For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed
to comply with the regulation for the applicable program; or if the owner has committed
fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan
• If the owner has engaged in drug-related criminal activity
• If the owner has committed any violent criminal activity
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If SAHA determines that a breach of the HAP contract has occurred, it may exercise any of its
rights and remedies under the HAP contract.
SAHA rights and remedies against the owner under the HAP contract include recovery of any
HAP overpayment, suspension of housing assistance payments, abatement or reduction of the
housing assistance payment, termination of the payment or termination of the HAP contract.
SAHA may also obtain additional relief by judicial order or action.
SAHA must notify the owner of its determination and provide in writing the reasons for the
determination. The notice may require the owner to take corrective action by an established
deadline. SAHA must provide the owner with written notice of any reduction in housing
assistance payments or the termination of the HAP contract.
SAHA Policy
Before SAHA invokes a remedy against an owner, SAHA will evaluate all information
and documents available to determine if the contract has been breached.
If it is determined that the owner has breached the contract, SAHA will consider all of the
relevant factors including the seriousness of the breach, the effect on the family, the
owner’s record of compliance and the number and seriousness of any prior HAP contract
violations.
13-II.E. HAP CONTRACT TERM AND TERMINATIONS
The term of the HAP contract runs concurrently with the term of the dwelling lease [24 CFR
982.451(a)(2)], beginning on the first day of the initial term of the lease and terminating on the
last day of the term of the lease, including any lease term extensions.
The HAP contract and the housing assistance payments made under the HAP contract terminate
if [HCV Guidebook pp.11-4 and 11-5, pg. 15-3]:
• The owner or the family terminates the lease;
• The lease expires;
• SAHA terminates the HAP contract;
• SAHA terminates assistance for the family;
• The family moves from the assisted unit. In this situation, the owner is entitled to keep the
housing assistance payment for the month when the family moves out of the unit.
• 180 calendar days have elapsed since SAHA made the last housing assistance payment to the
owner;
• The family is absent from the unit for longer than the maximum period permitted by SAHA;
• The Annual Contributions Contract (ACC) between SAHA and HUD expires
• SAHA elects to terminate the HAP contract.
SAHA Policy
SAHA may elect to terminate the HAP contract in each of the following situations:
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Available program funding is not sufficient to support continued assistance for
families in the program [24 CFR 982.454];
The unit does not meet HQS size requirements due to change in family composition
[24 CFR 982.403] – see chapter 8;
The unit does not meet HQS [24 CFR 982.404] – see chapter 8;
The family breaks up [HUD Form 52641] – see chapter 3;
The owner breaches the HAP contract [24 CFR 982.453(b)] – see Section 13-II.D.
If SAHA terminates the HAP contract, SAHA must give the owner and the family written notice.
The notice must specify the reasons for the termination and the effective date of the termination.
Once a HAP contract is terminated, no further HAP payments may be made under that contract
[HCV Guidebook pg.15-4].
SAHA Policy
In all cases, the HAP contract terminates 30 days following SAHA’s written notice to the
owner. The owner is not entitled to any housing assistance payment after this period, and
must return to SAHA any housing assistance payment received after this period.
If the family moves from the assisted unit into a new unit, even if the new unit is in the same
building or complex as the assisted unit, the HAP contract for the assisted unit terminates. A new
HAP contract would be required [HCV GB, p. 11-17].
When the family moves from an assisted unit into a new unit, the term of the HAP contract for
the new unit may begin in the same month in which the family moves out of its old unit. This is
not considered a duplicative subsidy [HCV GB, p. 8-22].
13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT
[HUD-52641]
The HAP contract cannot be assigned to a new owner without the prior written consent of
SAHA.
An owner under a HAP contract must notify SAHA in writing prior to a change in the legal
ownership of the unit. The owner must supply all information as requested by SAHA.
Prior to approval of assignment to a new owner, the new owner must agree to be bound by and
comply with the HAP contract. The agreement between the new owner and the former owner
must be in writing and in a form that SAHA finds acceptable. The new owner must provide
SAHA with a copy of the executed agreement.
SAHA Policy
Assignment of the HAP of the HAP contract will be approved only if the new owner is
qualified to become an owner under the HCV Program according to policies in Section
13-I.D. of this chapter.
SAHA must receive a signed, written Transfer of Ownership Packet from the new owner
stating the name and address of the new HAP payee and the effective date of the
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assignment in order to change the HAP payee under an existing HAP contract. The new
owner must provide a written certification to SAHA that includes, but is not limited to:
A copy of the escrow statement or other document showing the transfer of title
and/or recorded deed;
A copy of the owner’s IRS Form W-9, Request for Taxpayer Identification
Number and Certification, or the social security number of the new owner;
The effective date of the HAP contract assignment;
A new HAP contract signed by the new owner; and
Certification that the new owner is not a prohibited relative.
SAHA will only process the change of ownership with a future effective date unless HAP
has been held for prior months from the previous owner.
If the new owner does not agree to an assignment of the HAP contract, or fails to provide
the necessary documents, SAHA will terminate the HAP contract with the old owner. If
the new owner wants to offer the family a new lease, and the family elects to stay with
continued assistance, SAHA will process the lease in accordance with the policies in
Chapter 9.
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Chapter 14
PROGRAM INTEGRITY
INTRODUCTION
SAHA is committed to ensuring that subsidy funds made available to SAHA are spent in
accordance with HUD requirements.
This chapter covers HUD and SAHA policies designed to prevent, detect, investigate, and
resolve instances of program abuse or fraud. It also describes the actions that will be taken in the
case of unintentional errors and omissions.
Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part
presents SAHA policies related to preventing, detecting, and investigating errors and
program abuse.
Part II: Corrective Measures and Penalties. This part describes the corrective measures
SAHA must and may take when errors or program abuses are found.
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PART I: PREVENTING, DETECTING, AND
INVESTIGATING ERRORS AND PROGRAM ABUSE
14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE
HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful
tool for preventing errors and detecting program abuse. PHAs are required to use the EIV system
in its entirety in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are
further required to:
• Provide applicants and participants with form HUD-52675, “Debts Owed to PHAs and
Terminations”
• Require all adult members of an applicant or participant family to acknowledge receipt of
form HUD-52675 by signing a copy of the form for retention in the family file
SAHA Policy
To ensure that SAHA’s HCV program is administered effectively and according to the
highest ethical and legal standards, SAHA will employ a variety of techniques to ensure
that both errors and intentional program abuse are rare:
SAHA will discuss program compliance and integrity issues during the voucher
briefing sessions described in Chapter 5.
SAHA will provide each applicant and participant with a copy of “Is Fraud Worth
It?” (form HUD-1141-OIG), which explains the types of actions a family must
avoid and the penalties for program abuse.
SAHA will provide each applicant and participant with a copy of “What You
Should Know about EIV,” a guide to the Enterprise Income Verification (EIV)
system published by HUD as an attachment to Notice PIH 2010-19. In addition,
SAHA will require the head of each household to acknowledge receipt of the
guide by signing a copy for retention in the family file.
SAHA will place a warning statement about the penalties for fraud (as described
in 18 U.S.C. 1001 and 1010) on key SAHA forms and form letters that request
information from a family or owner.
SAHA staff will be required to review and explain the contents of all HUD- and
SAHA-required forms prior to requesting family member signatures.
At every regular reexamination, SAHA staff will explain any changes in HUD
regulations or SAHA policy that affects program participants,
SAHA will provide owners with ongoing information about the program, with an
emphasis on actions and situations to avoid.
SAHA will provide each employee with the necessary training on programs rules
and the organization’s standards of conduct and ethics.
For purposes of this chapter the term error refers to an unintentional error or omission.
Program abuse or fraud refers to a single act or pattern of actions that constitute a false
statement, omission, or concealment of a substantial fact, made with the intent to deceive
or mislead.
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14-I.B. DETECTING ERRORS AND PROGRAM ABUSE
In addition to taking steps to prevent errors and program abuse, SAHA will use a variety of
activities to detect errors and program abuse.
Quality Control and Analysis of Data
Under the Section 8 Management Assessment Program (SEMAP), HUD requires SAHA to
review a random sample of tenant records annually to determine if the records conform to
program requirements and to conduct quality control inspections of a sample of units to ensure
HQS compliance [24 CFR, Part 985]. (See Chapter 16 for additional information about SEMAP
requirements).
SAHA Policy
In addition to the SEMAP quality control requirements, SAHA will employ a variety of
methods to detect errors and program abuse:
SAHA routinely will use available sources of up-front income verification,
including HUD’s EIV system, to compare with family-provided information.
At each annual reexamination, current information provided by the family will be
compared to information provided at the last annual reexamination to identify
inconsistencies and incomplete information.
SAHA will compare family-reported income and expenditures to detect possible
unreported income.
Independent Audits and HUD Monitoring
OMB Circular A-133 requires all PHAs that expend $500,000 or more in federal awards
annually to have an independent audit (IPA). In addition, HUD conducts periodic on-site and
automated monitoring of SAHA activities and notifies SAHA of errors and potential cases of
program abuse.
SAHA Policy
SAHA will use the results reported in any IPA or HUD monitoring reports to identify
potential program abuses as well as to assess the effectiveness of SAHA’s error detection
and abuse prevention efforts.
Individual Reporting of Possible Errors and Program Abuse
SAHA Policy
SAHA will encourage staff, program participants, and the public to report possible
program abuse.
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14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE
When SAHA Will Investigate
SAHA Policy
SAHA will review all referrals, specific allegations, complaints, and tips from any source
including other agencies, companies, and individuals, to determine if they warrant
investigation. In order for SAHA to investigate, the allegation must contain at least one
independently-verifiable item of information, such as the name of an employer or the
name of an unauthorized household member.
SAHA will investigate inconsistent information related to the family that is identified
through file reviews and the verification process.
SAHA may use third party investigators for detailed investigations.
Consent to Release of Information [24 CFR 982.516]
SAHA may investigate possible instances of error or abuse using all available SAHA and public
records. If necessary, SAHA will require HCV families to sign consent forms for the release of
additional information.
Analysis and Findings
SAHA Policy
SAHA will base its evaluation on a preponderance of the evidence collected during its
investigation.
Preponderance of the evidence is defined as evidence which is of greater weight or more
convincing than the evidence which is offered in opposition to it; that is, evidence that as
a whole shows that the fact sought to be proved is more probable than not. Preponderance
of evidence may not be determined by the number of witnesses, but by the greater weight
of all evidence
For each investigation SAHA will determine (1) whether an error or program abuse has
occurred, (2) whether any amount of money is owed the PHA, and (3) what corrective
measures or penalties will be assessed.
Consideration of Remedies
All errors and instances of program abuse must be corrected prospectively. Whether SAHA will
enforce other corrective actions and penalties depends upon the nature of the error or program
abuse.
SAHA Policy
In the case of family-caused errors or program abuse, SAHA will take into consideration
(1) the seriousness of the offense and the extent of participation or culpability of
individual family members, (2) any special circumstances surrounding the case, (3) any
mitigating circumstances related to the disability of a family member, (4) the effects of a
particular remedy on family members who were not involved in the offense.
In the case of owner-caused errors or program abuse, SAHA will take into consideration
(1) the seriousness of the offense, (2) the length of time since the violation has occurred,
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and (3) the effects of a particular remedy on family members who were not involved in
the offense.
Notice and Appeals
SAHA Policy
SAHA will inform the relevant party in writing of its findings and remedies within 14
days of the conclusion of the investigation. The notice will include (1) a description of
the error or program abuse, (2) the basis on which SAHA determined the error or
program abuse, (3) the remedies to be employed , and (4) the family’s right to appeal the
results through the informal hearing process, if applicable (see Chapter 16).
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PART II: CORRECTIVE MEASURES AND PENALTIES
14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS
A subsidy under- or overpayment includes (1) an incorrect housing assistance payment to the
owner, (2) an incorrect family share established for the family, and (3) an incorrect utility
reimbursement to a family.
Corrections
Whether the incorrect subsidy determination is an overpayment or underpayment of subsidy,
SAHA must promptly correct the HAP, family share, and any utility reimbursement
prospectively.
SAHA Policy
Increases in the family share will be implemented only after the family has received a 30
day notice.
Any decreases in family share will become effective the first of the month following the
discovery of the error.
Reimbursement
Whether the family or owner is required to reimburse SAHA or SAHA is required to make
retroactive subsidy payments to the owner or family depends upon which party is responsible for
the incorrect subsidy payment and whether the action taken was an error or program abuse.
Policies regarding reimbursement are discussed in the three sections that follow.
14-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE
Family obligations and general administrative requirements for participating in the program are
discussed throughout this plan. This section deals specifically with errors and program abuse by
family members.
An incorrect subsidy determination caused by a family generally would be the result of incorrect
reporting of family composition, income, assets, or expenses, but also would include instances in
which the family knowingly allows SAHA to use incorrect information provided by a third party.
Family Reimbursement to SAHA [HCV GB pp. 22-12 to 22-13]
SAHA Policy
In the case of family-caused errors or program abuse, the family will be required to repay
any excess subsidy received. SAHA may, but is not required to, offer the family a
repayment agreement in accordance with Chapter 16. If the family fails to repay the
excess subsidy, SAHA will terminate the family’s assistance in accordance with the
policies in Chapter 12.
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SAHA Reimbursement to Family [HCV GB p. 22-12]
SAHA Policy
SAHA will not reimburse the family for any underpayment of assistance when the
underpayment clearly is caused by the family.
Prohibited Actions
An applicant or participant in the HCV program must not knowingly:
• Make a false statement to SAHA [Title 18 U.S.C. Section 1001].
• Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal
housing program [24 CFR 982.552(c)(iv)].
SAHA Policy
Any of the following will be considered evidence of family program abuse:
o Payment to the owner in excess of amounts authorized by SAHA for rent, security
deposit, and additional services
o Offering bribes or illegal gratuities to SAHA Board of Commissioners,
employees, contractors, or other SAHA representatives
o Offering payments or other incentives to the owner or a third party as an
inducement for the third party to make false or misleading statements to SAHA
on the family’s behalf
o Use of a false name or the use of falsified, forged, or altered documents
o Intentional misreporting of family information or circumstances (e.g. income,
family composition)
o Omitted facts that were obviously known by a family member (e.g., not reporting
employment income)
o Admission of program abuse by an adult family member
SAHA may determine other actions to be program abuse based upon a preponderance of
the evidence, as defined earlier in this chapter.
Penalties for Program Abuse
In the case of program abuse caused by a family SAHA may, at its discretion, impose any of the
following remedies.
• SAHA may require the family to repay excess subsidy amounts paid by SAHA, as described
earlier in this section.
• SAHA may require, as a condition of receiving or continuing assistance, that a culpable
family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter
12 (for participants).
• SAHA may deny or terminate the family’s assistance following the policies set forth in
Chapter 3 and Chapter 12 respectively.
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• SAHA may refer the family for state or federal criminal prosecution as described in section
14-II.E.
14-II.C. OWNER-CAUSED ERROR OR PROGRAM ABUSE
Owner requirements that are part of the regular process of offering, leasing, and maintaining a
unit (e.g., HQS compliance, fair housing) are addressed in the appropriate chapters of this plan.
This section focuses on errors and program abuse by owners.
An incorrect subsidy determination caused by an owner generally would be the result of an
incorrect owner statement about the characteristics of the assisted unit (e.g., the number of
bedrooms, which utilities are paid by the family). It also includes accepting duplicate housing
assistance payments for the same unit in the same month, or after a family no longer resides in
the unit.
Owner Reimbursement to SAHA
In all cases of overpayment of subsidy caused by the owner, the owner must repay to SAHA any
excess subsidy received. SAHA may recover overpaid amounts by withholding housing
assistance payments due for subsequent months, or if the debt is large, SAHA may allow the
owner to pay in installments over a period of time [HCV GB p. 22-13].
SAHA Policy
In cases where the owner has received excess subsidy, SAHA will require the owner to
repay the amount owed in accordance with the policies in Section 16-IV.B.
Prohibited Owner Actions
An owner participating in the HCV program must not:
• Make any false statement to SAHA [Title 18 U.S.C. Section 1001].
• Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal
housing program [24 CFR 982.453(a)(3)] including:
SAHA Policy
Any of the following will be considered evidence of owner program abuse:
o Charging the family rent above or below the amount specified by SAHA
o Charging a security deposit other than that specified in the family’s lease
o Charging the family for services that are provided to unassisted tenants at no extra
charge
o Knowingly accepting housing assistance payments for any month(s) after the
family has vacated the unit
o Knowingly accepting incorrect or excess housing assistance payments
o Offering bribes or illegal gratuities to SAHA Board of Commissioners,
employees, contractors, or other SAHA representatives
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o Offering payments or other incentives to an HCV family as an inducement for the
family to make false or misleading statements to SAHA
o Residing in the unit with an assisted family
Remedies and Penalties
When SAHA determines that the owner has committed program abuse, SAHA may take any of
the following actions:
• Require the owner to repay excess housing assistance payments, as discussed earlier in this
section and in accordance with the policies in Chapter 16.
• Terminate the HAP contract (See Chapter 13).
• Bar the owner from future participation in any SAHA programs.
• Refer the case to state or federal officials for criminal prosecution as described in section
14-II.E.
14-II.D. SAHA-CAUSED ERRORS OR PROGRAM ABUSE
The responsibilities and expectations of SAHA staff with respect to normal program
administration are discussed throughout this plan. This section specifically addresses actions of a
SAHA staff member that are considered errors or program abuse related to the HCV program.
Additional standards of conduct may be provided in SAHA personnel policy.
SAHA-caused incorrect subsidy determinations include (1) failing to correctly apply HCV rules
regarding family composition, income, assets, and expenses, (2) assigning the incorrect voucher
size to a family, and (3) errors in calculation.
Repayment to SAHA
Neither a family nor an owner is required to repay an overpayment of subsidy if the error or
program abuse is caused by SAHA staff [HCV GB. 22-12].
SAHA Reimbursement to Family or Owner
SAHA must reimburse a family for any underpayment of subsidy, regardless of whether the
underpayment was the result of staff-caused error or staff or owner program abuse. Funds for this
reimbursement must come from SAHA’s administrative fee reserves [HCV GB p. 22-12].
Prohibited Activities
SAHA Policy
Any of the following will be considered evidence of program abuse by SAHA staff:
o Failing to comply with any HCV program requirements for personal gain
o Failing to comply with any HCV program requirements as a result of a conflict of
interest relationship with any applicant, participant, or owner
o Seeking or accepting anything of material value from applicants, participating
families, vendors, owners, contractors, or other persons who provide services or
materials to SAHA
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o Disclosing confidential or proprietary information to outside parties
o Gaining profit as a result of insider knowledge of SAHA activities, policies, or
practices
o Misappropriating or misusing HCV funds
o Destroying, concealing, removing, or inappropriately using any records related to
the HCV program
o Committing any other corrupt or criminal act in connection with any federal
housing program
14-II.E. CRIMINAL PROSECUTION
SAHA Policy
When SAHA determines that program abuse by an owner, family, or SAHA staff
member has occurred and the amount of overpaid subsidy meets or exceeds the threshold
for prosecution under local or state law, SAHA will refer the matter to the appropriate
entity for prosecution. When the amount of overpaid assistance meets or exceeds the
federal threshold, the case will also be referred to the HUD Office of Inspector General
(OIG).
Other criminal violations related to the HCV program will be referred to the appropriate
local, state, or federal entity.
14-II.F . FRAUD AND PROGRAM ABUSE RECOVERIES
SAHA may retain a portion of program fraud losses that SAHA recovers from a family or owner
through litigation, court order, or a repayment agreement [24 CFR 982.163].
SAHA must be the principal party initiating or sustaining the action to recover amounts due from
tenants that are due as a result of fraud and abuse. 24 CFR 792.202 permits SAHA to retain the
greater of:
• 50 percent of the amount it actually collects from a judgment, litigation (including settlement
of a lawsuit) or an administrative repayment agreement, or
• Reasonable and necessary costs that SAHA incurs related to the collection including costs of
investigation, legal fees, and agency collection fees.
The family must be afforded the opportunity for an informal hearing in accordance with
requirements in 24 CFR 982.555.
If HUD incurs costs on behalf of SAHA related to the collection, these costs must be deducted
from the amount retained by SAHA.
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Chapter 15
SPECIAL HOUSING TYPES
[24 CFR 982 Subpart M]
INTRODUCTION
SAHA may permit a family to use any of the special housing types discussed in this chapter.
However, SAHA is not required to permit families receiving assistance in its jurisdiction to use
these housing types, except that PHAs must permit use of any special housing type if needed as a
reasonable accommodation for a person with a disability. SAHA also may limit the number of
families who receive HCV assistance in these housing types and cannot require families to use a
particular housing type. No special funding is provided for special housing types.
SAHA Policy
Families will be allowed to lease a manufactured home including manufactured home
space rental. Shared housing is only available to one-bedroom voucher holders. All
other special housing types may be approved as a reasonable accommodation. SAHA
does have a Homeownership Program.
Special housing types include single room occupancy (SRO), congregate housing, group homes,
shared housing, cooperative housing, manufactured homes where the family owns the home and
leases the space, and homeownership [24 CFR 982.601].
This chapter consists of the following seven parts. Each part contains a description of the
housing type and any special requirements associated with it. Except as modified by this chapter,
the general requirements of the HCV program apply to special housing types.
Part I: Single Room Occupancy
Part II: Congregate Housing
Part III: Group Homes
Part IV: Shared Housing
Part V: Cooperative Housing
Part VI: Manufactured Homes (including manufactured home space rental)
Part VII: Homeownership
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PART I: SINGLE ROOM OCCUPANCY
[24 CFR 982.602 through 982.605]
15-I.A. OVERVIEW
A single room occupancy (SRO) unit provides living and sleeping space for the exclusive use of
the occupant but requires the occupant to share sanitary and/or food preparation facilities with
others. More than one person may not occupy an SRO unit. HCV regulations do not limit the
number of units in an SRO facility, but the size of a facility may be limited by local ordinances.
When providing HCV assistance in an SRO unit, a separate lease and HAP contract are executed
for each assisted person, and the standard form of the HAP contract is used.
15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION
The payment standard for SRO housing is 75 percent of the zero-bedroom payment standard
amount on SAHA’s payment standard schedule.
The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero-
bedroom utility allowance.
The HAP for an assisted occupant in an SRO facility is the lower of the SRO payment standard
amount minus the TTP or the gross rent for the unit minus the TTP.
15-I.C. HOUSING QUALITY STANDARDS (HQS)
HQS requirements described in Chapter 8 apply to SRO housing except as modified below.
• Access: Access doors to the SRO unit must have working locks for privacy. The occupant
must be able to access the unit without going through any other unit. Each unit must have
immediate access to two or more approved means of exit from the building, appropriately
marked and leading to safe and open space at ground level. The SRO unit must also have any
other means of exit required by State or local law.
• Fire Safety: All SRO facilities must have a sprinkler system that protects major spaces.
“Major spaces” are defined as hallways, common areas, and any other areas specified in local
fire, building, or safety codes. SROs must also have hard-wired smoke detectors, and any
other fire and safety equipment required by state or local law.
Sanitary facilities and space and security standards must meet local code requirements for
SRO housing. In the absence of local code standards the requirements discussed below apply
[24 CFR 982.605].
• Sanitary Facilities: At least one flush toilet that can be used in privacy, a lavatory basin, and
a bathtub or shower in proper operating condition must be provided for each six persons (or
fewer) residing in the SRO facility. If the SRO units are leased only to men, flush urinals
may be substituted for up to one half of the required number of toilets. Sanitary facilities
must be reasonably accessible from a common hall or passageway, and may not be located
more than one floor above or below the SRO unit. They may not be located below grade
unless the SRO units are located on that level.
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• Space and Security: An SRO unit must contain at least 110 square feet of floor space, and at
least four square feet of closet space with an unobstructed height of at least five feet, for use
by the occupant. If the closet space is less than four square feet, the habitable floor space in
the SRO unit must be increased by the amount of the deficiency. Exterior doors and windows
accessible from outside the SRO unit must be lockable.
Because no children live in SRO housing, the housing quality standards applicable to lead-
based paint do not apply.
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PART II: CONGREGATE HOUSING
[24 CFR 982.606 through 982.609]
15-II.A. OVERVIEW
Congregate housing is intended for use by elderly persons or persons with disabilities. A
congregate housing facility contains a shared central kitchen and dining area and a private living
area for the individual household that includes at least a living room, bedroom and bathroom.
Food service for residents must be provided.
If approved by SAHA, a family member or live-in aide may reside with the elderly person or
person with disabilities. SAHA must approve a live-in aide if needed as a reasonable
accommodation so that the program is readily accessible to and usable by persons with
disabilities.
When providing HCV assistance in congregate housing, a separate lease and HAP contract are
executed for each assisted family, and the standard form of the HAP contract is used.
15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION
The payment standard for an individual unit in a congregate housing facility is based on the
number of rooms in the private living area. If there is only one room in the unit (not including the
bathroom or the kitchen, if a kitchen is provided), SAHA must use the payment standard for a
zero-bedroom unit. If the unit has two or more rooms (other than the bathroom and the kitchen),
SAHA must use the one-bedroom payment standard.
The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable
payment standard minus the TTP or the gross rent for the unit minus the TTP.
The gross rent for the unit for the purpose of calculating HCV assistance is the shelter portion
(including utilities) of the resident’s monthly housing expense only. The residents’ costs for food
service should not be included in the rent for a congregate housing unit.
15-II.C. HOUSING QUALITY STANDARDS
HQS requirements as described in Chapter 8 apply to congregate housing except for the
requirements stated below:
• Congregate housing must have (1) a refrigerator of appropriate size in the private
living area of each resident; (2) a central kitchen and dining facilities located within
the premises and accessible to the residents, and (3) food service for the residents,
that is not provided by the residents themselves.
• The housing quality standards applicable to lead-based paint do not apply.
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PART III: GROUP HOME
[24 CFR 982.610 through 982.614 and HCV GB p. 7-4]
15-III.A. OVERVIEW
A group home is a state-licensed facility intended for occupancy by elderly persons and/or
persons with disabilities. Except for live-in aides, all persons living in a group home, whether
assisted or not, must be elderly persons or persons with disabilities. Persons living in a group
home must not require continuous medical or nursing care.
A group home consists of bedrooms for residents, which can be shared by no more than two
people, and a living room, kitchen, dining area, bathroom, and other appropriate social,
recreational, or community space that may be shared with other residents.
No more than 12 persons may reside in a group home including assisted and unassisted residents
and any live-in aides.
If approved by SAHA, a live-in aide may live in the group home with a person with disabilities.
SAHA must approve a live-in aide if needed as a reasonable accommodation so that the program
is readily accessible to and usable by persons with disabilities.
When providing HCV assistance in a group home, a separate lease and HAP contract is executed
for each assisted family, and the standard form of the HAP contract is used.
15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP
CALCULATION
Unless there is a live-in aide, the family unit size for an assisted occupant of a group home must
be zero- or one-bedroom, depending on SAHA’s subsidy standard. If there is a live-in aide, the
aide must be counted in determining the household’s unit size.
The payment standard used to calculate the HAP is the lower of the payment standard for the
family unit size or the prorata share of the payment standard for the group home size. The prorata
share is calculated by dividing the number of persons in the assisted household by the number of
persons (assisted and unassisted) living in the group home.
The HAP for an assisted occupant in a group home is the lower of the payment standard minus
the TTP or the gross rent minus the TTP.
The utility allowance for an assisted occupant in a group home is the prorata share of the utility
allowance for the group home.
The rents paid for participants residing in group homes are subject to generally applicable
standards for rent reasonableness. The rent for an assisted person must not exceed the prorata
portion of the reasonable rent for the group home. In determining reasonable rent, SAHA should
consider whether sanitary facilities and facilities for food preparation and service are common
facilities or private facilities.
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15-III.C. HOUSING QUALITY STANDARDS
HQS requirements described in Chapter 8 apply to group homes except for the requirements
stated below.
• Sanitary Facilities: A group home must have at least one bathroom in the facility, with a
flush toilet that can be used in privacy, a fixed basin with hot and cold running water, and a
shower or bathtub with hot and cold running water. A group home may contain private or
common bathrooms. However, no more than four residents can be required to share a
bathroom.
• Food Preparation and Service: Group home units must contain a kitchen and dining area
with adequate space to store, prepare, and serve food. The facilities for food preparation and
service may be private or may be shared by the residents. The kitchen must contain a range,
an oven, a refrigerator, and a sink with hot and cold running water. The sink must drain into
an approvable public or private disposal system.
• Space and Security: Group homes must contain at least one bedroom of appropriate size for
every two people, and a living room, kitchen, dining area, bathroom, and other appropriate
social, recreational, or community space that may be shared with other residents.
• Structure and Material: To avoid any threat to the health and safety of the residents, group
homes must be structurally sound. Elevators must be in good condition. Group homes must
be accessible to and usable by residents with disabilities.
• Site and Neighborhood: Group homes must be located in a residential setting. The site and
neighborhood should be reasonably free from hazards to the health, safety, and general
welfare of the residents, and should not be subject to serious adverse conditions, such as:
- Dangerous walks or steps
- Instability
- Flooding, poor drainage
- Septic tank back-ups
- Sewage hazards
- Mud slides
- Abnormal air pollution
- Smoke or dust
- Excessive noise
- Vibrations or vehicular traffic
- Excessive accumulations of trash
- Vermin or rodent infestation, and
- Fire hazards.
The housing quality standards applicable to lead-based paint do not apply.
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PART IV: SHARED HOUSING
[24 CFR 982.615 through 982.618]
15-IV.A. OVERVIEW
Shared housing is a single housing unit occupied by an assisted family and another resident or
residents. The shared unit consists of both common space for use by the occupants of the unit
and separate private space for each assisted family.
An assisted family may share a unit with other persons assisted under the HCV program or with
other unassisted persons. The owner of a shared housing unit may reside in the unit, but housing
assistance may not be paid on behalf of the owner. The resident owner may not be related by
blood or marriage to the assisted family.
If approved by SAHA, a live-in aide may reside with the family to care for a person with
disabilities. SAHA must approve a live-in aide if needed as a reasonable accommodation so that
the program is readily accessible to and usable by persons with disabilities.
When providing HCV assistance in shared housing, a separate lease and HAP contract are
executed for each assisted family, and the standard form of the HAP contract is used.
15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION
The payment standard for a family in shared housing is the lower of the payment standard for the
family unit size or the prorata share of the payment standard for the shared housing unit size.
The prorata share is calculated by dividing the number of bedrooms available for occupancy by
the assisted family in the private space by the total number of bedrooms in the unit.
The HAP for a family in shared housing is the lower of the payment standard minus the TTP or
the gross rent minus the TTP. The utility allowance for an assisted family living in shared
housing is the prorata share of the utility allowance for the shared housing unit.
The rents paid for families living in shared housing are subject to generally applicable standards
for rent reasonableness. The rent paid to the owner for the assisted family must not exceed the
pro-rata portion of the reasonable rent for the shared unit. In determining reasonable rent, SAHA
should consider whether sanitary and food preparation areas are private or shared.
15-IV.C. HOUSING QUALITY STANDARDS
SAHA may not give approval to reside in shared housing unless the entire unit, including the
portion of the unit available for use by the assisted family under its lease, meets the housing
quality standards.
HQS requirements described in Chapter 8 apply to shared housing except for the requirements
stated below.
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• Facilities Available for the Family: Facilities available to the assisted family, whether shared
or private, must include a living room, a bathroom, and food preparation and refuse disposal
facilities.
• Space and Security: The entire unit must provide adequate space and security for all assisted
and unassisted residents. The private space for each assisted family must contain at least one
bedroom for each two persons in the family. The number of bedrooms in the private space of
an assisted family must not be less than the family unit size. A zero-bedroom or one-bedroom
unit may not be used for shared housing.
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PART V: COOPERATIVE HOUSING
[24 CFR 982.619]
15-V.A. OVERVIEW
This part applies to rental assistance for a cooperative member residing in cooperative housing. It
does not apply to assistance for a cooperative member who has purchased membership under the
HCV homeownership option, or to rental assistance for a family that leases a cooperative
housing unit from a cooperative member.
A cooperative is a form of ownership (nonprofit corporation or association) in which the
residents purchase memberships in the ownership entity. Rather than being charged “rent” a
cooperative member is charged a “carrying charge.”
When providing HCV assistance in cooperative housing, the standard form of the HAP contract
is used.
15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION
The payment standard and utility allowance are determined according to regular HCV program
requirements.
The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or
the monthly carrying charge for the unit, plus any utility allowance, minus the TTP. The monthly
carrying charge includes the member’s share of the cooperative debt service, operating expenses,
and necessary payments to cooperative reserve funds. The carrying charge does not include
down payments or other payments to purchase the cooperative unit or to amortize a loan made to
the family for this purpose.
15-V.C. HOUSING QUALITY STANDARDS
All standard HQS requirements apply to cooperative housing units. There are no additional HQS
requirements.
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PART VI: MANUFACTURED HOMES
[24 CFR 982.620 through 982.624]
15-VI.A. OVERVIEW
A manufactured home is a manufactured structure, transportable in one or more parts, that is
built on a permanent chassis, and designed for use as a principal place of residence. HCV-
assisted families may occupy manufactured homes in two different ways.
(1) A family can choose to rent a manufactured home already installed on a space and SAHA
must permit it. In this instance program rules are the same as when a family rents any other
residential housing, except that there are special HQS requirements as provided in 15-VI.D
below.
(2) HUD also permits an otherwise eligible family that owns a manufactured home to rent a
space for the manufactured home and receive HCV assistance with the rent for the space. PHAs
may, but are not required to, provide assistance for such families.
15-VI.B. SPECIAL POLICIES FOR MANUFACTURED HOME OWNERS WHO LEASE
A SPACE
Family Income
In determining the annual income of families leasing manufactured home spaces, the value of the
family’s equity in the manufactured home in which the family resides is not counted as a family
asset.
Lease and HAP Contract
There is a separate Tenancy Addendum (Form 52642-a) and separate HAP Contract (Form
52642) for this special housing type.
15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION
Payment Standards
The FMR for a manufactured home space is generally 40 percent of the published FMR for a
two-bedroom unit or, where approved by HUD, the 40th percentile of the rental distribution of
manufactured home spaces for the FMR area. SAHA may establish a payment standard for
manufactured home spaces that is between 90-110 percent of the FMR for manufactured home
spaces.
SAHA Policy
SAHA has established the payment standard for manufactured home space as 110% of
the published FMR.
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Utility Allowance
SAHA must establish utility allowances for manufactured home space rental. For the first 12
months of the initial lease term only, the allowance must include an amount for a utility hook-up
charge if the family actually incurred a hook-up charge because of a move. This allowance will
not be given to a family that leases in place. Utility allowances for manufactured home space
must not include the costs of digging a well or installing a septic system.
SAHA Policy
The utility allowance for a mobile home, regardless if the participant is the owner of the
coach or a renter will be a flat rate.
Space Rent
The space rent is the sum of the rent to the owner for the manufactured home space, any charges
for maintenance and management provided by the owner, and the utility allowance for tenant-
paid utilities.
Housing Assistance Payment
The HAP for a manufactured home space under the housing choice voucher program is the lower
of the payment standard minus the TTP or the (gross) manufactured home space rent minus the
TTP.
Rent Reasonableness
Initially, and annually thereafter SAHA must determine that the rent for the manufactured home
space is reasonable based on rents for comparable manufactured home spaces. SAHA must
consider the location and size of the space, and any services and maintenance to be provided by
the owner. By accepting the monthly HAP check, the owner certifies that the rent does not
exceed rents charged by the owner for comparable unassisted spaces in the manufactured home
park or elsewhere.
15-VI.D. HOUSING QUALITY STANDARDS
Under either type of occupancy described in 15-VI.A above, the manufactured home must meet
all HQS performance requirements and acceptability criteria discussed in Chapter 8 of this plan.
In addition, the following requirement applies:
Manufactured Home Tie-Down
A manufactured home must be placed on the site in a stable manner, and must be free from
hazards such as sliding or wind damage. The home must be securely anchored by a tie-down
device that distributes and transfers the loads imposed by the unit to appropriate ground anchors
to resist overturning and sliding.
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PART VII: HOMEOWNERSHIP
[24 CFR 982.625 through 982.643]
15-VII.A. OVERVIEW [24 CFR 982.625]
The homeownership option is used to assist a family residing in a home purchased and owned by
one or more members of the family. A family assisted under this option may be newly admitted
or an existing participant in the HCV program. SAHA must have the capacity to operate a
successful HCV homeownership program as defined by the regulations.
There are two forms of homeownership assistance a SAHA may offer under this option: monthly
homeownership assistance payments, or a single down payment assistance grant. PHAs may
choose to offer either or both forms of homeownership assistance, or choose not to offer either. If
a SAHA offers both forms of assistance, a family must choose which form of assistance to
receive.
SAHA must offer either form of homeownership assistance if needed as a reasonable
accommodation so that the program is readily accessible to and usable by persons with
disabilities. It is the sole responsibility of SAHA to determine whether it is reasonable to
implement a homeownership program as a reasonable accommodation. SAHA must determine
what is reasonable based on the specific circumstances and individual needs of the person with a
disability. SAHA may determine that it is not reasonable to offer homeownership assistance as a
reasonable accommodation in cases where SAHA has otherwise opted not to implement a
homeownership program.
SAHA must approve a live-in aide if needed as a reasonable accommodation so that the program
is readily accessible to and usable by persons with disabilities.
15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.627]
The family must meet all of the requirements listed below before the commencement of
homeownership assistance. SAHA may also establish additional initial requirements as long as
they are described in SAHA administrative plan.
• The family must have been admitted to the Housing Choice Voucher program.
• The family must qualify as a first-time homeowner, or may be a cooperative member.
• The family must meet the Federal minimum income requirement. The family must have a
gross annual income equal to the Federal minimum wage multiplied by 2000, based on the
income of adult family members who will own the home. SAHA may establish a higher
income standard for families. However, a family that meets the federal minimum income
requirement (but not the PHA's requirement) will be considered to meet the minimum
income requirement if it can demonstrate that it has been pre-qualified or pre-approved for
financing that is sufficient to purchase an eligible unit.
• For disabled families, the minimum income requirement is equal to the current SSI monthly
payment for an individual living alone, multiplied by 12.
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• For elderly or disabled families, welfare assistance payments for adult family members who
will own the home will be included in determining whether the family meets the minimum
income requirement. It will not be included for other families.
• The family must satisfy the employment requirements by demonstrating that one or more
adult members of the family who will own the home at commencement of homeownership
assistance is currently employed on a full-time basis (the term 'full-time employment' means
not less than an average of 30 hours per week); and has been continuously so employed
during the year before commencement of homeownership assistance for the family.
• The employment requirement does not apply to elderly and disabled families. In addition, if a
family, other than an elderly or disabled family includes a person with disabilities, SAHA
must grant an exemption from the employment requirement if SAHA determines that it is
needed as a reasonable accommodation.
• The family has not defaulted on a mortgage securing debt to purchase a home under the
homeownership option
• Except for cooperative members who have acquired cooperative membership shares prior to
commencement of homeownership assistance, no family member has a present ownership
interest in a residence at the commencement of homeownership assistance for the purchase of
any home.
• Except for cooperative members who have acquired cooperative membership shares prior to
the commencement of homeownership assistance, the family has entered a contract of sale in
accordance with 24 CFR 982.631(c).
SAHA Policy
SAHA has established additional eligibility requirements which are the following:
The family is not within the initial 12-month period of a HAP contract.
The family does not owe monies to SAHA.
The family must complete classes pertaining to money management and
homeownership and provide verification of completion.
SAHA may also require additional training or classes that will assist the
family in successful homeownership.
15-VII.C. SELECTION OF FAMILIES [24 CFR 982.626]
Unless otherwise provided (under the homeownership option), SAHA may limit homeownership
assistance to families or purposes defined by SAHA, and may prescribe additional requirements
for commencement of homeownership assistance for a family. Any such limits or additional
requirements must be described in SAHA administrative plan.
If SAHA limits the number of families that may participate in the homeownership option, SAHA
must establish a system by which to select families to participate.
SAHA Policy
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SAHA does not limit the number of families that may participate in the homeownership
option.
15-VII.D. ELIGIBLE UNITS [24 CFR 982.628]
In order for a unit to be eligible, SAHA must determine that the unit satisfies all of the following
requirements:
• The unit must meet HUD’s “eligible housing” requirements. The unit may not be any of the
following:
- A public housing or Indian housing unit;
- A unit receiving Section 8 project-based assistance;
- A nursing home, board and care home, or facility providing continual psychiatric,
medical or nursing services;
- A college or other school dormitory;
- On the grounds of penal, reformatory, medical, mental, or similar public or private
institutions.
• The unit must be under construction or already exist at the time the family enters into the
contract of sale.
• The unit must be a one-unit property or a single dwelling unit in a cooperative or
condominium.
• The unit must have been inspected by SAHA and by an independent inspector designated by
the family.
• The unit must meet Housing Quality Standards (see Chapter 8).
• For a unit where the family will not own fee title to the real property (such as a
manufactured home), the home must have a permanent foundation and the family must have
the right to occupy the site for at least 40 years.
• For SAHA-owned units all of the following conditions must be satisfied:
- SAHA informs the family, both orally and in writing, that the family has the right to
purchase any eligible unit and a SAHA-owned unit is freely selected by the family
without SAHA pressure or steering;
- The unit is not ineligible housing;
- SAHA obtains the services of an independent agency to inspect the unit for compliance
with HQS, review the independent inspection report, review the contract of sale,
determine the reasonableness of the sales price and any SAHA provided financing. All of
these actions must be completed in accordance with program requirements.
SAHA must not approve the unit if SAHA has been informed that the seller is debarred,
suspended, or subject to a limited denial of participation.
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15-VII.E. ADDITIONAL SAHA REQUIREMENTS FOR SEARCH AND PURCHASE [24
CFR 982.629]
It is the family’s responsibility to find a home that meets the criteria for voucher homeownership
assistance. SAHA may establish the maximum time that will be allowed for a family to locate
and purchase a home, and may require the family to report on their progress in finding and
purchasing a home. If the family is unable to purchase a home within the maximum time
established by SAHA, SAHA may issue the family a voucher to lease a unit or place the family’s
name on the waiting list for a voucher.
15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.630]
Before commencement of homeownership assistance for a family, the family must attend and
satisfactorily complete the pre-assistance homeownership and housing counseling program
required by SAHA. HUD suggests the following topics for SAHA-required pre-assistance
counseling:
• Home maintenance (including care of the grounds);
• Budgeting and money management;
• Credit counseling;
• How to negotiate the purchase price of a home;
• How to obtain homeownership financing and loan pre-approvals, including a description of
types of financing that may be available, and the pros and cons of different types of
financing;
• How to find a home, including information about homeownership opportunities, schools, and
transportation in SAHA jurisdiction;
• Advantages of purchasing a home in an area that does not have a high concentration of low-
income families and how to locate homes in such areas;
• Information on fair housing, including fair housing lending and local fair housing
enforcement agencies; and
• Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.)
(RESPA), state and Federal truth-in-lending laws, and how to identify and avoid loans with
oppressive terms and conditions.
SAHA may adapt the subjects covered in pre-assistance counseling (as listed) to local
circumstances and the needs of individual families.
SAHA may also offer additional counseling after commencement of homeownership assistance
(ongoing counseling). If SAHA offers a program of ongoing counseling for participants in the
homeownership option, SAHA shall have discretion to determine whether the family is required
to participate in the ongoing counseling.
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If SAHA does not use a HUD-approved housing counseling agency to provide the counseling,
SAHA should ensure that its counseling program is consistent with the counseling provided
under HUD’s Housing Counseling program.
15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND SAHA DISAPPROVAL
OF SELLER [24 CFR 982.631]
Home Inspections
SAHA may not commence monthly homeownership assistance payments or provide down
payment assistance grants for a family until SAHA has inspected the unit and has determined
that the unit passes HQS.
An independent professional inspector selected by and paid for by the family must also inspect
the unit. The independent inspection must cover major building systems and components,
including foundation and structure, housing interior and exterior, and the roofing, plumbing,
electrical, and heating systems. The independent inspector must be qualified to report on
property conditions, including major building systems and components.
SAHA may not require the family to use an independent inspector selected by SAHA. The
independent inspector may not be a SAHA employee or contractor, or other person under control
of SAHA. However, SAHA may establish standards for qualification of inspectors selected by
families under the homeownership option.
SAHA may disapprove a unit for assistance based on information in the independent inspector’s
report, even if the unit was found to comply with HQS.
Contract of Sale
Before commencement of monthly homeownership assistance payments or receipt of a down
payment assistance grant, a member or members of the family must enter into a contract of sale
with the seller of the unit to be acquired by the family. The family must give SAHA a copy of
the contract of sale. The contract of sale must:
• Specify the price and other terms of sale by the seller to the purchaser;
• Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by
an independent inspector selected by the purchaser;
• Provide that the purchaser is not obligated to purchase the unit unless the inspection is
satisfactory to the purchaser;
• Provide that the purchaser is not obligated to pay for any necessary repairs; and
• Contain a certification from the seller that the seller has not been debarred, suspended, or
subject to a limited denial of participation under CFR part 24.
Disapproval of a Seller
In its administrative discretion, SAHA may deny approval of a seller for the same reasons a
SAHA may disapprove an owner under the regular HCV program [see 24 CFR 982.306(c)].
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15-VII.H. FINANCING [24 CFR 982.632]
SAHA may establish requirements for financing purchase of a home under the homeownership
option. This may include requirements concerning qualification of lenders, terms of financing,
restrictions concerning debt secured by the home, lender qualifications, loan terms, and
affordability of the debt. SAHA must establish policies describing these requirements in the
administrative plan.
SAHA may not require that families acquire financing from one or more specified lenders,
thereby restricting the family’s ability to secure favorable financing terms.
15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24
CFR 982.633]
Homeownership assistance may only be paid while the family is residing in the home. If the
family moves out of the home, SAHA may not continue homeownership assistance after the
month when the family moves out. The family or lender is not required to refund to SAHA the
homeownership assistance for the month when the family moves out.
Before commencement of homeownership assistance, the family must execute a statement in
which the family agrees to comply with all family obligations under the homeownership option.
The family must comply with the following obligations:
• The family must comply with the terms of the mortgage securing debt incurred to purchase
the home, or any refinancing of such debt.
• The family may not convey or transfer ownership of the home, except for purposes of
financing, refinancing, or pending settlement of the estate of a deceased family member. Use
and occupancy of the home are subject to 24 CFR 982.551 (h) and (i).
• The family must supply information to SAHA or HUD as specified in 24 CFR 982.551(b).
The family must further supply any information required by SAHA or HUD concerning
mortgage financing or refinancing, sale or transfer of any interest in the home, or
homeownership expenses.
• The family must notify SAHA before moving out of the home.
• The family must notify SAHA if the family defaults on the mortgage used to purchase the
home.
• No family member may have any ownership interest in any other residential property.
• The family must comply with the obligations of a participant family described in 24 CFR
982.551, except for the following provisions which do not apply to assistance under the
homeownership option: 24 CFR 982.551(c), (d), (e), (f), (g) and (j).
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15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE [24 CFR 982.634]
Except in the case of a family that qualifies as an elderly or disabled family, other family
members (described below) shall not receive homeownership assistance for more than:
• Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of
20 years or longer; or
• Ten years, in all other cases.
The maximum term described above applies to any member of the family who:
• Has an ownership interest in the unit during the time that homeownership payments are
made; or
• Is the spouse of any member of the household who has an ownership interest in the unit
during the time homeownership payments are made.
In the case of an elderly family, the exception only applies if the family qualifies as an elderly
family at the start of homeownership assistance. In the case of a disabled family, the exception
applies if at any time during receipt of homeownership assistance the family qualifies as a
disabled family.
If, during the course of homeownership assistance, the family ceases to qualify as a disabled or
elderly family, the maximum term becomes applicable from the date homeownership assistance
commenced. However, such a family must be provided at least 6 months of homeownership
assistance after the maximum term becomes applicable (provided the family is otherwise eligible
to receive homeownership assistance).
If the family has received such assistance for different homes, or from different PHAs, the total
of such assistance terms is subject to the maximum term described in this part.
15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP
EXPENSES [24 CFR 982.635]
The monthly homeownership assistance payment is the lower of: the voucher payment standard
minus the total tenant payment, or the monthly homeownership expenses minus the total tenant
payment.
In determining the amount of the homeownership assistance payment, SAHA will use the same
payment standard schedule, payment standard amounts, and subsidy standards as those described
elsewhere in this plan for the Housing Choice Voucher program. The payment standard for a
family is the greater of (i) The payment standard as determined at the commencement of
homeownership assistance for occupancy of the home, or (ii) The payment standard at the most
recent regular reexamination of family income and composition since the commencement of
homeownership assistance for occupancy of the home.
SAHA may pay the homeownership assistance payments directly to the family, or at SAHA’s
discretion, to a lender on behalf of the family. If the assistance payment exceeds the amount due
to the lender, SAHA must pay the excess directly to the family.
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Homeownership assistance for a family terminates automatically 180 calendar days after the last
homeownership assistance payment on behalf of the family. However, a PHA may grant relief
from this requirement in those cases where automatic termination would result in extreme
hardship for the family.
SAHA must adopt policies for determining the amount of homeownership expenses to be
allowed by SAHA in accordance with HUD requirements.
SAHA Policy
Homeownership expenses (not including cooperatives) only include amounts allowed by
SAHA to cover:
• Principal and interest on initial mortgage debt, any refinancing of such debt, and any
mortgage insurance premium incurred to finance purchase of the home;
• Real estate taxes and public assessments on the home;
• Home insurance;
• SAHA allowance for maintenance expenses;
• SAHA allowance for costs of major repairs and replacements;
• SAHA utility allowance for the home;
• Principal and interest on mortgage debt incurred to finance costs for major repairs,
replacements or improvements for the home. If a member of the family is a person
with disabilities, such debt may include debt incurred by the family to finance costs
needed to make the home accessible for such person, if SAHA determines that
allowance of such costs as homeownership expenses is needed as a reasonable
accommodation so that the homeownership option is readily accessible to and usable
by such person;
• Land lease payments where a family does not own fee title to the real property on
which the home is located [see 24 CFR 982.628(b)];
• For a condominium unit, condominium operating charges or maintenance fees
assessed by the condominium homeowner association.
Homeownership expenses for a cooperative member may only include amounts allowed by
SAHA to cover:
• The cooperative charge under the cooperative occupancy agreement including payment for
real estate taxes and public assessments on the home;
• Principal and interest on initial debt incurred to finance purchase of cooperative membership
shares and any refinancing of such debt;
• Home insurance;
• SAHA allowance for maintenance expenses;
• SAHA allowance for costs of major repairs and replacements;
• SAHA utility allowance for the home; and
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• Principal and interest on debt incurred to finance major repairs, replacements or
improvements for the home. If a member of the family is a person with disabilities, such debt
may include debt incurred by the family to finance costs needed to make the home accessible
for such person, if SAHA determines that allowance of such costs as homeownership
expenses is needed as a reasonable accommodation so that the homeownership option is
readily accessible to and usable by such person.
• Cooperative operating charges or maintenance fees assessed by the cooperative homeowner
association.
15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553]
Subject to the restrictions on portability included in HUD regulations and SAHA policies, a
family may exercise portability if the receiving PHA is administering a voucher homeownership
program and accepting new homeownership families. The receiving PHA may absorb the family
into its voucher program, or bill the initial PHA.
The family must attend the briefing and counseling sessions required by the receiving PHA. The
receiving PHA will determine whether the financing for, and the physical condition of the unit,
are acceptable. The receiving PHA must promptly notify the initial PHA if the family has
purchased an eligible unit under the program, or if the family is unable to purchase a home
within the maximum time established by the PHA.
15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.637]
A family receiving homeownership assistance may move with continued tenant-based assistance.
The family may move with voucher rental assistance or with voucher homeownership assistance.
Continued tenant-based assistance for a new unit cannot begin so long as any family member
holds title to the prior home.
SAHA may deny permission to move to a new unit with continued voucher assistance:
• If SAHA has insufficient funding to provide continued assistance.
• In accordance with 24 CFR 982.638, regarding denial or termination of assistance.
• In accordance with SAHA’s policy regarding number of moves within a 12-month period.
SAHA must deny the family permission to move to a new unit with continued voucher rental
assistance if:
• The family defaulted on an FHA-insured mortgage; and
• The family fails to demonstrate that the family has conveyed, or will convey, title to the
home, as required by HUD, to HUD or HUD's designee; and the family has moved, or will
move, from the home within the period established or approved by HUD.
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15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.638]
At any time, SAHA may deny or terminate homeownership assistance in accordance with HCV
program requirements in 24 CFR 982.552 (Grounds for denial or termination of assistance) or 24
CFR 982.553 (Crime by family members).
SAHA may also deny or terminate assistance for violation of participant obligations described in
24 CFR Parts 982.551 or 982.633 and in accordance with its own policy.
SAHA must terminate voucher homeownership assistance for any member of family receiving
homeownership assistance that is dispossessed from the home pursuant to a judgment or order of
foreclosure on any mortgage (whether FHA insured or non-FHA) securing debt incurred to
purchase the home, or any refinancing of such debt.
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Chapter 16
PROGRAM ADMINISTRATION
INTRODUCTION
This chapter discusses administrative policies and practices that are relevant to the activities
covered in this plan. The policies are discussed in seven parts as described below:
Part I: Administrative Fee Reserve. This part describes SAHA’s policies with regard to
oversight of expenditures from its administrative fee reserve.
Part II: Setting Program Standards and Schedules. This part describes what payment
standards are, and how they are updated, as well as how utility allowances are established
and revised.
Part III: Informal Reviews and Hearings. This part outlines the requirements and
procedures for informal reviews and hearings, and for informal hearings regarding
citizenship status.
Part IV: Owner or Family Debts to SAHA. This part describes policies for recovery of
monies that SAHA has overpaid on behalf of families, or to owners, and describes the
circumstances under which SAHA will offer repayment agreements to owners and
families. Also discussed are the consequences for failure to make payments in accordance
with a repayment agreement.
Part V: Section 8 Management Assessment Program (SEMAP). This part describes what
the SEMAP scores represent, how they are established, and how those scores affect a
SAHA.
Part VI: Record-Keeping. All aspects of the program involve certain types of record-
keeping. This part outlines the privacy rights of applicants and participants and record
retention policies SAHA will follow.
Part VII: Reporting and Record Keeping for Children with Environmental Intervention
Blood Lead Level. This part describes SAHA’s responsibilities for reporting, data
collection, and record keeping relative to children with environmental intervention blood
lead levels that are less than six years of age, and are receiving HCV assistance.
Part VIII: Determination of Insufficient Funding. This part describes SAHA’s policies for
determining if there is sufficient funding to issue vouchers, to approve moves to higher
cost units or areas, and to continue assistance for all participant families.
Part IX: Violence against Women Act (VAWA): Notification, Documentation,
Confidentiality. This part contains key terms used in VAWA and describes requirements
related to notifying families and owners about their rights and responsibilities under
VAWA; requesting documentation from victims of domestic violence, dating violence,
sexual assault, and stalking; and maintaining the confidentiality of information obtained
from victims.
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PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155]
SAHA will maintain administrative fee reserves, or unrestricted net assets (UNA) for the
program to pay program administrative expenses in excess of administrative fees paid by HUD
for a SAHA fiscal year. HUD appropriations acts beginning with FFY 2004 have specified that
administrative fee funding may be used only for activities related to the provision of HCV
assistance, including related development activities. Notice PIH 2012-9 cites two examples of
related development activities: unit modification for accessibility purposes and development of
project-based voucher units. The notice makes clear that other activities may also qualify as
related development activities. Administrative fees that remain in the UNA account from funding
provided prior to 2004 may be used for “other housing purposes permitted by state and local
law,” in accordance with 24 CFR 982.155(b)(1).
If a PHA has not adequately administered its HCV program, HUD may prohibit use of funds in
the UNA Account and may direct the PHA to use funds in that account to improve
administration of the program, for HCV HAP expenses, or to reimburse ineligible expenses in
accordance with the regulation at 24 CFR 982.155(b)(3).
HUD requires SAHA Board of Commissioners or other authorized officials to establish the
maximum amount that may be charged against the UNA account without specific approval.
SAHA Policy
Expenditures from the administrative fee reserve will be made in accordance with all
applicable Federal requirements. Expenditures will not exceed $25,000 per occurrence
without the prior approval of the Housing Authority of the City of Santa Ana (Santa Ana
City Council).
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PART II: SETTING PROGRAM STANDARDS AND SCHEDULES
16-II.A. OVERVIEW
Although many of the program’s requirements are established centrally by HUD, the HCV
program’s regulations recognize that some flexibility is required to allow SAHA to adapt the
program to local conditions. This part discusses how SAHA establishes and updates certain
schedules and standards that are used to administer the program locally. Details about how these
schedules are applied to individual families are provided in other chapters. The schedules and
standards discussed here include:
• Payment Standards, which dictate the maximum subsidy a family can receive (application of
the payment standards is discussed in Chapter 6); and
• Utility Allowances, which specify how a family’s payment should be adjusted to account for
tenant-paid utilities (application of utility allowances is discussed in Chapter 6).
SAHA Policy
Copies of the payment standard and utility allowance schedules are available in SAHA’s
offices during normal business hours and on the City of Santa Ana website.
Families, owners, and members of the public may submit written comments on the
schedules discussed in this part, at any time, for consideration during the next revision
cycle.
SAHA will maintain documentation to support its annual review of payment standards
and utility allowance schedules. This documentation will be retained for at least 3 years.
Establishing and updating SAHA passbook rate, which is used to calculate imputed income from
assets, is covered in Chapter 6 (see Section 6-I.G.).
16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7]
The payment standard sets the maximum subsidy payment a family can receive from SAHA each
month [24 CFR 982.505(a)]. Payment standards are based on fair market rents (FMRs) published
annually by HUD. FMRs are set at a percentile within the rent distribution of standard quality
rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th percentile
of rents in the market area.
SAHA must establish a payment standard schedule that establishes payment standard amounts
for each FMR area within SAHA’s jurisdiction, and for each unit size within each of the FMR
areas. For each unit size, SAHA may establish a single payment standard amount for the whole
FMR area, or may set different payment standards for different parts of the FMR area. Unless
HUD grants an exception, SAHA is required to establish a payment standard within a “basic
range” established by HUD – between 90 and 110 percent of the published FMR for each unit
size.
Updating Payment Standards
When HUD updates its FMRs, SAHA must update its payment standards if the standards are no
longer within the basic range [24 CFR 982.503(b)]. HUD may require SAHA to make further
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adjustments if it determines that rent burdens for assisted families in SAHA’s jurisdiction are
unacceptably high 24 CFR 982.503(g)].
SAHA Policy
SAHA will review the appropriateness of the payment standards on an annual basis when
the new FMR is published. In addition to ensuring the payment standards are always
within the “basic range” SAHA will consider the following factors when determining
whether an adjustment should be made to the payment standard schedule:
Funding Availability: SAHA will review the budget to determine the impact
projected subsidy adjustments will have on funding available for the program and
the number of families served. SAHA will compare the number of families who
could be served under revised payment standard amounts with the number
assisted under current payment standard amounts.
Rent Burden of Participating Families: Rent burden will be determined by
identifying the percentage of families, for each unit size, that are paying more
than 30 percent of their monthly adjusted income as the family share. When 40
percent or more of families, for any given unit size, are paying more than 30
percent of adjusted monthly income as the family share, SAHA will consider
increasing the payment standard. In evaluating rent burdens, SAHA will not
include families renting a larger unit than their family unit size.
Quality of Units Selected: SAHA will review the quality of units selected by
participant families when making the determination of the percent of income
families are paying for housing, to ensure that payment standard increases are
only made when needed to reach the mid-range of the market.
Changes in Rent to Owner: SAHA may review a sample of the units to
determine how often owners are increasing or decreasing rents and the average
percent of increases/decreases by bedroom size.
Unit Availability: SAHA may review the availability of units for each unit size,
particularly in areas with low concentrations of poor and minority families.
Lease-up Time and Success Rate: SAHA will consider the percentage of
families that are unable to locate suitable housing before the voucher expires and
whether families are leaving the jurisdiction to find affordable housing.
Changes to payment standard amounts will be effective on December 1st of every year
unless, based on proposed FMRs, it appears that one or more of SAHA’s current payment
standard amounts will be outside the basic range when the final FMRs are published. In
that case, SAHA’s payment standards will be effective on October 1st instead of
December 1st.
Exception Payment Standards [982.503(c)]
SAHA must request HUD approval to establish payment standards that are higher than the basic
range. At HUD’s sole discretion, HUD may approve a payment standard amount that is higher
than the basic range for a designated part of the FMR area. HUD may approve an exception
payment standard amount (in accordance with program requirements) for all units, or for all units
of a given size, leased by program families in the exception area. Any SAHA with jurisdiction in
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the exception area may use the HUD-approved exception payment standard amount. The total
population of all HUD-approved exception areas in an FMR area may not include more than 50
percent of the population of the FMR area.
Unit-by-Unit Exceptions [24 CFR 982.503(c)(2)(ii), 24 CFR 982.505(d), Notice PIH 2010-26]
Unit-by-unit exceptions to SAHA’s payment standards generally are not permitted. However, an
exception may be made as a reasonable accommodation for a family that includes a person with
disabilities. (See Chapter 2 for a discussion of reasonable accommodations.) This type of
exception does not affect SAHA’s payment standard schedule.
When needed as a reasonable accommodation, SAHA may make an exception to the payment
standard without HUD approval if the exception amount does not exceed 110 percent of the
applicable FMR for the unit size [HCV GB 7-9]. SAHA may request HUD approval for an
exception to the payment standard for a particular family if the required amount falls between
110 and 120 percent of the FMR.
SAHA Policy
A family that requires a reasonable accommodation may request a higher payment
standard at the time the Request for Tenancy Approval (RFTA) is submitted. The family
must document the need for the exception. In order to approve an exception, or request an
exception from HUD, SAHA must determine that:
• There is a shortage of affordable units that would be appropriate for the family;
• The family's TTP would otherwise exceed 40 percent of adjusted monthly
income; and
• The rent for the unit is reasonable.
"Success Rate" Payment Standard Amounts [24 CFR 982.503(e)]
If a substantial percentage of families have difficulty finding a suitable unit, SAHA may request
a “success rate payment standard” that applies to the entire jurisdiction. If approved by HUD, a
success rate payment standard allows SAHA to set its payment standards at 90-110 percent of a
higher FMR (the 50th, rather than the 40th percentile FMR). To support the request, SAHA must
demonstrate that during the most recent 6-month period for which information is available:
• Fewer than 75 percent of families who were issued vouchers became participants;
• SAHA had established payment standards for all unit sizes, and for the entire jurisdiction, at
110 percent of the published FMR; and
• SAHA had a policy of allowing voucher holders who made sustained efforts to locate units at
least 90 days to search for a unit.
Although HUD approves the success rate payment standard for all unit sizes in the FMR area,
SAHA may choose to adjust the payment standard for only some unit sizes in all, or a designated
part, of SAHA’s jurisdiction within the FMR area.
Decreases in the Payment Standard below the Basic Range [24 CFR 982.503(d)]
SAHA must request HUD approval to establish a payment standard amount that is lower than the
basic range. At HUD’s sole discretion, HUD may approve establishment of a payment standard
lower than the basic range. HUD will not approve a lower payment standard if the family share
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for more than 40 percent of program participants exceeds 30 percent of adjusted monthly
income.
16-II.C. UTILITY ALLOWANCES [24 CFR 982.517]
A PHA-established utility allowance schedule is used in determining family share and SAHA
subsidy. SAHA must maintain a utility allowance schedule for (1) all tenant-paid utilities, (2) the
cost of tenant-supplied refrigerators and ranges, and (3) other tenant-paid housing services such
as trash collection.
The utility allowance schedule must be determined based on the typical cost of utilities and
services paid by energy-conservative households that occupy housing of similar size and type in
the same locality. In developing the schedule, SAHA must use normal patterns of consumption
for the community as a whole, and current utility rates.
The utility allowance must include the utilities and services that are necessary in the locality to
provide housing that complies with housing quality standards. Costs for telephone, cable/satellite
television, and internet services are not included in the utility allowance schedule.
In the utility allowance schedule, SAHA must classify utilities and other housing services
according to the following general categories: space heating; air conditioning; cooking; water
heating; water; sewer; trash collection; other electric; cost of tenant-supplied refrigerator; cost of
tenant-supplied range; and other specified housing services.
The cost of each utility and housing service must be stated separately by unit size and type.
Chapter 18 of the HCV Guidebook provides detailed guidance to SAHA about establishing utility
allowance schedules.
Air Conditioning
An allowance for air-conditioning must be provided when the majority of housing units in the
market have central air-conditioning or are wired for tenant-installed air conditioners.
SAHA Policy
SAHA will not include an allowance for air-conditioning in its schedule.
Reasonable Accommodation
HCV program regulations require a SAHA to approve a utility allowance amount higher than
shown on SAHA’s schedule if a higher allowance is needed as a reasonable accommodation for
a family member with a disability. For example, if a family member with a disability requires
such an accommodation, SAHA will approve an allowance for air-conditioning, even if SAHA
has determined that an allowance for air-conditioning generally is not needed (See Chapter 2 for
policies regarding the request and approval of reasonable accommodations).
Utility Allowance Revisions
SAHA must review its schedule of utility allowances each year, and must revise the schedule if
there has been a change of 10 percent or more in any utility rate since the last time the allowance
for that utility was revised.
SAHA must maintain information supporting its annual review of utility allowance and any
revisions made in its utility allowance schedule.
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PART III: INFORMAL REVIEWS AND HEARINGS
16-III.A. OVERVIEW
Both applicants and participants have the right to disagree with, and appeal, certain decisions of
SAHA that may adversely affect them. SAHA decisions that may be appealed by applicants and
participants are discussed in this section.
The process for applicant appeals of SAHA decisions is called the “informal review.” For
participants (or applicants denied admission because of citizenship issues), the appeal process is
called an “informal hearing.” PHAs are required to include informal review procedures for
applicants and informal hearing procedures for participants in their administrative plans [24 CFR
982.54(d)(12) and (13)].
16-III.B. INFORMAL REVIEWS
Informal reviews are provided for program applicants. An applicant is someone who has applied
for admission to the program, but is not yet a participant in the program. Informal reviews are
intended to provide a “minimum hearing requirement” [24 CFR 982.554], and need not be as
elaborate as the informal hearing requirements [Federal Register 60, no. 127 (3 July 1995):
34690].
Decisions Subject to Informal Review
SAHA must give an applicant the opportunity for an informal review of a decision denying
assistance [24 CFR 982.554(a)]. Denial of assistance may include any or all of the following [24
CFR 982.552(a)(2)]:
• Denying listing on SAHA waiting list
• Denying or withdrawing a voucher
• Refusing to enter into a HAP contract or approve a lease
• Refusing to process or provide assistance under portability procedures
Informal reviews are not required for the following reasons [24 CFR 982.554(c)]:
• Discretionary administrative determinations by SAHA
• General policy issues or class grievances
• A determination of the family unit size under SAHA subsidy standards
• SAHA determination not to approve an extension or suspension of a voucher term
• SAHA determination not to grant approval of the tenancy
• SAHA determination that the unit is not in compliance with the HQS
• SAHA determination that the unit is not in accordance with the HQS due to family size
or composition
SAHA Policy
SAHA will only offer an informal review to applicants for whom assistance is being
denied. Denial of assistance includes: denying listing on SAHA’s waiting list; denying or
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withdrawing a voucher; refusing to enter into a HAP contract or approve a lease; refusing
to process or provide assistance under portability procedures.
Notice to the Applicant [24 CFR 982.554(a)]
SAHA must give an applicant prompt notice of a decision denying assistance. The notice must
contain a brief statement of the reasons for SAHA decision, and must also state that the applicant
may request an informal review of the decision. The notice must describe how to obtain the
informal review.
Scheduling an Informal Review
SAHA Policy
A request for an informal review must be made in writing and delivered to SAHA either
in person or by first class mail, by the close of the business day, no later than 14 days
from the date of SAHA’s notice of denial of assistance.
Except as provided in Section 3-III.G, SAHA will schedule and send written notice of the
informal review within 14 days of the family’s request.
Informal Review Procedures [24 CFR 982.554(b)]
The informal review must be conducted by a person other than the one who made or approved
the decision under review, or a subordinate of this person.
The applicant must be provided an opportunity to present written or oral objections to the
decision of SAHA.
Informal Review Decision [24 CFR 982.554(b)]
SAHA must notify the applicant of SAHA’s final decision, including a brief statement of the
reasons for the final decision.
SAHA Policy
In rendering a decision, SAHA will evaluate the following matters:
Whether or not the grounds for denial were stated factually in the notice to the
family.
The validity of grounds for denial of assistance: If the grounds for denial are not
specified in the regulations, then the decision to deny assistance will be
overturned.
The validity of the evidence: SAHA will evaluate whether the facts presented
prove the grounds for denial of assistance. If the facts prove that there are grounds
for denial, and the denial is required by HUD, SAHA will uphold the decision to
deny assistance.
If the facts prove the grounds for denial, and the denial is discretionary, SAHA
will consider the recommendation of the person conducting the informal review in
making the final decision whether to deny assistance.
SAHA will notify the applicant of the final decision, including a statement explaining the
reason(s) for the decision, within 14 days of the informal review decision. The notice
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will be mailed to the applicant and his or her representative, if any, along with proof of
mailing.
If the decision to deny is overturned as a result of the informal review, processing for
admission will resume.
If the family fails to appear for their informal review, the denial of admission will stand
and the family will be so notified.
16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.555]
PHAs must offer an informal hearing for certain SAHA determinations relating to the individual
circumstances of a participant family. A participant is defined as a family that has been admitted
to SAHA’s HCV program and is currently assisted in the program. The purpose of the informal
hearing is to consider whether SAHA’s decisions related to the family’s circumstances are in
accordance with the law, HUD regulations and SAHA policies.
SAHA is not permitted to terminate a family’s assistance until the time allowed for the family to
request an informal hearing has elapsed, and any requested hearing has been completed.
Termination of assistance for a participant may include any or all of the following:
• Refusing to enter into a HAP contract or approve a lease
• Terminating housing assistance payments under an outstanding HAP contract
• Refusing to process or provide assistance under portability procedures
Decisions Subject to Informal Hearing
Circumstances for which SAHA must give a participant family an opportunity for an informal
hearing are as follows:
• A determination of the family’s annual or adjusted income, and the use of such income to
compute the housing assistance payment
• A determination of the appropriate utility allowance (if any) for tenant-paid utilities from
SAHA utility allowance schedule
• A determination of the family unit size under SAHA’s subsidy standards
• A determination to terminate assistance for a participant family because of the family’s
actions or failure to act
• A determination to terminate assistance because the participant has been absent from the
assisted unit for longer than the maximum period permitted under SAHA policy and HUD
rules
• A determination to terminate a family’s Family Self Sufficiency contract, withhold
supportive services, or propose forfeiture of the family’s escrow account [24 CFR
984.303(i)]
Circumstances for which an informal hearing is not required are as follows:
• Discretionary administrative determinations by SAHA
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• General policy issues or class grievances
• Establishment of SAHA schedule of utility allowances for families in the program
• SAHA determination not to approve an extension or suspension of a voucher term
• SAHA determination not to approve a unit or tenancy
• SAHA determination that a unit selected by the applicant is not in compliance with the HQS
• SAHA determination that the unit is not in accordance with HQS because of family size
• A determination by SAHA to exercise or not to exercise any right or remedy against an
owner under a HAP contract
SAHA Policy
SAHA will only offer participants the opportunity for an informal hearing when required
by the regulations.
Informal Hearing Procedures
Notice to the Family [24 CFR 982.555(c)]
When SAHA makes a decision that is subject to informal hearing procedures, SAHA must
inform the family of its right to an informal hearing at the same time that it informs the family of
the decision.
For decisions related to the family’s annual or adjusted income, the determination of the
appropriate utility allowance, and the determination of the family unit size, SAHA must notify
the family that they may ask for an explanation of the basis of the determination, and that if they
do not agree with the decision, they may request an informal hearing on the decision.
For decisions related to the termination of the family’s assistance, or the denial of a family’s
request for an exception to SAHA’s subsidy standards, the notice must contain a brief statement
of the reasons for the decision, a statement that if the family does not agree with the decision, the
family may request an informal hearing on the decision, and a statement of the deadline for the
family to request an informal hearing.
SAHA Policy
In cases where SAHA makes a decision for which an informal hearing must be offered,
the notice to the family will include all of the following:
• The proposed action or decision of SAHA.
• A brief statement of the reasons for the decision including the regulatory
reference.
• The date the proposed action will take place.
• A statement of the family’s right to an explanation of the basis for SAHA’s
decision.
• A statement that if the family does not agree with the decision the family may
request an informal hearing regarding the decision.
• A deadline for the family to request the informal hearing.
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• To whom the hearing request should be addressed.
• A copy of SAHA’s hearing procedures.
Scheduling an Informal Hearing [24 CFR 982.555(d)]
When an informal hearing is required, SAHA must proceed with the hearing in a reasonably
expeditious manner upon the request of the family.
SAHA Policy
A request for an informal hearing must be made in writing and delivered to SAHA either
in person or by first class mail, by the close of the business day, no later than 14 days
from the date of SAHA’s notice to terminate assistance.
SAHA will schedule and send written notice of the informal hearing to the family within
30 days of the family’s request.
The family may request to reschedule a hearing for good cause, or if it is needed as a
reasonable accommodation for a person with disabilities. Good cause is defined as an
unavoidable conflict which seriously affects the health, safety or welfare of the family.
Requests to reschedule a hearing must be made orally or in writing prior to the hearing
date. At its discretion, SAHA may request documentation of the “good cause” prior to
rescheduling the hearing.
If the family does not appear at the scheduled time, and was unable to reschedule the
hearing in advance due to the nature of the conflict, the family must contact SAHA
within 24 hours of the scheduled hearing date, excluding weekends and holidays. SAHA
will reschedule the hearing only if the family can show good cause for the failure to
appear, or if it is needed as a reasonable accommodation for a person with disabilities.
Pre-Hearing Right to Discovery [24 CFR 982.555(e)]
Participants and SAHA are permitted pre-hearing discovery rights. The family must be given the
opportunity to examine before the hearing any SAHA documents that are directly relevant to the
hearing. The family must be allowed to copy any such documents at their own expense. If
SAHA does not make the document available for examination on request of the family, SAHA
may not rely on the document at the hearing.
SAHA hearing procedures may provide that SAHA must be given the opportunity to examine at
SAHA offices before the hearing, any family documents that are directly relevant to the hearing.
SAHA must be allowed to copy any such document at SAHA’s expense. If the family does not
make the document available for examination on request of SAHA, the family may not rely on
the document at the hearing.
For the purpose of informal hearings, documents include records and regulations.
SAHA Policy
The family will be allowed to copy any documents related to the hearing at a cost of $.10
per page. The family must request discovery of SAHA documents no later than 12:00
p.m. on the business day prior to the scheduled hearing date.
SAHA must be given an opportunity to examine at SAHA offices before the hearing any
family documents that are directly relevant to the hearing. Whenever a participant
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requests an informal hearing, SAHA may mail a letter to the participant requesting a copy
of all documents that the participant intends to present or utilize at the hearing. The
participant must make the documents available no later than 12:00 pm on the business
day prior to the scheduled hearing date.
Participant’s Right to Bring Counsel [24 CFR 982.555(e)(3)]
At its own expense, the family may be represented by a lawyer or other representative at the
informal hearing.
SAHA Policy
The family must notify SAHA of their intent to have legal counsel present a minimum of three
business days prior to the hearing date.
Informal Hearing Officer [24 CFR 982.555(e)(4)]
Informal hearings will be conducted by a person or persons approved by SAHA, other than the
person who made or approved the decision or a subordinate of the person who made or approved
the decision.
SAHA Policy
SAHA has designated the following to serve as hearing officers:
• Contracted Informal Hearing Officer; or
• Representative from City of Santa Ana Attorney’s Office
Attendance at the Informal Hearing
SAHA Policy
Hearings may be attended by the following applicable persons:
• SAHA representative(s) and any witnesses for SAHA
• The participant and any witnesses for the participant
• The participant’s counsel or other representative
• Any other person approved by SAHA as a reasonable accommodation for a
person with a disability
Conduct at Hearings
The person who conducts the hearing may regulate the conduct of the hearing in accordance with
SAHA’s hearing procedures [24 CFR 982.555(4)(ii)].
SAHA Policy
The hearing officer is responsible to manage the order of business and to ensure that
hearings are conducted in a professional and businesslike manner. Attendees are expected
to comply with all hearing procedures established by the hearing officer and guidelines
for conduct. Any person demonstrating disruptive, abusive or otherwise inappropriate
behavior will be excused from the hearing at the discretion of the hearing officer.
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Evidence [24 CFR 982.555(e)(5)]
SAHA and the family must be given the opportunity to present evidence and question any
witnesses. In general, all evidence is admissible at an informal hearing. Evidence may be
considered without regard to admissibility under the rules of evidence applicable to judicial
proceedings.
SAHA Policy
Any evidence to be considered by the hearing officer must be presented at the time of the
hearing. There are four categories of evidence.
Oral evidence: the testimony of witnesses.
Documentary evidence: a writing which is relevant to the case, for example, a
letter written to SAHA. Writings include all forms of recorded communication or
representation, including letters, words, pictures, sounds, videotapes or symbols
or combinations thereof.
Demonstrative evidence: Evidence created specifically for the hearing and
presented as an illustrative aid to assist the hearing officer, such as a model, a
chart or other diagram.
Real evidence: A tangible item relating directly to the case.
Hearsay Evidence is evidence of a statement that was made other than by a witness while
testifying at the hearing and that is offered to prove the truth of the matter. Even though
evidence, including hearsay, is generally admissible, hearsay evidence alone cannot be
used as the sole basis for the hearing officer’s decision.
If either SAHA or the family fail to comply with the discovery requirements described
above, the hearing officer will refuse to admit such evidence.
Other than the failure of a party to comply with discovery, the hearing officer has the
authority to overrule any objections to evidence.
Hearing Officer’s Decision [24 CFR 982.555(e)(6)]
The person who conducts the hearing must issue a written decision, stating briefly the reasons for
the decision. Factual determinations relating to the individual circumstances of the family must
be based on a preponderance of evidence presented at the hearing. A copy of the hearing must be
furnished promptly to the family.
SAHA Policy
In rendering a decision, the hearing officer will consider the following matters:
SAHA Notice to the Family: The hearing officer will determine if the reasons for
SAHA’s decision are factually stated in the Notice.
SAHA’s Discovery: The hearing officer will determine if SAHA and the family
were given the opportunity to examine any relevant documents in accordance
with SAHA policy.
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SAHA Evidence to Support SAHA Decision: The evidence consists of the facts
presented. Evidence is not conclusion and it is not argument. The hearing officer
will evaluate the facts to determine if they support SAHA’s conclusion.
Validity of Grounds for Termination of Assistance (when applicable): The
hearing officer will determine if the termination of assistance is for one of the
grounds specified in the HUD regulations and SAHA policies. If the grounds for
termination are not specified in the regulations or in compliance with SAHA
policies, then the decision of SAHA will be overturned.
The hearing officer will issue a written decision to the family and SAHA no later than 14
days after the hearing. The report will contain the following information:
Hearing information:
Name of the participant;
Date, time and place of the hearing;
Name of the hearing officer;
Name of SAHA representative; and
Name of family representative (if any).
Background: A brief, impartial statement of the reason for the hearing.
Summary of the Evidence: The hearing officer will summarize the testimony of
each witness and identify any documents that a witness produced in support of
his/her testimony and that are admitted into evidence.
Findings of Fact: The hearing officer will include all findings of fact, based on a
preponderance of the evidence. Preponderance of the evidence is defined as
evidence which is of greater weight or more convincing than the evidence which
is offered in opposition to it; that is, evidence which as a whole shows that the
fact sought to be proved is more probable than not. Preponderance of the evidence
may not be determined by the number of witnesses, but by the greater weight of
all evidence.
Conclusions: The hearing officer will render a conclusion derived from the facts
that were found to be true by a preponderance of the evidence. The conclusion
will result in a determination of whether these facts uphold SAHA’s decision.
Order: The hearing report will include a statement of whether SAHA’s decision
is upheld or overturned. If it is overturned, the hearing officer will instruct SAHA
to change the decision in accordance with the hearing officer’s determination. In
the case of termination of assistance, the hearing officer will instruct SAHA to
restore the participant’s program status.
Procedures for Rehearing or Further Hearing
SAHA Policy
The hearing officer may ask the family for additional information and/or might adjourn
the hearing in order to reconvene at a later date, before reaching a decision. If the family
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misses an appointment or deadline ordered by the hearing officer, the action of SAHA
will take effect and another hearing will not be granted.
PHA Notice of Final Decision [24 CFR 982.555(f)]
SAHA is not bound by the decision of the hearing officer for matters in which SAHA is not
required to provide an opportunity for a hearing, decisions that exceed the authority of the
hearing officer, decisions that conflict with or contradict HUD regulations, requirements, or are
otherwise contrary to federal, state, or local laws.
If SAHA determines it is not bound by the hearing officer’s decision in accordance with HUD
regulations, SAHA must promptly notify the family of the determination and the reason for the
determination.
SAHA Policy
SAHA will mail a “Notice of Final Decision” including the hearing officer’s report, to
the participant and their representative. This Notice will be sent by first-class mail and
certified mail. A copy of the “Notice of Final Decision” along with the original proof
mailing will be maintained in SAHA’s file.
16-III.D. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514]
Denial or termination of assistance based on immigration status is subject to special hearing and
notice rules. Applicants who are denied assistance due to immigration status are entitled to an
informal hearing, not an informal review.
Assistance to a family may not be delayed, denied, or terminated on the basis of immigration
status at any time prior to a decision under the United States Citizenship and Immigration
Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while
SAHA hearing is pending, but assistance to an applicant may be delayed pending the completion
of the informal hearing.
A decision against a family member, issued in accordance with the USCIS appeal process or
SAHA informal hearing process, does not preclude the family from exercising the right, that may
otherwise be available, to seek redress directly through judicial procedures.
Notice of Denial or Termination of Assistance [24 CFR 5.514(d)]
The notice of denial or termination of assistance for noncitizens must advise the family:
• That financial assistance will be denied or terminated, and provide a brief explanation of the
reasons for the proposed denial or termination of assistance.
• The family may be eligible for proration of assistance.
• In the case of a participant, the criteria and procedures for obtaining relief under the
provisions for preservation of families [24 CFR 5.514 and 5.518].
• That the family has a right to request an appeal to the USCIS of the results of secondary
verification of immigration status and to submit additional documentation or explanation in
support of the appeal.
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• That the family has a right to request an informal hearing with SAHA either upon completion
of the USCIS appeal or in lieu of the USCIS appeal.
• For applicants, assistance may not be delayed until the conclusion of the USCIS appeal
process, but assistance may be delayed during the period of the informal hearing process.
USCIS Appeal Process [24 CFR 5.514(e)]
When SAHA receives notification that the USCIS secondary verification failed to confirm
eligible immigration status, SAHA must notify the family of the results of the USCIS
verification. The family will have 30 days from the date of the notification to request an appeal
of the USCIS results. The request for appeal must be made by the family in writing directly to
the USCIS. The family must provide SAHA with a copy of the written request for appeal and the
proof of mailing.
SAHA Policy
SAHA will notify the family in writing of the results of the USCIS secondary verification
within 14 days of receiving the results.
The family must provide SAHA with a copy of the written request for appeal and proof
of mailing within 14 days of sending the request to the USCIS.
The family must forward to the designated USCIS office any additional documentation or
written explanation in support of the appeal. This material must include a copy of the USCIS
document verification request (used to process the secondary request) or such other form
specified by the USCIS, and a letter indicating that the family is requesting an appeal of the
USCIS immigration status verification results.
The USCIS will notify the family, with a copy to SAHA, of its decision. When the USCIS
notifies SAHA of the decision, SAHA must notify the family of its right to request an informal
hearing.
SAHA Policy
SAHA will send written notice to the family of its right to request an informal hearing
within 14 days of receiving notice of the USCIS decision regarding the family’s
immigration status.
Informal Hearing Procedures for Applicants [24 CFR 5.514(f)]
After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the
family may request that SAHA provide a hearing. The request for a hearing must be made either
within 30 days of receipt of SAHA notice of denial, or within 30 days of receipt of the USCIS
appeal decision.
The informal hearing procedures for applicant families are described below.
Informal Hearing Officer
SAHA must provide an informal hearing before an impartial individual, other than a person who
made or approved the decision under review, and other than a person who is a subordinate of the
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person who made or approved the decision. See Section 16-III.C. for a listing of positions that
serve as informal hearing officers.
Evidence
The family must be provided the opportunity to examine and copy at the family’s expense, at a
reasonable time in advance of the hearing, any documents in the possession of SAHA pertaining
to the family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS
requirements), including any records and regulations that may be relevant to the hearing.
SAHA Policy
The family will be allowed to copy any additional documents that were not included in
SAHA’s hearing packet mailed to the family. The City of Santa Ana’s current copy rate
will be used which is currently $.20 per page. The family must request discovery of
SAHA documents no later than three the business days prior to the hearing.
The family must be provided the opportunity to present evidence and arguments in support of
eligible status. Evidence may be considered without regard to admissibility under the rules of
evidence applicable to judicial proceedings.
The family must also be provided the opportunity to refute evidence relied upon by SAHA, and
to confront and cross-examine all witnesses on whose testimony or information SAHA relies.
Representation and Interpretive Services
The family is entitled to be represented by an attorney or other designee, at the family’s expense,
and to have such person make statements on the family’s behalf.
The family is entitled to arrange for an interpreter to attend the hearing, at the expense of the
family, or SAHA, as may be agreed upon by the two parties.
Recording of the Hearing
The family is entitled to have the hearing recorded by audiotape. SAHA may, but is not required
to provide a transcript of the hearing.
SAHA Policy
SAHA will not provide a transcript or copy of an audio taped hearing.
Hearing Decision
SAHA must provide the family with a written final decision, based solely on the facts presented
at the hearing, within 14 calendar days of the date of the informal hearing. The decision must
state the basis for the decision.
Informal Hearing Procedures for Residents [24 CFR 5.514(f)]
After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the
family may request that SAHA provide a hearing. The request for a hearing must be made either
within 30 days of receipt of SAHA notice of termination, or within 30 days of receipt of the
USCIS appeal decision.
For the informal hearing procedures that apply to participant families whose assistance is being
terminated based on immigration status, see Section 16-III.C.
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Retention of Documents [24 CFR 5.514(h)]
SAHA must retain for a minimum of 5 years the following documents that may have been
submitted to SAHA by the family, or provided to SAHA as part of the USCIS appeal or SAHA
informal hearing process:
• The application for assistance
• The form completed by the family for income reexamination
• Photocopies of any original documents, including original USCIS documents
• The signed verification consent form
• The USCIS verification results
• The request for a USCIS appeal
• The final USCIS determination
• The request for an informal hearing
• The final informal hearing decision
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PART IV: OWNER OR FAMILY DEBTS TO THE PHA
16-IV.A. OVERVIEW
PHAs are required to include in the administrative plan, policies concerning repayment by a
family of amounts owed to SAHA [24 CFR 982.54]. This part describes SAHA’s policies for
recovery of monies owed to SAHA by families or owners.
SAHA Policy
When an action or inaction of an owner or participant results in the overpayment of
housing assistance, SAHA holds the owner or participant liable to return any
overpayments to SAHA.
SAHA may enter into repayment agreements in accordance with the policies contained in
this part as a means to recover overpayments.
When an owner or participant refuses to repay monies owed to SAHA, SAHA will utilize
other available collection alternatives including, but not limited to, the following:
Collection agencies
Small claims court
Civil law suit
State income tax set-off program
16-IV.B. REPAYMENT POLICY
Owner Debts to SAHA
SAHA Policy
Any amount due to SAHA by an owner must be repaid by the owner within 30 days of
SAHA determination of the debt.
If the owner fails to repay the debt within the required time frame and is entitled to future
HAP payments, SAHA will reduce the future HAP payments by the amount owed until
the debt is paid in full.
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If the owner is not entitled to future HAP payments SAHA may, in its sole discretion,
offer to enter into a repayment agreement on terms prescribed by SAHA.
If the owner refuses to repay the debt, does not enter into a repayment agreement, or
breaches a repayment agreement, SAHA will ban the owner from future participation in
the program and pursue other modes of collection.
Family Debts to SAHA
SAHA Policy
Any amount owed to SAHA by an HCV family must be repaid by the family. If the
family is unable to repay the debt within 30 days, SAHA will offer to enter into a
repayment agreement in accordance with the policies below.
If the family refuses to repay the debt, does not enter into a repayment agreement, or
breaches a repayment agreement, SAHA will terminate assistance in accordance with the
policies in Chapter 12 and pursue other modes of collection.
Repayment Agreement [24 CFR 792.103]
The term repayment agreement refers to a formal written document signed by a tenant or owner
and provided to SAHA in which a tenant or owner acknowledges a debt in a specific amount and
agrees to repay the amount due at specific time periods.
General Repayment Agreement Guidelines for Families
Down Payment Requirement
SAHA Policy
Before executing a repayment agreement with a family, SAHA will generally require a
down payment of 10 percent of the total amount owed unless the amount exceeds $3,500.
If the amount exceeds $3,500, the family must pay the full amount that exceeds $3,500
prior to making any monthly payments on their Repayment Agreement.
If the family can provide evidence satisfactory to SAHA that a down payment of 10
percent would impose an undue hardship, SAHA may, in its sole discretion, require a
lesser percentage or waive the requirement.
Payment Thresholds
Notice PIH 2010-19 recommends that the total amount that a family must pay each month—the
family’s monthly share of rent plus the monthly debt repayment amount—should not exceed 40
percent of the family’s monthly adjusted income. However, a family may already be paying 40
per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2010-19
acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment
agreements with families [24 CFR 982.552(c)(1)(vii)].
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SAHA Policy
SAHA has established the following thresholds for repayment of debts:
• The maximum amount for which SAHA will enter into a repayment
agreement with a family is $3,500.00. Debts larger must be paid down prior to
making payments on the repayment agreement.
• The maximum length of time SAHA will enter into a repayment agreement
with a family is 36 months.
• The minimum monthly payment amount for any repayment agreement is
$10.00.
If a family can provide evidence satisfactory to SAHA that the threshold applicable to the
family’s debt would impose an undue hardship, SAHA may, in its sole discretion,
determine that a lower monthly payment amount is reasonable. In making its
determination, SAHA will consider all relevant information, including the following:
• The amount owed by the family
• The reason for the debt, including whether the debt was the result of family
action/inaction or circumstances beyond the family’s control
• The family’s current and potential income and expenses
• The family’s current family share, as calculated under 24 CFR 982.515
• The family’s history of meeting its financial responsibilities
Execution of the Agreement
SAHA Policy
Any repayment agreement between SAHA and a family must be signed and dated by
SAHA and by the head of household and spouse/co-head (if applicable).
Due Dates
SAHA Policy
All payments are due by the close of business on the 1st day of the month.
Late or Missed Payments
SAHA Policy
If a payment is not received by the end of the business day on the date due, and prior
approval for the missed payment has not been given by SAHA, SAHA will send the
family a delinquency notice giving the family until the next scheduled payment to make
the note current. If the payment is not received by the second and final due date, it will be
considered a breach of the agreement and SAHA will proceed with termination of
assistance in accordance with the policies in Chapter 12.
For families requesting to exercise portability, all debts owed to SAHA must be paid in
full prior to SAHA approval of portability.
No Offer of Repayment Agreement
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SAHA Policy
SAHA will not enter into a repayment agreement with a family if the family has a current
or past repayment agreement. Any amount that is owed by the family will need to be
paid in full within 60 days of meeting with SAHA to sign acknowledgement of debt
owed.
Repayment Agreements Involving Improper Payments
Notice PIH 2010-19 requires certain provisions to be included in any repayment agreement
involving amounts owed by a family because it underreported or failed to report income:
• A reference to the items in the family briefing packet that state the family’s obligation to
provide true and complete information at every reexamination and the grounds on which
SAHA may terminate assistance because of a family’s action or failure to act
• A statement clarifying that each month the family not only must pay to SAHA the monthly
payment amount specified in the agreement but must also pay to the owner the family’s
monthly share of the rent to owner
• A statement that the terms of the repayment agreement may be renegotiated if the family’s
income decreases or increases
• A statement that late or missed payments constitute default of the repayment agreement and
may result in termination of assistance
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PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP)
16-V.A. OVERVIEW
The Section 8 Management Assessment Program (SEMAP) is a tool that allows HUD to measure
SAHA performance in key areas to ensure program integrity and accountability. SEMAP scores
translate into a rating for each SAHA as high performing, standard, or troubled. Scores on
individual SEMAP indicators, as well as overall SEMAP ratings, can affect SAHA in several
ways.
• High-performing PHAs can be given a competitive advantage under notices of funding
availability [24 CFR 985.103].
• PHAs with deficiencies on one or more indicators are required to correct the deficiencies and
report to HUD [24 CFR 985.106].
• PHAs with an overall rating of “troubled” are subject to additional HUD oversight, including
on-site reviews by HUD staff, a requirement to develop a corrective action plan, and
monitoring to ensure the successful implementation of the corrective action plan. In addition,
PHAs that are designated “troubled” may not use any part of the administrative fee reserve
for other housing purposes [24 CFR 985.107].
• HUD may determine that a PHA's failure to correct identified SEMAP deficiencies or to
prepare and implement a corrective action plan required by HUD constitutes a default under
the ACC [24 CFR 985.109].
16-V.B. SEMAP CERTIFICATION [24 CFR 985.101]
PHAs must submit the HUD-required SEMAP certification form within 60 calendar days after
the end of its fiscal year. The certification must be approved by SAHA board resolution and
signed by SAHA executive director. If SAHA is a unit of local government or a state, a
resolution approving the certification is not required, and the certification must be executed by
the Section 8 program director.
PHAs with less than 250 voucher units are only required to be assessed every other PHA fiscal
year. HUD will assess such PHAs annually if the PHA elects to have its performance assessed on
an annual basis; or is designated as “troubled” [24 CFR 985.105].
Failure of a PHA to submit its SEMAP certification within the required time frame will result in
an overall performance rating of “troubled.”
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A PHA’s SEMAP certification is subject to HUD verification by an on-site confirmatory review
at any time.
Upon receipt of the PHA’s SEMAP certification, HUD will rate the PHA’s performance under
each SEMAP indicator in accordance with program requirements.
HUD Verification Method
Several of the SEMAP indicators are scored based on a review of a quality control sample
selected for this purpose. SAHA or the Independent Auditor must select an unbiased sample that
provides an adequate representation of the types of information to be assessed, in accordance
with SEMAP requirements [24 CFR 985.2].
If the HUD verification method for the indicator relies on data in the Form-50058 module
(formerly known as MTCS) in the PIH Information Center (PIC), and HUD determines that
those data are insufficient to verify SAHA's certification on the indicator due to SAHA's failure
to adequately report family data, HUD will assign a zero rating for the indicator [24 CFR 985.3].
16-V.C. SEMAP INDICATORS [24 CFR 985.3 and form HUD-52648]
The table below lists each of the SEMAP indicators, contains a description of each indicator, and
explains the basis for points awarded under each indicator.
A SAHA that expends less than $300,000 in Federal awards and whose Section 8 programs are
not audited by an independent auditor, is not be rated under SEMAP indicators 1-7.
SEMAP Indicators
Indicator 1: Selection from the waiting list
Maximum Score: 15
• This indicator shows whether SAHA has written policies in its administrative plan for
selecting applicants from the waiting list and whether SAHA follows these policies
when selecting applicants for admission from the waiting list.
• Points are based on the percent of families that are selected from the waiting list in
accordance with SAHA’s written policies, according to SAHA’s quality control sample.
Indicator 2: Rent reasonableness
Maximum Score: 20
• This indicator shows whether SAHA has and implements a reasonable written method to
determine and document for each unit leased that the rent to owner is reasonable based
on current rents for comparable unassisted units
• Points are based on the percent of units for which SAHA follows its written method to
determine reasonable rent and has documented its determination that the rent to owner is
reasonable, according to SAHA’s quality control sample.
Indicator 3: Determination of adjusted income
Maximum Score: 20
• This indicator measures whether SAHA verifies and correctly determines adjusted
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income for each assisted family, and where applicable, uses the appropriate utility
allowances for the unit leased in determining the gross rent.
• Points are based on the percent of files that are calculated and verified correctly,
according to SAHA’s quality control sample.
Indicator 4: Utility allowance schedule
Maximum Score: 5
• This indicator shows whether SAHA maintains an up-to-date utility allowance schedule.
• Points are based on whether SAHA has reviewed the utility allowance schedule and
adjusted it when required, according to SAHA’s certification.
Indicator 5: HQS quality control inspections
Maximum Score: 5
• This indicator shows whether a PHA supervisor reinspects a sample of units under
contract during SAHA fiscal year, which meets the minimum sample size requirements
for quality control of HQS inspections.
• Points are based on whether the required quality control reinspections were completed,
according to SAHA’s certification.
Indicator 6: HQS enforcement
Maximum Score: 10
• This indicator shows whether, following each HQS inspection of a unit under contract
where the unit fails to meet HQS, any cited life-threatening deficiencies are corrected
within 24 hours from the inspection and all other deficiencies are corrected within no
more than 30 calendar days from the inspection or any PHA-approved extension.
• Points are based on whether SAHA corrects all HQS deficiencies in accordance with
required time frames, according to SAHA’s certification.
Indicator 7: Expanding housing opportunities
Maximum Points: 5
• Only applies to PHAs with jurisdiction in metropolitan FMR areas.
• This indicator shows whether the PHA has adopted and implemented a written policy to
encourage participation by owners of units located outside areas of poverty or minority
concentration; informs voucher holders of the full range of areas where they may lease
units both inside and outside SAHA’s jurisdiction; and supplies a list of landlords or
other parties who are willing to lease units or help families find units, including units
outside areas of poverty or minority concentration.
• Points are based on whether SAHA has adopted and implemented written policies in
accordance with SEMAP requirements, according to SAHA’s certification.
Indicator 8: FMR limit and payment standards
Maximum Points: 5 points
• This indicator shows whether the PHA has adopted a payment standard schedule that
establishes payment standard amounts by unit size for each FMR area in SAHA’s
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jurisdiction, that are within the basic range of 90 to 110 percent of the published FMR.
• Points are based on whether SAHA has appropriately adopted a payment standard
schedule(s), according to SAHA’s certification.
Indicator 9: Annual reexaminations
Maximum Points: 10
• This indicator shows whether the PHA completes a reexamination for each participating
family at least every 12 months.
• Points are based on the percent of reexaminations that are more than 2 months overdue,
according to data from PIC.
Indicator 10: Correct tenant rent calculations
Maximum Points: 5
• This indicator shows whether the PHA correctly calculates the family’s share of the rent
to owner.
• Points are based on the percent of correct calculations of family share of the rent,
according to data from PIC.
Indicator 11: Pre-contract HQS inspections
Maximum Points: 5
• This indicator shows whether newly leased units pass HQS inspection on or before the
effective date of the assisted lease and HAP contract.
• Points are based on the percent of newly leased units that passed HQS inspection prior to
the effective date of the lease and HAP contract, according to data from PIC.
Indicator 12: Annual HQS inspections
Maximum Points: 10
• This indicator shows whether SAHA inspects each unit under contract at least annually.
• Points are based on the percent of annual HQS inspections of units under contract that
are more than 2 months overdue, according to data from PIC.
Indicator 13: Lease-up
Maximum Points: 20 points
• This indicator shows whether the PHA enters HAP contracts for the number of units or
funding reserved under ACC for at least one year.
• Points are based on the percent of units leased during the last completed SAHA fiscal
year, or the percent of allocated budget authority that has been expended by SAHA,
according to data from SAHA’s last year-end operating statement that is recorded in
HUD’s accounting system.
Indicator 14: Family self-sufficiency (FSS) enrollment and escrow account balances
Maximum Points: 10
• Only applies to PHAs with mandatory FSS programs.
• This indicator shows whether the PHA has enrolled families in the FSS program as
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required, and measures the percent of current FSS participants that have had increases in
earned income which resulted in escrow account balances.
• Points are based on the percent of mandatory FSS slots that are filled and the percent of
families with escrow account balances, according to data from PIC.
Success Rate of Voucher Holders
Maximum Points: 5
• Only applies to PHAs that have received approval to establish success rate payment
standard amounts, and isn’t effective until the second full PHA fiscal year following the
date of HUD approval of success rate payment standard amounts.
• This indicator shows whether voucher holders were successful in leasing units with
voucher assistance.
• Points are based on the percent of families that were issued vouchers, and that became
participants in the voucher program.
Deconcentration Bonus Indicator
Maximum Points: 5
• Submission of data for this indicator is mandatory for a PHA using one or more payment
standard amount(s) that exceed(s) 100 percent of the published FMR set at the 50
percentile rent, starting with the second full SAHA fiscal year following initial use of
payment standard amounts based on the FMRs set at the 50th percentile.
• Additional points are available to PHAs that have jurisdiction in metropolitan FMR areas
and that choose to submit the required data.
• Points are based on whether the data that is submitted meets the requirements for bonus
points.
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PART VI: RECORD KEEPING
16-VI.A. OVERVIEW
SAHA must maintain complete and accurate accounts and other records for the program in
accordance with HUD requirements, in a manner that permits a speedy and effective audit. All
such records must be made available to HUD or the Comptroller General of the United States
upon request.
In addition, SAHA must ensure that all applicant and participant files are maintained in a way
that protects an individual’s privacy rights.
16-VI.B. RECORD RETENTION [24 CFR 982.158]
During the term of each assisted lease, and for at least three years thereafter, SAHA must keep:
• A copy of the executed lease;
• The HAP contract; and
• The application from the family.
In addition, SAHA must keep the following records for at least three years:
• Records that provide income, racial, ethnic, gender, and disability status data on program
applicants and participants;
• An application from each ineligible family and notice that the applicant is not eligible;
• HUD-required reports;
• Unit inspection reports;
• Lead-based paint records as required by 24 CFR 35, Subpart B.
• Accounts and other records supporting SAHA budget and financial statements for the
program;
• Records to document the basis for SAHA determination that rent to owner is a reasonable
rent (initially and during the term of a HAP contract); and
• Other records specified by HUD.
• Notice PIH 2014-20 requires PHAs to keep records of all complaints, investigations, notices,
and corrective actions related to violations of the Fair Housing Act or the equal access
final rule.
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If an informal hearing to establish a family’s citizenship status is held, longer retention
requirements apply for some types of documents. For specific requirements, see Section 16-
III.D., Retention of Documents.
16-VI.C. RECORDS MANAGEMENT
PHAs must maintain applicant and participant files and information in accordance with the
regulatory requirements described below.
SAHA Policy
All applicant and participant information will be kept in a secure location and access will
be limited to authorized staff.
Staff will not discuss personal family information unless there is a business reason to do
so. Inappropriate discussion of family information or improper disclosure of family
information by staff will result in disciplinary action.
Privacy Act Requirements [24 CFR 5.212 and Form-9886]
The collection, maintenance, use, and dissemination of social security numbers (SSN), employer
identification numbers (EIN), any information derived from these numbers, and income
information of applicants and participants must be conducted, to the extent applicable, in
compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and
local law.
Applicants and participants, including all adults in the household, are required to sign a consent
form, HUD-9886, Authorization for Release of Information. This form incorporates the Federal
Privacy Act Statement and describes how the information collected using the form may be used,
and under what conditions HUD or SAHA may release the information collected.
Upfront Income Verification (UIV) Records
PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) system are
required to adopt and follow specific security procedures to ensure that all EIV data is protected
in accordance with federal laws, regardless of the media on which the data is recorded (e.g.
electronic, paper). These requirements are contained in the HUD-issued document, Enterprise
Income Verification (EIV) System, Security Procedures for Upfront Income Verification data.
SAHA Policy
Prior to utilizing HUD’s EIV system, SAHA has adopted and implemented EIV security
procedures required by HUD.
Criminal Records
SAHA may only disclose the criminal conviction records which SAHA receives from a law
enforcement agency to officers or employees of SAHA, or to authorized representatives of
SAHA who have a job-related need to have access to the information [24 CFR 5.903(e)].
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SAHA must establish and implement a system of records management that ensures that any
criminal record received by SAHA from a law enforcement agency is maintained confidentially,
not misused or improperly disseminated, and destroyed, once the purpose for which the record
was requested has been accomplished, including expiration of the period for filing a challenge to
SAHA action without institution of a challenge or final disposition of any such litigation [24
CFR 5.903(g)].
SAHA must establish and implement a system of records management that ensures that any sex
offender registration information received by SAHA from a State or local agency is maintained
confidentially, not misused or improperly disseminated, and destroyed, once the purpose for
which the record was requested has been accomplished, including expiration of the period for
filing a challenge to SAHA action without institution of a challenge or final disposition of any
such litigation. However, a record of the screening, including the type of screening and the date
performed must be retained [Notice PIH 2012-28]. This requirement does not apply to
information that is public information, or is obtained by SAHA other than under 24 CFR 5.905.
Medical/Disability Records
PHAs are not permitted to inquire about the nature or extent of a person’s disability. SAHA may
not inquire about a person’s diagnosis or details of treatment for a disability or medical
condition. If SAHA receives a verification document that provides such information, SAHA
should not place this information in the tenant file. SAHA should destroy the document.
Documentation of Domestic Violence, Dating Violence, Sexual Assault, or Stalking
For requirements and SAHA policies related to management of documentation obtained from
victims of domestic violence, dating violence, sexual assault, or stalking, see section 16-IX.E.
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PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH
ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL
16-VII.A. OVERVIEW
SAHA has certain responsibilities relative to children with environmental intervention blood lead
levels that are receiving HCV assistance. The notification, verification, and hazard reduction
requirements are discussed in Chapter 8. This part deals with the reporting requirements, and
data collection and record keeping responsibilities that SAHA is subject to.
16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e)]
SAHA must report the name and address of a child identified as having an environmental
intervention blood lead level to the public health department within 5 business days of being so
notified by any other medical health care professional.
SAHA Policy
SAHA will provide the public health department written notice of the name and address
of any child identified as having an environmental intervention blood lead level.
16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)]
At least quarterly, SAHA must attempt to obtain from the public health department(s) with a
similar area of jurisdiction, the names and/or addresses of children less than 6 years old with an
identified environmental intervention blood lead level.
If SAHA obtains names and addresses of environmental intervention blood lead level children
from the public health department(s), SAHA must match this information with the names and
addresses of families receiving HCV assistance, unless the public health department performs
such a procedure. If a match occurs, SAHA must carry out the notification, verification, and
hazard reduction requirements discussed in Chapter 8, and the reporting requirement discussed
above.
At least quarterly, SAHA must also report an updated list of the addresses of units receiving
assistance under the HCV program to the same public health department(s), unless the public
health department(s) states that it does not wish to receive such a report.
SAHA Policy
The public health department(s) has stated they do not wish to receive a report of an
updated list of the addresses of units receiving assistance under the HCV program, on a
quarterly basis. Therefore, SAHA is not providing such a report.
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PART VIII: DETERMINATION OF INSUFFICIENT FUNDING
16-VIII.A. OVERVIEW
The HCV regulations allow PHAs to deny families permission to move and to terminate Housing
Assistance Payments (HAP) contracts if funding under the consolidated ACC is insufficient to
support continued assistance [24 CFR 982.354(e)(1) and 982.454]. If a PHA denies a family a
portability move based on insufficient funding, SAHA is required to notify the local HUD office
within 10 business days [24 CFR 982.354]. Insufficient funding may also impact SAHA’s ability
to issue vouchers to families on the waiting list. This part discusses the methodology SAHA will
use to determine whether or not SAHA has sufficient funding to issue vouchers, approve moves,
and to continue subsidizing all families currently under a HAP contract.
16-VIII.B. METHODOLOGY
SAHA Policy
SAHA will determine whether there is adequate funding to issue vouchers, approve
moves to higher cost units and areas, and continue subsidizing all current participants by
comparing SAHA’s annual budget authority to the annual total HAP needs on a monthly
basis. The total HAP needs for the calendar year will be projected by establishing the
actual HAP costs year to date. To that figure, SAHA will add anticipated HAP
expenditures for the remainder of the calendar year. Projected HAP expenditures will be
calculated by multiplying the projected number of units leased per remaining months by
the most current month’s average HAP. The projected number of units leased per month
will take into account the average monthly turnover of participant families. If the total
annual HAP needs equal or exceed the annual budget authority, or if SAHA cannot
support the cost of the proposed subsidy commitment (voucher issuance or move) based
on the funding analysis, SAHA will be considered to have insufficient funding. SAHA
will complete this analysis using HUD’s Two-Year Forecasting Tool.
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PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION,
DOCUMENTATION, CONFIDENTIALITY
16-IX.A. OVERVIEW
The Violence against Women Act of 2013 (VAWA) provides special protections for victims of
domestic violence, dating violence, sexual assault and stalking who are applying for or receiving
assistance under the housing choice voucher (HCV) program. If your state or local laws provide
greater protection for such victims, those laws apply in conjunction with VAWA.
In addition to definitions of key terms used in VAWA, this part contains general VAWA
requirements and SAHA policies in three areas: notification, documentation, and confidentiality.
Specific VAWA requirements and SAHA policies are located primarily in the following
sections: 3-I.C, “Family Breakup and Remaining Member of Tenant Family”; 3-III.G,
“Prohibition against Denial of Assistance to Victims of Domestic Violence, Dating Violence,
and Stalking”; 10-I.A, “Allowable Moves”; 10-I.B, “Restrictions on Moves”; 12-II.E,
“Terminations Related to Domestic Violence, Dating Violence, or Stalking”; and 12-II.F,
“Termination Notice.”
16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 13925]
As used in VAWA:
• The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a
lease as a matter of law such that certain tenants can be evicted or removed while the
remaining family members’ lease and occupancy rights are allowed to remain intact.
• The term dating violence means violence committed by a person who is or has been in a
social relationship of a romantic or intimate nature with the victim; and where the existence
of such a relationship shall be determined based on a consideration of the following factors:
- The length of the relationship
- The type of relationship
- The frequency of interaction between the persons involved in the relationship
• The term domestic violence includes felony or misdemeanor crimes of violence committed
by a current or former spouse or intimate partner of the victim, by a person with whom the
victim shares a child in common, by a person who is cohabitating with or has cohabitated
with the victim as a spouse or intimate partner, by a person similarly situated to a spouse of
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the victim under the domestic or family violence laws of the jurisdiction receiving grant
monies, or by any other person against an adult or youth victim who is protected from that
person’s acts under the domestic or family violence laws of the jurisdiction.
• The term affiliated individual means, with respect to a person:
- A spouse, parent, brother or sister, or child of that individual, or an individual to whom
that individual stands in the position or place of a parent; or
- Any other individual, tenant, or lawful occupant living in the household of the victim of
domestic violence, dating violence, sexual assault, or stalking.
• The term sexual assault means:
- Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when
the victim lacks the capacity to consent
• The term stalking means:
- To engage in a course of conduct directed at a specific person that would cause a
reasonable person to fear for his or her safety or the safety of others, or suffer substantial
emotional distress.
16-IX.C. NOTIFICATION [24 CFR 5.2005(a)]
Notification to Public
SAHA adopts the following policy to help ensure that all actual and potential beneficiaries of its
HCV program are aware of their rights under VAWA.
SAHA Policy
SAHA will make the following information readily available to anyone who requests it:
• A summary of the rights and protections provided by VAWA to HCV program
applicants and participants who are or have been victims of domestic violence,
dating violence, sexual assault, or stalking (see sample notices in Exhibits 16-1
and 16-2)
• The definitions of domestic violence, dating violence, sexual assault, and stalking
provided in VAWA (include in Exhibits 16-1 and 16-2)
• An explanation of the documentation that SAHA may require from an individual
who claims the protections provided by VAWA (included in Exhibits 16-1 and
16-2)
• A copy of form HUD-50066, Certification of Domestic Violence, Dating
Violence, Sexual Assault, or Stalking
• A statement of SAHA’s obligation to keep confidential any information that is
received from a victim unless (a) SAHA has the victim’s written permission to
release the information, (b) it needs to use the information in an eviction
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proceeding, or (c) it is compelled by law to release the information (includes in
Exhibits 16-1 and 16-2)
• The National Domestic Violence Hot Line: 1 800-799-SAFE (7233) or 1 800-
787-9224 (TTY) (included in Exhibits 16-1 and 16-2)
• Contact information for local victim advocacy groups or service providers
Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)]
PHAs are required to inform program applicants and participants of their rights under VAWA,
including their right to confidentiality and the limits thereof, when they are denied assistance,
when they are admitted to the program, and when they are notified of an eviction or termination
of housing benefits.
SAHA Policy
SAHA will provide all applicants with information about VAWA at the time they request
an application for housing assistance, SAHA will also include information About
VAWA in all notices of denial of assistance (see section 3-III.G).
SAHA will provide all participants with information about VAWA at the time of
admission (see section5-I.B.) and at annual reexamination. SAHA will also include
information about VAWA in notices of termination of assistance, as provided in section
12-II.F.
The VAWA information provided to applicants and participants will consist of the notice
in Exhibit 16-1 and a copy of form HUD-50066, Certification of Domestic Violence,
Dating Violence, Sexual Assault and Stalking.
Notification to Owners and Managers [24 CFR 5.2005(a)(2)]
PHAs are required to notify owners and managers participating in the HCV program of their
rights and obligations under VAWA.
SAHA Policy
SAHA will provide owners and managers with information about their rights and
obligations under VAWA when they begin their participation in the HCV program and at
least annually thereafter.
The VAWA information provided to owners will consist of the notice in Exhibit 16-2 and
a copy of form HUD-500066, Certification of Domestic Violence, Dating Violence,
Sexual Assault, and Stalking.
16-IX.D. DOCUMENTATION [24 CFR 5.2007]
A PHA presented with a claim for initial or continued assistance based on status as a victim of
domestic violence, dating violence, sexual assault, stalking, or criminal activity related to any of
these forms of abuse may—but is not required to—request that the individual making the claim
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document the abuse. Any request for documentation must be in writing, and the individual must
be allowed at least 14 business days after receipt of the request to submit the documentation.
SAHA may extend this time period at its discretion. [24 CFR 5.2007(a)]
The individual may satisfy SAHA’s request by providing any one of the following three forms of
documentation [24 CFR 5.2007(b)]:
(1) A completed and signed HUD-approved certification form (HUD-50066, Certification of
Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the
name of the perpetrator only if the name of the perpetrator is safe to provide and is known to
the victim
(2) A federal, state, tribal, territorial, or local police report or court record, or an administrative
record
(3) Documentation signed by a person who has assisted the victim in addressing domestic
violence, dating violence, sexual assault or stalking, or the effects of such abuse. This person
may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental
health professional; or a medical professional. The person signing the documentation must
attest under penalty of perjury to the person’s belief that the incidents in question are bona
fide incidents of abuse. The victim must also sign the documentation.
SAHA may not require third-party documentation (forms 2 and 3) in addition to certification
(form 1), except as specified below under “Conflicting Documentation,” nor may it require
certification in addition to third-party documentation [VAWA final rule].
SAHA Policy
Any request for documentation of domestic violence, dating violence, or stalking will
specify a deadline of 14 days following receipt of request, will describe the three forms of
acceptable documentation, will provide explicit instructions on where and to whom the
documentation must be submitted, and will state the consequences for failure to submit
the documentation or request an extension in writing by the deadline.
SAHA may, in its discretion, extend the deadline for 14 days. Any extension granted by
SAHA will be in writing.
Conflicting Documentation [24 CFR 5.2007(e)]
In cases where SAHA receives conflicting certification documents from two or more members
of a household, each claiming to be a victim and naming one or more of the other petitioning
household members as the perpetrator, SAHA may determine which is the true victim by
requiring each to provide acceptable third-party documentation, as described above (forms 2 and
3). SAHA must honor any court orders issued to protect the victim or to address the distribution
of property.
SAHA Policy
If presented with conflicting certification documents (two or more forms HUD-500066)
from members of the same household, SAHA will attempt to determine which is the true
victim by requiring each of them to provide third-party documentation in accordance with
24 CFR 5.2007(b)(2) or (3) and by following any HUD guidance on how such
determinations should be made.
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Discretion to Require No Formal Documentation [24 CFR 5.2007(d)]
SAHA has the discretion to provide benefits to an individual based solely on the individual’s
statement or other corroborating evidence—i.e., without requiring formal documentation of
abuse in accordance with 24 CFR 5.2007(b).
SAHA Policy
If SAHA accepts an individual’s statement or other corroborating evidence of domestic
violence, dating violence, sexual assault, or stalking, SAHA will document acceptance of
the statement or evidence in the individual’s file.
Failure to Provide Documentation [24 CFR 5.2007(c)]
In order to deny relief for protection under VAWA, a SAHA must provide the individual
requesting relief with a written request for documentation of abuse. If the individual fails to
provide the documentation within 14 business days from the date of receipt, or such longer time
as SAHA may allow, SAHA may deny relief for protection under VAWA.
16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)]
All information provided to SAHA regarding domestic violence, dating violence, sexual assault
or stalking, including the fact that an individual is a victim of such violence or stalking, must be
retained in confidence. This means that SAHA (1) may not enter the information into any shared
database, (2) may not allow employees or others to access the information unless they are
explicitly authorized to do so and have a need to know the information for purposes of their
work, and (3) may not provide the information to any other entity or individual, except to the
extent that the disclosure is (a) requested or consented to by the individual in writing, (b)
required for use in an eviction proceeding, or (c) otherwise required by applicable law.
SAHA Policy
If disclosure is required for use in an eviction proceeding or is otherwise required by
applicable law, SAHA will inform the victim before disclosure occurs so that safety risks
can be identified and addressed.
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EXHIBIT 16-1: SAMPLE NOTICE TO HOUSING CHOICE VOUCHER APPLICANTS
AND TENANTS REGARDING THE VIOLENCE AGAINST WOMEN ACT (VAWA)
This sample notice was adapted from a notice prepared by the National Housing Law Project.
A federal law that went into effect in 2013 protects individuals who are victims of domestic
violence, dating violence, sexual assault, or stalking. The name of the law is the Violence against
Women Act, or “VAWA.” This notice explains your rights under VAWA.
Protections for Victims
If you are eligible for a Section 8 voucher, the housing authority cannot deny you rental
assistance solely because you are a victim of domestic violence, dating violence, sexual assault,
or stalking.
If you are the victim of domestic violence, dating violence, sexual assault, or stalking, you
cannot be terminated from the Section 8 program or evicted based on acts or threats of violence
committed against you. Also, criminal acts directly related to the domestic violence, dating
violence, sexual assault, or stalking that are caused by a member of your household or a guest
can’t be the reason for evicting you or terminating your rental assistance if you were the victim
of the abuse.
Reasons You Can Be Evicted
You can be evicted and your rental assistance can be terminated if the housing authority or your
landlord can show there is an actual and imminent (immediate) threat to other tenants or
employees at the property if you remain in your housing. Also, you can be evicted and your
rental assistance can be terminated for serious or repeated lease violations that are not related to
the domestic violence, dating violence, sexual assault, or stalking committed against you. The
housing authority and your landlord cannot hold you to a more demanding set of rules than it
applies to tenants who are not victims.
Removing the Abuser from the Household
Your landlord may split the lease to evict a tenant who has committed criminal acts of violence
against family members or others, while allowing the victim and other household members to
stay in the assisted unit. Also, the housing authority can terminate the abuser’s Section 8 rental
assistance while allowing you to continue to receive assistance. If the landlord or housing
authority chooses to remove the abuser, it may not take away the remaining tenants’ rights to the
unit or otherwise punish the remaining tenants. In removing the abuser from the household, your
landlord must follow federal, state, and local eviction procedures.
Moving to Protect Your Safety
The housing authority may permit you to move and still keep your rental assistance, even if your
current lease has not yet expired. The housing authority may require that you be current on your
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rent or other obligations in the housing choice voucher program. The housing authority may ask
you to provide proof that you are moving because of incidences of abuse.
Proving That You Are a Victim of Domestic Violence, Dating Violence, Sexual
Assault, or Stalking
The housing authority and your landlord can ask you to prove or “certify” that you are a victim
of domestic violence, dating violence, sexual assault, or stalking. The housing authority or your
landlord must give you at least 14 business days (i.e., Saturdays, Sundays, and holidays do not
count) to provide this proof. The housing authority and your landlord are free to extend the
deadline. There are three ways you can prove that you are a victim:
• Complete the certification form given to you by the housing authority or your landlord. The
form will ask for your name, the name of your abuser, the abuser’s relationship to you, the
date, time, and location of the incident of violence, and a description of the violence. You are
only required to provide the name of the abuser if it is safe to provide and you know their
name.
• Provide a statement from a victim service provider, attorney, mental health professional, or
medical professional who has helped you address incidents of domestic violence, dating
violence, sexual assault, or stalking. The professional must state that he or she believes that
the incidents of abuse are real. Both you and the professional must sign the statement, and
both of you must state that you are signing “under penalty of perjury.”
• Provide a police or court record, such as a protective order, or an administrative record.
Additionally, at its discretion, the housing authority can accept a statement or other evidence
provided by the applicant or tenant.
If you fail to provide one of these documents within the required time, the landlord may evict
you, and the housing authority may terminate your rental assistance.
Confidentiality
The housing authority and your landlord must keep confidential any information you provide
about the violence against you, unless:
• You give written permission to the housing authority or your landlord to release the
information.
• Your landlord needs to use the information in an eviction proceeding, such as to evict your
abuser.
• A law requires the housing authority or your landlord to release the information.
If release of the information would put your safety at risk, you should inform the housing
authority and your landlord.
VAWA and Other Laws
VAWA does not limit the housing authority’s or your landlord’s duty to honor court orders about
access to or control of the property. This includes orders issued to protect a victim and orders
dividing property among household members in cases where a family breaks up.
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VAWA does not replace any federal, state, or local law that provides greater protection for
victims of domestic violence, dating violence, sexual assault, or stalking.
For Additional Information
If you have any questions regarding VAWA, please contact ________________________ at
____________________.
For help and advice on escaping an abusive relationship, call the National Domestic Violence
Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY).
Definitions
For purposes of determining whether a tenant may be covered by VAWA, the following list of
definitions applies:
VAWA defines domestic violence to include felony or misdemeanor crimes of violence
committed by any of the following:
• A current or former spouse or intimate partner of the victim
• A person with whom the victim shares a child in common
• A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate
partner
• A person similarly situated to a spouse of the victim under the domestic or family violence
laws of the jurisdiction receiving grant monies
• Any other person against an adult or youth victim who is protected from that person’s acts
under the domestic or family violence laws of the jurisdiction
VAWA defines dating violence as violence committed by a person (1) who is or has been in a
social relationship of a romantic or intimate nature with the victim AND (2) where the existence
of such a relationship shall be determined based on a consideration of the following factors:
• The length of the relationship
• The type of relationship
• The frequency of interaction between the persons involved in the relationship
VAWA defines sexual assault as “any nonconsensual sexual act proscribed by Federal, tribal, or
State law, including when the victim lacks capacity to consent” (42 U.S.C. 13925(a)).
VAWA defines stalking as engaging in a course of conduct directed at a specific person that
would cuase a reasonable person to fear for his or her safety or the safety of others, or suffer
substantial emotional distress.
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EXHIBIT 16-2: SAMPLE NOTICE TO HOUSING CHOICE VOUCHER OWNERS AND
MANAGERS REGARDING THE VIOLENCE AGAINST WOMEN ACT (VAWA)
This sample notice was adapted from a notice prepared by the National Housing Law Project.
A federal law that went into effect in 2013 protects individuals who are victims of domestic
violence, dating violence, sexual assault, and stalking. The name of the law is the Violence
against Women Act, or “VAWA.” This notice explains your obligations under VAWA.
Protections for Victims
You cannot refuse to rent to an applicant solely because he or she is or has been a victim of
domestic violence, dating violence, sexual assault, or stalking.
You cannot evict a tenant who is or has been the victim of domestic violence, dating violence,
sexual assault, or stalking based on acts or threats of violence committed against the victim.
Also, criminal acts directly related to the domestic violence, dating violence, sexual assault, or
stalking that are caused by a household member or guest cannot be cause for evicting the victim
of the abuse.
Permissible Evictions
You can evict a victim of domestic violence, dating violence, sexual assault, or stalking if you
can demonstrate that there is an actual and imminent (immediate) threat to other tenants or
employees at the property if the victim is not evicted. Also, you may evict a victim for serious or
repeated lease violations that are not related to the domestic violence, dating violence, sexual
assault, or stalking. You cannot hold a victim of domestic violence, dating violence, sexual
assault, or stalking to a more demanding standard than you hold tenants who are not victims.
Removing the Abuser from the Household
You may bifurcate (split) the lease to evict a tenant who has committed criminal acts of violence
against family members or others, while allowing the victim and other household members to
stay in the unit. If you choose to remove the abuser, you may not take away the remaining
tenants’ rights to the unit or otherwise punish the remaining tenants. In removing the abuser from
the household, you must follow federal, state, and local eviction procedures.
Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking
If a tenant asserts VAWA’s protections, you can ask the tenant to certify that he or she is a
victim of domestic violence, dating violence, sexual assault, or stalking. You are not required to
demand official documentation and may rely upon the victim’s statement alone. If you choose to
request certification, you must do so in writing and give the tenant at least 14 business days to
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provide documentation. You are free to extend this deadline. A tenant can certify that he or she is
a victim by providing any one of the following three documents:
• A completed, signed HUD-approved certification form. The most recent form is
HUD-50066. This form is available at the housing authority or online at
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms/hud5.
• A statement from a victim service provider, attorney, mental health professional, or medical
professional who has helped the victim address incidents of domestic violence, dating
violence, sexual assault, or stalking. The professional must state that he or she believes that
the incidents of abuse are real. Both the victim and the professional must sign the statement
under penalty of perjury.
• A police or court record, such as a protective order, or administrative record.
If the tenant fails to provide one of these documents within 14 business days, you may evict the
tenant if authorized by otherwise applicable law and lease provisions.
Confidentiality
You must keep confidential any information a tenant provides to certify that he or she is a victim
of domestic violence, dating violence, sexual assault, or stalking. You cannot enter the
information into a shared database or reveal it to outside entities unless:
• The tenant provides written permission releasing the information.
• The information is required for use in an eviction proceeding, such as to evict the abuser.
• Release of the information is otherwise required by law.
The victim should inform you if the release of the information would put his or her safety at risk.
VAWA and Other Laws
VAWA does not limit your obligation to honor court orders regarding access to or control of the
property. This includes orders issued to protect the victim and orders dividing property among
household members in cases where a family breaks up.
VAWA does not replace any federal, state, or local law that provides greater protection for
victims of domestic violence, dating violence, sexual assault, or stalking.
Additional Information
• If you have any questions regarding VAWA, please contact ________________.
Definitions
For purposes of determining whether a tenant may be covered by VAWA, the following list of
definitions applies:
VAWA defines domestic violence to include felony or misdemeanor crimes of violence
committed by any of the following:
• A current or former spouse or intimate partner of the victim
• A person with whom the victim shares a child in common
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• A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate
partner
• A person similarly situated to a spouse of the victim under the domestic or family violence
laws of the jurisdiction receiving grant monies
• Any other person against an adult or youth victim who is protected from that person’s acts
under the domestic or family violence laws of the jurisdiction
VAWA defines dating violence as violence committed by a person (1) who is or has been in a
social relationship of a romantic or intimate nature with the victim AND (2) where the existence
of such a relationship shall be determined based on a consideration of the following factors:
• The length of the relationship
• The type of relationship
• The frequency of interaction between the persons involved in the relationship
VAWA defines sexual assault as “any nonconsensual sexual act proscribed by federal, tribal, or
state law, including when the victim lacks capacity to consent” (42 U.S.C. 13925(a)).
VAWA defines stalking as engaging in a course of conduct directed at a specific person that
would cuase a reasonable person to fear for his or her safety or the safety of others, or suffer
substantial emotional distress.
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Chapter 17
PROJECT-BASED VOUCHERS
INTRODUCTION
This chapter describes HUD regulations and SAHA policies related to the project-based voucher
(PBV) program in nine parts:
Part I: General Requirements. This part describes general provisions of the PBV program
including maximum budget authority requirements, relocation requirements, and equal
opportunity requirements.
Part II: PBV Owner Proposals. This part includes policies related to the submission and
selection of owner proposals for PBV assistance. It describes the factors SAHA will
consider when selecting proposals, the type of housing that is eligible to receive PBV
assistance, the cap on assistance at projects receiving PBV assistance, subsidy layering
requirements, site selection standards, and environmental review requirements.
Part III: Dwelling Units. This part describes requirements related to housing quality
standards, the type and frequency of inspections, and housing accessibility for persons
with disabilities.
Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements
and policies related to the development and completion of rehabilitated and newly
constructed housing units that will be receiving PBV assistance.
Part V: Housing Assistance Payments Contract. This part discusses HAP contract
requirements and policies including the execution, term, and termination of the HAP
contract. In addition, it describes how the HAP contract may be amended and identifies
provisions that may be added to the HAP contract at SAHA’s discretion.
Part VI: Selection of PBV Program Participants. This part describes the requirements
and policies governing how SAHA and the owner will select a family to receive PBV
assistance.
Part VII: Occupancy. This part discusses occupancy requirements related to the lease, and
describes under what conditions families are allowed or required to move. In addition,
exceptions to the occupancy cap (which limits PBV assistance to 25 percent of the units
in any project) are also discussed.
Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is
determined, and how rent will be redetermined throughout the life of the HAP contract.
Rent reasonableness requirements are also discussed.
Part IX: Payments to Owner. This part describes the types of payments owners may
receive under this program.
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PART I: GENERAL REQUIREMENTS
17-I.A. OVERVIEW [24 CFR 983.5]
The project-based voucher (PBV) program allows PHAs that already administer a tenant-based
voucher program under an annual contributions contract (ACC) with HUD to take up to 20
percent of its voucher program budget authority and attach the funding to specific units rather
than using it for tenant-based assistance [24 CFR 983.6]. PHAs may only operate a PBV
program if doing so is consistent with the PHA’s Annual Plan, and the goal of deconcentrating
poverty and expanding housing and economic opportunities [42 U.S.C. 1437f(o)(13)].
SAHA Policy
SAHA will operate a project-based voucher program using up to 20 percent of its budget
authority for project-based assistance.
PBV assistance may be attached to existing housing or newly constructed or rehabilitated
housing [24 CFR 983.52]. If PBV units are already selected for project-based assistance either
under an agreement to enter into HAP Contract (Agreement) or a HAP contract, SAHA is not
required to reduce the number of these units if the amount of budget authority is subsequently
reduced. However, SAHA is responsible for determining the amount of budget authority that is
available for project-based vouchers and ensuring that the amount of assistance that is attached to
units is within the amounts available under the ACC [24 CFR 983.6].
17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE
[24 CFR 983.2]
Much of the tenant-based voucher program regulations also apply to the PBV program.
Consequently, many of SAHA policies related to tenant-based assistance also apply to PBV
assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV
program are listed at 24 CFR 983.2.
SAHA Policy
Except as otherwise noted in this chapter, or unless specifically prohibited by PBV
program regulations, SAHA policies for the tenant-based voucher program contained in
this administrative plan also apply to the PBV program and its participants.
17-I.C. RELOCATION REQUIREMENTS [24 CFR 983.7]
Any persons displaced as a result of implementation of the PBV program must be provided
relocation assistance in accordance with the requirements of the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (URA)[42 U.S.C. 4201-4655] and
implementing regulations at 49 CFR part 24.
The cost of required relocation assistance may be paid with funds provided by the owner, local
public funds, or funds available from other sources. PHAs may not use voucher program funds to
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cover relocation costs, except that PHAs may use their administrative fee reserve to pay for
relocation expenses after all other program administrative expenses are satisfied, and provided
that payment of the relocation benefits is consistent with state and local law. Use of the
administrative fee for these purposes must also be consistent with other legal and regulatory
requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances.
The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24,
subpart B. It is the responsibility of SAHA to ensure the owner complies with these
requirements.
17-I.D. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8]
SAHA must comply with all equal opportunity requirements under federal law and regulations in
its implementation of the PBV program. This includes the requirements and authorities cited at
24 CFR 5.105(a). In addition, SAHA must comply with SAHA Plan certification on civil rights
and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o).
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PART II: PBV OWNER PROPOSALS
17-II.A. OVERVIEW
SAHA must describe the procedures for owner submission of PBV proposals and for SAHA
selection of PBV proposals [24 CFR 983.51]. Before selecting a PBV proposal, SAHA must
determine that the PBV proposal complies with HUD program regulations and requirements,
including a determination that the property is eligible housing [24 CFR 983.53 and 983.54],
complies with the cap on the number of PBV units per project [24 CFR 983.56], and meets the
site selection standards [24 CFR 983.57]. SAHA may not commit PBVs until or unless it has
followed the proposal selection requirements defined in 24 CFR 983.51 [Notice PIH 2011-54].
17-II.B. OWNER PROPOSAL SELECTION PROCEDURES [24 CFR 983.51(b)]
SAHA must select PBV proposals in accordance with the selection procedures in SAHA
administrative plan. SAHA must select PBV proposals by either of the following two methods.
• SAHA request for PBV Proposals. SAHA may solicit proposals by using a request for
proposals to select proposals on a competitive basis in response to SAHA request. SAHA
may not limit proposals to a single site or impose restrictions that explicitly or practically
preclude owner submission of proposals for PBV housing on different sites.
• SAHA may select proposal that were previously selected based on a competition. This may
include selection of a proposal for housing assisted under a federal, state, or local
government housing assistance program that was subject to a competition in accordance with
the requirements of the applicable program, community development program, or supportive
services program that requires competitive selection of proposals (e.g., HOME, and units for
which competitively awarded LIHTCs have been provided), where the proposal has been
selected in accordance with such program's competitive selection requirements within three
years of the PBV proposal selection date, and the earlier competitive selection proposal did
not involve any consideration that the project would receive PBV assistance. SAHA need not
conduct another competition.
Solicitation and Selection of PBV Proposals [24 CFR 983.51(c)]
SAHA procedures for selecting PBV proposals must be designed and actually operated to
provide broad public notice of the opportunity to offer PBV proposals for consideration by
SAHA. The public notice procedures may include publication of the public notice in a local
newspaper of general circulation and other means designed and actually operated to provide
broad public notice. The public notice of SAHA request for PBV proposals must specify the
submission deadline. Detailed application and selection information must be provided at the
request of interested parties.
SAHA Policy
SAHA will advertise its request for proposals (RFP) in the following newspapers:
Orange County Register and/or Orange County Reporter.
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In addition, SAHA will post the RFP and proposal submission and rating and
ranking procedures on its web site.
SAHA will publish its advertisement in the newspapers and trade journals
mentioned above for at least one day. The advertisement will specify the number
of units SAHA estimates that it will be able to assist under the funding SAHA is
making available.
The City of Santa Ana Community Development Agency maintains a list of
developers who have expressed an interest in developing affordable housing
within the city. The advertisement will be mailed and e-mailed directly to these
developers.
In order for the proposal to be considered, the owner must submit the proposal to
SAHA by the published deadline date, and the proposal must respond to all
requirements as outlined in the RFP. Incomplete proposals will not be reviewed.
SAHA will rate and rank proposals for rehabilitated and newly constructed
housing using the following criteria (but not limited to these criteria):
Owner experience and capability to build or rehabilitate housing as
identified in the RFP;
Extent to which the project furthers SAHA’s goal of de-concentrating
poverty and expanding housing and economic opportunities;
If applicable, the extent to which services for special populations are
provided on site or in the immediate area for occupants of the property;
and
Extent to which projects are completed, or are in the process of
completing, the entitlement process with the City of Santa Ana.
SAHA will rate and rank proposals for existing housing using the following
criteria (but not limited to these criteria):
Experience as an owner in the tenant-based voucher program and owner
compliance with the owner’s obligations under the tenant-based program;
Extent to which the project furthers SAHA’s goal of de-concentration
poverty and expanding housing and economic opportunities;
If applicable, extent to which services for special populations are provided
on site or in the immediate area for occupants of the property; and
Extent to which units are occupied by families that are eligible to
participate in the PVB program.
SAHA Selection of Proposals Subject to a Previous Competition under a Federal,
State, or Local Housing Assistance Program
SAHA will accept proposals for PBV assistance from owners that were
competitively selected under another federal, state or local housing assistance
program, including projects that were competitively awarded Low-Income
Housing Tax Credits on an ongoing basis.
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In addition to, or in place of advertising, SAHA may also directly contact specific
owners that have already been selected for Federal, state, or local housing
assistance based on a previously held competition, to inform them of available
PBV assistance.
SAHA may periodically advertise that it is accepting proposals on an on-going
basis. In that case, proposals will be reviewed on a first-come first-served basis.
SAHA will evaluate each proposal on its merits using the following factors:
Extent to which the project furthers SAHA’s goal of de-concentrating
poverty and expanding housing and economic opportunities; and
Extent to which the proposal complements other local activities such as
the HOME program, CDBG activities, other development activities in a
HUD-designated Enterprise Zone, Economic Community, or Renewal
Community.
PHA Notice of Owner Selection [24 CFR 983.51(d)]
SAHA must give prompt written notice to the party that submitted a selected proposal and must
also give prompt public notice of such selection. Public notice procedures may include
publication of public notice in a local newspaper of general circulation and other means designed
and actually operated to provide broad public notice.
SAHA Policy
Within 14 days of SAHA making the selection, SAHA will notify the selected owner in
writing of the owner’s selection for the PBV program. SAHA will also notify in writing
all owners that submitted proposals that were not selected and advise such owners of the
name of the selected owner.
In addition, SAHA will publish its notice for selection of PBV proposals in the same
newspapers used to solicit the proposals. The announcement will include the name of the
owner that was selected for the PBV program. SAHA will also post the notice of owner
selection on its web site.
SAHA will make available to any interested party its rating and ranking sheets and
documents that identify SAHA’s basis for selecting the proposal. These documents will
be available for review by the public and other interested parties for one month after
publication of the notice of owner selection. SAHA will not make available sensitive
owner information that is privileged, such as financial statements and similar information
about the owner.
SAHA will make these documents available for review at its offices during normal
business hours. The cost for reproduction of allowable documents will be $.20 per page.
17-II.C. HOUSING TYPE [24 CFR 983.52]
SAHA may attach PBV assistance for units in existing housing or for newly constructed or
rehabilitated housing developed under and in accordance with an agreement to enter into a
housing assistance payments contract that was executed prior to the start of construction. A
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housing unit is considered an existing unit for purposes of the PBV program, if, at the time of
notice of SAHA selection, the units substantially comply with HQS. Units for which new
construction or rehabilitation began after the owner's proposal submission but prior to the
execution of the HAP do not subsequently qualify as existing housing. Units that were newly
constructed or rehabilitated in violation of program requirements also do not qualify as existing
housing.
SAHA must decide what housing type, new construction, rehabilitation, or existing housing, will
be used to develop project-based housing. SAHA choice of housing type must be reflected in its
solicitation for proposals.
17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS
Ineligible Housing Types [24 CFR 983.53]
SAHA may not attach or pay PBV assistance to shared housing units; units on the grounds of a
penal reformatory, medical, mental, or similar public or private institution; nursing homes or
facilities providing continuous psychiatric, medical, nursing services, board and care, or
intermediate care (except that assistance may be provided in assisted living facilities); units that
are owned or controlled by an educational institution or its affiliate and are designated for
occupancy by students; manufactured homes; and transitional housing. In addition, SAHA may
not attach or pay PBV assistance for a unit occupied by an owner and SAHA may not select or
enter into an agreement to enter into a HAP contract or HAP contract for a unit occupied by a
family ineligible for participation in the PBV program. A member of a cooperative who owns
shares in the project assisted under the PBV program is not considered an owner for purposes of
participation in the PBV program. Finally, PBV assistance may not be attached to units for
which construction or rehabilitation has started after the proposal submission and prior to the
execution of an AHAP.
Subsidized Housing [24 CFR 983.54]
A PHA may not attach or pay PBV assistance to units in any of the following types of subsidized
housing:
• A public housing unit;
• A unit subsidized with any other form of Section 8 assistance;
• A unit subsidized with any governmental rent subsidy;
• A unit subsidized with any governmental subsidy that covers all or any part of the operating
costs of the housing;
• A unit subsidized with Section 236 rental assistance payments (except that a SAHA may
attach assistance to a unit subsidized with Section 236 interest reduction payments);
• A Section 202 project for non-elderly with disabilities;
• Section 811 project-based supportive housing for persons with disabilities;
• Section 202 supportive housing for the elderly;
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• A Section 101 rent supplement project;
• A unit subsidized with any form of tenant-based rental assistance;
• A unit with any other duplicative federal, state, or local housing subsidy, as determined by
HUD or SAHA in accordance with HUD requirements.
17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, FR Notice 11/24/08,
FR Notice 7/9/10, and FR Notice 6/25/14]
SAHA may provide PBV assistance only in accordance with HUD subsidy layering regulations
[24 CFR 4.13] and other requirements.
The subsidy layering review is intended to prevent excessive public assistance by combining
(layering) housing assistance payment subsidy under the PBV program with other governmental
housing assistance from federal, state, or local agencies, including assistance such as tax
concessions or tax credits.
Subsidy layering requirements do not apply to existing housing. A further subsidy layering
review is not required for new construction or rehabilitation if HUD's designee has conducted a
review that included a review of PBV assistance in accordance with the PBV subsidy layering
guidelines.
SAHA must submit the necessary documentation to HUD for a subsidy layering review. Except
in cases noted above, SAHA may not enter into an agreement to enter into a HAP contract or a
HAP contract until HUD, or a HUD-approved housing credit agency (HCA), has conducted any
required subsidy layering review and determined that the PBV assistance is in accordance with
HUD subsidy layering requirements. However, in order to satisfy applicable requirements, HCAs
must conduct subsidy layering reviews in compliance with the guidelines set forth in the Federal
Register notice published July 9, 2010.
The HAP contract must contain the owner's certification that the project has not received and
will not receive (before or during the term of the HAP contract) any public assistance for
acquisition, development, or operation of the housing other than assistance disclosed in the
subsidy layering review in accordance with HUD requirements.
17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT
25 Percent per Project Cap [24 CFR 983.56]
In general, SAHA may not select a proposal to provide PBV assistance for units in a project or
enter into an agreement to enter into a HAP or a HAP contract to provide PBV assistance for
units in a project, if the total number of dwelling units in the project that will receive PBV
assistance during the term of the PBV HAP contract is more than 25 percent of the number of
dwelling units (assisted or unassisted) in the project.
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Exceptions to 25 Percent per Project Cap [24 CFR 983.56(b)]
Exceptions are allowed and PBV units are not counted against the 25 percent per project cap if:
• The units are in a single-family building (one to four units);
• The units are excepted units in a multifamily project because they are specifically made
available for elderly and/or disabled families or families receiving supportive services (also
known as qualifying families).
PHAs must include in the PHA administrative plan the type of services offered to families for a
project to qualify for the exception and the extent to which such services will be provided. It is
not necessary that the services be provided at or by the project, if they are approved services. To
qualify, a family must have at least one member receiving at least one qualifying supportive
service. A PHA may not require participation in medical or disability-related services other than
drug and alcohol treatment in the case of current abusers as a condition of living in an excepted
unit, although such services may be offered.
If a family at the time of initial tenancy is receiving, and while the resident of an excepted unit
has received, FSS supportive services or any other supportive services as defined in SAHA
administrative plan, and successfully completes the FSS contract of participation or the
supportive services requirement, the unit continues to count as an excepted unit for as long as the
family resides in the unit.
SAHA must monitor the excepted family's continued receipt of supportive services and take
appropriate action regarding those families that fail without good cause to complete their
supportive services requirement. SAHA administrative plan must state the form and frequency
of such monitoring.
SAHA Policy
SAHA will provide PBV assistance for excepted units.
Promoting Partially-Assisted Projects [24 CFR 983.56(c)]
A PHA may establish local requirements designed to promote PBV assistance in partially
assisted projects. A partially assisted project is a project in which there are fewer units covered
by a HAP contract than residential units [24 CFR 983.3].
A PHA may establish a per-project cap on the number of units that will receive PBV assistance
or other project-based assistance in a multifamily project containing excepted units or in a single-
family building. A PHA may also determine not to provide PBV assistance for excepted units, or
the PHA may establish a per-project cap of less than 25 percent.
SAHA Policy:
SAHA will provide assistance for excepted units. SAHA will not impose any further cap
on the number of PBV units assisted per building.
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17-II.G. SITE SELECTION STANDARDS
Compliance with PBV Goals, Civil Rights Requirements, and HQS Site Standards
[24 CFR 983.57(b)]
SAHA may not select a proposal for existing, newly constructed, or rehabilitated PBV housing
on a site or enter into an agreement to enter into a HAP contract or HAP contract for units on the
site, unless SAHA has determined that PBV assistance for housing at the selected site is
consistent with the goal of deconcentrating poverty and expanding housing and economic
opportunities. The standard for deconcentrating poverty and expanding housing and economic
opportunities must be consistent with SAHA Plan under 24 CFR 903 and SAHA administrative
plan.
In addition, prior to selecting a proposal, SAHA must determine that the site is suitable from the
standpoint of facilitating and furthering full compliance with the applicable Civil Rights Laws,
regulations, and Executive Orders, and that the site meets the HQS site and neighborhood
standards at 24 CFR 982.401(l).
SAHA Policy
It is SAHA’s goal to select sites for PBV housing that provide for deconcentrating
poverty and expanding housing and economic opportunities. SAHA will determine that
PBV assistance for housing at a selected site is consistent with the goal of
deconcentrating poverty and expanding housing and economic opportunities before
selecting a proposal for existing, newly constructed, or rehabilitated PBV housing.
Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)]
SAHA may not enter into an agreement to enter into a HAP contract nor enter into a HAP
contract for existing or rehabilitated housing until it has determined that the site complies with
the HUD required site and neighborhood standards. The site must:
• Be adequate in size, exposure, and contour to accommodate the number and type of units
proposed;
• Have adequate utilities and streets available to service the site;
• Promote a greater choice of housing opportunities and avoid undue concentration of assisted
persons in areas containing a high proportion of low-income persons;
• Be accessible to social, recreational, educational, commercial, and health facilities and
services and other municipal facilities and services equivalent to those found in
neighborhoods consisting largely of unassisted similar units; and
• Be located so that travel time and cost via public transportation or private automobile from
the neighborhood to places of employment is not excessive.
New Construction Site and Neighborhood Standards [24 CFR 983.57(e)]
In order to be selected for PBV assistance, a site for newly constructed housing must meet the
following HUD required site and neighborhood standards:
• The site must be adequate in size, exposure, and contour to accommodate the number and
type of units proposed;
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• The site must have adequate utilities and streets available to service the site;
• The site must not be located in an area of minority concentration unless SAHA determines
that sufficient, comparable opportunities exist for housing for minority families in the income
range to be served by the proposed project outside areas of minority concentration or that the
project is necessary to meet overriding housing needs that cannot be met in that housing
market area;
• The site must not be located in a racially mixed area if the project will cause a significant
increase in the proportion of minority to non-minority residents in the area.
• The site must promote a greater choice of housing opportunities and avoid undue
concentration of assisted persons in areas containing a high proportion of low-income
persons;
• The neighborhood must not be one that is seriously detrimental to family life or in which
substandard dwellings or other undesirable conditions predominate;
• The housing must be accessible to social, recreational, educational, commercial, and health
facilities and services and other municipal facilities and services equivalent to those found in
neighborhoods consisting largely of unassisted similar units; and
• Except for housing designed for elderly persons, the housing must be located so that travel
time and cost via public transportation or private automobile from the neighborhood to places
of employment is not excessive.
17-II.H. ENVIRONMENTAL REVIEW [24 CFR 983.58]
SAHA activities under the PBV program are subject to HUD environmental regulations in 24
CFR parts 50 and 58. The responsible entity is responsible for performing the federal
environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.). SAHA may not enter into an agreement to enter into a HAP contract nor enter into a HAP
contract until it has complied with the environmental review requirements.
In the case of existing housing, the responsible entity that is responsible for the environmental
review under 24 CFR part 58 must determine whether or not PBV assistance is categorically
excluded from review under the National Environmental Policy Act and whether or not the
assistance is subject to review under the laws and authorities listed in 24 CFR 58.5.
SAHA may not enter into an agreement to enter into a HAP contract or a HAP contract with an
owner, and SAHA, the owner, and its contractors may not acquire, rehabilitate, convert, lease,
repair, dispose of, demolish, or construct real property or commit or expend program or local
funds for PBV activities under this part, until the environmental review is completed.
SAHA must supply all available, relevant information necessary for the responsible entity to
perform any required environmental review for any site. SAHA must require the owner to carry
out mitigating measures required by the responsible entity (or HUD, if applicable) as a result of
the environmental review.
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PART III: DWELLING UNITS
17-III.A. OVERVIEW
This part identifies the special housing quality standards that apply to the PBV program, housing
accessibility for persons with disabilities, and special procedures for conducting housing quality
standards inspections.
17-III.B. HOUSING QUALITY STANDARDS [24 CFR 983.101]
The housing quality standards (HQS) for the tenant-based program, including those for special
housing types, generally apply to the PBV program. HQS requirements for shared housing,
manufactured home space rental, and the homeownership option do not apply because these
housing types are not assisted under the PBV program.
The physical condition standards at 24 CFR 5.703 do not apply to the PBV program.
Lead-based Paint [24 CFR 983.101(c)]
The lead-based paint requirements for the tenant-based voucher program do not apply to the
PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846),
the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and
implementing regulations at 24 CFR part 35, subparts A, B, H, and R, apply to the PBV
program.
17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES
The housing must comply with program accessibility requirements of section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8.
SAHA must ensure that the percentage of accessible dwelling units complies with the
requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented
by HUD's regulations at 24 CFR 8, subpart C.
Housing first occupied after March 13, 1991, must comply with design and construction
requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24
CFR 100.205, as applicable. (24 CFR 983.102)
17-III.D. INSPECTING UNITS
Pre-selection Inspection [24 CFR 983.103(a)]
SAHA must examine the proposed site before the proposal selection date. If the units to be
assisted already exist, SAHA must inspect all the units before the proposal selection date, and
must determine whether the units substantially comply with HQS. To qualify as existing
housing, units must substantially comply with HQS on the proposal selection date. However,
SAHA may not execute the HAP contract until the units fully comply with HQS.
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Pre-HAP Contract Inspections [24 CFR 983.103(b)]
SAHA must inspect each contract unit before execution of the HAP contract. SAHA may not
enter into a HAP contract covering a unit until the unit fully complies with HQS.
Turnover Inspections [24 CFR 983.103(c)]
Before providing assistance to a new family in a contract unit, SAHA must inspect the unit.
SAHA may not provide assistance on behalf of the family until the unit fully complies with
HQS.
Annual/Biennial Inspections [24 CFR 983.103(d); FR Notice 6/25/14]
At least once every 24 months during the term of the HAP contract, SAHA must inspect a
random sample consisting of at least 20 percent of the contract units in each building to
determine if the contract units and the premises are maintained in accordance with HQS.
Turnover inspections are not counted toward meeting this inspection requirement.
SAHA Policy
SAHA will inspect every unit on an annual basis according to the same procedures for
the regular tenant-based program.
If more than 20 percent of the sample of inspected contract units in a building fail the initial
inspection, SAHA must reinspect 100 percent of the contract units in the building.
Other Inspections [24 CFR 983.103(e)]
SAHA must inspect contract units whenever needed to determine that the contract units comply
with HQS and that the owner is providing maintenance, utilities, and other services in
accordance with the HAP contract. SAHA must take into account complaints and any other
information coming to its attention in scheduling inspections.
SAHA must conduct follow-up inspections needed to determine if the owner (or, if applicable,
the family) has corrected an HQS violation, and must conduct inspections to determine the basis
for exercise of contractual and other remedies for owner or family violation of HQS.
In conducting SAHA supervisory quality control HQS inspections, SAHA should include a
representative sample of both tenant-based and project-based units.
Inspecting PHA-Owned Units [24 CFR 983.103(f)]
In the case of SAHA-owned units, the inspections must be performed by an independent agency
designated by SAHA and approved by HUD. The independent entity must furnish a copy of each
inspection report to SAHA and to the HUD field office where the project is located. SAHA must
take all necessary actions in response to inspection reports from the independent agency,
including exercise of contractual remedies for violation of the HAP contract by SAHA-owner.
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PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS
17-IV.A. OVERVIEW [24 CFR 983.151]
There are specific requirements that apply to PBV assistance for newly constructed or
rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes
the requirements unique to this type of assistance.
Housing selected for this type of assistance may not at a later date be selected for PBV assistance
as existing housing.
17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT
In order to offer PBV assistance in rehabilitated or newly constructed units, SAHA must enter
into an agreement to enter into HAP contract (Agreement) with the owner of the property. The
Agreement must be in the form required by HUD [24 CFR 983.152(b)]. SAHA may not enter
into an Agreement if commencement of construction or rehabilitation has commenced after
proposal submission [24 CFR 983.152(c)]. Construction begins when excavation or site
preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the
physical commencement of rehabilitation activity on the housing.
In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and
SAHA agrees that upon timely completion of such development in accordance with the terms of
the Agreement, SAHA will enter into a HAP contract with the owner for the contract units [24
CFR 983.152(a)].
Content of the Agreement [24 CFR 983.152(d)]
At a minimum, the Agreement must describe the following features of the housing to be
developed and assisted under the PBV program:
• Site and the location of the contract units;
• Number of contract units by area (size) and number of bedrooms and bathrooms;
• Services, maintenance, or equipment to be supplied by the owner without charges in addition
to the rent;
• Utilities available to the contract units, including a specification of utility services to be paid
by the owner and utility services to be paid by the tenant;
• An indication of whether or not the design and construction requirements of the Fair Housing
Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If
applicable, any required work item resulting from these requirements must be included in the
description of work to be performed under the Agreement;
• Estimated initial rents to owner for the contract units;
• Description of the work to be performed under the Agreement. For rehabilitated units, the
description must include the rehabilitation work write up and, where determined necessary
by SAHA, specifications and plans. For new construction units, the description must include
the working drawings and specifications.
• Any additional requirements for quality, architecture, or design over and above HQS.
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Execution of the Agreement [24 CFR 983.153]
The Agreement must be executed promptly after SAHA notice of proposal selection to the
selected owner. SAHA may not enter into the Agreement if construction or rehabilitation has
started after proposal submission. Generally, SAHA may not enter into the Agreement with the
owner until the subsidy layering review is completed. Likewise, SAHA may not enter into the
Agreement until the environmental review is completed and SAHA has received environmental
approval. However, SAHA does not need to conduct a subsidy layering review in the case of a
HAP contract for existing housing or if the applicable state or local agency has conducted such a
review. Similarly, environmental reviews are not required for existing structures unless
otherwise required by law or regulation.
SAHA Policy
SAHA will enter into the Agreement with the owner within 30 business days of receiving
both environmental approval and notice that subsidy layering requirements have been
met, and before construction or rehabilitation work is started.
17-IV.C. CONDUCT OF DEVELOPMENT WORK
Labor Standards [24 CFR 983.154(b)]
If an Agreement covers the development of nine or more contract units (whether or not
completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis-
Bacon wages to laborers and mechanics employed in the development of housing. The HUD-
prescribed form of the Agreement will include the labor standards clauses required by HUD,
such as those involving Davis-Bacon wage rates.
The owner, contractors, and subcontractors must also comply with the Contract Work Hours and
Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable
federal labor relations laws and regulations. SAHA must monitor compliance with labor
standards.
Equal Opportunity [24 CFR 983.154(c)]
The owner must comply with Section 3 of the Housing and Urban Development Act of 1968 and
the implementing regulations at 24 CFR part 135. The owner must also comply with federal
equal employment opportunity requirements.
Owner Disclosure [24 CFR 983.154(d) and (e)]
The Agreement and HAP contract must include a certification by the owner that the owner and
other project principals are not on the U.S. General Services Administration list of parties
excluded from federal procurement and non-procurement programs.
The owner must also disclose any possible conflict of interest that would be a violation of the
Agreement, the HAP contract, or HUD regulations.
17-IV.D. COMPLETION OF HOUSING
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The Agreement must specify the deadlines for completion of the housing, and the owner must
develop and complete the housing in accordance with these deadlines. The Agreement must also
specify the deadline for submission by the owner of the required evidence of completion.
Evidence of Completion [24 CFR 983.155(b)]
At a minimum, the owner must submit the following evidence of completion to SAHA in the
form and manner required by SAHA:
• Owner certification that the work has been completed in accordance with HQS and all
requirements of the Agreement; and
• Owner certification that the owner has complied with labor standards and equal opportunity
requirements in development of the housing.
At SAHA’s discretion, the Agreement may specify additional documentation that must be
submitted by the owner as evidence of housing completion.
SAHA Policy
SAHA will determine the need for the owner to submit additional documentation as
evidence of housing completion on a case-by-case basis depending on the nature of the
PBV project. SAHA will specify any additional documentation requirements in the
Agreement to enter into HAP contract.
PHA Acceptance of Completed Units [24 CFR 983.156]
Upon notice from the owner that the housing is completed, SAHA must inspect to determine if
the housing has been completed in accordance with the Agreement, including compliance with
HQS and any additional requirements imposed under the Agreement. SAHA must also
determine if the owner has submitted all required evidence of completion.
If the work has not been completed in accordance with the Agreement, SAHA must not enter
into the HAP contract.
If SAHA determines the work has been completed in accordance with the Agreement and that
the owner has submitted all required evidence of completion, SAHA must submit the HAP
contract for execution by the owner and must then execute the HAP contract.
PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP)
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17-V.A. OVERVIEW
SAHA must enter into a HAP contract with an owner for units that are receiving PBV assistance.
The purpose of the HAP contract is to provide housing assistance payments for eligible families.
Housing assistance is paid for contract units leased and occupied by eligible families during the
HAP contract term. With the exception of single-family scattered-site projects, a HAP contract
shall cover a single project. If multiple projects exist, each project is covered by a separate HAP
contract. The HAP contract must be in the form required by HUD [24 CFR 983.202(a)].
17-V.B. HAP CONTRACT REQUIREMENTS
Contract Information [24 CFR 983.203]
The HAP contract must specify the following information:
• The total number of contract units by number of bedrooms;
• The project’s name, street address, city or county, state and zip code, block and lot number
(if known), and any other information necessary to clearly identify the site and the building;
• The number of contract units in each building, the location of each contract unit, the area of
each contract unit, and the number of bedrooms and bathrooms in each contract unit;
• Services, maintenance, and equipment to be supplied by the owner and included in the rent
to owner;
• Utilities available to the contract units, including a specification of utility services to be paid
by the owner (included in rent) and utility services to be paid by the tenant;
• Features provided to comply with program accessibility requirements of Section 504 of the
Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8;
• The HAP contract term;
• The number of units in any project that will exceed the 25 percent per project cap, which will
be set aside for occupancy by qualifying families (elderly and/or disabled families and
families receiving supportive services); and
• The initial rent to owner for the first 12 months of the HAP contract term.
Execution of the HAP Contract [24 CFR 983.204]
SAHA may not enter into a HAP contract until each contract unit has been inspected and SAHA
has determined that the unit complies with the Housing Quality Standards (HQS). For existing
housing, the HAP contract must be executed promptly after SAHA selects the owner proposal
and inspects the housing units. For newly constructed or rehabilitated housing the HAP contract
must be executed after SAHA has inspected the completed units and has determined that the
units have been completed in accordance with the agreement to enter into HAP, and the owner
furnishes all required evidence of completion.
SAHA Policy
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For existing housing, the HAP contract will be executed within 30 business days of
SAHA determining that all units pass HQS.
For rehabilitated or newly constructed housing, the HAP contract will be executed within
30 days of SAHA determining that the units have been completed in accordance with the
Agreement to Enter into a HAP Contract, all units meet HQS, and the owner has
submitted all required evidence of completion.
Term of HAP Contract [24 CFR 983.205]
SAHA may enter into a HAP contract with an owner for an initial term of no less than one year
and no more than 15 years for each contract unit. The length of the term of the HAP contract for
any contract unit may not be less than one year, nor more than 15 years. In the case of SAHA-
owned units, the term of the HAP contract must be agreed upon by SAHA and the independent
entity approved by HUD [24 CFR 983.59(b)(2)].
SAHA Policy
The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case
basis.
At the time of the initial HAP contract term or any time before expiration of the HAP contract,
SAHA may extend the term of the contract for an additional term of up to 15 years if SAHA
determines an extension is appropriate to continue providing affordable housing for low-income
families. A HAP contract extension may not exceed 15 years. A PHA may provide for multiple
extensions; however, in no circumstances may such extensions exceed 15 years, cumulatively.
Extensions after the initial extension are allowed at the end of any extension term, provided that
not more than 24 months prior to the expiration of the previous extension contract SAHA agrees
to extend the term, and that such extension is appropriate to continue providing affordable
housing for low-income families or to expand housing opportunities. Extensions after the initial
extension term shall not begin prior to the expiration date of the previous extension term.
Subsequent extensions are subject to the same limitations. All extensions must be on the form
and subject to the conditions prescribed by HUD at the time of the extension. In the case of
SAHA-owned units, any extension of the term of the HAP contract must be agreed upon by
SAHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)].
SAHA Policy
When determining whether or not to extend an expiring PBV contract, SAHA will
consider several factors including, but not limited to:
o The cost of extending the contract and the amount of available budget authority;
o The condition of the contract units;
o The owner’s record of compliance with obligations under the HAP contract
and lease(s);
o Whether the location of the units continues to support the goals of de-
concentrating poverty and expanding housing opportunities; and
o Whether the funding could be used more appropriately for tenant-based
assistance.
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Termination by PHA [24 CFR 983.205(c)]
The HAP contract must provide that the term of SAHA’s contractual commitment is subject to
the availability of sufficient appropriated funding as determined by HUD or by SAHA in
accordance with HUD instructions. For these purposes, sufficient funding means the availability
of appropriations, and of funding under the ACC from such appropriations, to make full payment
of housing assistance payments payable to the owner for any contract year in accordance with
the terms of the HAP contract.
If it is determined that there may not be sufficient funding to continue housing assistance
payments for all contract units and for the full term of the HAP contract, SAHA may terminate
the HAP contract by notice to the owner. The termination must be implemented in accordance
with HUD instructions.
Termination by Owner [24 CFR 983.205(d)]
If in accordance with program requirements the amount of rent to an owner for any contract unit
is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the
owner may terminate the HAP contract by giving notice to SAHA. In this case, families living in
the contract units must be offered tenant-based assistance.
Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206]
Not less than one year before the HAP contract terminates, or if the owner refuses to renew the
HAP contract, the owner must notify SAHA and assisted tenants of the termination. The notice
must be provided in the form prescribed by HUD. If the owner does not give timely notice, the
owner must permit the tenants in assisted units to remain in their units for the required notice
period with no increase in the tenant portion of their rent, and with no eviction as a result of the
owner's inability to collect an increased tenant portion of rent. An owner may renew the
terminating contract for a period of time sufficient to give tenants one-year advance notice under
such terms as HUD may require.
Remedies for HQS Violations [24 CFR 983.208(b)]
SAHA may not make any HAP payment to the owner for a contract unit during any period in
which the unit does not comply with HQS. If SAHA determines that a contract does not comply
with HQS, SAHA may exercise any of its remedies under the HAP contract, for any or all of the
contract units. Available remedies include termination of housing assistance payments,
abatement or reduction of housing assistance payments, reduction of contract units, and
termination of the HAP contract.
SAHA Policy
SAHA will abate and terminate PBV HAP contracts for non-compliance with HQS in
accordance with the policies used in the tenant-based voucher program. These policies
are contained in Section 8-II.G., Enforcing Owner Compliance.
17-V.C. AMENDMENTS TO THE HAP CONTRACT
Substitution of Contract Units [24 CFR 983.207(a)]
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At the PHA’s discretion and subject to all PBV requirements, the HAP contract may be amended
to substitute a different unit with the same number of bedrooms in the same project for a
previously covered contract unit. Before any such substitution can take place, SAHA must
inspect the proposed unit and determine the reasonable rent for the unit.
Addition of Contract Units [24 CFR 983.207(b)]
At the PHA’s discretion and subject to the restrictions on the number of dwelling units that can
receive PBV assistance per project and on the overall size of the PHA’s PBV program, a HAP
contract may be amended during the three-year period following the execution date of the HAP
contract to add additional PBV units in the same project. This type of amendment is subject to all
PBV program requirements except that a new PBV proposal is not required.
SAHA Policy
SAHA will consider adding contract units to the HAP contract when SAHA determines
that additional housing is needed to serve eligible low-income families.
17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24
CFR 983.207(b) and 983.302(e)]
The HAP contract year is the period of 12 calendar months preceding each annual anniversary of
the HAP contract during the HAP contract term. The initial contract year is calculated from the
first day of the first calendar month of the HAP contract term.
The annual anniversary of the HAP contract is the first day of the first calendar month after the
end of the preceding contract year.
There is a single annual anniversary and expiration date for all units under a particular HAP
contract, even in cases where contract units are placed under the HAP contract in stages (on
different dates) or units are added by amendment. The anniversary and expiration dates for all
units coincide with the dates for the contract units that were originally placed under contract.
17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP [24 CFR 983.210]
When the owner executes the HAP contract s/he certifies that at such execution and at all times
during the term of the HAP contract:
• All contract units are in good condition and the owner is maintaining the premises and
contract units in accordance with HQS;
• The owner is providing all services, maintenance, equipment and utilities as agreed to under
the HAP contract and the leases;
• Each contract unit for which the owner is receiving HAP, is leased to an eligible family
referred by SAHA, and the lease is in accordance with the HAP contract and HUD
requirements;
• To the best of the owner’s knowledge the family resides in the contract unit for which the
owner is receiving HAP, and the unit is the family’s only residence;
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• The owner (including a principal or other interested party) is not the spouse, parent, child,
grandparent, grandchild, sister, or brother of any member of a family residing in a contract
unit;
• The amount of the HAP the owner is receiving is correct under the HAP contract;
• The rent for contract units does not exceed rents charged by the owner for comparable
unassisted units;
• Except for HAP and tenant rent, the owner has not received and will not receive any other
payment or consideration for rental of the contract unit;
• The family does not own or have any interest in the contract unit (does not apply to family's
membership in a cooperative); and
• Repair work on the project selected as an existing project that is performed after HAP
execution within such post-execution period as specified by HUD may constitute
development activity, and if determined to be development activity, the repair work
undertaken shall be in compliance with Davis-Bacon wage requirements.
17-V.F. ADDITIONAL HAP REQUIREMENTS
Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)]
The owner is required to maintain and operate the contract units and premises in accordance with
HQS, including performance of ordinary and extraordinary maintenance. The owner must
provide all the services, maintenance, equipment, and utilities specified in the HAP contract with
SAHA and in the lease with each assisted family. In addition, maintenance, replacement and
redecoration must be in accordance with the standard practice for the building as established by
the owner.
SAHA may elect to establish additional requirements for quality, architecture, or design of PBV
housing. Any such additional requirements must be specified in the Agreement to enter into a
HAP contract and the HAP contract. These requirements must be in addition to, not in place of,
compliance with HQS.
SAHA Policy
SAHA will identify the need for any special features on a case-by-case basis depending
on the intended occupancy of the PBV project. SAHA will specify any special design
standards or additional requirements in the invitation for PBV proposals, the Agreement
to Enter into a HAP contract, and the HAP contract.
Vacancy Payments [24 CFR 983.352(b)]
At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner
for a PHA-determined period of vacancy extending from the beginning of the first calendar
month after the move-out month for a period not exceeding two full months following the move-
out month. The amount of the vacancy payment will be determined by SAHA and cannot exceed
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the monthly rent to owner under the assisted lease, minus any portion of the rental payment
received by the owner (including amounts available from the tenant’s security deposit).
SAHA Policy
SAHA will decide on a case-by-case basis to provide vacancy payments to the owner.
The HAP contract with the owner will contain any such agreement.
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PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS
17-VI.A. OVERVIEW
Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the
PBV program. This includes requirements related to determining eligibility and selecting
applicants from the waiting list. Even with these similarities, there are requirements that are
unique to the PBV program. This part describes the requirements and policies related to
eligibility and admission to the PBV program.
17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)]
SAHA may select families for the PBV program from those who are participants in SAHA’s
tenant-based voucher program and from those who have applied for admission to the voucher
program. For voucher participants, eligibility was determined at original admission to the
voucher program and does not need to be redetermined at the commencement of PBV assistance.
For all others, eligibility for admission must be determined at the commencement of PBV
assistance.
Applicants for PBV assistance must meet the same eligibility requirements as applicants for the
tenant-based voucher program. Applicants must qualify as a family as defined by HUD and
SAHA, have income at or below HUD-specified income limits, and qualify on the basis of
citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24
CFR 983.2(a)]. In addition, an applicant family must provide social security information for
family members [24 CFR 5.216 and 5.218] and consent to SAHA’s collection and use of family
information regarding income, expenses, and family composition [24 CFR 5.230]. SAHA may
also not approve a tenancy if the owner (including a principal or other interested party) of the
unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the family,
unless needed as a reasonable accommodation. An applicant family must also meet HUD
requirements related to current or past criminal activity.
SAHA Policy
SAHA will determine an applicant family’s eligibility for the PBV program in
accordance with the policies in Chapter 3 and any additional requirements for the project.
In-Place Families [24 CFR 983.251(b)]
An eligible family residing in a proposed PBV contract unit on the date the proposal is selected
by SAHA is considered an “in-place family.” These families are afforded protection from
displacement under the PBV rule. If a unit to be placed under contract (either an existing unit or
a unit requiring rehabilitation) is occupied by an eligible family on the date the proposal is
selected, the in-place family must be placed on SAHA’s waiting list. Once the family’s
continued eligibility is determined (SAHA may deny assistance to an in-place family for the
grounds specified in 24 CFR 982.552 and 982.553), the family must be given an absolute
selection preference and SAHA must refer these families to the project owner for an
appropriately sized PBV unit in the project. Admission of eligible in-place families is not subject
to income targeting requirements.
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This regulatory protection from displacement does not apply to families that are not eligible to
participate in the program on the proposal selection date.
17-VI.C. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(c)]
SAHA may establish a separate waiting list for PBV units or it may use the same waiting list for
both tenant-based and PBV assistance. SAHA may also merge the PBV waiting list with a
waiting list for other assisted housing programs offered by SAHA. If SAHA chooses to offer a
separate waiting list for PBV assistance, SAHA must offer to place applicants who are listed on
the tenant-based waiting list on the waiting list for PBV assistance.
If SAHA decides to establish a separate PBV waiting list, SAHA may use a single waiting list
for SAHA’s whole PBV program, or it may establish separate waiting lists for PBV units in
particular projects or buildings or for sets of such units.
SAHA Policy
SAHA will establish and manage separate site-based waiting lists for individual projects
that are receiving PBV assistance.
17-VI.D. SELECTION FROM THE WAITING LIST [24 CFR 983.251(c)]
Applicants who will occupy units with PBV assistance must be selected from SAHA’s waiting
list. SAHA may establish selection criteria or preferences for occupancy of particular PBV units.
SAHA may place families referred by the PBV owner on its PBV waiting list.
Income Targeting [24 CFR 983.251(c)(6)]
At least 75 percent of the families admitted to SAHA’s tenant-based and project-based voucher
programs during SAHA fiscal year from the waiting list must be extremely-low income families.
The income targeting requirement applies to the total of admissions to both programs.
Units with Accessibility Features [24 CFR 983.251(c)(7)]
When selecting families to occupy PBV units that have special accessibility features for persons
with disabilities, SAHA must first refer families who require such features to the owner.
Preferences [24 CFR 983.251(d), FR Notice 11/24/08]
SAHA may use the same selection preferences that are used for the tenant-based voucher
program, establish selection criteria or preferences for the PBV program as a whole, or for
occupancy of particular PBV developments or units. SAHA must provide an absolute selection
preference for eligible in-place families as described in Section 17-VI.B. above.
Although SAHA is prohibited from granting preferences to persons with a specific disability,
SAHA may give preference to disabled families who need services offered at a particular project
or site if the preference is limited to families (including individuals):
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• With disabilities that significantly interfere with their ability to obtain and maintain
themselves in housing;
• Who, without appropriate supportive services, will not be able to obtain or maintain
themselves in housing; and
• For whom such services cannot be provided in a non-segregated setting.
In advertising such a project, the owner may advertise the project as offering services for a
particular type of disability; however, the project must be open to all otherwise eligible disabled
persons who may benefit from services provided in the project. In these projects, disabled
residents may not be required to accept the particular services offered as a condition of
occupancy.
If SAHA has projects with more than 25 percent of the units receiving project-based assistance
because those projects include “excepted units” (units specifically made available for elderly or
disabled families, or families receiving supportive services), SAHA must give preference to such
families when referring families to these units [24 CFR 983.261(b)].
SAHA Policy
SAHA will provide a selection preference when required by the regulations (e.g., eligible
in-place families, qualifying families for “excepted units,” mobility impaired persons for
accessible units). SAHA will also establish selection preferences for occupancy of
particular PBV developments or units.
17-VI.E. OFFER OF PBV ASSISTANCE
Refusal of Offer [24 CFR 983.251(e)(3)]
SAHA is prohibited from taking any of the following actions against a family who has applied
for, received, or refused an offer of PBV assistance:
• Refuse to list the applicant on the waiting list for tenant-based voucher assistance;
• Deny any admission preference for which the applicant qualifies;
• Change the applicant’s place on the waiting list based on preference, date, and time of
application, or other factors affecting selection under SAHA’s selection policy;
• Remove the applicant from the tenant-based voucher waiting list.
Disapproval by Landlord [24 CFR 983.251(e)(2)]
If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect
the family’s position on the tenant-based voucher waiting list.
Acceptance of Offer [24 CFR 983.252]
Family Briefing
When a family accepts an offer for PBV assistance, SAHA must give the family an oral briefing.
The briefing must include information on how the program works and the responsibilities of the
family and owner. In addition to the oral briefing, SAHA must provide a briefing packet that
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explains how SAHA determines the total tenant payment for a family, the family obligations
under the program, and applicable fair housing information.
Persons with Disabilities
If an applicant family’s head or spouse is disabled, SAHA must assure effective communication,
in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing the written
information packet. This may include making alternative formats available (see Chapter 2). In
addition, SAHA must have a mechanism for referring a family that includes a member with a
mobility impairment to an appropriate accessible PBV unit.
Persons with Limited English Proficiency
SAHA should take reasonable steps to assure meaningful access by persons with limited English
proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive Order
13166 (see Chapter 2).
17-VI.F. OWNER SELECTION OF TENANTS
The owner is responsible for developing written tenant selection procedures that are consistent
with the purpose of improving housing opportunities for very low-income families and
reasonably related to program eligibility and an applicant’s ability to fulfill their obligations
under the lease. An owner must promptly notify in writing any rejected applicant of the grounds
for any rejection [24 CFR 983.253(a)(2) and (a)(3)].
Leasing [24 CFR 983.253(a)]
During the term of the HAP contract, the owner must lease contract units to eligible families that
are selected and referred by SAHA from SAHA’s waiting list. The contract unit leased to the
family must be the appropriate size unit for the size of the family, based on SAHA’s subsidy
standards.
Filling Vacancies [24 CFR 983.254(a)]
The owner must promptly notify SAHA of any vacancy or expected vacancy in a contract unit.
After receiving such notice, SAHA must make every reasonable effort to promptly refer a
sufficient number of families for the owner to fill such vacancies. SAHA and the owner must
make reasonable efforts to minimize the likelihood and length of any vacancy.
SAHA Policy
The owner must notify SAHA in writing (mail, fax, or e-mail) within 14 days of learning
about any vacancy or expected vacancy.
SAHA will make every reasonable effort to refer families to the owner within 30 days of
receiving such notice from the owner.
Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)]
If any contract units have been vacant for 120 or more days since owner notice of the vacancy,
SAHA may give notice to the owner amending the HAP contract to reduce the number of
contract units by subtracting the number of contract units (according to the bedroom size) that
have been vacant for this period.
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SAHA Policy
If any contract units have been vacant for 120 days, SAHA will give notice to the owner
that the HAP contract will be amended to reduce the number of contract units that have
been vacant for this period. SAHA will provide the notice to the owner within 14 days of
the 120th day of the vacancy. The amendment to the HAP contract will be effective the 1st
day of the month following the date of SAHA’s notice.
17-VI.G. TENANT SCREENING [24 CFR 983.255]
PHA Responsibility
SAHA is not responsible or liable to the owner or any other person for the family’s behavior or
suitability for tenancy. However, SAHA may opt to screen applicants for family behavior or
suitability for tenancy and may deny applicants based on such screening.
SAHA Policy
SAHA will not conduct screening to determine a PBV applicant family’s suitability for
tenancy.
SAHA must provide the owner with an applicant family’s current and prior address (as shown in
SAHA records) and the name and address (if known by SAHA) of the family’s current landlord
and any prior landlords.
In addition, SAHA may offer the owner other information SAHA may have about a family,
including information about the tenancy history of family members or about drug trafficking and
criminal activity by family members. SAHA must provide applicant families a description of
SAHA policy on providing information to owners, and SAHA must give the same types of
information to all owners.
SAHA may not disclose to the owner any confidential information provided in response to
a request for documentation of domestic violence, dating violence, sexual assault, or stalking
except at the written request or with the written consent of the individual providing the
documentation [24 CFR 5.2007(a)(4)].
SAHA Policy
SAHA will inform owners of their responsibility to screen prospective tenants, and will
provide owners with the required known name and address information, at the time of the
turnover HQS inspection or before if requested. SAHA will not provide any additional
information to the owner, such as tenancy history, criminal history, etc.
Owner Responsibility
The owner is responsible for screening and selection of the family to occupy the owner’s unit.
When screening families the owner may consider a family’s background with respect to the
following factors:
• Payment of rent and utility bills;
• Caring for a unit and premises;
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• Respecting the rights of other residents to the peaceful enjoyment of their housing;
• Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or
property of others; and
• Compliance with other essential conditions of tenancy.
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PART VII: OCCUPANCY
17-VII.A. OVERVIEW
After an applicant has been selected from the waiting list, determined eligible by SAHA, referred
to an owner and determined suitable by the owner, the family will sign the lease and occupancy
of the unit will begin.
17-VII.B. LEASE [24 CFR 983.256]
The tenant must have legal capacity to enter a lease under state and local law. Legal capacity
means that the tenant is bound by the terms of the lease and may enforce the terms of the lease
against the owner.
Form of Lease [24 CFR 983.256(b)]
The tenant and the owner must enter into a written lease agreement that is signed by both parties.
If an owner uses a standard lease form for rental units to unassisted tenants in the locality or
premises, the same lease must be used for assisted tenants, except that the lease must include a
HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all
provisions required by HUD.
If the owner does not use a standard lease form for rental to unassisted tenants, the owner may
use another form of lease, such as a SAHA model lease.
SAHA may review the owner’s lease form to determine if the lease complies with state and local
law. If SAHA determines that the lease does not comply with state or local law, SAHA may
decline to approve the tenancy.
SAHA Policy
SAHA will not review the owner’s lease for compliance with state or local law.
Lease Requirements [24 CFR 983.256(c)]
The lease for a PBV unit must specify all of the following information:
• The names of the owner and the tenant;
• The unit rented (address, apartment number, if any, and any other information needed to
identify the leased contract unit);
• The term of the lease (initial term and any provision for renewal);
• The amount of the tenant rent to owner, which is subject to change during the term of the
lease in accordance with HUD requirements;
• A specification of the services, maintenance, equipment, and utilities that will be provide by
the owner; and
• The amount of any charges for food, furniture, or supportive services.
Tenancy Addendum [24 CFR 983.256(d)]
The tenancy addendum in the lease must state:
• The program tenancy requirements;
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• The composition of the household as approved by SAHA (the names of family members and
any SAHA-approved live-in aide);
• All provisions in the HUD-required tenancy addendum must be included in the lease. The
terms of the tenancy addendum prevail over other provisions of the lease.
Initial Term and Lease Renewal [24 CFR 983.256(f)]
The initial lease term must be for at least one year. The lease must provide for automatic renewal
after the initial term of the lease in either successive definitive terms (e.g. month-to-month or
year-to-year) or an automatic indefinite extension of the lease term. For automatic indefinite
extension of the lease term, the lease terminates if any of the following occur:
• The owner terminates the lease for good cause
• The tenant terminates the lease
• The owner and tenant agree to terminate the lease
• SAHA terminates the HAP contract
• SAHA terminates assistance for the family
Changes in the Lease [24 CFR 983.256(e)]
If the tenant and owner agree to any change in the lease, the change must be in writing, and the
owner must immediately give SAHA a copy of all changes.
The owner must notify SAHA in advance of any proposed change in the lease regarding the
allocation of tenant and owner responsibilities for utilities. Such changes may only be made if
approved by SAHA and in accordance with the terms of the lease relating to its amendment.
SAHA must redetermine reasonable rent, in accordance with program requirements, based on
any change in the allocation of the responsibility for utilities between the owner and the tenant.
The redetermined reasonable rent will be used in calculation of the rent to owner from the
effective date of the change.
Owner Termination of Tenancy [24 CFR 983.257]
With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an
owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In
the PBV program, terminating tenancy for “good cause” does not include doing so for a business
or economic reason, or a desire to use the unit for personal or family use or other non-residential
purpose.
Non-Compliance with Supportive Services Requirement [24 CFR 983.257(c),
FR Notice 11/24/08]
If a family is living in a project-based unit that is excepted from the 25 percent per project cap on
project-basing because of participation in a supportive services program (e.g., Family Self-
Sufficiency), and the family fails to complete its supportive services requirement without good
cause, such failure is grounds for lease termination by the owner.
Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)]
The lease may specify a maximum period of family absence from the unit that may be shorter
than the maximum period permitted by SAHA policy. According to program requirements, the
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family’s assistance must be terminated if they are absent from the unit for more than 180
consecutive days. SAHA termination of assistance actions due to family absence from the unit
are subject to 24 CFR 981.312, except that the unit is not terminated from the HAP contract if
the family is absent for longer than the maximum period permitted.
Continuation of Housing Assistance Payments [24 CFR 982.258]
Housing assistance payments shall continue until the tenant rent equals the rent to owner. The
cessation of housing assistance payments at such point will not affect the family's other rights
under its lease, nor will such cessation preclude the resumption of payments as a result of later
changes in income, rents, or other relevant circumstances if such changes occur within 180 days
following the date of the last housing assistance payment by SAHA. After the 180-day period,
the unit shall be removed from the HAP contract pursuant to 24 CFR 983.211.
SAHA Policy
If a participating family receiving zero assistance experiences a change in circumstances
that would result in a HAP payment to the owner, the family must notify SAHA of the
change and request an interim reexamination before the expiration of the 180-day period.
Security Deposits [24 CFR 983.259]
The owner may collect a security deposit from the tenant. SAHA may prohibit security deposits
in excess of private market practice, or in excess of amounts charged by the owner to unassisted
tenants.
SAHA Policy
SAHA will allow the owner to collect a security deposit amount the owner determines is
appropriate.
When the tenant moves out of a contract unit, the owner, subject to state and local law, may use
the security deposit, including any interest on the deposit, in accordance with the lease, as
reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the
tenant under the lease.
The owner must give the tenant a written list of all items charged against the security deposit and
the amount of each item. After deducting the amount used to reimburse the owner, the owner
must promptly refund the full amount of the balance to the tenant.
If the security deposit does not cover the amount owed by the tenant under the lease, the owner
may seek to collect the balance from the tenant. SAHA has no liability or responsibility for
payment of any amount owed by the family to the owner.
17-VII.C. MOVES
Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260]
If SAHA determines that a family is occupying a wrong size unit, based on SAHA’s subsidy
standards, or a unit with accessibility features that the family does not require, and the unit is
needed by a family that does require the features, SAHA must promptly notify the family and the
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owner of this determination, and SAHA must offer the family the opportunity to receive
continued housing assistance in another unit.
SAHA Policy
SAHA will notify the family and the owner of the family’s need to move based on the
occupancy of a wrong-size or accessible unit within 14 days of SAHA’s determination.
SAHA will offer the family the following types of continued assistance in the following
order, based on the availability of assistance:
PBV assistance in the same building or project;
Tenant-based voucher assistance.
If SAHA offers the family a tenant-based voucher, SAHA must terminate the housing assistance
payments for a wrong-sized or accessible unit at the earlier of the expiration of the term of the
family’s voucher (including any extension granted by SAHA) or the date upon which the family
vacates the unit. If the family does not move out of the wrong-sized unit or accessible unit by the
expiration of the term of the family's voucher, SAHA must remove the unit from the HAP
contract.
If SAHA offers the family another form of assistance that is not a tenant-based voucher, and the
family does not accept the offer, does not move out of the PBV unit within a reasonable time as
determined by SAHA, or both, SAHA must terminate the housing assistance payments for the
unit at the expiration of a reasonable period as determined by SAHA and remove the unit from
the HAP contract.
SAHA Policy
When SAHA offers a family another form of assistance that is not tenant-based voucher,
the family will be given 30 days from the date of the offer to accept the offer and move
out of the PBV unit. If the family does not move out within the 30 day time frame,
SAHA will terminate the housing assistance payments at the expiration of the 30 day
period.
SAHA may make exceptions to this 30 day period if needed for reasons beyond the
family’s control such as death, serious illness, or other medical emergency of a family
member.
Family Right to Move [24 CFR 983.261]
The family may terminate the lease at any time after the first year of occupancy. The family must
give advance written notice to the owner in accordance with the lease and provide a copy of such
notice to SAHA. If the family wishes to move with continued tenant-based assistance, the family
must contact SAHA to request the rental assistance prior to providing notice to terminate the
lease.
If the family terminates the lease in accordance with these requirements, SAHA is required to
offer the family the opportunity for continued tenant-based assistance, in the form of a voucher
or other comparable tenant-based rental assistance. If voucher or other comparable tenant-based
assistance is not immediately available upon termination of the family’s lease in the PBV unit,
SAHA must give the family priority to receive the next available opportunity for continued
tenant-based assistance.
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If the family terminates the assisted lease before the end of the first year, the family relinquishes
the opportunity for continued tenant-based assistance.
17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262]
SAHA may not pay housing assistance under a PBV HAP contract for more than 25 percent of
the number of dwelling units in a project unless the units are [24 CFR 983.56]:
• In a single-family building;
• Specifically made available for elderly and/or disabled families; or
• Specifically made available for families receiving supportive services as defined by SAHA.
At least one member must be receiving at least one qualifying supportive service.
If a family at the time of initial tenancy is receiving and while the resident of an excepted unit
has received Family Self-Sufficiency (FSS) supportive services or any other service as defined
by SAHA and successfully completes the FSS contract of participation or the supportive services
requirement, the unit continues to count as an excepted unit for as long as the family resides in
the unit.
A family (or remaining members of a family) residing in an excepted unit that no longer meets
the criteria for a “qualifying family” in connection with the 25 percent per project cap exception
(e.g. a family that does not successfully complete its FSS contract of participation or supportive
services requirements, or a family that is no longer elderly or disabled due to a change in family
composition where SAHA does not exercise discretion to allow the family to remain in the
excepted unit), must vacate the unit within a reasonable period of time established by SAHA,
and SAHA must cease paying housing assistance payments on behalf of the non-qualifying
family.
If the family fails to vacate the unit within the established time, the unit must be removed from
the HAP contract unless the project is partially assisted, and it is possible for the HAP contract to
be amended to substitute a different unit in the building in accordance with program
requirements; or the owner terminates the lease and evicts the family. The housing assistance
payments for a family residing in an excepted unit that is not in compliance with its family
obligations to comply with supportive services requirements must be terminated by SAHA.
SAHA may allow a family that initially qualified for occupancy of an excepted unit based on
elderly or disabled family status to continue to reside in a unit, where through circumstances
beyond the control of the family (e.g., death of the elderly or disabled family member or long-
term or permanent hospitalization or nursing care), the elderly or disabled family member no
longer resides in the unit. In this case, the unit may continue to be counted as an excepted unit
for as long as the family resides in that unit. Once the family vacates the unit, in order to
continue as an excepted unit under the HAP contract, the unit must be made available to and
occupied by a qualified family.
SAHA Policy
SAHA will provide PBV assistance for excepted units.
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PART VIII: DETERMINING RENT TO OWNER
17-VIII.A. OVERVIEW
The amount of the initial rent to an owner of units receiving PBV assistance is established at the
beginning of the HAP contract term. Although for rehabilitated or newly constructed housing,
the agreement to enter into HAP Contract (Agreement) states the estimated amount of the initial
rent to owner, the actual amount of the initial rent to owner is established at the beginning of the
HAP contract term.
During the tem of the HAP contract, the rent to owner is redetermined at the owner’s request in
accordance with program requirements, and at such time that there is a five percent or greater
decrease in the published FMR.
17-VIII.B. RENT LIMITS [24 CFR 983.301]
Except for certain tax credit units (discussed below), the rent to owner must not exceed the
lowest of the following amounts:
• An amount determined by SAHA, not to exceed 110 percent of the applicable fair market
rent (or any HUD-approved exception payment standard) for the unit bedroom size minus
any utility allowance;
• The reasonable rent; or
• The rent requested by the owner.
Certain Tax Credit Units [24 CFR 983.301(c)]
For certain tax credit units, the rent limits are determined differently than for other PBV units.
Different limits apply to contract units that meet all of the following criteria:
• The contract unit receives a low-income housing tax credit under the Internal Revenue Code
of 1986;
• The contract unit is not located in a qualified census tract;
• There are comparable tax credit units of the same bedroom size as the contract unit in the
same project, and the comparable tax credit units do not have any form of rental assistance
other than the tax credit; and
• The tax credit rent exceeds 110 percent of the fair market rent or any approved exception
payment standard;
For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of:
• The tax credit rent minus any utility allowance;
• The reasonable rent; or
• The rent requested by the owner.
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Definitions
A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau
of the Census) in which at least 50 percent of households have an income of less than 60 percent
of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and
where the census tract is designated as a qualified census tract by HUD.
Tax credit rent is the rent charged for comparable units of the same bedroom size in the project
that also receive the low-income housing tax credit but do not have any additional rental
assistance (e.g., tenant-based voucher assistance).
Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)]
SAHA must determine reasonable rent in accordable with 24 CFR 983.303. The rent to owner
for each contract unit may at no time exceed the reasonable rent, except in cases where SAHA
has elected within the HAP contract not to reduce rents below the initial rent to owner and, upon
redetermination of the rent to owner, the reasonable rent would result in a rent below the initial
rent. However, the rent to owner must be reduced in the following cases:
• To correct errors in calculations in accordable with HUD requirements
• If additional housing assistance has been combined with PBV assistance after the execution
of the initial HAP contract and a rent decrease is required pursuant to 24 CFR 983.55
• If a decrease in rent to owner is required based on changes in the allocation of the
responsibility for utilities between owner and tenant
If SAHA has not elected within the HAP contract to establish the initial rent to owner as the rent
floor, the rent to owner shall not at any time exceed the reasonable rent.
SAHA Policy
SAHA will elect within the HAP contract not to reduce rents below the initial level, with
the exception of circumstances listed in 24 CFR 983.302(c)(2). If, upon redetermination
of the rent to owner, the reasonable rent would result in a rent below the initial rent,
SAHA will use the higher initial rent to owner amount.
Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)]
When determining the initial rent to owner, SAHA must use the most recently published FMR in
effect and the utility allowance schedule in effect at execution of the HAP contract. When
redetermining the rent to owner, SAHA must use the most recently published FMR and the
utility allowance schedule in effect at the time of redetermination. At its discretion, SAHA may
for initial rent, use the amounts in effect at any time during the 30-day period immediately before
the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period
immediately before the redetermination date.
Any HUD-approved exception payment standard amount under the tenant-based voucher
program also applies to the project-based voucher program. HUD will not approve a different
exception payment stand amount for use in the PBV program.
Likewise, SAHA may not establish or apply different utility allowance amounts for the PBV
program. The same utility allowance schedule applies to both the tenant-based and project-based
voucher programs.
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SAHA Policy
Upon request by the owner, SAHA will consider using the FMR or utility allowances in
effect during the 30-day period before the start date of the HAP, or redetermination of
rent. The owner must explain the need to use the previous FMRs or utility allowances
and include documentation in support of the request. SAHA will review and make a
decision based on the circumstances and merit of each request.
In addition to considering a written request from an owner, SAHA may decide to use the
FMR or utility allowances in effect during the 30-day period before the start date of the
HAP, or redetermination of rent, if SAHA determines it is necessary due to budgetary
constraints.
Redetermination of Rent [24 CFR 983.302]
SAHA must redetermine the rent to owner upon the owner’s request or when there is a five
percent or greater decrease in the published FMR.
Rent Increase
If an owner wishes to request an increase in the rent to owner from SAHA, it must be requested
at the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in
writing and in the form and manner required by SAHA. SAHA may only make rent increases in
accordance with the rent limits described previously. There are no provisions in the PBV
program for special adjustments (e.g., adjustments that reflect increases in the actual and
necessary expenses of owning and maintaining the units which have resulted from substantial
general increases in real property taxes, utility rates, or similar costs).
SAHA Policy
An owner’s request for a rent increase must be submitted to SAHA 60 days prior to the
anniversary date of the HAP contract, and must include the new rent amount the owner is
proposing. If the request for increase in the rent is not received 60 days prior, the
effective date will be moved accordingly.
SAHA may not approve and the owner may not receive any increase of rent to owner until and
unless the owner has complied with requirements of the HAP contract, including compliance
with HQS. The owner may not receive any retroactive increase of rent for any period of
noncompliance.
Rent Decrease
If there is a decrease in the rent to owner, as established in accordance with program
requirements such as a change in the FMR or exception payment standard, or reasonable rent
amount, the rent to owner must be decreased regardless of whether the owner requested a rent
adjustment, except where SAHA has elected within the HAP contract to not reduce rents below
the initial rent under the initial HAP contract.
Notice of Rent Change
The rent to owner is redetermined by written notice by SAHA to the owner specifying the
amount of the redetermined rent. SAHA notice of rent adjustment constitutes an amendment of
the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for
the period of 12 calendar months from the annual anniversary of the HAP contract.
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SAHA Policy
SAHA will provide the owner with at least 30 days written notice of any change in the
amount of rent to owner.
PHA-Owned Units [24 CFR 983.301(g)]
For SAHA-owned PBV units, the initial rent to owner and the annual redetermination of rent at
the anniversary of the HAP contract are determined by the independent entity approved by HUD.
SAHA must use the rent to owner established by the independent entity.
17-VIII.C. REASONABLE RENT [24 CFR 983.303]
At the time the initial rent is established and all times during the term of the HAP contract, the
rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by
SAHA, except where SAHA has elected within the HAP contract to not reduce rents below the
initial rent under the initial HAP contract.
When Rent Reasonable Determinations Are Required
SAHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever any of
the following occur:
• There is a five percent or greater decrease in the published FMR in effect 60 days before the
contract anniversary (for the unit sizes specified in the HAP contract) as compared with the
FMR that was in effect one year before the contract anniversary date;
• SAHA approves a change in the allocation of responsibility for utilities between the owner
and the tenant;
• The HAP contract is amended to substitute a different contract unit in the same building or
project; or
• There is any other change that may substantially affect the reasonable rent.
How to Determine Reasonable Rent
The reasonable rent of a unit receiving PBV assistance must be determined by comparison to
rent for other comparable unassisted units. When making this determination, SAHA must
consider factors that affect market rent. Such factors include the location, quality, size, type and
age of the unit, as well as the amenities, housing services maintenance, and utilities to be
provided by the owner.
Comparability Analysis
For each unit, the comparability analysis must use at least three comparable units in the private
unassisted market. This may include units in the premises or project that is receiving project-
based assistance. The analysis must show how the reasonable rent was determined, including
major differences between the contract units and comparable unassisted units, and must be
retained by SAHA. The comparability analysis may be performed by SAHA staff or by another
qualified person or entity. Those who conduct these analyses or are involved in determining the
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housing assistance payment based on the analyses may not have any direct or indirect interest in
the property.
PHA-Owned Units
For SAHA-owned units, the amount of the reasonable rent must be determined by an
independent agency approved by HUD in accordance with PBV program requirements. The
independent entity must provide a copy of the determination of reasonable rent for SAHA-owned
units to SAHA and to the HUD field office where the project is located.
Owner Certification of Reasonable Rent
By accepting each monthly housing assistance payment, the owner certifies that the rent to
owner is not more than rent charged by the owner for other comparable unassisted units in the
premises. At any time, SAHA may require the owner to submit information on rents charged by
the owner for other units in the premises or elsewhere.
17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL
In addition to the rent limits discussed in Section 17-VIII.B above, other restrictions may limit
the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are
not even eligible to receive PBV assistance (see Section 17-II.D).
Other Subsidy [24 CFR 983.304]
To comply with HUD subsidy layering requirements, at the discretion of HUD or its designee, a
SAHA shall reduce the rent to owner because of other governmental subsidies, including tax
credits or tax exemptions, grants, or other subsidized funding.
For units receiving assistance under the HOME program, rents may not exceed rent limits as
required by that program.
For units in any of the following types of federally subsidized projects, the rent to owner may not
exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with
requirements for the applicable federal program:
• An insured or non-insured Section 236 project;
• A formerly insured or non-insured Section 236 project that continues to receive Interest
Reduction Payment following a decoupling action;
• A Section 221(d)(3) below market interest rate (BMIR) project;
• A Section 515 project of the Rural Housing Service;
• Any other type of federally subsidized project specified by HUD.
Combining Subsidy
Rent to owner may not exceed any limitation required to comply with HUD subsidy layering
requirements.
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Rent Control [24 CFR 983.305]
In addition to the rent limits set by PBV program regulations, the amount of rent to owner may
also be subject to rent control or other limits under local, state, or federal law.
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PART IX: PAYMENTS TO OWNER
17-IX.A. HOUSING ASSISTANCE PAYMENTS [24 CFR 983.351]
During the term of the HAP contract, SAHA must make housing assistance payments to the
owner in accordance with the terms of the HAP contract. During the term of the HAP contract,
payments must be made for each month that a contract unit complies with HQS and is leased to
and occupied by an eligible family. The housing assistance payment must be paid to the owner
on or about the first day of the month for which payment is due, unless the owner and SAHA
agree on a later date.
Except for discretionary vacancy payments, SAHA may not make any housing assistance
payment to the owner for any month after the month when the family moves out of the unit (even
if household goods or property are left in the unit).
The amount of the housing assistance payment by SAHA is the rent to owner minus the tenant
rent (total tenant payment minus the utility allowance).
In order to receive housing assistance payments, the owner must comply with all provisions of
the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner
does not have a right to receive housing assistance payments.
17-IX.B. VACANCY PAYMENTS [24 CFR 983.352]
If an assisted family moves out of the unit, the owner may keep the housing assistance payment
for the calendar month when the family moves out. However, the owner may not keep the
payment if SAHA determines that the vacancy is the owner’s fault.
SAHA Policy
If SAHA determines that the owner is responsible for a vacancy and as a result, is not
entitled to keep the housing assistance payment. SAHA will notify the owner of the
amount of housing assistance payment that the owner must repay. SAHA will require the
owner to repay the amount owed in accordance with the policies in Section 16-IV.B.
At the discretion of SAHA, the HAP contract may provide for vacancy payments to the owner.
SAHA may only make vacancy payments if:
• The owner gives SAHA prompt, written notice certifying that the family has vacated the unit
and identifies the date when the family moved out (to the best of the owner’s knowledge);
• The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant
during the period for which payment is claimed;
• The owner certifies that it has taken every reasonable action to minimize the likelihood and
length of vacancy; and
• The owner provides any additional information required and requested by SAHA to verify
that the owner is entitled to the vacancy payment.
The owner must submit a request for vacancy payments in the form and manner required by
SAHA and must provide any information or substantiation required by SAHA to determine the
amount of any vacancy payment.
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SAHA Policy
If an owner’s HAP contract allows vacancy payments to be made, and the owner wishes
to receive vacancy payments, the owner must have properly notified SAHA of the
vacancy in accordance with the policy in Section 17-VI.F. regarding filling vacancies.
In order for a vacancy payment request to be considered, it must be made within 14 days
of the end of the period for which the owner is requesting the vacancy payment. The
request must include the required owner certifications and SAHA may require the owner
to provide documentation to support the request. If the owner does not provide the
information requested by SAHA within 14 days of SAHA’s request, no vacancy
payments will be made.
17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353]
The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent
is determined by SAHA in accordance with HUD requirements. Any changes in the amount of
tenant rent will be effective on the date stated in SAHA notice to the family and owner.
The family is responsible for paying the tenant rent (total tenant payment minus the utility
allowance). The amount of the tenant rent determined by SAHA is the maximum amount the
owner may charge the family for rental of a contract unit. The tenant rent covers all housing
services, maintenance, equipment, and utilities to be provided by the owner. The owner may not
demand or accept any rent payment from the tenant in excess of the tenant rent as determined by
SAHA. The owner must immediately return any excess payment to the tenant.
Tenant and SAHA Responsibilities
The family is not responsible for the portion of rent to owner that is covered by the housing
assistance payment and the owner may not terminate the tenancy of an assisted family for
nonpayment by SAHA.
Likewise, SAHA is responsible only for making the housing assistance payment to the owner in
accordance with the HAP contract. SAHA is not responsible for paying tenant rent, or any other
claim by the owner, including damage to the unit. SAHA may not use housing assistance
payments or other program funds (including administrative fee reserves) to pay any part of the
tenant rent or other claim by the owner.
Utility Reimbursements
If the amount of the utility allowance exceeds the total tenant payment, SAHA must pay the
amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant
rent to the owner must be zero.
SAHA may pay the utility reimbursement directly to the family or to the utility supplier on
behalf of the family. If SAHA chooses to pay the utility supplier directly, SAHA must notify the
family of the amount paid to the utility supplier.
SAHA Policy
SAHA will make utility reimbursements to the family.
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17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.354]
Meals and Supportive Services
With the exception of PBV assistance in assisted living developments, the owner may not require
the tenant to pay charges for meals or supportive services. Non-payment of such charges is not
grounds for termination of tenancy.
In assisted living developments receiving PBV assistance, the owner may charge for meals or
supportive services. These charges may not be included in the rent to owner, nor may the value
of meals and supportive services be included in the calculation of the reasonable rent. However,
non-payment of such charges is grounds for termination of the lease by the owner in an assisted
living development.
Other Charges by Owner
The owner may not charge extra amounts for items customarily included in rent in the locality or
provided at no additional cost to unsubsidized tenants in the premises.
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GLOSSARY
A. ACRONYMS USED IN THE HOUSING CHOICE VOUCHER (HCV) PROGRAM
AAF Annual adjustment factor (published by HUD in the Federal Register and used to
compute annual rent adjustments)
ACC Annual contributions contract
ADA Americans with Disabilities Act of 1990
AIDS Acquired immune deficiency syndrome
BR Bedroom
CDBG Community Development Block Grant (Program)
CFR Code of Federal Regulations (published federal rules that define and implement
laws; commonly referred to as “the regulations”)
CPI Consumer price index (published monthly by the Department of Labor as an
inflation indicator)
EID Earned income disallowance
EIV Enterprise Income Verification
FDIC Federal Deposit Insurance Corporation
FHA Federal Housing Administration (HUD Office of Housing)
FHEO Fair Housing and Equal Opportunity (HUD Office of)
FICA Federal Insurance Contributions Act (established Social Security taxes)
FMR Fair market rent
FR Federal Register
FSS Family Self-Sufficiency (Program)
FY Fiscal year
FYE Fiscal year end
GAO Government Accountability Office
GR Gross rent
HA Housing authority or housing agency
HAP Housing assistance payment
HCV Housing choice voucher
HQS Housing quality standards
HUD Department of Housing and Urban Development
HUDCLIPS HUD Client Information and Policy System
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IPA Independent public accountant
IRA Individual retirement account
IRS Internal Revenue Service
JTPA Job Training Partnership Act
LBP Lead-based paint
LEP Limited English proficiency
MSA Metropolitan statistical area (established by the U.S. Census Bureau)
MTCS Multi-family Tenant Characteristics System (now the Form HUD-50058
submodule of the PIC system)
MTW Moving to Work
NOFA Notice of funding availability
OGC HUD's Office of General Counsel
OIG HUD’s Office of Inspector General
OMB Office of Management and Budget
PASS Plan to Achieve Self-Support
PHA Public housing agency
PIC PIH Information Center
PIH (HUD Office of) Public and Indian Housing
PS Payment standard
QC Quality control
REAC (HUD) Real Estate Assessment Center
RFP Request for proposals
RFTA Request for tenancy approval
RIGI Regional inspector general for investigation (handles fraud and program abuse
matters for HUD at the regional office level)
SEMAP Section 8 Management Assessment Program
SRO Single room occupancy
SSA Social Security Administration
SSI Supplemental security income
SWICA State wage information collection agency
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TANF Temporary assistance for needy families
TPV Tenant protection vouchers
TR Tenant rent
TTP Total tenant payment
UA Utility allowance
UFAS Uniform Federal Accessibility Standards
UIV Upfront income verification
URP Utility reimbursement payment
VAWA Violence Against Women Reauthorization Act of 2013
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B. GLOSSARY OF SUBSIDIZED HOUSING TERMS
Absorption. In portability (under subpart H of this part 982): the point at which a receiving PHA
stops billing the initial PHA for assistance on behalf of a portability family. The receiving
PHA uses funds available under the receiving PHA consolidated ACC.
Accessible. The facility or portion of the facility can be approached, entered, and used by persons
with disabilities.
Adjusted income. Annual income, less allowable HUD deductions and allowances.
Administrative fee. Fee paid by HUD to the PHA for administration of the program. See
§982.152.
Administrative plan. The plan that describes PHA policies for administration of the tenant-based
programs. The Administrative Plan and any revisions must be approved by the PHA’s board
and included as a supporting document to the PHA Plan. See §982.54.
Admission. The point when the family becomes a participant in the program. The date used for
this purpose is the effective date of the first HAP contract for a family (first day of initial
lease term) in a tenant-based program.
Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of
that individual, or an individual to whom that individual stands in loco parentis (in the place
of a parent), or any individual, tenant, or lawful occupant living in the household of
that individual
Amortization payment. In a manufactured home space rental: The monthly debt service payment
by the family to amortize the purchase price of the manufactured home.
Annual. Happening once a year.
Annual contributions contract (ACC). The written contract between HUD and a PHA under
which HUD agrees to provide funding for a program under the 1937 Act, and the PHA
agrees to comply with HUD requirements for the program.
Annual income. The anticipated total income of an eligible family from all sources for the
12-month period following the date of determination of income, computed in accordance
with the regulations.
Applicant (applicant family). A family that has applied for admission to a program but is not yet
a participant in the program.
Area exception rent. An amount that exceeds the published FMR. See 24 CFR 982.504(b).
As-paid states. States where the welfare agency adjusts the shelter and utility component of the
welfare grant in accordance with actual housing costs.
Assets. (See net family assets.)
Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or
speaking skills to have an equal opportunity to participate in, and enjoy the benefits of,
programs or activities receiving federal financial assistance.
Biennial. Happening every two years.
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Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of
law such that certain tenants can be evicted or removed while the remaining family members’
lease and occupancy rights are allowed to remain intact.
Budget authority. An amount authorized and appropriated by the Congress for payment to PHAs
under the program. For each funding increment in a PHA program, budget authority is the
maximum amount that may be paid by HUD to the PHA over the ACC term of the funding
increment.
Child. A member of the family other than the family head or spouse who is under 18 years of
age.
Child care expenses. Amounts anticipated to be paid by the family for the care of children under
13 years of age during the period for which annual income is computed, but only where such
care is necessary to enable a family member to actively seek employment, be gainfully
employed, or to further his or her education and only to the extent such amounts are not
reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case
of child care necessary to permit employment, the amount deducted shall not exceed the
amount of employment income that is included in annual income.
Citizen. A citizen or national of the United States.
Cohead. An individual in the household who is equally responsible for the lease with the head of
household. A family may have a cohead or spouse but not both. A cohead never qualifies as a
dependent. The cohead must have legal capacity to enter into a lease.
Common space. In shared housing, the space available for use by the assisted family and other
occupants of the unit.
Computer match. The automated comparison of databases containing records about individuals.
Confirmatory review. An on-site review performed by HUD to verify the management
performance of a PHA.
Consent form. Any consent form approved by HUD to be signed by assistance applicants and
participants to obtain income information from employers and SWICAs; return information
from the Social Security Administration (including wages, net earnings from self-
employment, and retirement income); and return information for unearned income from the
IRS. Consent forms expire after a certain time and may authorize the collection of other
information to determine eligibility or level of benefits.
Congregate housing. Housing for elderly persons or persons with disabilities that meets the
HQS for congregate housing. A special housing type: see 24 CFR 982.606–609.
Contiguous MSA. In portability (under subpart H of part 982): An MSA that shares a common
boundary with the MSA in which the jurisdiction of the initial PHA is located.
Continuously assisted. An applicant is continuously assisted under the 1937 Act if the family is
already receiving assistance under any 1937 Housing Act program when the family is
admitted to the voucher program.
Contract authority. The maximum annual payment by HUD to a PHA for a funding increment.
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Cooperative (term includes mutual housing). Housing owned by a nonprofit corporation or
association, and where a member of the corporation or association has the right to reside in a
particular apartment, and to participate in management of the housing. A special housing
type (see 24 CFR 982.619).
Covered families. Statutory term for families who are required to participate in a welfare agency
economic self-sufficiency program and who may be subject to a welfare benefit sanction for
noncompliance with this obligation. Includes families who receive welfare assistance or other
public assistance under a program for which federal, state or local law requires that a member
of the family must participate in an economic self-sufficiency program as a condition for the
assistance.
Dating violence. Violence committed by a person who is or has been in a social relationship of a
romantic or intimate nature with the victim; and where the existence of such a relationship
shall be determined based on a consideration of the following factors:
- The length of the relationship
- The type of relationship
- The frequency of interaction between the persons involved in the relationship
Dependent. A member of the family (except foster children and foster adults) other than the
family head or spouse, who is under 18 years of age, or is a person with a disability, or is a
full-time student.
Dependent child. In the context of the student eligibility restrictions, a dependent child of a
student enrolled in an institution of higher education. The dependent child must also meet the
definition of dependent as specified above.
Disability assistance expenses. Reasonable expenses that are anticipated, during the period for
which annual income is computed, for attendant care and auxiliary apparatus for a disabled
family member, and that are necessary to enable a family member (including the disabled
member) to be employed, provided that the expenses are neither paid to a member of the
family nor reimbursed by an outside source.
Disabled family. A family whose head, cohead, spouse, or sole member is a person with
disabilities; two or more persons with disabilities living together; or one or more persons
with disabilities living with one or more live-in aides.
Disabled person. See person with disabilities.
Disallowance. Exclusion from annual income.
Displaced family. A family in which each member, or whose sole member, is a person displaced
by governmental action, or a person whose dwelling has been extensively damaged or
destroyed as a result of a disaster declared or otherwise formally recognized pursuant to
federal disaster relief laws.
Domestic violence. Felony or misdemeanor crimes of violence committed by a current or former
spouse of the victim, by a person with whom the victim shares a child in common, by a
person who is cohabitating with or has cohabitated with the victim as a spouse, by a person
similarly situated to a spouse of the victim under the domestic or family violence laws of the
jurisdiction receiving grant monies, or by any other person against an adult or youth victim
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who is protected from that person’s acts under the domestic or family violence laws of the
jurisdiction.
Domicile. The legal residence of the household head or spouse as determined in accordance with
state and local law.
Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or
the possession of a drug with intent to manufacture, sell, distribute, or use the drug.
Economic self-sufficiency program. Any program designed to encourage, assist, train or
facilitate the economic independence of assisted families, or to provide work for such
families. Can include job training, employment counseling, work placement, basic skills
training, education, English proficiency, Workfare, financial or household management,
apprenticeship, or any other program necessary to ready a participant to work (such as
treatment for drug abuse or mental health treatment). Includes any work activities as defined
in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR 5.603(c).
Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least
62 years of age; two or more persons who are at least 62 years of age living together; or one
or more persons who are at least 62 years of age living with one or more live-in aides.
Elderly person. An individual who is at least 62 years of age.
Eligible family A family that is income eligible and meets the other requirements of the 1937
Act and Part 5 of 24 CFR. See also family.
Employer identification number (EIN). The nine-digit taxpayer identifying number that is
assigned to an individual, trust, estate, partnership, association, company, or corporation.
Evidence of citizenship or eligible status. The documents which must be submitted as evidence
of citizenship or eligible immigration status. See 24 CFR 5.508(b).
Extremely low-income family. A family whose annual income does not exceed the federal
poverty level or 30 percent of the median income for the area, whichever number is higher.
Area median income is determined by HUD, with adjustments for smaller and larger
families. HUD may establish income ceilings higher or lower than 30 percent of median
income if HUD finds such variations are necessary due to unusually high or low family
incomes. See 24 CFR 5.603.
Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling
stock, or other real or personal property or interest in the property.
Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988.
Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as
established by HUD for units of varying sizes (by number of bedrooms), that must be paid in
the housing market area to rent privately owned, existing, decent, safe, and sanitary rental
housing of modest (non-luxury) nature with suitable amenities. See periodic publications in
the Federal Register in accordance with 24 CFR Part 888.
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Family. Includes but is not limited to the following, regardless of actual or perceived sexual
orientation, gender identity, or marital status, and can be further defined in PHA policy.
- A family with or without children (the temporary absence of a child from the home due to
placement in foster care is not considered in determining family composition and
family size)
- An elderly family or a near-elderly family
- A displaced family
- The remaining member of a tenant family
- A single person who is not an elderly or displaced person, or a person with disabilities, or
the remaining member of a tenant family.
Family rent to owner. In the voucher program, the portion of rent to owner paid by the family.
Family self-sufficiency program (FSS program). The program established by a PHA in
accordance with 24 CFR part 984 to promote self-sufficiency of assisted families, including
the coordination of supportive services (42 U.S.C. 1437u).
Family share. The portion of rent and utilities paid by the family. For calculation of family
share, see 24 CFR 982.515(a).
Family unit size. The appropriate number of bedrooms for a family, as determined by the PHA
under the PHA subsidy standards.
Federal agency. A department of the executive branch of the federal government.
Foster child care payment. A payment to eligible households by state, local, or private agencies
appointed by the state to administer payments for the care of foster children.
Full-time student. A person who is attending school or vocational training on a full-time basis
(carrying a subject load that is considered full-time for day students under the standards and
practices of the educational institution attended). See 24 CFR 5.603.
Funding increment. Each commitment of budget authority by HUD to a PHA under the
consolidated annual contributions contract for the PHA program.
Gender identity. Actual or perceived gender-related characteristics.
Gross rent. The sum of the rent to owner plus any utility allowance.
Group home. A dwelling unit that is licensed by a state as a group home for the exclusive
residential use of two to twelve persons who are elderly or persons with disabilities
(including any live-in aide). (A special housing type: see 24 CFR 982.610–614.)
Handicap. Any condition or characteristic that renders a person an individual with handicaps.
(See person with disabilities.)
HAP contract. The housing assistance payments contract. A written contract between the PHA
and an owner for the purpose of providing housing assistance payments to the owner on
behalf of an eligible family.
Head of household. The adult member of the family who is the head of the household for
purposes of determining income eligibility and rent.
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Household. A household includes additional people other than the family who, with the PHA’s
permission, live in an assisted unit, such as live-in aides, foster children, and foster adults.
Housing assistance payment. The monthly assistance payment by a PHA, which includes: (1) A
payment to the owner for rent to the owner under the family's lease; and (2) An additional
payment to the family if the total assistance payment exceeds the rent to owner.
Housing agency (HA). See public housing agency.
Housing quality standards (HQS). The HUD minimum quality standards for housing assisted
under the voucher program.
HUD. The U.S. Department of Housing and Urban Development.
Imputed asset. An asset disposed of for less than fair market value during the two years
preceding examination or reexamination.
Imputed asset income. The PHA-established passbook rate multiplied by the total cash value of
assets. The calculation is used when net family assets exceed $5,000.
Imputed welfare income. An amount of annual income that is not actually received by a family
as a result of a specified welfare benefit reduction, but is included in the family’s annual
income and therefore reflected in the family’s rental contribution.
Income. Income from all sources of each member of the household, as determined in accordance
with criteria established by HUD.
Income for eligibility. Annual income.
Income information means information relating to an individual’s income, including:
- All employment income information known to current or previous employers or other
income sources
- All information about wages, as defined in the state's unemployment compensation law,
including any social security number; name of the employee; quarterly wages of the
employee; and the name, full address, telephone number, and, when known, employer
identification number of an employer reporting wages under a state unemployment
compensation law
- Whether an individual is receiving, has received, or has applied for unemployment
compensation, and the amount and the period received
- Unearned IRS income and self-employment, wages, and retirement income
- Wage, social security, and supplemental security income data obtained from the Social
Security Administration.
Individual with handicaps. See person with disabilities.
Initial PHA. In portability, the term refers to both: (1) A PHA that originally selected a family
that later decides to move out of the jurisdiction of the selecting PHA; and (2) A PHA that
absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA.
Initial payment standard. The payment standard at the beginning of the HAP contract term.
Initial rent to owner. The rent to owner at the beginning of the HAP contract term.
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Institution of higher education. An institution of higher education as defined in 20 U.S.C. 1001
and 1002. See Exhibit 3-2 in this Administrative Plan.
Jurisdiction. The area in which the PHA has authority under state and local law to administer the
program.
Landlord. Either the owner of the property or his/her representative, or the managing agent or
his/her representative, as shall be designated by the owner.
Lease. A written agreement between an owner and a tenant for the leasing of a dwelling unit to
the tenant. The lease establishes the conditions for occupancy of the dwelling unit by a
family with housing assistance payments under a HAP contract between the owner and the
PHA.
Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or
persons with disabilities, and who:
- Is determined to be essential to the care and well-being of the persons;
- Is not obligated for the support of the persons; and
- Would not be living in the unit except to provide the necessary supportive services.
Living/sleeping room. A living room may be used as sleeping (bedroom) space, but no more
than two persons may occupy the space. A bedroom or living/sleeping room must have at
least one window and two electrical outlets in proper operating condition. See HCV GB
p. 10-6 and 24 CFR 982.401.
Local preference. A preference used by the PHA to select among applicant families.
Low-income family. A family whose income does not exceed 80 percent of the median income
for the area as determined by HUD with adjustments for smaller or larger families, except
that HUD may establish income limits higher or lower than 80 percent for areas with
unusually high or low incomes.
Manufactured home. A manufactured structure that is built on a permanent chassis, is designed
for use as a principal place of residence, and meets the HQS. (A special housing type: see 24
CFR 982.620 and 982.621.)
Manufactured home space. In manufactured home space rental: A space leased by an owner to a
family. A manufactured home owned and occupied by the family is located on the space. See
24 CFR 982.622 to 982.624.
Medical expenses. Medical expenses, including medical insurance premiums, that are
anticipated during the period for which annual income is computed, and that are not covered
by insurance (a deduction for elderly or disabled families only). These allowances are given
when calculating adjusted income for medical expenses in excess of 3 percent of
annual income.
Minor. A member of the family household other than the family head or spouse, who is under 18
years of age.
Mixed family. A family whose members include those with citizenship or eligible immigration
status, and those without citizenship or eligible immigration status.
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Monthly adjusted income. One twelfth of adjusted income.
Monthly income. One twelfth of annual income.
Mutual housing. Included in the definition of cooperative.
National. A person who owes permanent allegiance to the United States, for example, as a result
of birth in a United States territory or possession.
Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50
years of age but below the age of 62; or two or more persons, who are at least 50 years of age
but below the age of 62, living together; or one or more persons who are at least 50 years of
age but below the age of 62 living with one or more live-in aides.
Net family assets. (1) Net cash value after deducting reasonable costs that would be incurred in
disposing of real property, savings, stocks, bonds, and other forms of capital investment,
excluding interests in Indian trust land and excluding equity accounts in HUD
homeownership programs. The value of necessary items of personal property such as
furniture and automobiles shall be excluded.
- In cases where a trust fund has been established and the trust is not revocable by, or under
the control of, any member of the family or household, the value of the trust fund will not
be considered an asset so long as the fund continues to be held in trust. Any income
distributed from the trust fund shall be counted when determining annual income under
§5.609.
- In determining net family assets, PHAs or owners, as applicable, shall include the value of
any business or family assets disposed of by an applicant or tenant for less than fair market
value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during
the two years preceding the date of application for the program or reexamination, as
applicable, in excess of the consideration received therefore. In the case of a disposition as
part of a separation or divorce settlement, the disposition will not be considered to be for
less than fair market value if the applicant or tenant receives important consideration not
measurable in dollar terms.
Noncitizen. A person who is neither a citizen nor national of the United States.
Notice of funding availability (NOFA). For budget authority that HUD distributes by
competitive process, the Federal Register document that invites applications for funding.
This document explains how to apply for assistance and the criteria for awarding the funding.
Office of General Counsel (OGC). The General Counsel of HUD.
Overcrowded. A unit that does not meet the following HQS space standards: (1) Provide
adequate space and security for the family; and (2) Have at least one bedroom or
living/sleeping room for each two persons.
Owner. Any person or entity with the legal right to lease or sublease a unit to a participant.
PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD.
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PHA’s quality control sample. An annual sample of files or records drawn in an unbiased
manner and reviewed by a PHA supervisor (or by another qualified person other than the
person who performed the original work) to determine if the work documented in the files or
records conforms to program requirements. For minimum sample size see CFR 985.3.
Participant (participant family). A family that has been admitted to the PHA program and is
currently assisted in the program. The family becomes a participant on the effective date of
the first HAP contract executed by the PHA for the family (first day of initial lease term).
Payment standard. The maximum monthly assistance payment for a family assisted in the
voucher program (before deducting the total tenant payment by the family).
Person with disabilities. For the purposes of program eligibility. A person who has a disability
as defined under the Social Security Act or Developmental Disabilities Care Act, or a person
who has a physical or mental impairment expected to be of long and indefinite duration and
whose ability to live independently is substantially impeded by that impairment but could be
improved by more suitable housing conditions. This includes persons with AIDS or
conditions arising from AIDS but excludes persons whose disability is based solely on drug
or alcohol dependence. For the purposes of reasonable accommodation. A person with a
physical or mental impairment that substantially limits one or more major life activities, a
person regarded as having such an impairment, or a person with a record of such
an impairment.
Portability. Renting a dwelling unit with a Section 8 housing choice voucher outside the
jurisdiction of the initial PHA.
Premises. The building or complex in which the dwelling unit is located, including common
areas and grounds.
Previously unemployed. With regard to the earned income disallowance, a person with
disabilities who has earned, in the 12 months previous to employment, no more than would
be received for 10 hours of work per week for 50 weeks at the established minimum wage.
Private space. In shared housing, the portion of a contract unit that is for the exclusive use of an
assisted family.
Processing entity. The person or entity that, under any of the programs covered, is responsible
for making eligibility and related determinations and any income reexamination. In the HCV
program, the “processing entity” is the “responsible entity.”
Project owner. The person or entity that owns the housing project containing the assisted
dwelling unit.
Public assistance. Welfare or other payments to families or individuals, based on need, which
are made under programs funded, separately or jointly, by federal, state, or local
governments.
Public housing agency (PHA). Any state, county, municipality, or other governmental entity or
public body, or agency or instrumentality of these entities, that is authorized to engage or
assist in the development or operation of low-income housing under the 1937 Act.
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Qualified family (under the earned income disallowance). A family participating in an applicable
assisted housing program or receiving HCV assistance:
- Whose annual income increases as a result of employment of a family member who is a
person with disabilities and who was previously unemployed for one or more years prior to
employment;
- Whose annual income increases as a result of increased earnings by a family member who
is a person with disabilities during participation in any economic self-sufficiency or other
job training program; or
- Whose annual income increases, as a result of new employment or increased earnings of a
family member who is a person with disabilities, during or within six months after
receiving assistance, benefits or services under any state program for temporary assistance
for needy families funded under Part A of Title IV of the Social Security Act, as
determined by the responsible entity in consultation with the local agencies administering
temporary assistance for needy families (TANF) and Welfare-to-Work (WTW) programs.
The TANF program is not limited to monthly income maintenance, but also includes such
benefits and services as one-time payments, wage subsidies and transportation assistance--
provided that the total amount over a six-month period is at least $500.
Qualified census tract. With regard to certain tax credit units, any census tract (or equivalent
geographic area defined by the Bureau of the Census) in which at least 50 percent of
households have an income of less than 60 percent of Area Median Gross Income (AMGI),
or where the poverty rate is at least 25 percent, and where the census tract is designated as a
qualified census tract by HUD.
Reasonable rent. A rent to owner that is not more than rent charged: (1) For comparable units in
the private unassisted market; and (2) For comparable unassisted units in the premises.
Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or
service to allow a person with disabilities to fully access the PHA’s programs or services.
Receiving PHA. In portability: A PHA that receives a family selected for participation in the
tenant-based program of another PHA. The receiving PHA issues a voucher and provides
program assistance to the family.
Recertification. Sometimes called reexamination. The process of securing documentation of
total family income used to determine the rent the tenant will pay for the next 12 months if
there are no additional changes to be reported.
Remaining member of the tenant family. The person left in assisted housing who may or may
not normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies,
leaving widow age 47 who is not disabled).
Rent to owner. The total monthly rent payable to the owner under the lease for the unit (also
known as contract rent). Rent to owner covers payment for any housing services,
maintenance, and utilities that the owner is required to provide and pay for.
Residency preference. A PHA preference for admission of families that reside anywhere in a
specified area, including families with a member who works or has been hired to work in the
area (See residency preference area).
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Residency preference area. The specified area where families must reside to qualify for a
residency preference.
Responsible entity. For the public housing and the Section 8 tenant-based assistance, project-
based voucher assistance, and moderate rehabilitation programs, the responsible entity means
the PHA administering the program under an ACC with HUD. For all other Section 8
programs, the responsible entity means the Section 8 owner.
Secretary. The Secretary of Housing and Urban Development.
Section 8. Section 8 of the United States Housing Act of 1937.
Section 8 covered programs. All HUD programs which assist housing under Section 8 of the
1937 Act, including Section 8 assisted housing for which loans are made under Section 202
of the Housing Act of 1959.
Section 214. Section 214 of the Housing and Community Development Act of 1980, as
amended.
Section 214 covered programs. The collective term for the HUD programs to which the
restrictions imposed by Section 214 apply. These programs are set forth in 24 CFR 5.500.
Security deposit. A dollar amount (maximum set according to the regulations) which can be used
for unpaid rent or damages to the owner upon termination of the lease.
Set-up charges. In a manufactured home space rental, charges payable by the family for
assembling, skirting, and anchoring the manufactured home.
Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law,
including when the victim lacks capacity to consent (42 U.S.C. 13925(a)).
Sexual orientation. Homosexuality, heterosexuality or bisexuality.
Shared housing. A unit occupied by two or more families. The unit consists of both common
space for shared use by the occupants of the unit and separate private space for each assisted
family. (A special housing type: see 24 CFR 982.615–982.618.)
Single person. A person living alone or intending to live alone.
Single room occupancy housing (SRO). A unit that contains no sanitary facilities or food
preparation facilities, or contains either, but not both, types of facilities. (A special housing
type: see 24 CFR 982.602–982.605.)
Social security number (SSN). The nine-digit number that is assigned to a person by the Social
Security Administration and that identifies the record of the person’s earnings reported to the
Social Security Administration. The term does not include a number with a letter as a suffix
that is used to identify an auxiliary beneficiary.
Special admission. Admission of an applicant that is not on the PHA waiting list or without
considering the applicant’s waiting list position.
Special housing types. See subpart M of part 982. Subpart M states the special regulatory
requirements for: SRO housing, congregate housing, group homes, shared housing,
cooperatives (including mutual housing), and manufactured homes (including manufactured
home space rental).
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Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family)
that may not result in a reduction of the family rental contribution. A reduction of welfare
benefits because of fraud in connection with the welfare program, or because of welfare
sanction due to noncompliance with a welfare agency requirement to participate in an
economic self-sufficiency program.
Spouse. The marriage partner of the head of household.
Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or
intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate
another person; and in the course of, or as a result of, such following, pursuit, surveillance, or
repeatedly committed acts, to place a person in reasonable fear of the death of, or serious
bodily injury to, or to cause substantial emotional harm to (1) that person, (2) a member of
the immediate family of that person, or (3) the spouse or intimate partner of that person.
State wage information collection agency (SWICA). The state agency, including any Indian
tribal agency, receiving quarterly wage reports from employers in the state, or an alternative
system that has been determined by the Secretary of Labor to be as effective and timely in
providing employment-related income and eligibility information.
Subsidy standards. Standards established by a PHA to determine the appropriate number of
bedrooms and amount of subsidy for families of different sizes and compositions.
Suspension. The term on the family’s voucher stops from the date the family submits a request
for PHA approval of the tenancy, until the date the PHA notifies the family in writing
whether the request has been approved or denied. This practice is also called tolling.
Tax credit rent. With regard to certain tax credit units, the rent charged for comparable units of
the same bedroom size in the building that also receive the low-income housing tax credit but
do not have any additional rental assistance (e.g., tenant-based voucher assistance).
Tenancy addendum. For the housing choice voucher program, the lease language required by
HUD in the lease between the tenant and the owner.
Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the
dwelling unit.
Tenant rent to owner. See family rent to owner.
Term of lease. The amount of time a tenant agrees in writing to live in a dwelling unit.
Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay
toward rent and utilities.
Unit. Residential space for the private use of a family. The size of a unit is based on the number
of bedrooms contained within the unit and generally ranges from zero (0) bedrooms to
six (6) bedrooms.
Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and
sewage services. Telephone service is not included.
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Utility allowance. If the cost of utilities (except telephone) and other housing services for an
assisted unit is not included in the tenant rent but is the responsibility of the family occupying
the unit, an amount equal to the estimate made or approved by a PHA or HUD of the
monthly cost of a reasonable consumption of such utilities and other services for the unit by
an energy-conservative household of modest circumstances consistent with the requirements
of a safe, sanitary, and healthful living environment.
Utility reimbursement. In the voucher program, the portion of the housing assistance payment
which exceeds the amount of rent to owner.
Utility hook-up charge. In a manufactured home space rental: Costs payable by a family for
connecting the manufactured home to utilities such as water, gas, electrical and sewer lines.
Very low-income family. A low-income family whose annual income does not exceed 50 percent
of the median income for the area, as determined by HUD, with adjustments for smaller and
larger families. HUD may establish income limits higher or lower than 50 percent of the
median income for the area on the basis of its finding that such variations are necessary
because of unusually high or low family incomes. This is the income limit for the housing
choice voucher program.
Veteran. A person who has served in the active military or naval service of the United States at
any time and who shall have been discharged or released therefrom under conditions other
than dishonorable.
Violence Against Women Reauthorization Act (VAWA) of 2013. Prohibits denying admission
to the program to an otherwise qualified applicant or terminating assistance on the basis that
the applicant or program participant is or has been a victim of domestic violence, dating
violence, sexual assault, or stalking.
Violent criminal activity. Any illegal criminal activity that has as one of its elements the use,
attempted use, or threatened use of physical force against the person or property of another.
Voucher (housing choice voucher). A document issued by a PHA to a family selected for
admission to the housing choice voucher program. This document describes the program and
the procedures for PHA approval of a unit selected by the family. The voucher also states
obligations of the family under the program.
Voucher holder. A family holding a voucher with an unexpired term (search time).
Voucher program. The housing choice voucher program.
Waiting list. A list of families organized according to HUD regulations and PHA policy who are
waiting for a unit to become available.
Waiting list admission. An admission from the PHA waiting list.
Welfare assistance. Income assistance from federal or state welfare programs, including
assistance provided under TANF and general assistance. Does not include assistance directed
solely to meeting housing expenses, nor programs that provide health care, child care or other
services for working families. For the FSS program (984.103(b)), welfare assistance includes
only cash maintenance payments from federal or state programs designed to meet a family’s
ongoing basic needs, but does not include food stamps, emergency rental and utilities
assistance, SSI, SSDI, or social security.
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RESOLUTION NO. 2016-
A RESOLUTION OF THE HOUSING AUTHORITY OF
THE CITY OF SANTA ANA APPROVING UPDATES
TO THE ADMINISTRATIVE PLAN AND APPROVING
THE SUBMISSION OF THE ANNUAL PLAN FOR
FISCAL YEAR 2016-2017
BE IT RESOLVED BY THE MEMBERS OF THE HOUSING AUTHORITY OF THE CITY
OF SANTA ANA, AS FOLLOWS:
Section 1. The Housing Authority of the City of Santa Ana conclusively finds,
determines and declares as follows:
A. The Housing Authority of the City of Santa Ana (the “Authority”) is required
by the U.S. Department of Housing and Urban Development (“HUD”) to have an Annual
Plan due to the fact that the Authority administers a Housing Choice Voucher (“HCV”)
Rental Assistance Program.
B. The Administrative Plan serves as supporting documentation for the
Annual Plan. It informs the public and staff about HCV regulations and explains how the
Authority will implement those regulations. The Administrative Plan must be reviewed
and updated annually to ensure compliance with regulatory changes made by HUD (if
any).
C. The purpose of the Authority’s Annual Plan is to advise HUD, program
participants and members of the public of its mission and strategy to serve the needs of
very low-income families. It provides information about the current operations of the
Authority including programs, participants, services for the upcoming year, and any
operational or tenant concerns.
D. The Authority is required to review its operations and needs for the Annual
Plan with input from HCV participants. A Resident Advisory Board Meeting was held on
January 14, 2016 and a bi-annual Landlord Meeting was held on January 22, 2016, with
responses incorporated into the Annual Plan, as required by HUD regulations.
E. HUD regulations require a forty-five (45) day comment period. On January
1, 2016, notification was published in the Orange County Register that the draft plan
was available for public review. The public comment period ended on February 19,
2016. Further, a public hearing was held by the Housing Authority on March 15, 2016,
and all comments received at the hearing are included in the final documents to be
submitted to HUD.
Section 2. The Administrative Plan of the Housing Authority of the City of Santa Ana
is hereby updated as referenced herein, and is hereby approved and adopted. Said updated
Administrative Plan shall be submitted by the Authority to HUD.
EXHIBIT 3
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Section 3. The Annual Plan for Fiscal Years 2016-2017 of the Housing Authority of
the City of Santa Ana is hereby approved and adopted. Said Annual Plan shall be submitted
by the Authority to HUD.
Section 4. This Resolution shall take effect immediately upon its adoption by the
Authority Board, and the Recording Secretary for the Authority shall attest to and certify the
vote adopting this Resolution.
ADOPTED this _____ day of ______________, 2016.
_____________________
Miguel A. Pulido
Chair
APPROVED AS TO FORM:
Sonia R. Carvalho, General Counsel
By:_____________________
Ryan O. Hodge
Assistant Counsel
AYES: Boardmembers: __________________________
NOES: Boardmembers: __________________________
ABSTAIN: Boardmembers: __________________________
NOT PRESENT: Boardmembers: __________________________
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Secretary to the Housing Authority, do hereby attest to and certify the
attached Resolution No. 2016-__ to be the original resolution adopted by the Housing Authority
of the City of Santa Ana on _______________, 2016.
Date: ____________________ ______________________________
Maria D. Huizar, Recording Secretary
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