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HomeMy WebLinkAbout2014 Section 8 Administrative Plan (2)Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 Background: The Section 8 Rental Assistance Program was enacted as part of the Housing and Community Development Act of 1974, which re -codified the U.S. Housing Act of 1937. The Act has been amended from time to time, most recently on October 21, 1998, with the passage of the Quality Housing and Work Responsibility Act (QHWRA.) The requirements of the Housing Act(s), as they apply to the Section 8 Tenant -Based Assistance Program and the Housing Choice Voucher Program, are described in and implemented through the Administrative Plan. Administration of the Section 8 Program and the functions and responsibilities of the Housing Department staff shall be in compliance with the Housing Department's Personnel Policy and the U.S. Department of Housing and Urban Development's (HUD) Section 8 Regulations as well as all Federal, State and local Fair Housing laws and regulations. The Housing Department will comply with any and all subsequent regulatory and statutory program changes. The Administrative Plan is set forth to define the Housing Department's local policies for operation of the housing programs in the context of Federal laws and regulations. All issues related to Section 8 not addressed in this document are governed by such Federal regulations, HUD memos, notices and guidelines or other applicable law. The revisions to the current Administrative Plan will update the policies in accordance with the most recent published QHWRA requirements. CHAPTER 3 ADD LANGUAGE PAGE 3 - 10 In addition to expanding the applicability of VAWA protections to many HUD programs besides the Section 8 and public housing programs, VAWA 2013 makes a number of other changes that will affect the VAWA regulations adopted by HUD in October 2010. (Please read Chapter 13 page 13-8 to 13-10) CHAPTER 4 ADD LANGUAGE PAGES 4 - 26 & TEMPORARY PROVISIONS: 4 - 27 Allow option to use participants' actual past income in verifying income. Projecting expected income and obtaining the additional documentation necessary to project income places an unnecessary burden on PHA staff time and resources when compared to the 1 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 PAGES 4-26& 4 - 27 minimal annual change in tenant incomes. Further, projecting income can lead to PHA staff errors that result in improper rent determinations. This provision is intended to simplify the requirements associated with determining a participant's annual income (24 CFR 5.609(a)(2)). In determining annual income, PHAs may choose to use either actual past income or projected future income. Currently, annual income includes income that is anticipated to be received from a source outside the family during the 12-month period following the effective date of admission or annual reexamination. The PHAs have the option of determining annual income based on past actual income received or earned within the last 12 months. If a PHA operates both PH and HCV programs, this option is available for both of their programs. For the purpose of verifying income reported in HUD's Enterprise Income Verification (EIV) system, PHAs that choose to use actual past income must use the most recent 12 months of income information available in EIV. Because this EIV report will give actual earnings data verified by a third party, the program participant is no longer required to provide third party documentation (e.g., paystubs, payroll summary report, unemployment monetary benefit notice). If there has been a change in circumstances for a tenant, or a tenant disputes the EIV- reported income information and is unable to provide acceptable documentation to resolve the dispute, the PHA must request written third -party verification. For example, if a program participant lost his/her job, changed jobs, or reduced their hours in the months subsequent to the time period covered in EIV, the PHA must use, at the participant's request, the more recent income information verified by participant provided third -party documentation (e.g., paystubs, payroll summary report, unemployment monetary benefit notice) or through written third - party verification, which reflects the new or current work circumstance. PHAs must continue to verify income from sources not available in EIV. However, PHAs must use the same time period for both wage and non -wage income. For example, if a PHA uses EIV information from July 2011 to June 2012 for the purpose of verifying income from wages, the PHA must use the same time period for any non- 2 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 wage income. CHAPTER 4 ADD LANGUAGE PAGE 4-36 ALLOW HOUSEHOLDS TO SELF -CERTIFY AS TO HAVING ASSETS OF LESS THAN $5,000. (24 CFR 5.609(b)(3), 982.516(a)(2)(ii), 960.259(c)) Tenants with assets below $5,000 typically generate minimal income from these assets which results in small changes to tenant rental payments. However, PHAs spend significant time verifying such assets which strains PHA budgets, and leads to increased staff errors. This provision is intended to simplify the requirements associated with determining a participant's annual income. Families with assets are required to report all assets annually. The amount of interest earned on those assets is included as income used to calculate the tenant's rent obligation. Currently, where the family has net family assets in excess of $5,000, annual income includes 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. This allows a PHA to accept a family's declaration of the amount of assets of less than $5,000, and the amount of income expected to be received from those assets. The PHA's application and reexamination documentation, which is signed by all adult family members, can serve as the declaration. Where the family has net family assets equal to or less than $5,000, the PHAs does not need to request supporting documentation (e.g. bank statements) from the family to confirm the assets or the amount of income expected to be received from those assets. Where the family has net family assets in excess of $5,000, the PHA must obtain supporting documentation (e.g. bank statements) from the family to confirm the assets. Any assets will continue to be reported on HUD Form 50058. 3 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 CHAPTER 4 PAGE 4-41 ADD LANGUAGE ALLOW OPTIONAL STREAMLINED ANNUAL REEXAMINATIONS FOR ELDERLY FAMILIES AND DISABLED FAMILIES ON FIXED INCOMES. (24 CFR 982.516, 960.257) PHAs are statutorily required to verify income and calculate rent annually, including for elderly and disabled families on fixed incomes. The requirement to undertake the complete process for income verification and rent determination for families on fixed incomes is not necessary given the infrequency of changes to their incomes. Further, this requirement requires considerable staff time and PHA resources. This provision is intended to simplify the requirements associated with determining the annual income of participants on fixed incomes. PHAs may opt to conduct a streamlined reexamination of income for elderly families and disabled families when 100 percent of the family's income consists of fixed income. In a streamlined reexamination, PHAs will recalculate family incomes by applying any published cost of living adjustments to the previously verified income amount. For purposes of this notice, the term `fixed income' includes income from: 1. Social Security payments to include Supplemental Security Income (SSI) and Supplemental Security Disability Insurance (SSDI); 2. Federal, State, local, and private pension plans; and 3. Other periodic payments received from annuities, insurance policies, retirement funds, disability or death benefits, and other similar types of periodic receipts that are of substantially the same amounts from year to year. CHAPTER 5 PAGE 5 - 3 ADD LANGUAGE Family members who do not get the voucher may reapply for the program, but they may only get a voucher by being selected off the waiting list (see 24 CFR 982.202, 982.203 and especially 982.204(a)). 4 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 CHAPTER 8 ADD/REMOVE LANGUAGE: GUIDELINES ON NEW TENANT PROTECTIONS Foreclosure. In the case of any foreclosure, the immediate successor in interest in the property pursuant to the foreclosure shall assume such interest subject to the lease between the prior owner and the tenant and to the HAP contract between prior owner and the PHA for the occupied unit. This provision does not affect any State or Local law that provides longer time periods or other additional for tenants. This will sunset The Act was PAGE 8 -14 protections provision originally set to expire on December 31, 2012, but the Dodd -Frank Wall Street Reform and Consumer Protection Act extended the expiration date to December 31, 2014 unless extended by law. Under the legislation, the immediate successor of interest (generally the purchaser) of a foreclosed property must provide all tenants with at least 90 days notice, prior to eviction because of foreclosure. Additionally, tenants must be permitted to stay in residence until the end of the lease, with two exceptions: 1. The property is sold after foreclosure to a purchaser who will occupy the property as a primary residence, or 2. There is no lease or the lease is terminable at will under state law. However, even if these exceptions apply, the tenant must be given at least 90 days notice prior to eviction. The rights of Section 8 tenants are also protected under the Act. CHAPTER 12 ADD/REMOVE/REVISE LANGUAGE TO: The HACNC may, if warranted by funding constraints, and if PAGE 12-3 the regulations, deny to move if the PHA permitted under permission does not have sufficient funding for continued assistance. The PHA must provide written notification to the local HUD offices upon determining it is necessary to deny moves to family's portability to a 5 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 higher cost area. CHAPTER 13 ADD/REMOVE LANGUAGE TO: DOCUMENT OF DOMESTIC VIOLENCE, VIOLENCE, DATING, SEXUAL ASSAULT, OR STALKING, AND CONFIDENTIALITY PROCEDURES FOR DOCUMENTED VIOLATIONS PAGE 13 — 8 TO 13 - 10 VAWA (VIOLENCE AGAINST WOMEN ACT) the eviction prohibits of-,an-d—rz1moyal asss Lance from, cert n_ living in public oof pperso or Section 8 assisted housing if the asserted for such action ground is instance domestic violence, dating violence, an of sexual assault, Gr st ltho e tarm rc riaofi_nor%Sec i` of tha I Initoa — / Les Housing Act of 1-937 as ded 13925). In addition to expanding the applicability of VAWA protections to many HUD programs besides the section 8 and public housing programs, VAWA 2013 makes a number of other changes that will affect the VAWA regulations adopted by HUD in October 2010, briefly: • It extends VAWA protections to victims of sexual assault as well as to victims of domestic violence, dating violence, and stalking, with sexual assault defined as "any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent." • It replaces the term "immediate family member" with the term affiliated individual and defines the latter term to mean, "with respect to an individual — (A) a spouse, parent, brother, sister, or child of that individual, or an individual to whom that individual stands in loco parentis; or (B) any individual, tenant, or lawful occupant living in the household of that individual." (For the definition of immediate family member in the current HUD regulations, see 24 CFR 5.2003. For the context in which the term is used (see 24 CFR 5.2005 (c)(2).) • While it continues to provide the option of lease bifurcation 6 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 as a tool for removing a perpetrator of violence, VAWA 2013 changes the description of the violence from "Criminal Acts of physical violence against family members or other" to "Criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual." Further, it requires that the tenant remaining after the bifurcation be given, if necessary, an opportunity to establish program eligibility and, if that fails, a reasonable time to find new housing or establish eligibility in another program. • VAWA 2013 slightly expands the list of acceptable forms of documentation of abuse to include a document signed by a mental health professional or the record of an administrative agency. • VAWA 2013 requires HUD, rather than a PHA or other housing provider, to develop a notice in multiple languages informing applicants and tenants of their rights under VAWA. It also specifies that the notice be provided upon denial or admission and with any notification of eviction or termination of assistance. • VAWA 2013 requires HUD to develop a model emergency transfer plan for use by PHAs and other housing providers. Further, it requires HUD to "establish policies and procedures under which victims of abuse requesting an emergency transfer may receive, subject to the availability of tenant protection vouchers, assistance through the tenant -based section 8 program." • Acceptable forms of documentation include the following (the regulatory citation in parentheses that follows each form of documentation, as applies to HUD's Public Housing and Section 8 programs, providers where this documentation is currently codified in HUD regulations.): ■ A certification form approved by HUD that states that an applicant or tenant is a victim of domestic violence, dating violence, or stalking, the incident of domestic violence. The incident of domestic violence, dating violence, sexual assault, or stalking that requires protection, and the name of the perpetrator (addressed 7 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 in 24 CFR 5.2007 (B) (1) and the HUD approved forms are HUD-540066 and HUD-91066 8); A document that is signed by the applicant or tenant and an employee, agent, or volunteer of a victim service provider, an attorney, or a medical professional, from whom the applicant or tenant has sought assistance relating to domestic violence, dating violence, or stalking, or the effects of abuse, in which the professional states, under penalty of perjury, that he or she believes that the abuse meets the requirements found in VAWA (addressed in 24 CFR 5.2007 (B)(3)); VAWA did not require a PHA, owner, or manager of assisted housing to request this information (addressed in 24 CFR 5.2007(D)). In VAWA 2013, if a tenant or applicant does not provide this documentation after it is requested by the PHA, owner, or manager, then the PHA, owner, or manager may evict or terminate assistance of the tenant or a family member, for violations of the lease or family obligations that otherwise would constitute good cause to evict or grounds for termination (addressed in 24 CFR 5.2007(c). CHAPTER 14 PAGE 14 — 09 ADD LANGUAGE TO: DOCUMENT OF DOMESTIC VIOLENCE, VIOLENCE, DATING, SEXUAL ASSAULT, OR STALKING, AND CONFIDENTIALITY 24 CFR 5.2007(a)(c)(d)(e) Pre-VAWA 2013 requirements allowed a PHA, owner, or manager of assisted housing to request documentation that an applicant or tenant is a victim of domestic violence, dating violence, or stalking if the applicant or tenant seeks and requests the protections of VAWA. However, VAWA did not require a PHA, owner, or manager of assisted housing to request this information (addressed in 24 CFR 5.2007(d)). If a tenant or applicant does not provide this documentation after it is requested by the PHA, owner, or manager, then the PHA, owner, or manager may evict or terminate 8 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 assistance of the tenant or a family member, for violations of the lease or family obligations that otherwise would constitute good cause to evict or grounds for termination (addressed in 24 CFR 5.2007(c)). Acceptable forms of documentation include the following (the regulatory citation in parentheses that follows each form of documentation, as applies to HUD's public housing and section 8 programs, provides where this documentation is currently codified in HUD regulations): • A certification form approved by HUD that states that an applicant or tenant is a victim of domestic violence, dating violence, or stalking, the incident of domestic violence, dating violence, sexual assault, or stalking that requires protection, and the name of the perpetrator (addressed in 24 CFR 5.2007(b)(1) and the HUD -approved forms are HUD-50066 and HUD-91066 8); • A document that is signed by the applicant or tenant and an employee, agent, or volunteer of a victim service provider, an attorney, or a medical professional, from whom the applicant or tenant has sought assistance relating to domestic violence, dating violence, or stalking, or the effects of abuse, in which the professional states, under penalty of perjury, that he or she believes that the abuse meets the requirements found in VAWA (addressed in 24 CFR .2007(b)(3)); • A Federal, State, tribal, territorial, or local police report or court record (addressed in 24 CFR 5.2007(b)(2)); or • A statement or other evidence provided by an applicant or tenant, at the discretion of the PHA, owner, or manager (addressed in 24 CFR 5.2007(d)). The applicant or tenant must provide the documentation within 14 business days after the date that the applicant or tenant receives a request in writing for such documentation, though the PHA, owner, or manager of assisted housing may extend the 14-day deadline at his or her discretion (addressed in 24 CFR 5.2007(a)). Confidentiality requirements. Pre-VAWA 2013 requirements mandated that any information submitted to a PHA, owner, or manager regarding domestic violence, dating violence, or stalking, including the fact that the individual is a victim of such abuse, be 9 Community Development Commission Housing Authority Of The City of National City Agenda Statement Addendum April 1, 2014 kept confidential and may not be entered into any shared database or disclosed to any other entity or individual, except to the extent that the disclosure is requested or consented to by the individual in writing, required for use in an eviction proceeding, or otherwise required by applicable law (addressed in 24 CFR 5.2007(b)(4)). If a PHA, manager, or owner receives documentation that contains conflicting information, the PHA, owner, or manager may require an applicant or tenant to submit third -party documentation (addressed in 24 CFR 5.2007(e)). GLOSSARY ADD/REMOVE LANGUAGE ADD LANGUAGE PAGE G-28 VAWA 2013 (Violence Against Women Reauthorization Act of 2013): The 2013 law expands the number of HUD programs subject to the statute's protections beyond HUD's public housing and section 8 tenant -based and project -based programs. This notice highlights the key changes made by this statute, lists the HUD programs now covered by this statute, provides an overview of key provisions applicable to HUD programs, and advises of HUD's plans to issue rules or guidance on this new law. This notice is not program guidance for any individual HUD program covered by the new law. HUD will issue guidance and/or rules, as may be applicable, for covered programs at a later date. This notice is issued to provide an overview of the Violence Against Women Reauthorization Act of 2013, and alert HUD's program participants to the provisions applicable to HUD programs. Staff recommends that the Community Development Commission - Housing Authority of the City of National City Section 8 Rental Assistance Program Board consider the adoption of the attached Resolution approving the revisions to the Section 8 Administrative Plan; and authorizing the submittal of the plan to the U.S. Department of Housing and Urban Development. 10