HomeMy WebLinkAbout2020 CON South Bay Community Services - CDBG FY2020 Sub-RecipientAGREEMENT BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND SOUTH BAY COMMUNITY SERVICES
FOR TENANT BASED RENTAL ASSISTANCE PROGRAM
This agreement ("Agreement"), is entered into this 1 day of ,a+'v)( 2020, by and
between the City of National City, a municipal corporation (the "City"), and South Bay Community
Services, a 501(c)3 non-profit public benefit corporation (the "CONSULTANT").
RECITALS
WHEREAS, the City receives an annual allocation of Home Investment Partnerships
("HOME") program funds from the U.S. Department of Housing and Urban Development ("HUD") and
has made an allocation of funds to establish a Tenant Based Rental Assistance Program ("Program"); and
WHEREAS, the City has appropriated $364,245.85 in Fiscal Year 2019-2020 to assist low and
moderate income homeless persons and survivors of domestic violence at or under 80% of Area Median
Income by providing tenant based rental assistance to persons; and
WHEREAS, the CONSULTANT responded to the City's HOME notice of funding
availability (NOFA) to deliver the City's Tenant Based Rental Assistance Program; and
WHEREAS, the CONSULTANT has extensive knowledge and experience in managing
the delivery of HOME -funded down payment assistance programs; and
WHEREAS, the City has determined that the CONSULTANT has the experience,
adequate staff capacity, and ability to deliver the services desired by the City in a professional and timely
manner, and the CONSULTANT is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
FOLLOWS:
1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the
CONSULTANT to to perform the services hereinafter set forth in accordance with all terms and
conditions contained herein, and the CONSULTANT agrees to perform the services set forth here
in accordance with all terms and conditions contained herein.
The CONSULTANT represents that all services shall be performed directly by
the CONSULTANT or under direct supervision of the CONSULTANT.
2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement
will become effective on the date that it is executed. All assistance is to be in the form of a grant
and should be expended within thirty (30) months of the execution date of this Contract, by
1 day of Jox-vw-wy , 202Z
3. SCOPE OF SERVICES. The express purpose of this Contract is for the CITY to
provide the CONSULTANT with HOME Program funds to be used to directly assist 14 low-
income National City homeless households with an emphasis on domestic violence survivors
through the Tenant Based Rental Assistance Program.
The CONSULTANT will perform services as set forth in the attached Exhibit "A"
entitled Scope of Work; Exhibit "B" entitled the National City HOME Tenant Based Rental
Assistance Program Manual, that provides a detailed description of how the program will be
carried out; Exhibit "D" HUD's Building HOME Manual Chapter 7 TBRA that provides eligible
TBRA households and units, eligible types and levels of subsidy, and options for establishing a
TBRA program.
The CONSULTANT shall be responsible for all research and reviews related to the work
and shall not rely on personnel of the CITY for such services, except as authorized in advance by
the CITY. The CONSULTANT shall appear at requested meetings and provide reports as cited
in Exhibit "A" to keep staff and City Council advised of the progress on the project.
The CITY may unilaterally, or upon request from the CONSULTANT, from time
to time reduce or increase the Scope of Services to be performed by the CONSULTANT under
this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith
and confer for the purpose of negotiating a corresponding reduction or increase in the
compensation associated with said change in services.
4. PROJECT COORDINATION AND SUPERVISION. Angelita Palma of the
National City Housing Authority hereby is designated as the Project Coordinator for the CITY
and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign
a single Project Director to provide supervision and have overall responsibility for the progress
and execution of this Agreement for the CONSULTANT.
5. COMPENSATION AND PAYMENT. The compensation for the
CONSULTANT shall be based on monthly billings covering actual work performed. Billings
shall include labor classifications, respective rates, hours worked and also materials, if any. The
total cost for all work described in Exhibit "A" shall not exceed THREE HUNDRED SIXTY-
FOUR THOUSAND TWO HUNDRED FORTY-FIVE AND 85/100 DOLLARS ($364,245.85)
of HOME Program funds. . The compensation for the CONSULTANT'S work shall not exceed
the rates set forth in Exhibit "A". Quarterly invoices will be processed for payment and remitted
within thirty (30) days from receipt of invoice, provided that work is accomplished consistent
with Exhibit "A", as determined by the CITY.
The CONSULTANT shall maintain all books, documents, papers, employee time
sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such
materials available at its office at all reasonable times during the term of this Agreement and for
five (5) years from the date of final payment under this Agreement, for inspection by the CITY,
and for furnishing of copies to the CITY, if requested.
6. ACCEPTABILITY OF WORK. The CITY shall decide any and all questions
which may arise as to the quality or acceptability of the services performed and the manner of
performance, the acceptable completion of this Agreement, and the amount of compensation due.
In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the
work, the manner of performance and/or the compensation payable to the CONSULTANT in this
Agreement, the CITY or the CONSULTANT shall give to the other written notice. Within ten
(10) business days, the CONSULTANT and the CITY shall each prepare a report which supports
their position and file the same with the other party. The CITY shall, with reasonable diligence,
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determine the quality or acceptability of the work, the manner of performance and/or the
compensation payable to the CONSULTANT.
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda,
Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the
CONSULTANT for this project, whether paper or electronic, shall: (1) be free from defects; (2)
become the property of the CITY for use with respect to this project; and (3) shall be turned over
to the CITY upon completion of the project, or any phase thereof, as contemplated by this
Agreement.
Contemporaneously with the transfer of documents, the CONSULTANT hereby
assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright
in, and the right to reproduce, all written material, drawings, plans, specifications, or other work
prepared under this Agreement, except upon the CITY'S prior authorization regarding
reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT
shall, upon request of the CITY, execute any further document(s) necessary to further effectuate
this waiver and disclaimer.
The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce,
modify, assign, transfer, or in any other way, medium, or method utilize the CONSULTANT'S
written work product for the CITY'S purposes, and the CONSULTANT expressly waives and
disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to
intellectual property and artistic works.
Any modification or reuse by the CITY of documents, drawings, or specifications
prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section
14, but only with respect to the effect of the modification or reuse by the CITY, or for any
liability to the CITY should the documents be used by the CITY for some project other than
what was expressly agreed upon within the Scope of Services of this project, unless otherwise
mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of
this Agreement will be acting in an independent capacity and not as agents, employees, partners,
or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT'S
employees are employees of the CITY, and are not entitled to any of the rights, benefits, or
privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy-
ment, or workers' compensation insurance.
This Agreement contemplates the personal services of the CONSULTANT and
the CONSULTANT'S employees, and it is recognized by the parties that a substantial
inducement to the CITY for entering into this Agreement was, and is, the professional reputation
and competence of the CONSULTANT and its employees. Neither this Agreement, nor any
interest herein, may be assigned by the CONSULTANT without the prior written consent of the
CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or
hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem
necessary for the proper and efficient performance of this Agreement. All agreements by
CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to
adhere to the applicable terms of this Agreement.
9. CONTROL. Neither the CITY, nor its officers, agents, or employees shall have
any control over the conduct of the CONSULTANT or any of the CONSULTANT'S employees,
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except as set forth in this Agreement. The CONSULTANT, or the CONSULTANT'S agents,
servants, or employees are not in any manner agents, servants, or employees of the CITY. The
CONSULTANT and its agents, servants, and employees are wholly independent from the CITY
and CONSULTANT'S obligations to the CITY are solely prescribed by this Agreement.
10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the
performance of the services to be provided herein, shall comply with all applicable state and
federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City
of National City, whether now in force or subsequently enacted. The CONSULTANT and each
of its SUBCONSULTANT(S), shall obtain and maintain a current City of National City business
license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants
that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally
required to practice its profession. CONSULTANT must promptly produce a copy of any such
license, permit, or approval to CITY upon request. The CONSULTANT represents and
covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times
during the term of this Agreement, any license, permit, or approval which is legally required for
the CONSULTANT to practice its profession.
12. STANDARD OF CARE.
A. The CONSULTANT, in performing any services under this Agreement,
shall perform in a manner consistent with that level of care and skill ordinarily exercised by
members of the CONSULTANT'S trade or profession currently practicing under similar
conditions and in similar locations. The CONSULTANT shall take all special precautions
necessary to protect the CONSULTANT'S employees and members of the public from risk of
harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this Agreement, the
CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years
preceding, been debarred by a governmental agency or involved in debarment, arbitration or
litigation proceedings concerning the CONSULTANT'S professional performance or the
furnishing of materials or services relating thereto.
C. The CONSULTANT is responsible for identifying any unique products,
treatments, processes or materials whose availability is critical to the success of the project the
CONSULTANT has been retained to perform, within the time requirements of the CITY, or,
when no time is specified, then within a commercially reasonable time. Accordingly, unless the
CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all
products, materials, processes or treatments identified in the project documents prepared for the
CITY are reasonably commercially available. Any failure by the CONSULTANT to use due
diligence under this sub -section will render the CONSULTANT liable to the CITY for any
increased costs that result from the CITY' S later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time frame
specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not
discriminate against any employee or applicant for employment because of age, race, color,
ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or
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medical condition. The CONSULTANT will take positive action to insure that applicants are
employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation,
marital status, national origin, physical handicap, or medical condition. Such action shall include
but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. The CONSULTANT agrees to post in
conspicuous places available to employees and applicants for employment any notices provided
by the CITY setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATION. The CITY may from time to time
communicate to the CONSULTANT certain confidential information to enable the
CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT
shall treat all such information as confidential and shall not disclose any part thereof without the
prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of
such information, even within its own organization, to the extent necessary to perform the
services to be provided herein. The foregoing obligation of this Section 14, however, shall not
apply to any part of the information that (i) has been disclosed in publicly available sources of
information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly
available sources of information; (iii) is already in the possession of the CONSULTANT without
any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the
CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has
been or is rightfully authorized by that third party.
The CONSULTANT shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CITY. In its performance hereunder, the
CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting
the information or other property of any other person, firm or corporation.
CONSULTANT shall be liable to CITY for any damages caused by breach of this
condition, pursuant to the provisions of Section 15.
15. INDEMNIFICATION AND HOLD HARMLESS. To the maximum extent
provided by law, The CONSULTANT agrees to defend, indemnify and hold harmless the City of
National City, its officers, officials, agents, employees, and volunteers against and from any and
all liability, loss, damages to property, injuries to, or death of any person or persons, and all
claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of
any kind or nature, including workers' compensation claims, of or by anyone whomsoever,
resulting from or arising out of the CONSULTANT'S performance or other obligations under
this Agreement; provided, however, that this indemnification and hold harmless shall not include
any claims or liability arising from the established sole negligence or willful misconduct of the
CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the
defense of any action, and CONSULTANT shall employ competent counsel, reasonably
acceptable to the City Attorney.
The indemnity, defense, and hold harmless obligations contained herein shall
survive the termination of this Agreement for any alleged or actual omission, act, or negligence
under this Agreement that occurred during the term of this Agreement.
16. EMPLOYEE PAYMENTS AND INDEMNIFICATION.
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16.1 PERS Eligibility Indemnification. If CONTRACTOR'S employee(s) providing
services under this Agreement claims, or is determined by a court of competent jurisdiction or
the California Public Employees Retirement System ("PERS") to be eligible for enrollment in
PERS of the CITY, CONTRACTOR shall indemnify, defend, and hold harmless CITY for the
payment of any employer and employee contributions for PERS benefits on behalf of the
employee as well as for payment of any penalties and interest on such contributions which would
otherwise be the responsibility of the CITY.
CONTRACTOR'S employees providing service under this Agreement shall not:
(1) qualify for any compensation and benefit under PERS; (2) be entitled to any benefits under
PERS; (3) enroll in PERS as an employee of CITY; (4) receive any employer contributions paid
by CITY for PERS benefits; or (5) be entitled to any other PERS-related benefit that would
accrue to a CITY employee. CONTRACTOR's employees hereby waive any claims to benefits
or compensation described in this Section 16. This Section 16 applies to CONTRACTOR
notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to
the contrary.
16.2 Limitation of CITY Liability. The payment made to CONTRACTOR under this
Agreement shall be the full and complete compensation to which CONTRACTOR and
CONTRACTOR's officers, employees, agents, and subcontractors are entitled for performance
of any work under this Agreement. Neither CONTRACTOR nor CONTRACTOR's officers,
employees, agents, and subcontractors are entitled to any salary or wages, or retirement, health,
leave or other fringe benefits applicable to CITY employees. The CITY will not make any
federal or state tax withholdings on behalf of CONTRACTOR. The CITY shall not be required
to pay any workers' compensation insurance on behalf of CONTRACTOR.
16.3 Indemnification for Employee Payments. CONTRACTOR agrees to defend and
indemnify the CITY for any obligation, claim, suit, or demand for tax, retirement contribution
including any contribution to PERS, social security, salary or wages, overtime payment, or
workers' compensation payment which the CITY may be required to make on behalf of (1)
CONTRACTOR, (2) any employee of CONTRACTOR, or (3) any employee of
CONTRACTOR construed to be an employee of the CITY, for work performed under this
Agreement. This is a continuing obligation that survives the termination of this Agreement.
17. WORKERS' COMPENSATION. The CONSULTANT shall comply with all
of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of
California, the applicable provisions of Division 4 and 5 of the California Labor Code and all
amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify,
and hold harmless the CITY and its officers, employees, and volunteers from and against all
claims, demands, payments, suits, actions, proceedings, and judgments of every nature and
description, including reasonable attorney's fees and defense costs presented, brought or
recovered against the CITY or its officers, employees, or volunteers, for or on account of any
liability under any of said acts which may be incurred by reason of any work to be performed by
the CONSULTANT under this Agreement.
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18. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase
and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and
maintain throughout the term of this Agreement, the following insurance policies:
A. ® If checked, Professional Liability Insurance (errors and
omissions) with minimum limits of $1,000,000 per occurrence.
B. Automobile Insurance covering all bodily injury and property damage
incurred during the performance of this Agreement, with a minimum coverage of $1,000,000
combined single limit per accident. Such automobile insurance shall include owned, non -owned,
and hired vehicles. The policy shall name the CITY and its officers, agents, employees, and
volunteers as additional insureds, and a separate additional insured endorsement shall be
provided.
C. Commercial General Liability Insurance, with minimum limits of either
$2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurrence and
$2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property
damage arising out of its operations, work, or performance under this Agreement. The policy
shall name the CITY and its officers, agents, employees, and volunteers as additional insureds,
and a separate additional insured endorsement shall be provided. The general aggregate limit
must apply solely to this "project" or "location". The "project" or "location" should be noted
with specificity on an endorsement that shall be incorporated into the policy.
D. Workers' Compensation Insurance in an amount sufficient to meet
statutory requirements covering all of CONSULTANT'S employees and employers' liability
insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed
with a waiver of subrogation in favor of the CITY. Said endorsement shall be provided prior to
commencement of work under this Agreement.
If CONSULTANT has no employees subject to the California Workers'
Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said
Declaration shall be provided to CONSULTANT by CITY.
E. The aforesaid policies shall constitute primary insurance as to the CITY,
its officers, officials, employees, and volunteers, so that any other policies held by the CITY
shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30)
days prior written notice to the CITY's Risk Manager, at the address listed in subsection G
below, of cancellation or material change.
F. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years
after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date
must be on or before the date of this Agreement.
G. The Certificate Holder for all policies of insurance required by this
Section shall be:
City of National City
c/o Risk Manager
1243 National City Boulevard
National City, CA 91950-4397
H. Insurance shall be written with only insurers authorized to conduct
business in California that hold a current policy holder's alphabetic and financial size category
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rating of not less than A:VII according to the current Best's Key Rating Guide, or a company of
equal financial stability that is approved by the CITY' S Risk Manager. In the event coverage is
provided by non -admitted "surplus lines" carriers, they must be included on the most recent List
of Approved Surplus Line Insurers ("LASLI") and otherwise meet rating requirements.
I. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with and approved by
the CITY'S Risk Manager. If the CONSULTANT does not keep all insurance policies required
by this Section 18 in full force and effect at all times during the term of this Agreement, the
CITY may treat the failure to maintain the requisite insurance as a breach of this Agreement and
terminate the Agreement as provided herein.
J. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by the CITY. CITY reserves the right to modify the insurance
requirements of this Section 18, including limits, based on the nature of the risk, prior
experience, insurer, coverage, or other special circumstances.
K. If the CONSULTANT maintains broader coverage or higher limits (or
both) than the minimum limits shown above, the CITY shall be entitled to the broader coverage
or higher limits (or both) maintained by the CONSULTANT. Any available insurance proceeds
in excess of the specified minimum limits of insurance and coverage shall be available to the
CITY.
19. LEGAL FEES. If any party brings a suit or action against the other party arising
from any breach of any of the covenants or agreements or any inaccuracies in any of the
representations and warranties on the part of the other party arising out of this Agreement, then
in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -
court settlement, shall be entitled to have and recover of and from the other party all costs and
expenses of suit, including attorneys' fees.
For purposes of determining who is to be considered the prevailing party, it is stipulated
that attorney's fees incurred in the prosecution or defense of the action or suit shall not be
considered in determining the amount of the judgment or award. Attorney's fees to the prevailing
party if other than the CITY shall, in addition, be limited to the amount of attorney's fees
incurred by the CITY in its prosecution or defense of the action, irrespective of the actual
amount of attorney's fees incurred by the prevailing party.
20. TERMINATION.
A. This Agreement may be terminated with or without cause by the CITY.
Termination without cause shall be effective only upon 60-day's written notice to the
CONSULTANT. During said 60-day period the CONSULTANT shall perform all services in
accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CITY for
cause in the event of a material breach of this Agreement, misrepresentation by the
CONSULTANT in connection with the formation of this Agreement or the performance of
services, or the failure to perform services as directed by the CITY.
C. Termination with or without cause shall be effected by delivery of written
Notice of Termination to the CONSULTANT as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda Reports,
Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT,
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whether paper or electronic, shall immediately become the property of and be delivered to the
CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for
any work satisfactorily completed on such documents and other materials up to the effective date
of the Notice of Termination, not to exceed the amounts payable hereunder, and less any
damages caused the CITY by the CONSULTANT'S breach, if any. Thereafter, ownership of
said written material shall vest in the CITY all rights set forth in Section 7.
E. The CITY further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a
reorganization of the CONSULTANT for the benefit of creditors; or (3) a business
reorganization, change in business name or change in business status of the CONSULTANT.
F. In the event that Housing and Urban Development (HUD) withdraws any
portion of the CITY's HOME funds, the CITY shall not be obligated to reimburse the
CONSULTANT or sub -contractor for any activity expense incurred or otherwise. CITY will
notify CONSULTANT if such event by HUD occurs.
21. NOTICES. All notices or other communications required or permitted hereunder
shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express
or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or
sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex,
telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally
delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by
overnight mail, the business day following its deposit in such overnight mail facility, (iii) if
mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is
outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or
other like facility regularly maintained by the United States Postal Service, (iv) if given by
telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given
by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other
communication delivered or sent as specified above shall be directed to the following persons:
To CITY: Angelita Palma
Community Development Specialist II
National City Housing Authority
City of National City
1243 National City Boulevard
National City, CA 91950-4397
To CONSULTANT:
Valerie Brew
Department Director
South Bay Community Services
430 F Street
Chula Vista, CA 91910
Notice of change of address shall be given by written notice in the manner specified in this
Section. Rejection or other refusal to accept or the inability to deliver because of changed address
of which no notice was given shall be deemed to constitute receipt of the notice, demand, request
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or communication sent. Any notice, request, demand, direction or other communication sent by
cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter
mailed or delivered as specified in this Section.
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform
services of any kind for any person or entity whose interests conflict in any way with those of the
City of National City. The CONSULTANT also agrees not to specify any product, treatment,
process or material for the project in which the CONSULTANT has a material financial interest,
either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall
at all times comply with the terms of the Political Reform Act and the National City Conflict of
Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its
official position to influence in any way any matter coming before the CITY in which the
CONSULTANT has a financial interest as defined in Government Code Section 87103. The
CONSULTANT represents that it has no knowledge of any financial interests that would require
it to disqualify itself from any matter on which it might perform services for the CITY.
® If checked, the CONSULTANT shall comply with all of the reporting
requirements of the Political Reform Act and the National City Conflict of Interest Code.
Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City
Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall
obtain from the City Clerk.
The CONSULTANT shall be strictly liable to the CITY for all damages, costs or
expenses the CITY may suffer by virtue of any violation of this Section 22 by the
CONSULTANT.
23. PREVAILING WAGES. State prevailing wage rates may apply to work
performed under this Agreement. State prevailing wages rates apply to all public works contracts
as set forth in California Labor Code, including but not limited to, Sections 1720, 1720.2,
1720.3, 1720.4, and 1771. Consultant is solely responsible to determine if State prevailing wage
rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and
regulations.
24. ADMINISTRATIVE PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in
this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date
shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a
Saturday, Sunday or federal, state, or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one and
the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
Standard Agreement
Revised May 2019
Page 10 of 16
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HUD HOME Program
HOME TBRA IV
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E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are
hereby incorporated herein by this reference for all purposes. To the extent any exhibits,
schedules, or provisions thereof conflict or are inconsistent with the terms and conditions
contained in this Agreement, the terms and conditions of this Agreement shall control.
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Assignment & Assumption of Rights. CONSULTANT shall not assign this
Agreement, in whole or in part, to any other party without first obtaining the written consent of
CITY.
H. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
I. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. The venue for any legal action arising under
this Agreement shall be in either state or federal court in the County of San Diego, State of
California.
J. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the
parties shall be subject to the examination and audit of the State Auditor for a period of three (3)
years after final payment under the Agreement, per Government Code Section 8546.7.
K. Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between the
parties as to the subject matter hereof. No subsequent agreement, representation, or promise
made by either party hereto, or by or to an employee, officer, agent or representative of any party
hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
L. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the parties hereto.
M. Subcontractors or Subconsultants. The CITY is engaging the services of
the CONSULTANT identified in this Agreement. The CONSULTANT shall not subcontract any
portion of the work, unless such subcontracting was part of the original proposal or is allowed by
the CITY in writing. In the event any portion of the work under this Agreement is subcontracted,
the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor
of the CITY, both the insurance provisions in Section 18 and the indemnification and hold
harmless provision of Section 15 of this Agreement.
N. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and
negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity
to consult with its own, independent counsel and such other professional advisors as such party
has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv)
each party and such party's counsel and advisors have reviewed this Agreement, (v) each party
has agreed to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or
any amendments hereto.
25. HOME PROGRAM CONSULTANT PROVISIONS.
Standard Agreement
Revised May 2019
Page 11 of 16
City of National City and
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HUD HOME Program
HOME TBRA IV
Page 11 of 228
A. Use of HOME Funds. The HOME funds will be used to deliver a Tenant
Based Rental Assistance Program that will assist approximately 13 National City homeless
families or domestic violence survivors.
B. Affirmative Marketing Procedures. The CONSULTANT shall adopt
affirmative marketing procedures and requirements for all HOME assisted housing in
compliance with 24 CFR § 92.351, as well as CITY's affirmative marketing responsibilities.
Affirmative marketing steps consists, at a minimum, of actions to provide information and
otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market
area to the available housing assistance program The procedures and requirements must include
methods for informing the public and owners about fair housing laws and policies so as to ensure
that all individuals, without regard to race, color, national origin, religion, or sex are given an
equal opportunity to participate in the program. The CONSULTANT shall be solely responsible
for the effective marketing responsibilities necessary to achieve CONSULTANT's production
goals set forth in Paragraph 2.
C. Environmental Review. The CITY has assessed the activities carried out
under this agreement in accordance with the provisions of the National Environmental Policy
Act of 1969 (NEPA) and the related authorities listed in HUD's implementing regulations at 24
CFR parts 50 and 58. The CITY has determined that the activities described in the Scope of
Work are exempt from environmental review as described at 24 CFR part 58.34(a)4.
D. Displacement, Relocation, and Acquisition. The CITY will not provide
financial assistance to any housing unit that is tenant occupied. To insure compliance with 24
CFR § 92.353, the CONSULTANT and seller, and buyer will certify that any real property
selected for HOME assistance is either owner -occupied or vacant three months before an offer to
purchase is accepted by the seller.
E. Procurement. Unless specified otherwise within this agreement, the
CONSULTANT shall procure all materials, property, or services in accordance with the
requirements of 2 CFR Part 200. The CONSULTANT will follow their written policy for
procurement.
F. HOME Program Conflict of Interest. No member, officer or employee of
County or its designees or agents; no member of the governing body of the locality in which the
Program is situated; and no other public official of such locality or localities, who exercises any
functions or responsibilities with respect to the program funded hereunder during their tenure or
for one year thereafter, shall have any interest, direct or indirect, in any Contract or subcontract,
or the proceeds thereof, for work to be performed hereunder. CONSULTANT agrees to
incorporate, or cause to be incorporated, like language prohibiting such interest in all contracts
and subcontracts hereunder. No officer, employee, member or program participant of
CONSULTANT its contractors or its subcontractors shall have a financial interest, direct or
indirect, in this Contract or the monies transferred hereunder or be financially interested, directly
or indirectly, in the sale to CONSULTANT of any land, materials, supplies or services purchased
with any funds transferred hereunder, except on behalf of CONSULTANT, as an officer,
employee, member or program participant. Any willful violation of this paragraph with the
Standard Agreement
Revised May 2019
Page 12 of 16
City of National City and
South Bay Comm. Serv.
HUD HOME Program
HOME TBRA IV
Page 12 of 228
knowledge, expressed or implied, of CONSULTANT or its subcontractors shall render this
Contract voidable by County.
G. Lead -Based Paint Hazards. The CONSULTANT agrees that any
residential structures with assistance provided under this Agreement shall be subject to HUD
Lead -Based Paint Regulations at 24 CFR Part 92.355. Such regulations pertain to all HOME -
assisted housing and require that all owners, prospective owners, and tenants of properties
constructed prior to 1978 be properly notified that such properties may include lead -based paint.
Such notification shall point out the hazards of lead -based paint and explain the symptoms,
treatment and precautions that should be taken when dealing with lead -based paint poisoning and
the advisability and availability of blood lead level screening for children under seven. The
notice should also point out that if lead -based paint is found on the property, abatement measures
may be undertaken. The regulations further require that a visual assessment, risk assessment and
potentially paint stabilization be conducted as required by 24 CFR Part 35 Subpart J.
H. Flood Disaster Protection. In accordance with the requirements of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the CONSULTANT shall assure that
for activities located in an area identified by the Federal Emergency Management Agency
(FEMA) as having special flood hazards, flood insurance under the National Flood Insurance
Program is obtained and maintained as a condition of financial assistance for acquisition or
construction purposes (including rehabilitation).
I. Use and Reversion of Assets. If any assets purchased with HOME funds
are sold, the proceeds will be considered as program income and will be used for eligible
activities.
J. Program Income. Any program income or recaptured funds under this
Contract Agreement obtained by the CONSULTANT shall be returned within 5 business days to
the CITY by the CONSULTANT.
K. Program Monitoring. In accordance with 24 CFR § 92.254, the CITY will
monitor, no less than one (1) time per year, client eligibility for each assisted project. Each
review shall also include, but not be limited to on -site inspections to determine compliance with
all applicable property codes and standards.
CONSULTANT shall fully cooperate with the CITY in monitoring the effectiveness and work
performed by the CONSULTANT in compliance with the terms of the Agreement. CITY shall
have access at a reasonable hour to all offices and records (dealing with the use of funds that are
the basis of this Agreement) of CONSULTANT, it officers, directors, agents, employees, and
subcontractors for the purposes of such monitoring. CITY shall give CONSULTANT reasonable
notice for accessing offices and records.
L. Uniform Administrative Requirements. CONSULTANT agrees to comply
with the HOME requirements 24 CFR § 92.505 and the requirements and standards of 2 CFR
200.
Standard Agreement
Revised May 2019
Page 13 of 16
City of National City and
South Bay Comm. Serv.
HUD HOME Program
HOME TBRA IV
Page 13 of 228
M. Retention of Records. CONSULTANT agrees to keep or cause to be kept
an accurate record of all actions taken and all funds expended, with source documents, in the
pursuit of the objectives of the performance of this Agreement. Such records shall be kept for a
minimum of five (5) years beyond the close of this Contract. CONSULTANT also agrees to
obtain and keep on file and available for inspection by CITY the following information on each
household assisted under this Agreement:
a. annual income and size of the household;
b. ethnic group of the client;
c. whether the head of household is male or female;
d. additional statistical information as may be required by HUD
regulations and
e. any amendments thereto;
f. the total assistance amount of HOME dollars invested;
g. F. the compliance with the affirmative marketing
requirements and existence of acceptable procedures;
h. minority and female -owned business data, and affirmative fair
housing actions;
i. compliance with lead based paint regulations and guidelines;
j. compliance with conflict of interest rules; and
k. evidence the income targeting requirements are met.
N. Hatch Act. The CONSULTANT agrees that no funds provided, nor
personnel employed under this Agreement, shall be in any way or to any extent engaged in the
conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.
O. Conflict of Interest. The CONSULTANT agrees to abide by the
provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following:
Standard Agreement
Revised May 2019
a. The CONSULTANT shall maintain a written code or standards of
conduct that shall govern the performance of its officers, employees or
agents engaged in the award and administration of contracts supported by
Federal funds.
b. No employee, officer or agent of the CONSULTANT shall
participate in the selection, or in the award, or administration of, a contract
supported by Federal funds if a conflict of interest, real or apparent, would
be involved.
c. No covered persons who exercise or have exercised any functions
or responsibilities with respect to HOME -assisted activities, or who are in
a position to participate in a decision -making process or gain inside
information with regard to such activities, may obtain a financial interest
in any contract, or have a financial interest in any contract, subcontract, or
agreement with respect to the HOME -assisted activity, or with respect to
Page 14 of 16
City of National City and
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HUD HOME Program
HOME TBRA IV
Page 14 of 228
the proceeds from the HOME -assisted activity, either for themselves or
those with whom they have business or immediate family ties, during their
tenure or for a period of one (1) year thereafter. For purposes of this
paragraph, a "covered person" includes any person who is an employee,
agent, consultant, officer, or elected or appointed official of the Grantee,
the CONSULTANT, or any designated public agency.
P. Lobbying. The CONSULTANT hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by
or on behalf of it, to any person for influencing or attempting to influence
an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement;
b. If any funds other than Federal appropriated funds have been paid
or will be paid to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative
agreement, it will complete and submit Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions; and
c. It will require that the language of paragraph (d) of this
certification be included in the award documents for all sub awards at all
tiers (including subcontracts, sub grants, and contracts under grants, loans,
and cooperative agreements) and that all CONSULTANTs shall certify
and disclose accordingly:
d. This certification is a material representation of fact upon which
reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or entering
into this transaction imposed by section 1352, title 31, U.S.C. Any person
who fails to file the required certification shall be subject to a civil penalty
of not less than $10,000 and not more than $100,000 for each such failure.
Q Conditions for Religious Organizations. If applicable, the
CONSULTANT must meet the conditions in 24 CDF Part 92.257 regarding the use of HOME
funds involving a primarily religious entity.
R. Closeout. HOME funds will be closed out in accordance with procedures
established by HUD.
Standard Agreement Page 15 of 16 City of National City and
Revised May 2019 South Bay Comm. Serv.
HUD HOME Program
HOME TBRA IV
Page 15 of 228
ATTACHMENTS TO THE AGREEMENT
Exhibit A: Scope of Work
Exhibit B: SBCS TBRA Program Manual for National City
Exhibit C: TBRA Set-up Form
Exhibit D: HUD's Building HOME Manual Chapter 7 TBRA
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first above written.
CITY OF NATIONAL CITY
Bv:
Brad
Cit `% : pager
APPROVED AS TO FORM:
B
orn'-Jones
orney
Standard Agreement
Revised May 2019
SOUTH BAY COMMUNITY SERVICES
By:
y:
Lemb
Pre ent and CEO
Ismena Mejia
Director
Page 16 of 16
City of National City and
South Bay Comm. Serv.
HUD HOME Program
HOME TBRA IV
Page 16 of 228
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
1. INTRODUCTION
1.1 The City of National City, Department of Housing and Community
Development ("City") is soliciting proposals from qualified organizations for the
development, implementation and administration of a Tenant -Based Rental
Assistance ("TBRA") Program for homeless National City families with an
emphasis on domestic violence survivors. The TBRA Program will be funded
with federal HOME Investment Partnerships program funds. This contract
begins on the date that it is executed. All assistance is to be in the form of a grant
and should be expended within thirty (30) months of the execution date of this
Contract.
Contract dated: vv 1 , 2020
Funds expended by (30 months): J .tea•-1-"1 , 20 2 Z
1.2 The goal of the City in soliciting these proposals is to cause a TBRA
Program to be developed, implemented, and administered in accordance with the
requirements of the U.S. Department of Housing and Urban Development
("HUD") HOME Investment Partnerships ("HOME") program.
1.3 The geographical area to be served by the TBRA Program is all of
National City and surrounding areas.
1.4 The TBRA Program will be funded by HOME funds and is required to be
operated in compliance with all pertinent federal regulations, including but not
limited to 24 CFR Part 92 and 2 CFR Part 200.
1.5 All services performed under the contract are subject to review and
approval by the City and the U.S. Department of Housing and Urban
Development.
To further the City's objective of increasing the local supply of decent affordable housing
available to eligible lower income persons, the CONSULTANT agrees to develop,
implement and administer a TBRA program for National City homeless families and
domestic violence survivors which shall be operated under the terms of the HOME
Investment Partnerships Program of the U.S. Department of Housing and Urban
Development ("HUD"). The work to be accomplished includes, but is not limited to, the
following:
A. CONSULTANT DUTIES AND RESPONSIBILITIES
1. CONSULTANT shall develop, implement, and administer a TBRA program and
use funds to directly assist 14 low-income National City homeless households
with an emphasis on domestic violence survivors through the Tenant Based
Rental Assistance Program. Domestic violence is defined by the U.S. Department
of Justice, Office on Violence Against Women as a "pattern of abusive behavior
in any relationship that is used by one partner to gain or maintain power and
control over another intimate partner."
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
2. All activity conducted by CONSULTANT shall be in compliance with HOME
Final Rule 24 CFR Part 92, with special attention to §92.209, §92.251(d), and
§92.504(d)(1)(iii); Building HOME — Chapter 7: Tenant -Based Rental Assistance;
and HOME CPD Notice 96-07: Guidance on Tenant -Based Rental Assistance
under the HOME Program.
3. Prior to providing any TBRA assistance to homeless families or domestic
violence survivors, CONSULTANT shall prepare and submit, for City approval, a
TBRA Administrative Plan identifying CONSULTANT's methodology used to
deliver the services requested.
B. CONSULTANT'S TBRA PROGRAM IMPLEMENTATION
1. Marketing and Outreach Activities
CONSULTANT's marketing approach must address:
• how availability of the TBRA program will be announced;
• where applications will be taken and/or received;
• when applications will be accepted;
• the method for taking applications; and,
• in order to ensure fair housing objectives, what special outreach activities
will ensure that households "lease likely to apply" will be informed about the
TBRA.
2. Application Process
All applications must be in written form. Applications must contain sufficient
source documentation to determine household income and eligibility.
CONSULTANT must retain records, throughout the term of the contract, on the
disposition of all applications.
3. Local Preferences
• Applicant must be homeless or a recent survivor of domestic violence.
• At time of initial eligibility determination, only 10% of applicant
households' income must not exceed 80 percent of the area median income for the
San Diego County, adjusted for household size. This means 90 percent of the
household applicants must be at or below 60 percent of area median income.
• To ensure a continuum of care, preference shall be provided to homeless
households and households currently participating or graduating from programs
supporting survivors of domestic violence.
4. Waiting List
CONSULTANT shall establish a waiting list for TBRA participation.
CONSULTANT shall develop and follow a written tenant selection plan to
determine placement on the waiting list. The tenant selection plan must explain
how the above local preferences shall be applied to placement on the waiting list.
HOME TBRA IV
Page 19 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
5. Determine Eligibility
Applicants shall be selected from the waiting list in the order established by the
CONSULTANT's written tenant selection plan. The tenant selection plan shall
be included in the CONSULTANT's TBRA Administrative Plan. To determine a
household's eligibility, CONSULTANT must verify:
• the household eligibility for its local preference status;
• the household size and composition; and,
• the household income and adjustments to income. The household income
must be calculated and verified in accordance with HUD-1780-CPD "Technical
Guide for Determining Income and Allowances for the HOME Program" Third
Edition. CONSULTANT shall use the definition of annual income as defined in
24 CFR Part 5, which was formerly commonly referred to as the Section 8
definition.
Applicants who are determined ineligible shall be notified in writing and shall be
given an opportunity to appeal the decision.
6. Occupancy Standard
The Occupancy Standard shall comply with the current occupancy standard
established by the City of National City Section 8 Housing Choice Voucher
Program. The Occupancy Standard is used to provide consistent criteria for
determining the unit size for which the household is eligible.
7. Issue TBRA Vouchers
The issuance of a HOME TBRA voucher authorizes the household to begin the
search for housing. Units must be located in National City or surrounding areas.
Vouchers may be issued for an initial 6-12 month period, and may be renewed for
an additional 12 months in accordance with §92.209(g) and §92.253(a) and
contingent upon the availability of funding.
8. Conduct a Briefing
The purpose of the Briefing is to ensure that the household understands its
responsibilities, as well as those of the CONSULTANT and the unit owner, and
the household has sufficient guidance to make an informed choice of housing.
The briefmg should cover:
• roles and responsibilities of the tenant, owner and CONSULTANT
• limitations on the rent the owner may charge, including how utility
allowances are used
• unit size for which the household is eligible (occupancy standard)
• subsidy calculations, including how the CONSULTANT and tenant shares
will be calculated
• security deposit policy
• voucher expiration and extension policies
HOME TBRA IV
Page 20 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
• guidance on selecting a unit, including Housing Quality Standards
("HQS") requirements and procedures for submitting the Request for Unit
Approval form
• lead -based paint information
• fair housing information
• Guidance that the voucher holder is free to choose any eligible unit.
9. Unit Selection and HQS Approval
Once the household has located a unit and the owner has agreed to participate in
the TBRA, the household and owner jointly submit a Request for Unit Approval.
Upon submission of the Request for Unit Approval CONSULTANT shall be
required to conduct a HQS inspection of the unit in accordance with §92.251(d)
and §92.504(d)(1)(iii). All units must pass the HQS inspection for the
CONSULTANT to be reimbursed.
10. Lease Approval
CONSULTANT shall document that the requested rent was determined to be
reasonable when compared to comparable, unassisted units. A Lease Addendum,
covering HOME program requirements must be attached to all leases.
CONSULTANT shall obtain a copy of the lease and Lease Addendum.
11. Term of Lease
The term of the lease between the tenant and owner must be for a 6-12month
period, unless both parties mutually agree in writing to a reduced term or increase
the term for an additional 12 months. The lease shall begin on the first day of
actual tenant occupancy. The Housing Assistance Payment reimbursement to the
CONSULTANT shall not exceed 12months from the date of initial occupancy
and in no event exceed the actual period of tenant occupancy, if occupancy is less
than 12 months.
12. Calculation of TBRA Housing Assistance Payment ("HAP")
The current Fair Market Rent, adjusted for occupancy standard, established for
the City of National City and County of San Diego shall be used to determine the
HAP. The HAP shall be calculated as the difference between 30 percent of the
household's adjusted monthly income, less associated utility allowance, and the
lower of, the FMR or actual unit rent. Applicants whose initial Total Tenant Rent
calculation is less than $50.00 per month are not eligible to receive TBRA
Deposit assistance of up to one month's rent will be offered to all applicants in the
form of a grant. Deposit payments will be paid directly to landlords.
13. Execution of Tenant Lease and HAP Contract
The owner and tenant shall enter into a lease. To cover the special requirements
of the HOME program, the CONSULTANT, shall provide a lease addendum to
be used in conjunction with the owner's lease.
HOME TBRA IV
Page 21 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
The CONSULTANT and owner shall enter into an agreement in which the owner
agrees to comply with the HOME TBRA rules and the CONSULTANT agrees to
pay the HAP.
C. CONSULTANT'S ONGOING PROGRAM ADMINISTRATION
1. For each fiscal year, July through June, at least 90 percent of the households
assisted by this TBRA must have household incomes at or below 60 percent of the
area median income, adjusted for household size. This means that although the
TBRA program permits assistance to households with incomes of up to 80
percent, the CONSULTANT shall only be able to serve a limited number of
households whose incomes are between 60 percent and 80 percent of area median
income. CONSULTANT shall obtain City's prior written approval to
continue TBRA to any household with income between 60 percent and 80
percent of area median income. CONSULTANT shall maintain ongoing
records to verify compliance with this requirement. Documentation verifying
compliance with this requirement shall be provided to City upon request.
2. Annual Recertification
CONSULTANT shall annually confirm each household's eligibility for continued
participation in the TBRA program and its share of the rent. In order to assure
that the re-examination process is completed in time to provide a 30 day notice to
both the owner and tenant of changes in the household's eligibility or share of
rent, CONSULTANT shall initiate the annual re-examination process 90 days in
advance of the household's one-year TBRA anniversary date. Household income
shall be re-examined using source documentation. If household income exceeds
80 percent of the area median income, the household's TBRA must be terminated.
CONSULTANT shall also ensure that the unit is the appropriate size for the
current household composition in order to comply with the occupancy standard.
If owner requests a rent increase, CONSULTANT shall determine that the
proposed rent is reasonable and does not exceed Section 8 Payment Standard for
the FMR.
3. Annual HQS Inspection
The CONSULTANT must conduct an annual HQS inspection. The City will not
reimburse CONSULTANT for any Housing Assistance Payments until the
unit has passed the annual HQS inspection. Rental assistance payments
cannot be paid retroactively and will only begin from the day the unit pass'
inspection.
4. Public or Private Units
Assisted units may be publicly or privately owned; however, units assisted under
a project -based rental assistance agreement or Public Housing Authority units are
not eligible.
HOME TBRA IV
Page 22 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
5. Portability
Assistance by this TBRA program is not portable.
6. Length of TBRA Assistance
The HOME TBRA rental assistance contracts with individual households may not
exceed two years. Contracts can be renewed, subject to the availability of HOME
funds.
7. Quarterly Payment Authorization Form
CONSULTANT shall submit to the City a quarterly report showing the HAP
provided on the HUD TBRA Set up Form for the HOME Program (Exhibit "C"),
identifying monthly payments for all authorized households. Households that are
subsequently determined by the CONSULTANT to be ineligible for continued
TBRA must be given a thirty day notice by CONSULTANT of this
determination. Those who have served notice they intend to terminate their TBRA
assistance should be noted on the next quarterly submittal. CONSULTANT must
notify City on a quarterly basis in the event that a tenant moves out of a TBRA
assisted unit.
8. Quarterly HAP Reimbursement Request
CONSULTANT shall submit to the City a quarterly HAP reimbursement request.
The quarterly HAP Reimbursement Request must be supported by the quarterly
HUD TBRA Set-up form showing the HAP provided. Upon verification of
authorized HAP payments made by CONSULTANT to owner, City shall
reimburse CONSULTANT for eligible HAP payments in accordance with the
terms and conditions of the Contract and Statement of Work.
9. Issues not covered in this agreement are to be handled in accordance with HOME
Final Rule 24 CFR Part 92, with special attention to §92.209, §92.251(d), and
§92.504(d)(1)(iii); Building HOME — Chapter 7: Tenant -Based Rental Assistance;
HOME CPD Notice 96-07: "Guidance on Tenant -Based Rental Assistance under
the HOME Program" and HUD-1780-CPD "Technical Guide for Determining
Income and Allowances for the HOME Program" Third Edition.
(Remainder of page intentionally left blank)
HOME TBRA IV
Page 23 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
D. Budget
Column A
Column B
Column C
Column D
Column E
Budget Item
CDBG Request
Other Sources
List Name(s)
of Other
Sources
Total
Budget
Personnel
(List Salaried
Position Job Titles)
.05 Dept Director
7,040.55
7,040.55
.65 Program Director
11,497.50
38,325.00
Foundations
and
Donations
49,822.50
.47 Program Coord
12,463.00
14,162.00
Foundations
and
Donations
26,625.00
.75 FTE YFDA
34,411.50
34,411.50
15 CCQA (.75
FTE/Yr)
6,750.00
6,750.00
Fringe Benefits
25,794.77
18,895.00
Foundations
and
Donations
44,689.77
Supplies
Equipment
Rent
Assistance/Subsidies
253,750.00
253,750.00
Insurance
Printing
Utilities
Other:
Administration
12.8 %
12,538.53
9,137.00
21,675.53
Budget Total
$364,245.85
$80,519.00
$444,764.85
HOME TBRA IV
Page 24 of 228
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
E. EXPENDITURE REQUIREMENT
1. In order to ensure effective administration and performance of approved HOME
Investment Partnerships Grant Programs and to meet HUD performance standards,
CONSULTANT shall demonstrate reasonable progress towards operation of the Project,
by submitting quarterly invoices and reports. In the event that CONSULTANT does not
demonstrate reasonable progress, as defined above, the City shall notify the
CONSULTANT of the expenditure deficiency. CONSULTANT shall have a total of 30
calendar days from the date of the City's written notification to correct the deficiency. If
the deficiency is not corrected within that time, CONSULTANT agrees that the City may
reallocate the amount of the expenditure deficiency and terminate the Contract in
accordance with the Contract provisions.
F. RECORDS AND REPORTS
1. The CONSULTANT shall maintain records and make such reports as required by
HUD to enable the City to analyze CONSULTANT's activity. All records of the
CONSULTANT related to this Contract or work performed under this Contract shall be
open and available for inspection by HUD and/or City auditors during normal business
hours.
2. CONSULTANT shall provide the City with a quarterly report, submitted no later
than fifteen (15) days after the last day of the previous quarter, which includes a cover
letter, narrative of the services provided that demonstrates the towards meeting the
timeline goals, the Tenant Based Rental Assistance Set Up Form HOME Program
(Exhibit "C"), and an itemized accounting of the expenditures of HOME funds during the
previous quarter. Failure to submit quarterly reports in a timely manner will result in
withholding of HOME funds until the report has been submitted. Report due dates are:
January 15, April 15, July 15 and October 15. If the reporting date falls on a Saturday or
Sunday then the report is due the following Monday.
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Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
ATTACHMENT #1
HOME REQUIREMENTS
WHEREAS, there has been enacted into law the HOME Act, Title II of the
Cranston -Gonzalez National Affordable Housing Act (the "Act"), creating the HOME
Investment Partnerships Program ("HOME") that provides funds to expand the supply of
affordable housing for very low-income and low-income persons; and
WHEREAS, City acting as a HOME "Participating Jurisdiction"
WHEREAS, City received approval from the City Council to allocate HOME
funds for a TBRA program for National City homeless families with an emphasis on
survivors of domestic violence (hereinafter referred to as the "Project') on May 7. 2019;
and
WHEREAS, City incorporated the funding of the Project into the City's HOME
Investment Partnership Annual Funding Plan which was submitted to HUD; and
WHEREAS, HUD has approved the City's Annual Funding Plan for HOME
Investment Partnerships funds; and
WHEREAS, it is the desire of the CONSULTANT and the City that the Project
be implemented; and
WHEREAS, the CONSULTANT shall undertake the same obligations to the City
with respect to the Project in the City's aforesaid Annual Funding Plan for participation
in the HOME Investment Partnerships Program;
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. WORK TO BE PERFORMED: CONSULTANT shall implement the
Statement of Work (Attachment B) and attached hereto fully in accordance with
the terms of the Annual Funding Plan approved by the City and submitted to
HUD in application for funds to carry out the Project and the Certifications which
were submitted concurrently with the Annual Funding Plan. The Annual Funding
Plan and Certifications form is hereby incorporated by reference into this Contract
fully as if set forth herein.
CONSULTANT shall also undertake the same obligations to the City that the City
has undertaken to HUD pursuant to said Annual Funding Plan and Certifications.
CONSULTANT shall hold City harmless against any harm that it may suffer with
respect to HUD on account of any failure on the part of CONSULTANT to
comply with the requirements of any such obligation. The obligations undertaken
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� r �
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
by CONSULTANT include, but are not limited to, the obligation to comply with
the current and most up-to-date version of each of the following:
(a) Title II of the Cranston -Gonzalez National Affordable Housing Act, as
amended, 42 U.S.C. 12701;
(b) HUD regulations relating to HOME Investment Partnerships Program (24
CFR 92.1, et seq.);
(c) HUD regulations relating to environmental review procedures for the
HOME Investment Partnerships Program (24 CFR 92.352);
(d) Title VI of the Civil Rights Act of 1964 (42 USC § 2000d); Title VII of
the Civil Rights Act of 1964 (Public Law 88-352); Title VIII of the Civil
Rights Act of 1968 (Fair Housing Act, 42 USC § 3601, et seq.); Section
109 of the Housing and Community Development Act of 1974; Executive
Order 11246, as amended (equal employment opportunity); Executive
Order 11063 (non-discrimination), as amended by Executive Order 12259;
and any HUD regulations heretofore issued or to be issued to implement
these authorities relating to civil rights;
(e) All Section 3 covered contracts shall include the following clause (referred
to as the Section 3 clause):
The work to be performed under this contract is subject to the
requirements of Section 3 of the Housing and Urban Development
Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The
purpose of Section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance or HUD -
assisted projects covered by Section 3, shall, to the greatest extent
feasible, be directed to low- and very low-income persons,
particularly persons who are recipients of HUD assistance for
housing.
ii. The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 135, which implement Section 3. As
evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other
impediment that would prevent them from complying with the Part
135 regulations.
iii. CONSULTANT agrees to send to each labor organization or
representative of workers with which CONSULTANT has a
collective bargaining agreement or other understanding, if any, a
notice advising the labor organization or workers' representative of
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ii
1
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
the CONSULTANT's commitments under this Section 3 clause,
and will post copies of the notice in conspicuous places at the work
site where both employees and applicants for training and
employment positions can see the notice. The notice shall describe
the Section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of
the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
iv. The CONSULTANT agrees to include this Section 3 clause in
every subcontract subject to compliance with regulations in 24
CFR Part 135, and agrees to take appropriate action, as provided in
an applicable provision of the subcontract or in this Section 3
clause, upon a fmding that the subcontractor is in violation of the
regulations in 24 CFR part 135. The CONSULTANT will not
subcontract with any subcontractor where the CONSULTANT has
notice or knowledge that the subcontractor has been found in
violation of the regulations in 24 CFR Part 135.
v. The CONSULTANT will certify that any vacant employment
positions, including training positions, that are filled (1) after the
CONSULTANT is selected but before the contract is executed, and
(2) with persons other than those to whom the regulations of 24
CFR Part 135 require employment opportunities to be directed,
were not filled to circumvent the CONSULTANT's obligations
under 24 CFR Part 135.
vi. Noncompliance with HUD's regulations in 24 CFR Part 135 may
result in sanctions, termination of this contract for default, and
debarment or suspension from future HUD assisted contracts.
vii. With respect to work performed in connection with Section 3
covered Indian housing assistance, section 7(b) of the Indian Self -
Determination and Education Assistance Act (25 U.S.C. 450e) also
applies to the work to be performed under this contract. Section
7(b) requires that to the greatest extent feasible (i) preference and
opportunities for training and employment shall be given to
Indians, and (ii) preference in the award of contracts and
subcontracts shall be given to Indian organizations and Indian -
owned Economic Enterprises. Parties to this contract that are
subject to the provisions of Section 3 and section 7(b) agree to
comply with Section 3 to the maximum extent feasible, but not in
derogation of compliance with section 7(b).
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r
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
(f) The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, 42 USC § 4601, et seq., and regulations adopted to
implement that Act in 49 CFR Part 24;
(g)
2 CFR 200 Office of Management and Budget ("OMB") "Cost Principles
for Non -Profit Organizations"; "Audits of States, Local Governments, and
Non -Profit Organizations"; and "Uniform Administrative Requirements
for Grants and Agreements with Institutions of Higher Education,
Hospitals and Other Non -Profit Organizations". Reference is particularly
made to 24 CFR 85 entitled "Administrative Requirements for Grants and
Cooperative Agreements to State, Local and Federally Recognized Indian
Tribal Governments."
(h) 24 CFR 92.503 concerning program income, repayments, and recaptured
funds of the HOME Regulations. Any Program Income earned by the
CONSULTANT in carrying out the activities of this Contract shall be
returned to the City. The CONSULTANT shall report all Program Income
to the City.
(i)
Upon expiration of this Contract, CONSULTANT shall transfer to the
City of National City any HOME funds on hand at the time of expiration
and any accounts receivable attributable to the use of HOME funds;
24 CFR 92.252 or 92.254, as applicable, concerning HUD affordability
regulations relating to the HOME Investment Partnerships Program.
Repayment of any funds to the City of National City is required if the
housing does not meet the affordability requirements for the specified time
period;
(j) The following laws and regulations relating to preservation of historic
places; National Historic Preservation Act of 1966 (Public Law 89-665);
the Archaeological and Historical Preservation Act of 1974 (Public Law
93-291); and Executive Order 11593;
(k) The Labor Standards Regulations set forth in 24 CFR 92.354;
(1) Prevailing Wages set forth in Labor Code Section 1720.
(m) The Hatch Act relating to the conduct of political activities (5 U.S.C. §§
1502, et. seq.);
(n) The Flood Disaster Protection Act of 1973 (42 U.S.C. § 4106 and the
implementing regulations in 44 CFR Parts 59-79);
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Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
(o) The Rehabilitation Act of 1973 (Public Law 93-112) as amended,
including Section 504 which relates to nondiscrimination in federal
programs and HUD Regulations set forth in 24 CFR Part 8;
(p)
The Clean Air Act (42 U.S.C. § 7401, et seq.) and the Federal Water
Pollution Control Act, as amended (33 U.S.C. § 1251, et seq.) and the
regulations adopted pursuant thereto (40 CFR Part 6);
(q) The Drug -Free Workplace Act of 1988 (Public Law 100-690);
(r) The Lead -Based paint Poisoning Prevention Act, the Residential Lead -
Base Paint Hazard Reduction Act of 1992, and implementing regulations
at Part 35;
(s) No member, officer or employee of the CONSULTANT, or its designee or
agents, no member of the governing body of the locality in which the
Project is situated, and no other public official of such locality or localities
who exercises any functions or responsibilities with respect to the Project
during his/her tenure or for one year thereafter, shall have any interest,
direct, or indirect, in any contract or subcontract, or the process thereof,
for work to be performed in connection with the Project assisted under the
Grant, and that it shall incorporate, or cause to be incorporated, in all such
contracts or subcontracts a provision prohibiting such interest pursuant to
the purposes of this certification;
(t) The CONSULTANT certifies, that in accordance with Section 319 of
Public Law 101-121, to the best of his or her knowledge and belief that:
No federal appropriated funds have been paid or will be paid, by or
on behalf of the undersigned, to any person for influencing or
attempting to influence an officer or employee of any agency, a
member of Congress, an officer or employee of Congress, in
connection with the awarding of any federal contract, the making
of any federal grant, the making of any federal loan, the entering
into of any cooperative contract, and the extension, continuation,
renewal, amendment, or modification of any federal contract,
grant, loan, or cooperative contract.
ii. If any funds other than federal appropriated funds have been paid
or will be paid to any person for influencing or attempting to
influence an officer or employee of any agency, a member of
Congress, or an employee of a member of Congress in connection
with this federal contract, grant, loan, or cooperative contract, the
undersigned shall complete and submit Standard Form-LLL,
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1
Exhibit "A"
EXHIBIT "A"
SCOPE OF WORK
TENANT BASED RENTAL ASSISTANCE PROGRAM
"Disclosure Form to Report Lobbying", in accordance with its
instructions.
(u) The CONSULTANT shall adopt an affirmative marketing plan in
accordance with Section 92.351, if the housing being funded contains five
or more units;
(v) The Architectural Barriers Act of 1968 (42 U.S.C. §§ 4151, et seq.); and
(w) The bonding requirements described in 24 CFR Part 85.36 required for
construction or facility improvement contracts or subcontracts that exceed
the simplified acquisition threshold (defined at 41 U.S.C. 403(11)).
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EXHIBIT B
HOME TBRA IV
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City of National City
Tenant Based Rental Assistance
Program Manual
HOME TBRA IV
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Chapter 1
BACKGROUND 8
JURISDICTION 8
MISSION STATEMENT 8
PURPOSE OF THIS GUIDE 9
ADMINISTRATIVE ERROR 9
RULES AND REGULATIONS 9
TERMINOLOGY 9
REASONABLE ACCOMMODATIONS POLICY 10
APPLYING FOR ADMISSION 12
ASSESSMENT OBJECTIVES 13
RECORDS FOR MONITORING PERFORMANCE 13
PRIVACY RIGHTS 14
OWNER OUTREACH 14
ISSUANCE OF HOME VOUCHERS FOR TENANT BASED RENTAL
ASSISTANCE 15
Chapter2 17
OUTREACH & MARKETING 17
SBCS ELIGIBILITY DETERMINATION AND REFERRALS 18
Chapter3 19
ELIGIBILITY FOR ADMISSION AND PARTICIPATION 19
INTRODUCTION 19
DENIAL/TERMINATION 19
ELIGIBILITY FACTORS 21
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Chapter 4 31
VERIFICATION PROCEDURES 31
INTRODUCTION 31
METHODS OF VERIFICATION AND TIME ALLOWED 31
ITEMS TO BE VERIFIED 33
VERIFICATION OF PLACEMENT ON WAITING LIST PREFERENCES 33
VERIFICATION OF NON -FINANCIAL FACTORS 34
VERIFICATION OF INCOME 37
VERIFICATION OF ASSETS 46
VERIFICATION OF ALLOWABLE DEDUCTIONS FROM INCOME 48
Chapter 5 52
HOME VOUCHER TERM, SUBSIDY STANDARDS, HOUSEHOLD COMPOSITION
52
INTRODUCTION 52
TERM OF VOUCHER 52
DETERMINING FAMILY UNIT (VOUCHER) SIZE 54
EXCEPTIONS TO SUBSIDY STANDARDS 55
CHANGES IN VOUCHER SIZE 56
DETERMINATION OF HOUSEHOLD STATUS AND COMPOSITION 57
REMAINING HOUSEHOLD MEMBER 59
Chapter 6 62
CALCULATION OF TTP AND DEPOSIT ASSISTANCE MODIFIED VOUCHER
METHOD 62
INTRODUCTION 62
INCOME 62
ALLOWANCES 68
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TOTAL TENANT PAYMENT AND TENANT RENT 70
Chapter 7 72
INITIAL APPROVAL AND BRIEFING 72
INTRODUCTION 72
INITIAL ELIGIBILITY APPROVAL 72
PRIOR TO THE BRIEFING 74
THE BRIEFING 74
AFTER THE BRIEFING AND BEFORE LEASE -UP 77
Chapter 8 78
REQUEST FOR TENANCY APPROVAL, OWNER APPROVAL, LEASES AND
CONTRACTS 78
INTRODUCTION 78
REQUEST FOR TENANCY APPROVAL 78
UNIT SIZE SELECTED 80
RENT LIMITATIONS 81
DISAPPROVAL OF PROPOSED RENT 81
ELIGIBLE TYPES OF HOUSING 82
SECURITY DEPOSIT REQUIREMENTS 82
TENANT SCREENING FOR SUITABILITY 83
INFORMATION TO OWNERS 84
OWNER DISAPPROVAL 84
OWNER RESTRICTIONS AND PENALTIES 85
LEASE REQUIREMENTS 85
ACTIONS BEFORE LEASE TERM 87
SEPARATE AGREEMENTS 87
CONTRACT EXECUTION PROCESS 88
CHANGE IN OWNERSHIP 88
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Chapter 9 90
HOUSING QUALITY STANDARDS AND INSPECTIONS 90
INTRODUCTION 90
INSPECTION TYPES AND GUIDELINES 90
INITIAL HQS INSPECTION 91
ANNUAL HQS INSPECTIONS 92
MOVE OUT/VACATE INSPECTION 93
SPECIAL/COMPLAINT INSPECTION 93
QUALITY CONTROL INSPECTION 93
ADDITONAL SBCS HQS CRITERIA 93
EMERGENCY REPAIR ITEMS 94
NON -EMERGENCY REPAIR ITEMS 95
DETERMINATION OF RESPONSIBILITY 95
CONSEQUENCES IF OWNER IS RESPONSIBLE 96
CONSEQUENCES IF FAMILY IS RESPONSIBLE 97
Chapter 10 98
OWNER PAYMENTS, RENT LIMITS AND RENT REASONABLENESS 98
INTRODUCTION 98
RENT LIMITATIONS 98
RENT REASONABLENESS DETERMINATIONS 99
OWNER PAYMENTS 100
Chapter 11 102
INTERIMS AND OTHER REGULAR ACTIVITIES 102
INTRODUCTION 102
MISREPRESENTATION OF FAMILY CIRCUMSTANCES 102
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ANNUAL ACTIVITIES 102
ANNUAL RECERTIFICATION 103
INTERIM CHANGES 106
HOUSEHOLD COMPOSITION CHANGES THAT REQUIRE A CHANGE IN THE
SUBSIDSY STANDARDS 110
NOTIFICATION OF RESULTS OF RECERTIFICATIONS/ INTERIMS 110
Chapter 12 ,,,
MOVES WITH CONTINUED ASSISTANCE/PORTABILITY 111
INTRODUCTION 111
ALLOWABLE MOVES 111
RESTRICTIONS ON MOVES 111
PROCEDURE FOR TRANSFERS 112
PORTABILITY 113
Chapter 13 114
PROGRAM REVIEW AND PROGRAM INTEGRITY 114
INTRODUCTION 114
COMPLAINTS TO SBCS 114
CRITERIA FOR INVESTIGATION OF SUSPECTED PROGRAM ABUSE AND
FRAUD 115
PREVENTION OF PROGRAM ABUSE AND FRAUD 116
DETECTION OF PROGRAM ABUSE AND FRAUD 117
ALLEGATIONS OF PROGRAM ABUSE AND FRAUD 118
INVESTIGATION OF ALLEGATIONS OF PROGRAM ABUSE AND FRAUD 119
PROCEDURES FOR DOCUMENTED VIOLATIONS 121
Chapter 14 124
TERMINATIONS, DENIALS, HEARINGS AND REVIEWS 124
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INTRODUCTION 124
DENIAL OR TERMINATION OF PROGRAM PARTICIPATION 124
TERMINATION OF CONTRACT OR LEASE 129
INFORMAL MEETINGS AND REVIEWS 133
INFORMAL HEARINGS 134
MITIGATING CIRCUMSTANCES FOR APPLICANTS/ PARTICIPANTS WITH
DISABILITIES 138
Chapter 15 ,39
OWNER OR FAMILY DEBTS TO SBCS 139
INTRODUCTION 139
PAYMENT AGREEMENTS FOR PARTICIPATING FAMILIES 139
PAYMENT AGREEMENTS FOR FAMILIES NO LONGER ON THE PROGRAM
140
DEBTS DUE TO MISREPRESENTATIONS/NON-REPORTING OF
INFORMATION 140
GUIDELINES FOR PAYMENT AGREEMENTS 141
OWNER DEBTS TO SBCS 141
WRITING OFF DEBTS 142
Chapter 16 143
SPECIAL HOUSING TYPES 143
INTRODUCTION 143
SPECIAL HOUSING TYPES TO EXPAND AFFORDABLE HOUSING
OPPORTUNITIES 143
SHARED HOUSING 143
MANUFACTURED HOMES 145
GLOSSARY 148
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Chapter 1
BACKGROUND
Affordable housing for very, very, low-income families is at a crisis state. In National
City, various agencies have done a good job in developing affordable housing for low
and moderate income families, the agency has very limited resources for very, very -
low income families. SBCS, local schools, Family Resource Centers and other
community agencies have struggled to find options. Those who are exiting SBCS'
homeless shelters, temporarily staying with friends, living in campgrounds, and/or
living in motels and/or cars are in need of some type of assistance, and landlords
typically are reluctant to rent to families that have such limited means, so the security
deposits are often too high for their limited budgets. The TBRA program was funded
by the City of National City with the U.S. Department of Housing and Urban
Development HOME Investment Partnership funds to assist families with monthly
rent and security deposit within the City of National City. SBCS has modeled the
TBRA program after the Section 8 Housing Choice Voucher program. The modified
voucher method will be used to calculate the household's rent portion.
JURISDICTION
The jurisdiction of the HOME funded, Tenant Based Rental Assistance Program is
limited to the City of National City and the immediate surrounding area (i.e. Chula
Vista). Participants may never receive assistance outside the County of San Diego.
GEOGRAPHIC AREA
The HOME funded Tenant Based Rental Assistance Program voucher can be used for
a unit anywhere in the County of San Diego. Under no circumstances may vouchers
be used outside of the County of San Diego.
MISSION STATEMENT
South Bay Community Services (SBCS), founded in 1971, is a comprehensive, health
and human services and community development organization. SBCS', a private 501-C3
not for profit organization, mission is to provide children, youth, and families in the South
Bay area with services which reinforce the family's role in the community and assist
individuals to aspire to lives of self-fulfillment.
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PURPOSE OF THIS GUIDE
The purpose of this Guide is to establish policies for carrying out the program in a
manner consistent with HUD requirements, and in a manner consistent with SBCS'
goals and objectives.
SBCS is responsible for complying with all changes in HUD regulations pertaining to
HOME program administration. If such changes conflict with this Plan, HUD
regulations will have precedence.
Applicable regulations include but are not limited to:
24 CFR : 92.209
Local rules incorporated in this Plan are intended to promote local housing objectives
consistent with the intent of federal housing legislation.
ADMINISTRATIVE ERROR
If SBCS discovers an administrative error that resulted in an underpayment of
housing assistance payments, it will correct the error back to the previous action
taken, and issue a payment to the participant. If SBCS discovers an administrative
error resulted in an overpayment of assistance, the error will be corrected with a 30-
day advance notice.
RULES AND REGULATIONS
This Guide defines SBCS' policies for operation of the housing program in the
context of federal laws and regulations. All HOME tenant based rental assistance
issues not addressed in this document are governed by federal regulations, HUD
memos, notices, guidelines, or other applicable law. The policies in this Guide have
been designed to ensure HUD approved applications for program funding.
TERMINOLOGY
"Tenant" is usually used to refer to participants in terms of their relation to landlords.
"Landlord" and "owner" are used interchangeably.
"Disability" is used where "handicap" was formerly used.
"HQS" means the Housing Quality Standards required by regulations as enhanced
by the PHA.
"Failure to Provide" refers to all requirements of the Family Obligations of the program as
outlined elsewhere in the Guide.
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EQUAL OPPORTUNITY -NO DISCRIMINATION
SBCS will fully comply with all federal, state and local nondiscrimination laws, rules
and regulations governing fair housing and equal opportunity in housing and
employment.
SBCS will not deny any resident the equal opportunity to apply for or receive
assistance under any program administered on the basis of race, color, sex, religion,
creed, national or ethnic origin, age, familial or marital status, disability, income
source, or sexual orientation.
To further SBCS' commitment to full compliance with applicable civil rights laws,
SBCS will provide federal/state/local information regarding unlawful discrimination,
and any recourse to those who believe they are victims of a discriminatory act. All
applicable fair housing information and discrimination complaint forms will be
included in the voucher holder's briefing packet, and will be available upon request.
All SBCS staff and consultant members administering the program may be required
to attend fair housing training. These employees, in the overall commitment to quality
customer service, are informed of the importance of affirmatively furthering fair
housing, providing equal opportunity to all families, and providing reasonable
accommodations to persons with disabilities. Fair housing posters are displayed
throughout the Housing Authority office, including in the lobby and interview rooms,
and in such a manner as to be readable from awheelchair.
The equal opportunity logo will be used on all outreach materials. To keep current
with new developments, staff may attend local fair housing update training sponsored
by HUD, or other organizations.
No individual with disabilities shall be denied the benefits of, or be excluded from
participation in the program, or otherwise be subjected to discrimination because
SBCS' facilities are inaccessible to, or unusable by, persons with disabilities.
SBCS is accessible to persons with disabilities. The California Relay Service
provides accessibility for the hearing impaired.
REASONABLE ACCOMMODATIONS POLICY
When a participant requires an accessible feature(s) or policy modification to
accommodate a disability, SBCS may provide such feature(s) or policy modification
unless doing so would result in a fundamental alteration in the nature of the program,
or an undue financial and administrative burden. SBCS shall make reasonable
accommodation, upon request, to the reported physical or mental limitations of an
otherwise qualified person with disabilities.
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A participant with a disability must ask for a specific change to a policy or practice as
an accommodation of his or her disability before SBCS will treat him or her differently
than anyone else. SBCS' policies and practices are designed to, upon request,
provide reasonable accommodations to persons with disabilities, so they may fully
access and utilize the housing program and related services. The availability of
reasonable accommodation is made known by including the information on SBCS'
forms and letters. This policy will afford persons with disabilities an equal opportunity
to obtain the same result, gain the same benefit, or reach the same level of
achievement as those who do not have disabilities. This policy is applicable to all
situations described in this Plan, including when an applicant initiates contact with
SBCS, or when SBCS initiates contact with an applicant. This policy is applicable
when an applicant applies for assistance, as well as when SBCS schedules or
reschedules appointments of any kind.
To be eligible to request a reasonable accommodation, the requester must make the
request at least seven days in advance and may be required to certify (if apparent) or
verify (if not apparent) to be an individual with a disability under the following
definition:
A physical or mental impairment that substantially limits one or more of the
major life activities of an individual
A record of such impairment or being regarded as having such an impairment
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
Note: This is not the same as the HUD definition used for purposes of
determining allowances.
Rehabilitated former drug users and alcoholics are covered under the Americans with
Disabilities Act (ADA). However, a current drug user is not covered. In accordance
with 24 CFR Part 8.3, individuals are not considered disabled for eligibility purposes
solely on the basis of any drug or alcohol dependence. Individuals whose drug or
alcohol addiction is a material factor to their disability are excluded from the
definition. Individuals are considered disabled if disabling mental and physical
limitations would persist if drug or alcohol abuse discontinued.
SBCS will require at least annually that a professional third party competent to make
the assessment of disability provide written verification that the individuals need a
specific accommodation due to their disability, exactly what accommodation is
recommended, exactly how this accommodation will allow them to fully access the
program, and that the change is required for them to have equal access to the
housing program.
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If SBCS finds that the requested accommodation creates an undue administrative or
financial burden, then it will either deny the request and/or present an alternate
accommodation that will still meet the need of the person.
An undue administrative burden is one that requires a fundamental alteration of the
essential functions of SBCS (i.e., waiving an applicant obligation or criminal history
prohibition).
An undue financial burden is one that when considering the available resources of
the agency as a whole, the requested accommodation would pose a severe financial
hardship on SBCS.
SBCS will provide a written decision to the person requesting the accommodation
within a reasonable time. If a person is denied the accommodation, or feels that the
alternative suggestions are inadequate, he/she may request an informal review with
a supervisor to discuss SBCS' decision.
Reasonable accommodation will be made for persons with a disability who require an
advocate or accessible offices. In addition, a designee may represent the individual
with a disability, but only with written permission of the disabled person.
VERIFICATION OF DISABILITY
SBCS will verify disabilities under definitions in the Fair Housing Amendments Act of
1988, Section 504 of the 1973 Rehabilitation Act, and Americans with Disabilities Act.
LANGUAGE ACCOMMODATIONS
SBCS provides applications all literature relevant to tenant and in English and
Spanish. In addition, briefings will also be conducted in English and Spanish along
with all other services related to the HOME Tenant Based Rental Assistance
Program.
APPLYING FOR ADMISSION
To provide specific reasonable accommodation to persons with disabilities, upon
request, the information may be mailed to the applicant, mailed to the applicant's
contact person, completed by a designee, or any other specified reasonable
accommodation.
SBCS staff will perform the following activities:
• Review the internal or external referral.
• Contact and meet with potential program participants to evaluate their
potential for successful participation in the program.
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• Provide all necessary counseling and supportive services to ready them for
program participation.
• Contact other resources, as necessary, in order to make a full assessment of
the applicant's likelihood of successful program participation.
After SBCS staff has met the candidates, fully evaluated their potential, provided
training and counseling services to make them ready for participation, staff will refer
only those candidates, who are determined as prospects for long-term and
successful independent living.
ASSESSMENT OBJECTIVES
SBCS can demonstrate to HUD auditors that it applies resources in a manner that
reflects its commitment to quality and service. SBCS policies and practices are
consistent with following HUD requirements:
• Selection from the waiting list
• Reasonable rent
• Determination of adjusted income
• Utility allowance schedule
• HQS quality control inspections
• HQS enforcement
• Expanding housing opportunities
• FMR/exception rent and payment standards
• Annual reexaminations
• Correct tenant rent calculations
• Pre -contract HQS inspections
• Annual HQS inspections (when applicable)
RECORDS FOR MONITORING PERFORMANCE
In order to demonstrate compliance with HUD and other pertinent regulations, SBCS
will maintain and retain records, reports and other documentation in accordance with
HUD requirements. These records will be maintained in a manner that will allow an
auditor, housing professional, or other interested party, to follow, monitor and/or
assess SBCS' operational procedures objectively, with accuracy, and in accordance
with internal management controls.
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In addition to the required documentation, supervisory may monitor the following
functions:
• All annual recertifications will be monitored for completion at least 30 days
before the re -exam due date.
• All annual inspections will be monitored for completion at least 30 days before
the due date.
• All new applications will be monitored for compliance with the regulations.
PRIVACY RIGHTS
Applicants and participants, including all adults in their households, are required to
sign an Authorization for Release of Information. This document incorporates the
Federal Privacy Act Statement and describes the conditions under which HUD/City
will release information.
SBCS' policy regarding release of information is in accordance with state and local
laws that restrict the release of information.
SBCS will not request specific information regarding a person's disability. SBCS will
ask a health professional to confirm that a person's disability indicates a need for
specified services or accommodation. If specific information is received regarding the
disabled person's disability, the information will be kept confidential, and be
destroyed in a confidential manner after a determination has been made.
SBCS' practices and procedures are designed to safeguard the privacy of applicants
and program participants. All applicant and participant files are stored in a secure
location, only accessible to authorized staff.
SBCS staff will not discuss applicant information contained in files except for a
business reason. Inappropriate discussion of applicant information or improper
disclosure of applicant information by staff will result in disciplinary action.
Unauthorized persons may not remove files from secure storage areas.
OWNER OUTREACH
SBCS makes a concerted effort to keep private owners informed of applicable
legislative changes in program requirements.
SBCS encourages owners of decent, safe and sanitary housing units to lease to
eligible participants.
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SBCS encourages participation by owners of suitable units located outside areas of
high poverty or minority concentration.
SBCS conducts periodic meetings with owners, upon request, to improve owner
relations and to recruit new owners.
SBCS staff initiates personal contact with private property owners and managers by
telephone, or, upon request, at informal discussions and meetings.
Printed material can be made available to acquaint owners and managers with the
opportunities available under the program.
ISSUANCE OF HOME VOUCHERS FOR TENANT BASED
RENTAL ASSISTANCE
When funding is available, SBCS issues vouchers to eligible applicants. SBCS
strives to issue enough vouchers to maintain a 100 percent lease -up rate. Vouchers
are issued for an initial of 6 month period and may be renewed for an additional 6
months contingent upon availability of funding. SBCS performs a monthly calculation
to determine whether applications should be processed, the number of vouchers that
can be issued, and to what extent vouchers can be over -issued (issue more
vouchers than the budget allows to achieve maximum lease -up rate).
PAYMENT STANDARDS
The payment standard is the basis for calculating the housing assistance payment. In
accordance with HUD regulation, and at SBCS' discretion, the voucher payment
standard amount set at 100 percent of the Section 8 FMR. This is considered the
basic range. SBCS will review the appropriateness of the payment standard annually.
SBCS will adopt a payment standard that is 100 percent of the most recently
published FMR, unless HUD approves an exception paymentstandard.
SBCS may also approve a higher payment standard up to 110 percent if FMR, if required
as a reasonable accommodation for a participant that is a person with disabilities.
SBCS will use the Payment Standard provided by the City of National City.
FINANCIAL FEASIBILITY
Before increasing the payment standard, SBCS may review its budget to determine the
impact of projected subsidy increases on funding available for the program, and the
number of families served.
For this purpose, SBCS will compare the number of participants served under higher
payment standards, to the number assisted under current payment standards.
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UTILITY ALLOWANCE AND UTILITY REIMBURSEMENT
PAYMENTS
SBCS will use the City of National City's Community Development's utility allowance
schedule.
The utility allowance is intended to cover the cost of essential utilities not included in the
rent, including, refrigerators, ranges, trash collection, or other tenant -paid services. The
allowance is 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. Allowances are not based on an individual's actual energy consumption.
The utility allowance schedule includes the utilities and services that are necessary in the
locality to provide housing that complies with the housing quality standards. However,
SBCS may not include allowances for non -essential utility costs such as, cable, satellite
television, telephone, or intemet connection.
SBCS must classify utilities in the utility allowance schedule according to the following
general categories: space heating, cooking, air conditioning, water heating, water, sewer,
trash collection, other electric, refrigerator (for tenant supplied refrigerator), range (for
tenant -supplied range), and other specified services.
An allowance for tenant -paid air conditioning will be provided in those cases where the
majority of housing units in the market have central air conditioning, or are wired for
tenant installed air conditioners.
Separate utility allowances for certain utilities may be calculated for mobile homes in
parks, and/or or for complexes that charge a flat fee for certain utilities, given the lower
amount of these utilities than for other dwelling types.
The approved utility allowance schedule is given to families along with their voucher. The
utility allowances are based on the actual unit size selected.
When participants provide his or her own range and refrigerator, SBCS will establish an
allowance adequate for the participant to purchase or rent a range or refrigerator, even if
the participant already owns either appliance. Allowances for ranges and refrigerators will
be based on the lesser of the cost of leasing or purchasing the appropriate new or used
appliance over a twelve-month period.
OPTIONAL CASE MANAGEMENT AND FINANCIAL
EDUCATION FOR FAMILIES
If applicants are current SBCS clients, they may choose to continue receiving case
management or other SBCS services. In addition, all interested applicants may
choose to receive financial education. The optional case management and financial
education are made available to all participants for HOME Tenant Based Rental
Assistance, at any time during their stay.
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Chapter 2
OUTREACH & MARKETING
SBCS follows a pro -active approach to outreach and marketing of supportive housing
programs. For the TBRA program, this includes working closely with community -
based agencies in National City who interact with low-income individuals and
families. SBCS has staff stationed within National City, including at Family Resource
Centers located on elementary school campuses, as well as the Police Department.
This approach allows us to reach families when they are most in need, and promotes
a "no -wrong door" policy for access to any SBCS services, including housing
assistance.
Marketing material is available to be posted at locations where in need families will
frequent.
SBCS objectives are to ensure that interested applicants are placed on a Wait List
through an internal (within SBCS) or external (from outside agencies) referrals.
Applicants are then evaluated for program participation suitability and subsequent
referral for eligibility determination.
By maintaining a Wait List, SBCS is able to perform the activities in a manner that
ensures an adequate pool of qualified applicants is available for the timely use of
program funds.
It is generally the policy of SBCS to not close the Wait List. However, SBCS may
stop accepting applications if the Wait List contains sufficient applicants to fill
anticipated openings for the next 12 months.
The policy of SBCS is to ensure that all residents interested in housing assistance
are given an equal opportunity to apply, and are treated in a fair and consistent
manner.
In the event that there are no available vouchers, eligible families will be placed on the
Wait List in an order based on local preferences.
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SBCS ELIGIBILITY DETERMINATION AND REFERRALS
SBCS will evaluate applicants for referral to the program that:
• Applicant must be a recent survivor of domestic violence or homeless.
• At time of initial eligibility determination, applicant household income must not
exceed 80 percent of the area median income for the County of San Diego,
adjusted for household size. Applicant household income must not exceed 80
percent of the area median income for the San Diego County, adjusted for
household size. 90 percent of the household applicants must be at or below 60
percent of area median income.
• To ensure a continuum of care, preference shall be provided to households
currently participating or graduating from programs supporting survivors of
domestic violence.
• Applicant must be currently on or placed on any local jurisdiction's Section 8
waiting list. Participation in the TBRA shall not impact the participant's standing
on the Section 8 waiting list.
• Have some legal source of income.
• Have documented residency of 90 days or tie to City of National City prior to
applying for the program.
• Have some legal source of income.
Ineligible applicants may include:
• Current substance abusers.
• Applicants who have a recent history (one-year) of violent behavior including
assaults.
All interested & potentially eligible candidates will be interviewed in person to evaluate
their potential for successful participation in the program. A VI-SPDAT may also be
administered to assist with service -matching and provides the information needed to
determine the most effective housing intervention. Applicants will be prioritized for
participation in the program based on the date referral form was submitted, is a victim
of or is attempting to flee domestic violence and/or sexual assault, and homeless
status.
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Chapter 3
ELIGIBILITY FOR ADMISSION AND
PARTICIPATION
INTRODUCTION
This chapter defines SBCS and HUD criteria for admission and ongoing participation
to the program. The policy to strive for objectivity and consistency in applying the
criteria to evaluate the eligibility of families who apply. SBCS staff will review all
information provided by the applicant carefully and without regard to factors other
than those defined in this chapter. Applicants will be provided the opportunity to
explain their circumstances, to furnish additional information, if needed and to receive
an explanation of the basis for any decision by SBCS regarding eligibility.
SBCS may deny or terminate assistance for a participant because of an action or
failure to act. SBCS will provide participants with a written description of the
obligations under the program, the grounds under which SBCS can deny or terminate
assistance, SBCS informal hearing or informal review procedures. This chapter
describes when SBCS is required to deny or terminate assistance, the policies for the
denial of a new commitment of assistance, and the grounds for termination of
assistance under a participation contract.
DENIAL/TERMINATION
If denial of admission, or termination of assistance, is based on behavior due to a
disability, SBCS may delay the denial or termination in order to determine if the
problem could be corrected by reasonable accommodation. For example, a visually
impaired person who fails to return information because the request for information
was in writing may be determined to need a reasonable accommodation in order to
comply with the requirements of the program. In this scenario, SBCS will make a
reasonable accommodation, upon request, to call the person to tell him/her of the
information that is needed.
FORM AND FORMAT FOR DENIAL/TERMINATION
Denial of assistance for an applicant may include any or all of the following:
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• Denying a HOME Voucher or withdrawing a Voucher.
• Refusing to enter into a HAP contract or approve a tenancy.
Termination of assistance for a participant may include any or all of the following:
• Refusing to enter into a HAP contract or approve a tenancy.
• Terminating housing assistance payments under an outstanding HAP
contract.
• Refusing to process or provide assistance under transfer procedures.
SBCS may screen all program participants for criminal activities on a regular basis.
Applicants and participants will be notified of denial or termination of assistance in
writing and advised they will have 14 days from the date of the notice to request an
informal review or hearing. The notices will contain a full explanation of the reason(s)
for termination/denial, including a full description of crimes or actions of the family,
and the sections of the Code of Federal Regulations that provide authority for the
denial or termination of assistance. A request form will be provided for applicants or
participants to request informal reviews or hearings.
All requests for an informal hearing or review must be in writing and must be received
by SBCS' within 14 days of the date of the denial or termination notice.
PURPOSE OF SCREENING APPLICANTS AND PARTICIPANTS
All federally assisted housing is intended to provide a place to live and raise families,
not a place to commit crime, to use or sell a controlled substance illegally, or terrorize
neighbors. It is the intention of SBCS to fully endorse and implement a policy
designed to:
• Help create and maintain a safe and drug -free community.
• Keep program participants and their families free from threats to their
personal safety.
• Support parental efforts to instill values of personal responsibility and
hard work.
• Help maintain an environment where children can live safely, learn and
grow up to be productive citizens.
• Assist families in their vocational/educational goals in the pursuit of self-
sufficiency.
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Screening Process
Generally, applicants will be funneled through SBCS' short term or transitional
housing programs. Through case management and assessment, all appropriate
housing interventions will be explored. For those applicants whose assessments best
match with the available subsidy and supportive services offered by the TBRA
program, additional consideration and an in -person interview will be offered.
All screening and termination of assistance procedures shall be administered
uniformly and fairly, and in such a way as not to violate rights to privacy or
discriminate on the basis of race, color, nationality, religion, familial status, disability,
gender, or other legally protected groups.
To the maximum extent possible, SBCS will involve other community and
governmental entities in the promotion and enforcement of this policy.
This policy will be provided to applicants and participants upon request.
ELIGIBILITY FACTORS
HUD DEFINITIONS
"Engaged in or engaging in" violent criminal activity means any act within the past
five years by an applicant or participant or household member which involved
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, which may or may not have resulted in the
arrest and/or conviction of the applicant, participant, or household member.
SBCS prohibits the illegal use of all controlled substances as defined under federal
guidelines.
"Covered person", for purposes of 24 CFR Part 982 and this chapter, means a
tenant, any member of the tenant's household, a guest or another person under the
tenant's control.
"Drug" means a controlled substance as defined in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
"Drug -related criminal activity" means 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.
"Guest", for purposes of this chapter and 24 CFR part 5, subpart A and 24 CFR Part
982, means a person temporarily staying in the unit with the consent of a tenant or
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other member of the household who has express or implied authority to so consent
on behalf of the tenant. The requirements of part 982 apply to a guest as so defined.
"Household", for the purposes of 24 CFR Part 982 and this chapter, means the family
applying for program participation.
"Other person under the tenant's control" for the purposes of the definition of
covered person and for 24 CFR Parts 5 and 982 and for this chapter, means that the
person, although not staying as a guest (as defined in this chapter) in the unit, is, or
was at the time of the activity in question, on the premises because of an invitation
from the tenant or other member of the household who has express or implied
authority to so consent on behalf of the tenant. Absent evidence to the contrary, a
person temporarily and infrequently on the premises solely for legitimate commercial
purposes are not under the tenant's control.
"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.
UNIQUE ADMISSION ELIGIBILITY FACTORS
To be eligible for participation, an applicant must meet HUD's criteria, as well as any
permissible additional criteria established by SBCS. In an effort to prevent future
illegal drug related and other criminal activity, as well as other patterns of behavior
that pose a threat to the health, safety or right to peaceful enjoyment of the premises
by other residents, and as required by 24 CFR 982, Subpart L and CFR Part 5,
Subpart J, SBCS will screen applicants as thoroughly and fairly as possible for illegal
drug -related activities, alcohol abuse activities, sex offender registration requirement,
and violent criminal behavior.
Such screening will apply to any member of the household who is 18 years of age or
older; however, evidence of prohibited criminal activities conducted by minors in the
household will also be cause for denial or termination of assistance.
Admission to the program is never based on:
• Where the household will live within eligible City of National City boundaries.
• Discrimination of a household, because it includes unwed parents, recipients
of public assistance, or children born out of wedlock.
• Discrimination of a household, because it includes children.
• Other reasons as listed in under the "Fair Housing and Reasonable
Accommodations" sections.
Eligibility criteria include:
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• An applicant must be a "family"; SBCS' definition of a family is one or more
individuals sharing a household.
The applicant's income must be within the appropriate income limits. To be eligible
for assistance, an applicant must:
• Have an annual income at the time of admission that does not exceed the
income limits for occupancy established by HUD.
• An unborn child is not considered when determining the income limit. For
example, a pregnant single is considered a one -person household when
determining the income limits.
• To be income eligible, the applicant's family income cannot exceed the very
low-income category, which is income that does not exceed 50 percent of the
area median income. SBCS will not admit households whose income at
admission exceeds 50 percent of the area median income, except those
families included in 24 CFR 982.201(b).
To be income eligible, the family may be under the low-income limit in any of the
following categories:
• A very low-income family.
• A low-income family that is continuously assisted under the 1937 Housing Act.
• An applicant is continuously assisted if the family has received federal
assistance under the 1937 Housing Act within 120 days of voucher issuance.
To determine if the family is income -eligible, SBCS compares the annual income of
the family to the applicable income limit for the family's size.
Families, whose annual income exceeds the income limit, will be denied admission,
removed from the waiting list, and offered an informal review.
SBCS accepts applications only from families whose head or spouse is at least 18
years of age, or emancipated minors under state law.
The applicant must have a "Tie to National City" including, but not limited to:
• Family or kin in National City
• Previous residence
• Employment
• Family enrolled in a National City school
• Other documentation providing residency the City for the i.e. local store or hotel
receipts; or other similar documentation.
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Criminal Activity
Applicants will be denied assistance and not admitted to the program:
• If they have been arrested, convicted, or evicted from federally assisted
housing for violent criminal activities within the last five years prior to the date
of the eligibility interview.
• If any member of the family has been evicted from federally assisted housing
for serious violations of the lease, or drug related criminal activities for
personal use, within the past three years prior to the current eligibility interview
[982.552(b)].
• If any member is subject to a lifetime registration requirement under a state
sex offender registration program [982.552(b)].
• If any member has been convicted of production or manufacture of
methamphetamine on federally assisted property[982.552(b)].
• If they fail to meet the preference and income targeting requirements at the
time of selection.
• If they exceed the income limits.
• If, as program participant, any member violated an important family obligation,
other than for illegal drug or criminal activities, within the past three years prior
to the current eligibility interview. SBCS may make an exception, if the family
member who violated the family obligation is no longer in the household.
• Other criteria as outlined in the next section.
The family must, within seven days of notice, pay any outstanding debt owed to
SBCS, or a PHA as a result of prior participation in any federal housing program
The family must be in compliance with any payment agreement made with a PHA for
a previous debt incurred.
Admission and Participation Eligibility Factors
SBCS will deny participation in the program to applicants and terminate assistance to
participants in cases where SBCS determines there is reasonable cause to believe
that a household member has or is illegally using a controlled substance, committing
violent criminal acts, or if the person abuses alcohol in a way that may interfere with
the health, safety or right to peaceful enjoyment of the premises by other residents,
including cases where SBCS determines that there is a pattern of alcohol abuse.
SBCS will determine the use of alcohol to reflect a pattern of abuse, if there are two
or more incidents during the previous twelve months.
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Applicants or participants who have been found to engage in violence, or illegal drug
activities that involve, sales, trafficking, manufacture, or possession for sales, are
prohibited from program participation for five years from the date of the act or
conviction, or eviction or termination from federally assisted housing, whichever is
later.
Applicants or participants involved in the personal use of illegal drugs are prohibited
from the program for one year from the later of either the act or the conviction, unless
documentation is provided of successful rehabilitation. Those evicted from federally
assisted housing for personal drug use are ineligible for assistance for three years
from latter of the date of the conviction, eviction or termination of assistance.
Participants found to be subject to sex offender registration requirements under a
state sex offender registration program may be terminated from the program under
the authority to terminate assistance for past violent criminal behavior. All applicants
subject to state sex offender registration requirements will be denied. Live-in aides
or foster children who are found to be subject to a state sex offender registration
requirement of a state sex offender registration program will ALWAYS be
disapproved for occupancy of the assisted unit, as will all additions to the household
and all new admissions to the program.
The existence of prohibited behavior by any household member, regardless of the
applicant or participant's knowledge of the behavior, shall be grounds for denial or
termination of assistance.
SBCS requires households to provide a current research criminal history for all adults
in the household. The criminal history will be used to determine whether any member
of the family has violated any of the prohibited behaviors such as:
• During the participation prohibition period or while currently assisted, a family
member has violated any family obligation under 24 CFR 982.551 -- not to
engage in any drug -related criminal activity.
• During the participation prohibition period or while currently assisted, a family
member has violated any family obligation under 24 CFR 982.551 -- not to
engage in any violent criminal activity.
• During the participation prohibition period or while currently assisted, any
member of the family engages in, or has engaged in, illegal drug or alcohol
abuse that interferes with the health, safety or peaceful enjoyment of other
residents.
• For participants, "currently engaging," means anytime while the participant
was on the program he/she was involved in illegal drug activities.
SBCS must permanently deny assistance to applicants, and terminate the assistance
of program participants convicted of manufacturing or producing methamphetamine
on the premises of federally assisted housing.
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Admission will be denied if the act occurred within the last five years or assistance
will be terminated if any member of the family has engaged in or threatened
abusive or violent behavior toward SBCS, Public Housing Agency (PHA) personnel
or anyone else.
"Threatening" refers to oral or written threats or physical gestures that communicate
the intent to abuse or commit violence.
SBCS may waive the requirement for termination or denial for drug -related criminal
activity, if it was for personal use, and if:
• The person demonstrates successful completion of a credible rehabilitation
program approved by SBCS, and the violation did not occur while the
family was being assisted. If a family member engaged in this activity while
being assisted, assistance will always be terminated.
SBCS may waive the requirement regarding denial or termination for drug -related,
alcohol abuse, or violent criminal activities if:
• The circumstances leading to the violation no longer exist because the
person who engaged in drug -related criminal activity or violent criminal
activity is no longer in the household due to death or incarceration. The
person is unlikely to return to visit or live with the family.
• The evidence the act occurred is weak, such as an arrest report that
indicates the family member was detained and released. In this case,
SBCS may request additional evidence, such as a police report.
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Prohibition Periods for Some Offenses for Applicants and Participants
Subject to lifetime
sex offender
registration under
the state sex
offender registration
program.
Participants may be
terminated from the
program as a
previous violent
criminal activity
depending on the
ncr,n,,nnccc .,f fhc
Currently engaging
in illegal drug
activities including:
use, production, or
sales.
Owes money or rent
to any PHA.
Previous violent criminal
activity. See definition
below.
From date of eviction from
any federally assisted
housing for illegal drug
activities for personal drug
use. (Does not apply with
evidence of rehabilitation
or violator absent.)
Illegal drug use, or
possession for personal
use, unless a family
obligation was violated at
the same time, then the
three-year prohibition
period applies.
(One year does not apply,
if proof of completing
rehabilitation program is
provided.)
Convicted of the
manufacture or
production of
methamphetamine
on the premises of
federally assisted
housing.
Pattem of abuse, or
abuse of alcohol that
interferes with the
health, safety, or
right to peaceful
enjoyment of others.
Previous illegal drug -
related criminal activity,
that involves: sales,
transportation,
manufacture, or
possession for sale.
From date of termination
of federal assistance for a
violation of an important
family obligation, except
drug -related or violent
criminal activities.
Currently engaging
in violent criminal
activity. See
definition below.
Previous other criminal
activity that would
threaten the health,
safety, or right to
peaceful enjoyment of
the premises of others.
From date of eviction from
federally assisted property
for lease violations.
Actively engaging in
other criminal activity
that would threaten
the health, safety, or
right to peaceful
enjoyment of the
premises of others.
Previous other criminal
activity that would
threaten the health or
safety of the PHA,
owner, employee,
contractor,
subcontractor or agent
of the PHA.
From date of discovery for
having committed fraud,
bribery or any other
corrupt or criminal acts in
connection with any
federal housing program.
Actively engaging in
other criminal activity
that would threaten
the health or safety
of the PHA, owner,
employee,
contractor,
subcontractor or
agent of the PHA.
If any applicant/participant deliberately misrepresents the information or provides
untrue or incomplete information on which eligibility or tenant rent is established,
SBCS may deny or terminate assistance and may refer the family file/record to the
proper authorities for appropriate disposition.
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A family will be denied admission to the program, if any member of the family,
including live in aides, fails to sign and submit consent forms for obtaining information
required by SBCS, including Form HUD-9886.
The family will be denied admission or continued assistance if it is found a member of the
family has committed fraud, bribery or any other corrupt or criminal act in connection with
any federal housing program. The family will be denied admission or continued
assistance if it currently owes rent or other amounts to SBCS or a PHA in connection with
Section 8 or public housing assistance under the 1937 Act or if is found that the family
owes any money to a housing agency or that an active repayment agreement is in
arrears.
Uniaue Ongoing Participation Eligibility Factors
SBCS will terminate program participation of participants found to have engaged in
drug -related or violent criminal activities of any kind while participating in the
program. On a case -by -case basis, the offender may be allowed to leave the
household so that the remaining family may continue to receive assistance if it is
unlikely the offender will return to visit or live with the family, and providing the family
has no history of violating program obligations.
SBCS may deny issuance of a HOME voucher for transfer purposes, and terminate
assistance for participants, found to be subject to a lifetime registration requirement
under a state sex offender registration program under the denial for violent criminal
activities regulations. In making its determination, SBCS will evaluate the following
factors: the length of time since the offense occurred, if there were multiple offenses,
if there were multiple victims, the circumstances of the offense, the amount of harm
to the victim(s), the ages of the victims, the evidence of rehabilitation, and the
likelihood of the offense reoccurring.
SBCS will screen the criminal history of all participants prior to issuance of a voucher
for transfer purposes.
SBCS must terminate program assistance, if the participant is evicted for a serious or
repeated violation of the current lease, or if there is evidence the participant has
committed serious or repeated lease violations.
The participant's program assistance may be terminated for a violation of any family
obligations. The deciding factors will be any history of previous violations, if the
violation was intentional, the impact on SBCS and the owner, and the family's speed
in correcting the violation, and other mitigating circumstances. Family obligations
include:
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• The family must supply any information that SBCS or HUD determines is
necessary to administer the program. "Information" includes any requested
certification, release or other documentation.
• The family must supply any required information requested by SBCS or HUD, for
use in a regularly scheduled reexamination or interim reexamination of family
income and composition.
• All information supplied by the family must be true and complete.
• The family is responsible for an HQS breach caused by the family as described in
CFR 982.404(b).
• The family may not commit any serious or repeated violations of the lease.
• The family must notify the owner and, at the same time, notify SBCS before the
family moves out of the unit, or terminates the lease upon notice to the owner.
• The family must promptly give SBCS 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.
• SBCS must approve the composition of the assisted family residing in the unit.
The family must promptly inform SBCS of the birth, adoption, return of a disabled
or minor child to the family, or court -awarded custody of a child. The family must
request SBCS approval to add any other family member as an occupant of the
unit or if more than one child is being added to the household. The family is not
eligible for a larger voucher size for new family members, unless the addition was
by birth, adoption, foster child, live- in aide, return of a disabled or minor child to
the family, or court -awarded custody of a child.
• The family must promptly notify SBCS if a family member moves.
• Members of the household may engage in legal profit -making activities in the unit,
but only if such activities are incidental to the primary use of the unit as a
residence by members of the family, do not cause damage or a nuisance, and the
property owner has given permission for such activities. If SBCS determines that
the use of the unit as a business is not incidental to its use as a dwelling unit, it
will be considered a program violation. If the owner legally disallows the profit -
making activity in the unit, it will be considered a program violation. If SBCS
determines the business is not legal, it will be considered a program violation.
• The family must not sublease or let the unit.
• The family must not assign the lease or transfer the unit.
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• The family must supply any information or certification requested by SBCS
to verify that the family is living in the unit, or to document a family absence
from the unit. The family must cooperate with SBCS' for this purpose. The
family must notify SBCS, within 14 days, of temporary absence from the
unit. The family must notify SBCS prior to moving from the unit.
• The family must not own or have any interest in the unit regardless of
whether he/she is a member of the family, with the exception of a
mobilehome owner renting the pad.
• The members of the family must not commit fraud, bribery or any other
corrupt or criminal act in connection with any federal housing program.
• The household members may 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. For example, a live-in
aide with a history that falls under this section will not be granted
admission.
• The members of the household must not abuse alcohol in a way that
threatens the health, safety or right to peaceful enjoyment of other
residents and persons residing in the immediate vicinity of the premises.
• An assisted family, or members of the family, may not receive assistance
while receiving another housing subsidy, for the same unit or for a different
unit, under any duplicative (as determined by HUD or in accordance with
HUD requirements) federal, state or local housing assistance program.
• Participants must maintain employment or other legal source of income.
If during the course of a third -party investigation a violation is discovered SBCS may
terminate participation in the HOME program based on this information.
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Chapter 4
VERIFICATION PROCEDURES
INTRODUCTION
SBCS must verify eligibility, total tenant payment, and family share in accordance
with HUD regulations. SBCS staff will obtain written documentation from independent
sources whenever possible.
Applicants and program participants must provide true and complete information to
SBCS whenever information is requested. SBCS' verification requirements are
designed to maintain program integrity. This chapter explains SBCS' procedures and
standards for verification of preferences, income, assets, allowable deductions,
family status, and changes in family composition. SBCS will obtain proper
authorization from the family before requesting information from independent
sources.
METHODS OF VERIFICATION AND TIMEALLOWED
SBCS will verify information through the four methods of verification, acceptable to
HUD, in the following ranking order:
1. Documents provided by family (e.g., pay stubs, bank statements, or social
security award letters).
2. Third -party oral (in person or via telephone directly from the third party).
3. Third -party written (must be received directly from the third party).
4. Certification/self-declaration.
For applicants, verifications may not be more than 60 days old at the time of voucher
issuance. For participants, verifications are valid for 120 days from date of receipt.
THIRD -PARTY ORAL VERIFICATION
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Oral third -party verifications will be used when written third party verifications are
delayed or not possible. When a third -party oral verification is used, staff will be
required to notate in the file: the name of the person contacted, the date of the
conversation, and the facts provided. If the third -party verification is provided by
telephone, SBCS must originate the call.
SBCS will not delay the processing of an application beyond 14 days because a third
party information provider does not return the verification in a timely manner.
THIRD -PARTY WRITTEN VERIFICATION
Third -party written verifications must be received directly from the third parties. The
family will be required to sign an authorization for release of information to allow the
third parties to release requested information.
Verifications received from the third party electronically via computer e-mail, by fax
machine, via an on-line database system, or directly from the source, are considered
written third -party verifications.
DOCUMENTS ACCEPTED AS VERIFICATION
If neither written nor oral third -party verifications are received within seven days of
the request, SBCS will accept verifications in the form of documents, letters, or
computerized printouts delivered by the family. Clear and legible documents from
the following agencies are acceptable:
Social Security Administration
Veterans Administration
Welfare Assistance
Unemployment Compensation Board
SBCS or County Courts
Employers
Investment Groups
SELF-CERTIFICATION/SELF-DECLARATION
EDD
Law Enforcement Agencies
Retirement Agencies
Investment Companies
Banks
Life Insurance Companies
Other documents from source
When verification cannot be made by third -party verification or documents provided
by the family, families are required to submit a notarized self -certification.
A notarized self -certification means a family signed and dated
affidavit/certification/statement under penalty of perjury in the presence of a notary
public.
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ITEMS TO BE VERIFIED
• Reported family annual income.
• Expenses related to deductions from annual income.
• Full-time student status for students who are eighteen years of age or over at the
time of final initial or annual eligibility determination.
• Current assets, including assets disposed of for less than fair market value in
proceeding two years.
• Childcare expenses if it allows an adult family member to be employed or go to
school.
• Total medical expenses of all family members in households whose head or
spouse is elderly or disabled.
• Disability assistance expenses to include only those costs associated with
attendant care or auxiliary apparatus for a disabled member of the family, which
allow an adult family member to be employed.
• Disability for determination of preferences, allowances ordeductions.
• Marital status when needed for head or spouse definition.
• Verification of reduction in benefits for noncompliance including sanctions of
benefits.
SBCS will obtain written verification from the welfare agency stating that the family's
benefits have been reduced for fraud or noncompliance before denying the family's
request for rent reduction.
VERIFICATION OF PLACEMENT ON WAITING LIST
PREFERENCES
Participants eligible for Section 8 will be required to place their name on the Section
8 waiting list immediately upon program admission. SBCS may verify that eligible
participants have placed their name on the Section 8 list.
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VERIFICATION OF NON -FINANCIAL FACTORS
VERIFICATION OF LEGAL IDENTITY
In order to prevent program abuse, SBCS will require applicants to furnish verification
of legal identity for all adult family members. All adult family members must provide
picture identification. Acceptable picture identification might be a driver's license,
California identification card, or school picture identification. Family members who
turn 18 years of age must provide picture identification as of the next annual
reexamination.
The following documents be temporarily accepted as proof of identify:
• Naturalization papers
• Church issued baptismal certificate
• Hospital birth certificate
• Department of Motor Vehicles identification card
• Current, valid driver's license
• U.S. military discharge (DD 214)
• U.S. passport
• Voter's registration
• Company/agency identification card
• Hospital records
If none of these documents can be provided, a third party who knows the person
may, at SBCS' discretion, provide verification.
FAMILIAL RELATIONSHIPS
Certification will normally be considered sufficient verification of family relationships.
In cases where reasonable doubt exists, the family may be asked to provide
verification.
The following verifications will always be required, if applicable:
Verification of relationship:
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• Official identification showing names
• Birth certificates
• Baptismal certificates
Verification of guardianship is:
• Court -ordered assignment
• Affidavit of parent
• Verification from social services agency
• School records
VERIFICATION OF PERMANENT ABSENCE OF FAMILY MEMBER
If an adult member, formerly a member of the household, is reported permanently
absent by the family, SBCS will consider any of the following as verification:
• Documentation of divorce action.
• Documentation of legal separation.
• Order of protection/restraining order obtained by one family member
against another.
• Proof of another home address, such as utility bills, canceled checks
for rent, drivers license, lease, rental agreement, automobile
registration, mail at new address, or credit report reflecting new
address, if available.
• Statements from other agencies, such as social services, or a written
statement from the landlord or manager, that the adult family
member is no longer living at that location.
• If a family member is incarcerated, a document from the court or
correctional facility stating how long s/he will be incarcerated.
• SBCS will accept a self -certification, signed under penalty of
perjury, from the head of household, or the spouse or co-head, if
the head is the absent member.
VERIFICATION OF CHANGE IN FAMILY COMPOSITION
SBCS may verify changes in family composition, either reported or unreported, through
letters, telephone calls, utility records, inspections, landlords, neighbors, credit data, school
or Department of Motor Vehicles (DMV) records, and other sources.
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VERIFICATION OF DISABILITY
Verification of disability must be obtained from documentation of SSI or SSA
disability payments under Section 223 of the Social Security Act or 102(7) of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001(7), or
verified by the appropriate diagnostician, such as, physician, psychiatrist,
psychologist, nurse, therapist, rehab specialist, or licensed social worker, using the
appropriate HUD definition of disability.
MEDICAL NEED FOR LARGER UNIT
The family may request a larger voucher than indicated by SBCS subsidy standards
as a reasonable accommodation for a family member with disabilities. Refer to the
glossary for the definition of person with disabilities.
The family request for a larger voucher must be in writing and must clearly explain a
strong and compelling need or justification for a larger voucher and what about the
additional bedroom will allow the person with disabilities better access to the
program. The additional bedroom must be needed to accommodate the person with
disabilities — not the family member without disabilities. SBCS will require at least
annually medical documentation, on SBCS forms, verifying the need or justification
for a larger unit.
A state of California licensed doctor, or other licensed medical professional, such as
a nurse, psychiatrist, psychologist, or a social service professional must provide a
certification of the need for additional bedrooms or a live-in aide as a reasonable
accommodation for a family member with disabilities, or for a live-in aide to provide
supportive services for a person with disabilities.
For an additional bedroom, the health professional must explain a clear and
compelling reason why the extra bedroom is needed to provide a reasonable
accommodation for the serious medical condition of the family member.
For a live-in aide, the health professional must clearly indicate why the live-in aide is
necessary to provide vital care to the household member with disabilities that cannot
be performed any other way (e.g., by day caregiver, etc.), or why the live-in aide is
necessary as a reasonable accommodation to make the program usable and
accessible to the family member with disabilities. SBCS will require only that
information necessary to determine the clear and compelling need for an additional
bedroom and not to determine the nature of the disability.
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VERIFICATION OF INCOME
This section defines the methods SBCS will use to verify various types of income.
The definition of income used is the "Section 8 definition" which is fully defined in 24
CFR, Part 5, Subpart F (section 5.609) and summarized below.
Annual Income means all amounts, monetary or not, which:
• Go to, or on behalf of, the family head or spouse (even if temporarily
absent) or to any other family member; or
• Are anticipated to be received from a source outside the family during the
12-month period following admission or annual reexamination effective
date; and
• Which are not specifically excluded under Excluded Income
1. Included Income
Included Income includes but is not limited to:
• The full amount, before any payroll deductions;
• The net income from the operation of a business or profession;
• Interest, dividends, and other net income of any kind from real or
personal property;
• 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;
• Payments in lieu of earnings (unemployment, disability compensation,
worker's compensation, severance pay);
o Except as provided in the Excluded Income, item #3
• Welfare assistance payments (TANF);
• Periodic and determinable allowance (alimony, child support payments,
gifts, etc);
• All regular pay ;
o Except as provided in the Excluded Income, item #7
• For section 8 programs only and as provided in 24 CFR 5.6.12 the
following items shall be considered as income for that individual.
o Any financial assistance, in excess of amounts received for
tuition;
o From private sources; OR
o From an institution of higher education
Financial assistance will NOT be considered income for persons over
the age of 23 with dependent children.
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2. Excluded Income
Excluded income includes:
• Income from employment of children (including foster children) under
the age of 18 years;
• Payments received for the care of foster children or foster adults;
• Lump -sum additions to family assets (inheritances, insurance
payment);
o Except as provided in the Included Income, item #4
• Amounts received by the family that are specifically for, or in
reimbursement of, the cost of medical expenses for any family member;
• Income of a live-in aide;
• Subject to item #9 under Included Income, the full amount of student
financial assistance paid directly to the student or to the educational
institution;
• The special pay to a family member serving in the Armed Forces who is
exposed to hostile fire;
• Items described below:
o Amounts received under training programs funded by HUD;
o 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);
o 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;
o 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 the
PHA 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 the PHA's
governing board. No resident may receive more than one such
stipend during the same period of time;
o 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
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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;
• Temporary, non -recurring or sporadic income (including gifts);
• 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;
• Earnings in excess of $480 for each full-time student 18 years or older
(excluding the head of household and spouse);
• Adoption assistance payments in excess of $480 per adopted child;
• Deferred periodic amounts from Social Security Income and Social
Security Benefits
• Amounts received by the family in the form of refunds or rebates for
property taxes paid on the dwelling unit;
• Amounts paid by a State agency to a family member who has
developmental disabilities and is living at home; OR
• Amounts specifically excluded by any other Federal statute from
consideration as income.
EMPLOYMENT INCOME
Verification forms may request the employer specify the:
• Dates of employment
• Amount and frequency of earnings
• Date of last pay increase
• Earning history
• Year to date earnings
• Expected change in employment status
• Effective date of any anticipated wage increase during next twelve
months
• Estimated income from overtime, tips, and bonus pay expected during
next twelve months
• Anticipated unpaid time off
Acceptable methods of verification include:
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• Employment verification form completed by the employer
• Check stubs or earning statements, which indicate the employee's
gross pay, frequency of pay or year to date earnings
• W-2 forms or 1099 forms, plus income tax return forms
• Self -certifications or income tax returns signed by the family may be
used for verifying self-employment income, or income from tips and
other gratuities
Applicants and program participants may be requested to sign an authorization for
release of information from the Internal Revenue Service (IRS) for verification of
income.
In cases with questions about the validity of information provided by the family, SBCS
may require the most recent federal income tax statements.
Where doubt regarding income exists, a referral to the IRS will be made on a case -
by -case basis.
SOCIAL SECURITY, PENSIONS, SUPPLEMENTARY SECURITY INCOME (SSI),
DISABILITY INCOME
Acceptable methods of verification include:
• Benefit verification form completed by agency providing the benefits
• Award or benefit notification letters prepared and signed by the providing
agency
• Computer report electronically obtained or in hard copy
• Pay stubs
• Bank statements that reflect direct deposits
UNEMPLOYMENT COMPENSATION
Acceptable methods of verification include:
• Unemployment compensation agency verification form
• Unemployment office computer report e-mailed, faxed, or in hard copy
• Payment stubs
• Agency award letter
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WELFARE PAYMENTS OR GENERAL ASSISTANCE
Acceptable methods of verification include:
• SBCS verification form completed by payment provider
• Written statement from payment provider indicating the amount of
grant/payment, start date of payments, and anticipated changes in payment in
the next twelve months
• Computer -generated, faxed, or hard copy notice of action
• Computer -generated list of recipients from welfare department
• Direct on-line access to welfare department database
INCOME CHANGES RESULTING FROM WELFARE PROGRAM REQUIREMENTS
SBCS for program participants, will impute (count) welfare income or not increase the
rental assistance when determining the family share of rent for families whose welfare
assistance is reduced specifically because of:
• Fraud by a family member in connection with a welfare program, or
• Noncompliance with a welfare agency requirement to participate in an
economic self-sufficiency program, or
• Noncompliance with a work activities requirement.
However, SBCS will not impute (count) the income and will increase the rental
assistance benefit if the welfare assistance reduction is a result of:
• The expiration of a lifetime time limit on receiving benefits, or
• A situation where the family has complied with welfare program requirements
but cannot or has not obtained employment, or
• A family member has not complied with other welfare agency requirements.
DEFINITION OF COVERED FAMILY
A household that receives benefits for welfare or public assistance from a state or
public agency program which requires, as a condition of eligibility to receive
assistance, the participation of a family member in an economic self-sufficiency
program.
DEFINITION OF "IMPUTED WELFARE INCOME"
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The amount of annual income, not actually received by a family, as a result of a
specified welfare benefit reduction, that is included in the family's income for
purposes of determining rent.
The amount of imputed welfare income is determined by SBCS, based on written or
verbal information supplied to SBCS by the welfare agency, including:
• The amount of the benefit reduction
• The term of the benefit reduction
• The reason for the reduction
• Subsequent changes in the term or amount of the benefit reduction
The family's annual income will include the imputed welfare income, as determined at the
family's annual or interim reexamination, during the term of the welfare benefits reduction
(as specified by the welfare agency).
The amount of imputed welfare income will be offset by the amount of additional income
the family receives that commences after the sanction was imposed. When additional
income from other sources is at least equal to the imputed welfare income, the imputed
welfare income will be reduced to zero.
If the family was not an assisted resident when the welfare sanction began, imputed
welfare income will not be included in annual income.
If the family claims the amount of imputed welfare income has been calculated
incorrectly, the housing specialist will review the calculation for accuracy. If the imputed
welfare income amount is correct, SBCS will provide a written notice to the family that
includes:
• A brief explanation of how the amount of imputed welfare income was
determined.
• A statement that the family may request an informal hearing if it does not
agree with SBCS determination.
VERIFICATION BEFORE DENYING A REQUEST TO REDUCE RENT
SBCS will obtain written or verbal verification from the welfare agency stating that the
family's benefits have been reduced due to fraud or noncompliance with welfare
agency economic self-sufficiency or work activities requirements before denying the
family's request for rent reduction.
SBCS will rely on the welfare agency's written or verbal notice regarding welfare
sanctions.
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ALIMONY OR CHILD SUPPORT PAYMENTS
Acceptable methods of verification include:
• Copy of a separation, or settlement agreement, or a divorce decree, stating
amounts and types of support and payment schedules.
• A signed and dated letter from the person paying the support.
• Copy of latest check and/or payment stubs from court trustee (SBCS must
record the date, amount, and number of the check).
• 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.
If payments are irregular, the family must provide:
• A copy of the separation, or settlement agreement, or divorce decree, stating
the amount, type, and payment schedule of the settlement.
• A statement from the agency responsible for enforcing payments to show that
the family has filed for enforcement.
• An affidavit from the family, signed under penalty of perjury, indicating the
amount(s) received.
• A welfare notice of action showing amounts received by the welfare agency for
child support.
• A written statement from an attorney certifying that a collection or enforcement
action has been filed.
NET INCOME FROM A BUSINESS
In order to verify the net income from a business, SBCS will view the IRS federal
income tax return, and financial documents from prior years, and use this information
to anticipate the income for the next twelve months.
Acceptable methods of verification include:
IRS Form 1040, including:
• Schedule C (Small Business)
• Schedule E (Rental Property Income)
• Schedule F (Farm Income)
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If accelerated depreciation was used on the tax return or financial
statement, an accountant's calculation of depreciation expense is
computed using a straight-line depreciation method.
• Financial statement(s), either audited or not audited, of the business
• Credit report or loan application
• Family's self -certification as to net income realized from the business
during previous years
CHILD CARE BUSINESS
If an applicant/participant is operating a licensed day care business, income will be
verified the same as for any other type of business.
If the applicant/participant is operating a "cash and carry" operation, which may or
may not be licensed, SBCS will require that the applicant/participant complete a form
for each customer. The form must indicate the name of person(s) whose child
(children) is/are being cared for, phone number, number of hours the child is being
cared for, method of payment (check/cash), amount paid, and signature of person
who receives the services.
The family must provide a copy of its federal income tax return, if it was filed.
If none of the above documents are available, the family may provide a self -
certification, signed under penalty of perjury, as to gross income received the
previous year, as well as anticipated gross income for the next year.
RECURRING GIFTS/CONTRIBUTIONS
The family must furnish a self -certification with the following information:
• The person who provides the gifts
• The value of the gifts
• The regularity (dates) of the gifts
• The purpose of the gifts
Contributions called "loans" from any party other than an institution will be considered
income.
Repayments back of a loan paid out by the assisted household must be documented
as follows in order to not count the payments as regular contributions to the family:
• Bank statement withdrawals indicating the assisted household made the loan.
• Cancelled checks indicating the amount of the loan and to whom the loan was
paid.
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• Notarized loan repayment agreement executed around the time the loan was
made, with the terms and amount of the loan.
ZERO OR MINIMAL INCOME
Families claiming to have no or little income, may be required to provide
documentation to prove that income, such as unemployment benefits, TANF, SSI,
etc., are not being received.
SBCS may request information from the state employment development department.
SBCS may run a credit report on the family.
SBCS may require a family's self -certification, signed under penalty of perjury, stating
that it has no income, and explaining how it expects to meet its needs.
SBCS may require the family to provide documentation of its expenses such as,
grocery receipts, utility bills, gasoline receipts, or other documentation of expenses.
A minimum rent of $50.00 must be paid by the family.
EMPLOYER MILEAGE REIMBURSEMENT
Employment reimbursement for mileage expenses for use of personal vehicle will not
be counted as income as long as the amount is:
• Reasonable in comparison with the IRS or other standard reimbursement
schedule.
• Can be documented with mileage logs.
Mileage reimbursement that exceeds the standard rate will be counted as income.
EMPLOYER CONTRIBUTION TO MEDICAL/CHILD CARE FLEXIBLE BENEFIT
ACCOUNT
Employer contribution to a medical or childcare account will not be counted as
income as long as the funds are only distributed as payment or reimbursement for
medical or childcare expenses/payments. Documentation regarding the requirements
of the account may be required. Participants are not eligible for medical or childcare
deductions if reimbursement for these expenses is provided by this employer
contribution account.
FULL-TIME STUDENT STATUS
With the exception of the head, co-head, or spouse, the first $480 of earned income
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of each household member, 18 years of age or older, who is a full-time student, will
be counted towards family income. All earned income of a full-time student who is the
head, spouse, co-head will be counted as family income unless it is exempt income
for some other reason.
School financial assistance, scholarships, work-study, and grants received by
students, including the head, spouse, or co-head, are not counted as family income.
School expenses or, including mileage are not allowable deductions.
Verification of full time student status includes:
• Written verification from the registrar's office or other school official.
• School records indicating enrollment for sufficient number of credits to be
considered a full-time student by the educational institution.
• Copy of student's registration information, indicating the semester, and the
number of credits taken.
VERIFICATION OF ASSETS
VERIFICATION OF THE VALUE OF THE ASSETS
Family Assets
SBCS will require the information necessary to determine the current cash value of
the family's assets, if the total value of those assets exceeds $1,000. "Cash value" is
the net amount the family would receive if the assets were converted to cash. Assets
totaling $1,000 or less will not be verified because of the negligible impact on the
HAP amount.
Acceptable verification may include any of the following:
• Verification forms, letters, or documents from a financial institution orbroker.
• Passbooks, bank account statements, certificates of deposit, copies of bonds,
or financial statements completed by a financial institution or broker.
• Quotes from a stockbroker or realty agent as to net amount family would
receive if they liquidated securities or real estate.
• Real estate taxes statements, if the approximate current market value can be
deduced from assessment.
• Financial statements for business assets.
• Copies of closing documents showing the selling price, and the distribution of
the sales proceeds.
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• Appraisals of personal property held as an investment.
• Family's self -certification describing assets or cash held at the family's home
or in safe deposit boxes.
SAVINGS ACCOUNT INTEREST INCOME AND DIVIDENDS
Acceptable methods of verification include:
• Written third -party verification from the institution handling the asset.
• Account bank statements, passbooks, certificates of deposit, or SBCS
verification forms completed by the financial institution.
• Broker's statements showing value of stocks or bonds and the earnings
credited the family, or copies of bonds. Earnings can be obtained from current
newspaper quotations, bank, or oral broker's verification.
• IRS Form 1099 from the financial institution provided that SBCS must adjust
the information to project earnings expected for the next twelve months.
INTEREST INCOME FROM MORTGAGES OR SIMILAR ARRANGEMENTS
Acceptable methods of verification include:
• A letter from an accountant, attorney, real estate broker, the buyer, or a
financial institution stating interest due for next twelve months. (A copy of the
check paid by the buyer to the family is not sufficient unless a breakdown of
interest and principal is shown.)
• Amortization schedule showing interest for the twelve months following the
effective date of the certification or recertification.
• Copies of the deed of trust and note that indicate the beginning principal,
interest rate, term of loan, payment schedule, and principal and interest
payment.
• Copy of ledger reflecting the posting of payments and application of interest
and principal.
• Copy of year's end statement to borrower.
• Copies of the escrow papers and contract.
NET RENTAL INCOME FROM PROPERTY OWNED BY FAMILY
Acceptable methods of verification include:
• IRS Form 1040 with Schedule E (Rental Income).
• Copies of latest rent receipts, leases, or other documentation of rentamounts.
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• Documentation of allowable operating expenses of the property including: tax
statements, insurance invoices, and bills for reasonable maintenance and
utilities, and bank statements or amortization schedules showing monthly
interest expense.
• Lessee's written statement verifying rent payments to the family and family's
self -certification as to net income realized.
• Copies of ledgers indicating rent payments.
ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE (FMV) DURING
TWO YEARS PRECEDING EFFECTIVE DATE OF CERTIFICATION OR
RECERTIFICATION
At certification and recertification, SBCS will obtain the family's self -certification as to
whether any member has disposed of assets for less than fair market value during
the two years preceding the effective date of the certification orre-certification.
If the family certifies it has disposed of assets for less than fair market value,
documentation is required that shows: (a) all assets disposed of for less than FMV,
(b) the date they were disposed of, (c) the amount the family received, and (d) the
FMV of the assets at the time of disposition. Third -party verifications will be obtained
wherever possible.
VERIFICATION OF ALLOWABLE DEDUCTIONS FROM
INCOME
PREGNANT APPLICANT/PARTICIPANT
No allowances for an unborn child.
CHILDCARE EXPENSES
Written verification from the recipient of the childcare payments is required. If the
childcare provider is an individual, he/she must provide a statement of the amount
charged the family for the services.
Verifications must specify the childcare provider's name, address, telephone number,
social security number or tax identification number, the names of the children cared
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for, the number of hours the child care occurs, the rate of pay, and the typical yearly
amount paid, including adjusted figures for school and vacation periods.
The family must certify if any childcare expenses have been, or will be, paid or
reimbursed by outside sources.
MEDICAL EXPENSES
Families, who claim medical expenses, must submit a certification indicating if
medical expenses have been, or will be, reimbursed by an outside source. One or
more of the methods listed below will verify all medical expense claims:
• Written verification by a doctor, hospital, clinic personnel, dentist, pharmacist,
of: (a) the anticipated medical costs to be incurred by the family and regular
payments due on medical bills, and (b) the expenses to be reimbursed by an
insurance or a government agency.
• Written confirmation by the insurance company, or employer, of health
insurance premiums to be paid by the family.
• Written confirmation from the Social Security Administration on Medicare
premiums to be paid by the family over the next twelve months. A computer
printout, or copy of award letter indicating Medicare deductions, will be
accepted.
For attendant care:
• A reliable, knowledgeable, professional's certification that the assistance of an
attendant is necessary as a medical expense with a projection of the number
of hours the care is needed.
• An attendant's written confirmation of the hours of care provided, and the
amount and frequency of payments received from the family or agency (or
copies of canceled checks the family used to make those payments) or pay
stubs or written verification from the agency providing the services.
• Receipts, canceled checks, or pay stubs that clearly reflect medical costs and
insurance expenses likely to be incurred in the next twelve months will be
accepted.
• Copies of payment agreements, or most recent invoices that verify payments
made on outstanding medical bills that will continue over all or part of the next
twelve months.
• Receipts or other records of medical expenses incurred during the past twelve
months that can be used to anticipate future medical expenses. SBCS may
use this approach for "general medical expenses," such as non-prescription
drugs, and regular visits to doctors or dentists, but not for one time,
nonrecurring expenses from the previous year.
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• SBCS will allow mileage at the current departmental standard rate, as long as
copies of mileage logs are provided. The mileage logs must indicate the date
of the trip, beginning and ending odometer readings, and the purpose of the
trip. Also allowed, with documentation, are the expenses for bus fare, cab fare,
or other public transportation expenses directly related to trips for medical
treatment.
ASSISTANCE TO PERSONS WITH DISABILITIES
In all cases, required documentation includes:
• A written certification from a reliable, knowledgeable professional, stating that
the person with disabilities requires the services of an attendant and/or the
use of auxiliary apparatus, to permit him/her to be employed, or to enable
another family member to be employed.
• The family must certify whether it receives reimbursement for any of the
expenses of disability assistance, and the amount of any reimbursement
received.
Attendant care verifications include:
• An attendant's written certification of amount received from the family,
frequency of receipt, and hours of care provided.
• Certification of family and attendant and/or copies of canceled checks the
family used to make payments.
Auxiliary apparatus expense verifications include:
• Receipts for purchases, or proof of monthly payments, and maintenance
expenses for auxiliary apparatus.
• In the case where the person with disabilities is employed, required
documentation includes a statement from the employer stating that the
auxiliary apparatus is necessary for employment. In the case where the
auxiliary apparatus allows another adult to work, required documentation
includes a statement from the family that the apparatus is necessary to allow
an adult family member to work.
VERIFICATION OF RESIDENCY
To be eligible for the program, the client must have ties to the City of National City
such as previously residing in National City, attend/children who attend school in
National City, employment in National City, experienced domestic violence within
the City, etc. The SBCS Associate will determine the degree to which the client has
ties to the City of National City
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and must document this in the case file. Suitable documentation includes, but is not
limited to, utility bills from a previous address or lease, proof of enrollment from an
area school, and proof of employment within the program jurisdiction, police report for
a domestic violence incident in the area, or proof of homelessness from a social
service provider, etc.
Ninety days of residency must be supported in the case file.
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Chapter 5
HOME VOUCHER TERM, SUBSIDY
STANDARDS, HOUSEHOLD
COMPOSITION
INTRODUCTION
HUD guidelines require agencies to establish a term for issued HOME vouchers. In
addition, the agency must establish subsidy standards for the determination of family
unit size that provide for a minimum commitment of subsidy while avoiding
overcrowding. The standards used for the unit size must be within the minimum unit
size requirements of HUD's Housing Quality Standards (HQS). This chapter explains
the established term for voucher utilization, subsidy standards that SBCS will use to
determine the voucher size (family unit size) for families when they are selected from
the waiting list, SBCS' procedures for a family size change, and for family selection of
a unit of a different size than the voucher size.
TERM OF VOUCHER
During the briefing session and upon approval of participant's transfer of unit, a
household will be issued a HOME voucher. The voucher represents a contractual
agreement between SBCS and the family specifying the rights and responsibilities of
each party. It does not by itself constitute admission to the program, which occurs
after a family is found eligible, attends a briefing, the initial unit passes inspection,
and the initial lease and contract become effective.
EXPIRATIONS
The voucher is valid for a period of 90 calendar days from the date of issuance. The
family must submit a Request for Tenancy Approval (RFTA) within the 90-day period
unless SBCS has granted an extension. A 90-day extension may be given if
documentation is provided to SBCS stating the reasons why the family was unable to
locate a unit with the first 90-days of being issued a voucher.
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If the voucher has expired, the family will be denied assistance. The family will not be
entitled to a review or hearing. The family must reapply and be referred to SBCS in
order to be reconsidered.
SUSPENSIONS
When a RFTA is received, SBCS will add the number of days taken to process the
RFTA to the term of the voucher.
EXTENSIONS
A family may request, in writing, an extension to the term of the voucher. All requests
for extensions must be received prior to the expiration date of the voucher. The
program manager or designee must approve all voucher extensions beyond the initial
90 days. An initial extension will be for a period of no more than 90days.
Extensions are permissible only if funding is available and at the discretion of SBCS,
in the following circumstances:
• Extenuating circumstances such as hospitalization or a family emergency for
an extended period of time, which has affected the family's ability to find a unit
within the initial 90-day period, a large hard to house family, or the need for
reasonable accommodation for a disabled family member. Verification is
required.
• SBCS is satisfied that the family has made a reasonable effort to locate a unit,
including seeking the assistance of SBCS, throughout the initial 90-day period.
A written family search record may be required.
• A SBCS supervisor has the discretion to authorize voucher extensions at any
time.
ASSISTANCE TO VOUCHER HOLDERS
SBCS may assist families on lease negotiations with owners, and provide other
assistance related to the families' search for housing.
After the first 90 days of the search, the family should maintain a search record. The
search record may be required for any voucher extension requests. The search
record must include a list of the units visited. This list must include the dates the
units were examined, the landlords' names and telephone numbers, the unit
addresses, the rents, and why the voucher holder was not able to rent the unit.
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VOUCHER ISSUANCE DETERMINATION FOR SPLIT HOUSEHOLDS
When an assisted family or a family who has been issued a voucher divides into two
otherwise eligible families, and cannot agree as to which new family unit should
retain the assistance and/or the voucher, and there is no determination by a court,
SBCS, to determine which family will receive the voucher, will consider the following
factors, in ranking order of importance, with one (1) of the greatest importance, and
six (6) of the least importance:
1. Whether domestic violence was involved in the breakup.
2. Which of the two new family units has custody of dependent children?
3. The composition of the new family units.
4. Recommendations of social service professionals.
5. Which family member was the head of household when the voucher was
initially issued, as indicated on the initial application?
6. Which family members are remaining in the assisted unit?
Documentation of these factors will be the responsibility of the requesting parties.
DETERMINING FAMILY UNIT (VOUCHER) SIZE
SBCS does not concern itself with who shares a bedroom/sleeping room, but
requires at least one person per bedroom when determining the voucher unit size.
SBCS will not approve an additional bedroom for non -living purposes, such as the
placement of equipment. SBCS' subsidy standards for determining voucher size shall
be applied in a manner consistent with fair housing guidelines.
All standards in this section relate to the number of bedrooms on the voucher, not the
family's actual living arrangements.
A sleeping room will only be considered a bedroom for subsidy standards purposes if
it was designed to be used as a bedroom or to be converted to a bedroom, including
the requirements that it is private with a door that closes and it has a window that
opens to the outside for light and ventilation. The room will not be considered a
bedroom for subsidy standards purposes if it is used as a corridor to access another
room, if it has something installed that indicates it has another use, such as a water
heater, washer/dryer hookups, gas line for a stove, etc., or if it is not accessible from
inside the main dwelling unit, such as an outbuilding.
The voucher unit size remains the same, as long as the family composition remains
the same, regardless of the actual unit rented.
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One bedroom is assigned for up to four family members, regardless of sex, age or
relationship. Exceptions may occasionally be made for serious medical reasons if the
need for a reasonable accommodation is clear, compelling and well documented, or
for a live-in aide, if it is verified there is a need that cannot be met another way.
SBCS will reexamine the subsidy standards annually, upon transfer, and upon
changes in household composition.
SBCS SUBSIDY STANDARDS
Voucher Size
Household Size for Voucher
Size Issued
0 Bedrooms 1 Persons
1 Bedrooms 1-2 Persons
2 Bedrooms 1-4 persons
3 Bedrooms 2-8 persons
EXCEPTIONS TO SUBSIDY STANDARDS
SBCS may grant exceptions to the subsidy standards, upon request, providing SBCS
determines the exceptions are clearly justified in a compelling manner as a
reasonable accommodation for family members with disabilities.
The disability must meet the HUD definition of disability that requires a reasonable
accommodation. Refer to the glossary for the HUD definition of a person with
disabilities.
REQUEST FOR EXCEPTIONS TO SUBSIDY STANDARDS
The family must request, in writing, a larger size voucher than indicated by SBCS
subsidy standards as a reasonable accommodation for a family member with
disabilities. The family request for a larger voucher must be in writing and must
clearly explain the compelling need or justification for a larger voucher and describe
fully what about the additional bedroom will allow the person with disabilities better
access to the program. The additional bedroom must be needed to accommodate the
person with disabilities — not the family member without disabilities. Documentation
from a health professional verifying the need or justification will be required by SBCS
at least annually.
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A state of California licensed doctor, or other licensed medical professional, such as
a nurse, psychiatrist, psychologist, or a social service professional must provide a
certification of the need for additional bedrooms as a reasonable accommodation for
a family member with disabilities, or a live-in aide. In addition, the health professional
must explain why the extra bedroom is needed to provide a reasonable
accommodation for that family member and/or why the live-in aide is necessary to
provide vital care to the elderly or a household member with disabilities that cannot
be performed any other way (e.g., by day caregiver, etc). The County will require
only that information necessary to determine the need for an additional bedroom and
not to determine the nature of the disability.
CHANGES IN VOUCHER SIZE
CHANGES FOR APPLICANTS
The voucher size is determined prior to the briefing by comparing the family
composition to SBCS subsidy standards. Once the voucher size is determined, the
family will not receive a larger voucher unless the request is due to a live-in aide, a
need for reasonable accommodation, or a household addition due to birth, adoption,
return of disabled or minor children to the family, foster children, or court -awarded
custody.
CHANGES FOR PARTICIPANTS
SBCS must approve the members of the family residing in the unit. The family must
obtain SBCS approval of any additional family member prior to that person moving
into the assisted unit, unless the addition is by birth, adoption, return of disabled or
minor children to the family, or court -awarded custody, in which case the family must
inform SBCS within 14 days, and the previously referenced guidelines will apply.
The voucher size will not be increased for household additions unless the additions
are due to birth, adoption, return of disabled or minor children to the family, foster
children, a live-in aide or court -awarded custody. Participants will only be given one -
bedroom HOME vouchers until their family composition violates housing quality
standards for overcrowding.
UNDERHOUSED AND OVERHOUSED FAMILIES
If a unit does not meet HQS space standards or if the owner disapproves an increase
in family size due to a birth, adoption, return of disabled or minor children to the
family, or court -awarded custody, SBCS will determine if a new voucher of the
appropriate size is warranted, and assist the family in locating a suitable unit.
Additional members may not be added to the household if the addition violates HQS
due to overcrowding or if the owner disapproves of their addition. Participants who
require a reduction in subsidy standards due the removal of a household member will
receive a minimum of a 60-day notice of a change in their subsidy standards. The
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change is generally effective the next annual recertification, unless it is less than 60
days, in which case the change will be effective in 60 days with an interim conducted.
DETERMINATION OF HOUSEHOLD STATUS AND
COMPOSITION
FAMILY COMPOSITION
A qualifying family may be a single person or a group of persons.
A family may or may not include a child or children. A family may consist of one or
more persons living together. SBSC determines if any other group of persons
qualifies as a family.
A family also includes:
• Two or more persons residing together using their combined income and
resources to meet their needs
Head of Household
The head of household is the adult member of the household designated as the
person wholly or partly responsible for paying the rent, with the legal capacity to enter
into a lease under state/local law. Emancipated minors who qualify under state law
may be recognized as head of household.
Spouse of Head of Household
Spouse means the husband or wife of the head of household.
For proper application of the non -citizen rule, the definition of spouse is: the marriage
partner for whom, in order to dissolve the relationship, must be legally divorced. In
addition, the partner in a common law marriage is also considered a "spouse." The
term "spouse" does not apply to boyfriends, girlfriends, significant others, or co -
heads.
Co -Head
A co-head is an individual in the household who is equally responsible for the lease
with the head of household. A family may have a spouse or co-head, but not both. A
co-head never qualifies as a dependent.
SBCS may refuse to approve a particular person as a roommate or may withdraw
such approval if:
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• The person commits or has committed fraud, bribery, or any other
corrupt or criminal act in connection with any federal housing program;
or
• The person commits or has committed drug -related criminal activity or
violent criminal activity; or
• The person is subject to the sex offender registration requirement of a
state sex offender registration program; or
• The person is obviously not capable or not available to fully meet the
needs of the person requiring a live -in -aide; or
• The person is not approved by the landlord; or
• The person has a history of disturbance or other occupancy problems;
or
• The person is unwilling to provide proof of identification or unwilling to
sign the necessary releases of information; or
• The person currently owes rent or other amounts to SBCS, the SBCS
or to another PHA in connection with Section 8 or public housing
assistance under the 1937 Act.
Visitors
Any visitor, except minors and college students who were once part of the household,
and adult caretakers, who have been in the unit more than fourteen consecutive days
without SBCD approval, or a total of 30 days in a twelve-month period, will be
considered to be living in the unit as an unauthorized household member.
Statements from neighbors and/or the landlord will be considered in making the
determination.
Use of the unit address as the visitor's current residence for any purpose that is not
explicitly temporary shall be construed as permanent residence.
Absence of evidence of any other permanent address will be considered verification
that the visitor is a member of the household.
The burden of proof that the individual is a visitor rests on the family. In the absence
of such proof, the individual will be considered an unauthorized member of the
household and SBCS will terminate assistance.
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TEMPORARILY/PERMANENTLY ABSENT FAMILY MEMBERS
SBCS must count all applicable income of every family member who is on the lease,
including those who are temporarily absent. In addition, SBCS must count the
income of the spouse, or the head of the household, if that person is temporarily
absent, even if that person is not on the lease.
"Temporarily absent" is defined as away from the unit for 180 consecutive days, or
less than six months.
Income of persons permanently absent will not be counted. If the spouse is
temporarily absent and in the military, all military pay and allowances (except
hazardous duty pay when exposed to hostile fire and any other HUD -defined
exceptions to military pay) are counted as income.
It is the responsibility of the head of household to report changes in family
composition. SBCS will evaluate absences from the unit using this policy.
Absence of Any Member
A member of the household is considered permanently absent if he/she is away from
the unit for six consecutive months or more in a twelve-month period, except as
otherwise provided in this chapter.
If a member of the household is subject to a court order that restricts him/her from the
home for more than six months, the person will be considered permanently absent.
Absence Due to Medical Reasons/Confined to Nursing Home
If a family member leaves the household to enter a facility such as a hospital, nursing
home, or rehabilitation center, SBCS will require verification from a reliable, qualified
source as to the likelihood of his/her return, and the anticipated length of his/her
absence.
Sole Family Member
If the verification indicates the sole family member is permanently confined to a
nursing home, he/she will be considered permanently absent and assistance will be
terminated. If the verification indicates the sole family member may return in less
than 180 consecutive days, or is unsure when the sole family member will return, the
family member may be considered temporarily absent.
REMAINING HOUSEHOLD MEMBER
If a family member is confined to a hospital or nursing home for an indefinite duration,
and there is a family member left in the household, SBCS will calculate the lower
family rent by comparing the following methods:
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Exclude the income of the person permanently confined to the nursing home,
give the family no deductions for the medical expenses of the confined family
member, and review and reduce the family's subsidy standards, if appropriate.
OR
Include the income of the person permanently confined to the nursing home and
give the family the medical deductions allowable on behalf of the person in the
nursing home.
Absence Due to Full -Time Student Status
Full time students who attend school away from the home will be treated in the
following manner:
• A student (other than head of household or spouse) who attends school
away from home, but lives with the family during school recesses may, at
the family's choice, be considered either temporarily or permanently
absent. If the family decides that the member is permanently absent,
income of that member will not be included in total household income, the
member will not be included on the lease, and the member will not be
included for determination of voucher size.
Absence Due to Incarceration
If a household member, including the sole member, is incarcerated for more than 180
consecutive days, he/she will be considered permanently absent.
SBCS will request documentation necessary to determine if the reason for
incarceration is for prohibited activities, and take the appropriate action.
Absence of Children Due to Placement in Foster Care
SBCS will verify with the appropriate agency when a child or children, temporarily
absent from the home due to placement in foster care, will return. In addition, SBCS
will determine why the children were placed in foster care for purposes of
determining if a family member had engaged in violent or drug -related criminal
activities that may be cause for denial or termination of assistance.
If the time period in foster care is to be greater than six months from the date of
removal of the children, or the children have been removed permanently, the voucher
size will be reviewed and reduced, if appropriate.
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Absence of Entire Family
In cases where the family has moved out of the unit, SBCS will terminate assistance
in accordance with appropriate termination procedures contained in this Plan.
Families are required to notify SBCS before they move, or are absent more than 30
consecutive days from a unit.
If the entire family is absent from the assisted unit for more than 60 consecutive days,
the unit will be considered vacated, and the assistance will be terminated.
HUD regulations require SBCS to terminate assistance when the entire family is
absent from the unit for a period of more than 180 consecutive calendar days.
"Absence" means that no family member is residing in the unit.
In order to determine if the family is absent from the unit, SBCS may:
• Write letters to the family at the unit
• Telephone the family at the unit
• Interview neighbors
• Verify if utilities are in service
• Check with the post office
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Chapter 6
CALCULATION OF TTP AND FAMILY
RENT -MODIFIED VOUCHER
METHOD
INTRODUCTION
HUD requires accurate calculation of the family's total tenant payment and rent
amount. This chapter reviews key guidelines for the correct determination of the
family's portion of the rent, including the determination of allowances and expenses
off of income, countable, imputed and exempt income, assets and their actual and
imputed income as well as amount of deposit assistance.
INCOME
SBCS will anticipate income as accurately as possible by reviewing all verifications
and using the most accurate reflection of income for the next 12 months.
Income includes all monetary amounts received on behalf of the family. HUD defines
what is calculated and excluded in determining the total tenant payment (TTP). In
accordance with this definition, all income meeting the customary definition of
income, not specifically excluded in the regulations, is counted.
Annual Income is defined as the gross amount of income anticipated to be received
by the family during the twelve months after certification or recertification. Gross
income is the amount of income prior to any HUD allowable expenses or deductions,
and does not include income excluded by HUD. Annual income is used to determine
whether or not applicants are within the applicable income limits. Wages for full-time
employment are anticipated for a full 52 weeks unless documentation is provided that
wages will not be earned for the full year.
Annual income may be anticipated using the previous year's income, rather than
current income, if that is the most accurate reflection of the next year's income.
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AMOUNTS THE SBCS HAS DETERMINED DO NOT MEET THE DEFINITION OF
INCOME
Employer reimbursement for mileage expenses is not considered income as long as
the reimbursement is reasonable as compared to a large employer or the Internal
Revenue Service mileage allowance. Mileage logs may be requested.
Loans to a participant/applicant from an institution are not considered income.
However, "loans" from private parties are considered income.
Repayment of a loan back to the applicant/participant is not considered income if
documentation can be presented that the loan was made by the applicant/participant.
If no documentation is provided, the "repayments" are considered income.
The family as reimbursement for out-of-pocket medical or childcare expenses does
not consider employer contributions to a flexible medical or childcare expense
account income as long as the money is only accessible. However, childcare or
medical expenses will not be allowed as deduction if they are reimbursable through a
flexible employer contribution account.
AVERAGING INCOME
When annual income cannot be anticipated for a full twelve months, SBCS may use
one of the following methods to calculate annual income:
• Average known sources of income that vary to eliminate interim
adjustments.
• Annualize current income
• Use prior year's income information to anticipate the following year.
• Average employer's year-to-date income information.
If there are bonuses or overtime, which the employer cannot anticipate for the next
twelve months, the previous year's information will be used.
The method used depends on the regularity, source and type of income.
MINIMAL OR ZERO INCOME
Participants must have a legal source of income in order to remain eligible for the
HOME Tenant Based Rental Assistance Program. Participants who report loss of
employment, loss of full time status or no current income for 15 days or more will
receive a warning letter from SBCS notifying them that they are in violation of the
requirements for the program. If the issue is not resolved within 30 additional days, a
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recommendation may be made to terminate the participant from the HOME Tenant
Based Rental Assistance Program.
REGULAR CONTRIBUTIONS AND GIFTS
Regular contributions and gifts received from persons outside the household are
counted as income.
This includes rent and utility payments made on behalf of the family and other cash or
non -cash contributions provided on a regular basis. It does not include casual
contributions or sporadic gifts.
Any contribution or gift received every twelve months or more frequently will be
considered a "regular" contribution or gift, unless the amount is less than $200.00 per
year. This includes rent and utility payments made on behalf of the family, and other
cash or non -cash contributions provided on a regular basis. SBCS does not consider
casual contributions or sporadic gifts income.
If the family's expenses exceed its known income, SBCS will inquire of the family
regarding contributions and gifts.
SOCIAL SECURITY INCOME
If the social security statement indicates a reduced social security benefit due to
rounding, count the rounded amount.
If the social security statement indicates a deduction for Medicare, add the Medicare
payment amount to the net benefit for the countable income.
ALIMONY AND CHILD SUPPORT
Regular alimony and child support payments are counted as income.
If the amount of child support or alimony received is less than the amount awarded
by the court, SBCS will use the amount awarded by the court, unless the family can
verify it is not receiving the full amount.
SBCS will accept verification that the family is receiving an amount less than the
award if:
• The family furnishes documentation of a child support or alimony
collection action filed through a child support enforcement/collection
agency, or has filed an enforcement or collection action through an
attorney.
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• SBCS may accept a family certification in writing, under penalty of
perjury, that states it is not receiving the full amount of alimony or child
support, and explains why it cannot provide the documentation outlined
in the previous paragraph.
It is the family's responsibility to supply a certified copy of the divorce decree.
INCOME CHANGES RESULTING FROM WELFARE PROGRAM REQUIREMENTS
SBCS will impute welfare income for the family, if the welfare assistance was reduced
specifically because of:
• Fraud by a family member in connection with the program.
• Failure to participate in an economic self-sufficiency program.
• Noncompliance with a work activities requirement.
Imputed welfare income is annual income the family would have received, had its
benefits not been reduced due to the above circumstances. This imputed income would
be counted in determining theTTP.
Imputed welfare income is not included in the family's annual income, if the family was
not assisted atthe time of the welfare sanction.
The amount of imputed welfare income is offset by the amount of additional family
income received after a sanction was imposed.
If the additional family income equals the imputed welfare income, imputed welfare
income is not counted.
SBCS will not impute welfare income, if the welfare assistance reduction is the result of:
• The expiration of a lifetime time limit on receiving benefits.
• The family has not complied with other welfare agency requirements not
outlined above.
• The family member has complied with welfare agency economic self-
sufficiency requirements, or work activities requirements, but cannot, or
has not, obtained employment. For example, the family member has
complied with welfare program requirements, but the family has
exceeded the maximum time it is allowed to receive benefits, resulting in
a loss of benefits.
Verification Before Deriving a Request to Reduce Family Rent
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SBCS will obtain a written, faxed, computer, or telephone verification from the welfare
agency stating that the family's benefits have been reduced for fraud or
noncompliance with economic self-sufficiency/work activities requirements, before
denying a family's request for reduction of family rent. The requested written
verification from the welfare agency must state the amount, term, and reason for the
benefit reduction. The welfare agency must, upon request, also inform SBCS of
changes.
Family Dispute of Amount of Imputed Welfare Income
If the family disputes the amount of imputed income and SBCS denies the family's
request to modify the amount, SBCS will provide the tenant with a notice of denial,
which will include:
• An explanation for SBCS' determination of the amount of imputed welfare
income.
• Opportunity to request an informal hearing.
LUMP SUM RECEIPTS CONSIDERED INCOME UNDER THE REGULATIONS
Lump -sum payments caused by delays in processing periodic payments, such as
unemployment or welfare assistance, are counted as income; however, SBCS
evaluates income increases at annual reexamination, and any lump sum income
received prior to the annual reexamination would probably not be counted. The
remaining balance would be counted as an asset.
Lump sum payments from Social Security or Supplemental Security Income (SSI) are
excluded from income, but any amount remaining will be considered an asset.
Deferred periodic payments, which have accumulated due to a dispute, will be treated
the same as periodic payments, which are deferred due to delays in processing.
The policy of SBCS is to not calculate retroactive tenant rent the family owes as a
result of the lump sum receipt, as long as the family reported the income in a timely
manner. If the family fails to report the income, SBCS may calculate an overpayment,
and/or hold a tenant integrity conference to advise the family of possible
repercussions if it fails to abide by SBCS program obligations.
Attorney Fees
The family's attorney fees may be deducted from lump sum payments, when
computing annual income, if the attorney's efforts have recovered the compensation,
and the recovery paid to the family does not include an additional amount to cover
attorney fees.
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Applicability to Child Care Expense Deductions
The amount deducted for childcare necessary to permit employment shall not exceed
the amount of employment income included in annual income.
ASSETS
LUMP SUM
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, are not
included in income, but are to be included in assets.
Lump sum payments from Social Security or Supplemental Security Income (SSI) are
excluded from income, but any amount remaining will be considered an asset.
Deferred periodic payments, which have accumulated due to a dispute, will be treated
the same as periodic payments, which are deferred due to delays in processing.
CONTRIBUTIONS TO RETIREMENT FUNDS
Contributions to company retirement/pension funds are handled as follows:
• While an individual is employed, count as assets only amounts the
family can withdraw without retiring or terminating employment. In
addition, count only the amount the family would actually receive after
any costs or fees involved with liquidating the asset have been
deducted.
• After retirement or termination of employment, count any amount the
employee elects to receive as a lump sum, after any costs or fees
involved with liquidating the asset have been deducted.
ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE
SBCS must count assets disposed of for less than fair market value during the two
years preceding certification or reexamination. SBCS will count the difference
between the market value and the actual payment received in calculating total assets.
Assets disposed of as a result of foreclosure or bankruptcy are not considered to be
assets disposed of for less than fair market value. Assets disposed of as a result of a
divorce or separation are not considered to be assets disposed of for less than fair
market value.
Assets to be considered include: real property, savings, stocks, bonds, and other forms of
capital investments.
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Excluded assets are: the value of personal property such as furniture and
automobiles, as well as a trust fund not under the control of any member of the family
or household, as long as the fund is held in trust, or if the asset disposed of for less
than fair market value was less than $10,000.
ALLOWANCES
Adjusted Income is defined as the annual income minus any HUD allowable
expenses and deductions.
HUD has five allowable deductions from annual income:
Dependent allowance: $480 each for family members (other than the head,
spouse, or co-head, foster children, or live in aides) who is a minor under 18
years old, an adult full-time student, or a family member with disabilities. An
unborn child is not eligible for this allowance.
Elderly/disabled allowance: $400 per family for families whose head or spouse
is 62 years old, or over, or disabled.
Allowable Medical Expenses: Deducted for all family members, except for
foster children or live in aides, of an eligible elderly/disabled family in which
the head of household or spouse is 62 years old, or over, or disabled. Allowed
only if not reimbursed from another source and only the amount that exceeds
three percent of the total gross countable household income.
Childcare expenses: Deducted for the care of children under thirteen when
childcare is necessary to allow an adult member to work, attend school, or
actively seek employment. Allowed only if not reimbursed from another
source. Includes childcare expenses for the care of foster children.
Allowable disability assistance expenses: Deducted for attendant care or
auxiliary apparatus for persons with disabilities, only if needed to enable the
individual, or an adult family member to work.
EXPENSES DEDUCTED OFF OF ANNUAL INCOME
CHILDCARE EXPENSES
Childcare expenses for children under thirteen (13) years old may be deducted from
annual income, if they enable an adult family member to work, actively seek work, or
further his/her education. In the case of child care expenses to allow an adult family
member to actively seek employment, the family member must provide
documentation in the form of a written log indicating the date, beginning and ending
times, and the names and addresses where he/she went to actively seek
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employment.
In the case of a child attending private school, only after-hours care will be counted as
childcare expenses.
Childcare expenses cannot be allowed as a deduction if there is an adult household
member capable of caring for the child who can provide the childcare. Examples of
those adult members who would be considered unable to care for the child include:
• The abuser in a documented child abuse situation (although an abuser
is probably not eligible to live in the assisted unit), or
• A person with disabilities or older person unable to take care of a small
child, as verified by a reliable knowledgeable source.
Childcare expense deductions are allowed based on the following guidelines:
Childcare to work: The maximum childcare expense allowed cannot exceed
the amount earned by the person enabled to work whose income is included
in the family's annual income. The "person enabled to work" will be the adult
member of the household who earns the least amount of income from
working.
Childcare for school: The number of hours claimed for childcare may not
exceed the number of hours the family member is attending school that
includes reasonable travel time to and from school.
Childcare to actively seek employment: The number of hours claimed for
childcare may not exceed the time taken to actively seek employment as
indicated on the family member's written log.
Amount of Expense: SBCS may survey local childcare providers in the community for
information on average childcare costs. If the childcare expense information
submitted by the participant materially exceeds the average childcare cost, SBCS will
calculate childcare expenses using the lower average childcare cost, and not the
amount submitted by the participant.
MEDICAL EXPENSES
Medical expenses are allowed only for elderly or disabled families, with a head of
household or spouse who is elderly, disabled, or both. The IRS Publication 502 will
be used as a guide to assist in determining allowable medical expenses in instances
when the regulations are unclear.
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In order for nonprescription medicines to be considered allowable medical expenses,
a doctor's written recommendation must be provided, as well as legible receipts that
clearly indicate the type of medicine purchased.
Acupressure, acupuncture, and chiropractic services are considered allowable
medical expenses.
Herbal medicines will be allowed, with a medical professional's written recommendation,
and legible receipts that clearly indicate the type of medicines purchased.
TOTAL TENANT PAYMENT AND TENANT RENT
MINIMUM RENT
SBCS "minimum rent" is fifty dollars. Minimum rent refers to the total tenant payment
and includes the combined minimum amount a family must pay towards rent and/or
utilities.
ZERO HAP
A family determined to be ineligible for assistance because its TTP exceeds the lower
of the gross rent or payment standard will continue on the program for 180 days after
the determination of zero pay. A notice of intended action will be issued to the family
effective the initial date of the zero pay status. If the family moves during the 180
days while in zero pay status, SBCS may not enter into a HAP contract if the family is
ineligible for assistance at the new location. However, if the family is eligible for
assistance at the new location, SBCS may enter into a HAP contract to provide
assistance so long as the family has an active voucher.
DEPOSIT ASSISTANCE
Financial assistance for security deposits of up to one month's rent will be offered to
all families who have been determined eligible for rental assistance. Security deposit
assistance will be provided directly to landlords, and shall be considered a grant to
the family to facilitate move -in and reduce exposure to homelessness.
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Chapter 7
INITIAL APPROVAL AND BRIEFING
INTRODUCTION
SBCS provides families selected with the tools necessary to locate an acceptable
housing unit. SBCS provides families the necessary information regarding the
program and how they can achieve maximum program benefits, while complying with
program requirements. When eligibility has been determined, SBCS conducts a
mandatory briefing designed to ensure that families know how the program works.
The briefing provides a broad description of owner and family responsibilities, SBCS
procedures, and the steps the families must take to lease a unit. In addition, families
receive briefing packets, which provide more detailed information about the program,
including the benefits of moving outside areas of poverty and minority concentration.
This chapter describes how briefings will be conducted, the information that will be
provided to families, and the policies for changes in family composition.
INITIAL ELIGIBILITY APPROVAL.
Initial eligibility will not be completed until the applicant has completed the full
application process.
SBCS will provide interested residents with the application packet. Applicants will be
required to:
• Complete a full application in his or her own handwriting, unless a disabled
person requests assistance, as reasonable accommodation. SBCS staff may
interview the applicant to clarify and review the information on the full
application.
The applicant must complete the full application, and provide all requested
documentation and information.
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INTERVIEW
SBCS may require a full application interview attended by all adult family members.
The purpose of the interview is to discuss the family's circumstances in greater detail,
to clarify information that has been provided by the family, and to ensure that the
information is true and complete.
All adult family members must sign all appropriate areas of the housing application.
Reasonable accommodation, such as accessible offices, inclusion of an advocate, or
a home visit, will be provided to a disabled family upon request. The disabled family's
designee will be allowed to participate in the interview process at the family's
request.
If an application is denied due to a failure to attend the full application interview, the
applicant will be notified in writing and offered an opportunity to request an informal
review.
All adult members must sign a Release of Information, the application form, all
SBCS-required supplemental documents, and allow SBCS to receive and use
records in accordance with HUD regulations, as well as any other documents
required by SBCS.
Applicants may not amend these documents or write notes of disclaimers on them. A
family who alters any SBCS documents invalidates the documents and the family's
application will be denied.
Failure to complete required forms, or provide requested information, will be cause
for denial of the application for failure to provide necessary certifications, releases,
and documents, as required by HUD or SBCS.
SBCS will request additional documents or information in writing, if it determines at or
after the interview, that they are needed.
If the requested information is not supplied by the due date, SBCS will provide the
family a notification of denial for assistance.
VERIFICATION
Information provided by the applicant is verified using the verification procedures
outlined in this Plan. Family composition, income, allowances and deductions,
assets, full-time student status, eligibility and rent calculation factors, criminal history,
and other pertinent information will be verified. Verifications may not be more than 60
days old at the time of issuance of the voucher.
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PRIOR TO THE BRIEFING
Families determined to be ineligible by SBCS will be notified in writing of the reason
for denial, and given an opportunity to request an informal review.
Applicants may exercise other rights if they believe they have been discriminated
against.
Applicants who falsify documents, or make false statements in order to qualify will be
denied assistance.
DETERMINATION OF ELIGIBILITY
After the verification process is completed, SBCS will make a final determination of
eligibility. This decision is based on information provided by the family, third -party
documents, SBCS research, and the current eligibility criteria in effect. If the family is
determined to be eligible, SBCS will mail a notification of a scheduled briefing. The
purpose of the briefing is to issue the voucher, and orient the family to the program.
The household found not eligible to be processed for assistance will be mailed a
notice explaining why, and the right to request an informal review within 14 days.
THE BRIEFING
INITIAL APPLICANT BRIEFING
A full briefing will be conducted for applicant families determined to be eligible for
assistance. The briefings will be conducted in group meetings. If the family includes a
person with disabilities, SBCS will make every reasonable effort to accommodate
that person to ensure effective communication. A family needing language services
other than in Spanish must make the request to SBCS via telephone and at least
seven days in advance of the scheduled briefing.
The purpose of the briefing is to explain how the program works, and to explain the
briefing documents to families so that they are fully informed about the program. In
addition, information on desirable areas of the community, how the family may file a
discrimination complaint, and some important legal resources will be provided. The
briefing will enable families to utilize the program to their advantage, and it will
prepare them to discuss the program with potential owners and property managers.
SBCS will not issue a voucher to a family, unless the household representative has
attended a briefing, and signed the voucher.
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REQUIREMENT TO ATTEND BRIEFING
The head of household or spouse is required to attend a briefing after initial approval
of eligibility. At the briefing, the head of household must sign the voucher and other
required paperwork.
It is the applicant's responsibility to reschedule the briefing if he/she is unable to
attend. If the applicant does not reschedule or misses two scheduled briefings, SBCS
may deny admission. The briefing may be held in the office, by telephone, or at the
applicant's home, upon request by a disabled family, as a reasonable
accommodation. Also, reasonable accommodation may include accessible offices,
inclusion of an advocate, or a home visit. The disabled family's designee will be
allowed to participate in the briefing at the family's request.
Applicants who fail to attend the briefing and want to reschedule the briefing must
make the request to reschedule no later than seven days after the original briefing
date. The request must be made to the staff person who scheduled the briefing. The
request may be in writing or by telephone if the staff person answers the telephone.
A recorded telephone message is not a valid request. Applicants will be offered no
more than two opportunities to attend a briefing unless a request is made for
reasonable accommodation or documentation of a serious emergency was
submitted.
If an application is denied due to a failure to attend the briefing, the applicant will be
notified in writing and offered an opportunity to request an informal review.
BRIEFING PACKET
The documents and information provided in the briefing packet for the voucher
program will comply with all HUD requirements. SBCS may include other information
and/or materials not required by HUD.
The family is provided with the following information and materials:
• SBCS' policy for requesting extensions or suspensions of the voucher
(referred to as tolling), and the term of the voucher.
• A description of the method used to calculate the housing assistance payment
for a family, how the family tenant payment is calculated, and information on
the payment standard and utility allowance schedule. Also included is
information on how the maximum allowable rent for an assisted unit is
determined and the rent reasonableness standard.
• The HUD required tenancy addendum, to be included in the lease.
• The Request for Tenancy Approval (RFTA) form, and a description of the
procedure for requesting approval of a unit.
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• A statement of SBCS policy on providing information about families to prospective
owners.
• The subsidy standards, including when and how exceptions are made, and
how the voucher size relates to the unit size selected.
• The HUD brochure "A Good Place to Live".
• The HUD brochure 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. In addition, the pamphlet "Fair
Housing: It's Your Right," other information about fair housing laws and
guidelines, and the phone numbers of the local fair housing agency, and the
HUD enforcement office.
• A list of landlords or other parties willing to lease to assisted families, or
agencies that help in the search for units. The list may include, if available,
those willing to lease units, or agencies able to help families find units outside
areas of poverty or minority concentration.
• If available, a current listing of accessible units.
• The family, owner and SBCS obligations under the program.
• The reasons a family may have its assistance terminated.
• The informal hearing/review procedures including when the family must be
offered the opportunity for an informal hearing/review.
• An information packet including an explanation of how portability works, a list of
the names, addresses, and contact names of neighboring housing agencies.
• A copy of HUD Form 903, so family may file a discrimination complaint.
• Sample leases for owners who do not use a lease for their unassisted tenants.
• Family Handbook.
• The family's rights as tenant and program participant.
• Requirements for reporting changes between annual recertification.
• Security deposit policy
• Guidance that the voucher holder is free to choose any eligible unit
ENCOURAGING PARTICIPATION IN AREAS WITHOUT LOW INCOME OR
MINORITY CONCENTRATION
At the briefing families are encouraged to search for housing in non -impacted areas
and SBCS will provide assistance to families who wish to do so.
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The assistance provided to such families includes:
• Direct contact with landlords.
• Counseling with the family.
• Formal or informal discussions with landlord groups.
AFTER THE BRIEFING AND BEFORE LEASE -UP
CHANGE IN TOTAL TENANT PAYMENT (TTP) PRIOR TO HAP EFFECTIVE
DATE
Income Decrease
When the family properly reports changes in factors that will reduce the total family
share prior to the effective date of the HAP contract at admission, the information will
be verified and the reduction in family share will be recalculated.
Income Increase
If the family's income increases after it was issued a voucher, the income increase, per
SBCS interim policy, will not be processed until the family's next annual re-examination
after the family leases into an assisted unit.
Family Reporting Requirements
Families must report changes in family composition within 30 days. Families, prior to
execution of a HAP Contract, discovered to have provided false, misleading,
incomplete or untrue information, in order to be found eligible for assistance, will
have their vouchers rescinded and will not be eligible for return to the waiting list at
original date/time of application. These families will be offered an opportunity to
request an informal review.
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Chapter 8
REQUEST FOR TENANCY
APPROVAL, OWNER APPROVAL,
LEASES AND CONTRACTS
INTRODUCTION
SBCS' program is designed to utilize available resources efficiently, and maximize
HUD funds by quickly providing assistance to as many eligible participants as the
budget allows.
The family must find an eligible unit, with an owner/landlord willing to enter into a housing
assistance payments (HAP) contract with SBCS. This chapter defines eligible housing,
and SBCS policies on initial inspections, lease requirements, the HAP Contract, owner
disapproval, and the processing of Requests for Tenancy Approval (RFTA).
SBCS is committed to maintaining a neutral position in issues between owners and
program participants and its policy is to strive to recruit new owners to the program,
as well as maintain a good relationship with participating owners. SBCS requires staff
to provide owners with prompt and professional service in an effort to maintain an
adequate supply of available housing within its jurisdiction. The regulations define
when SBCS must disallow owner participation in the program, as well as the
circumstances when SBCS may use its discretion to disapprove or otherwise restrict
owner participation.
REQUEST FOR TENANCY APPROVAL
During the term of the voucher, the family must submit the RFTA and a copy of the
proposed lease, including the HUD prescribed tenancy addendum. If the owner's
lease is not submitted, SBCS may use the HUD model lease. The family must submit
the RFTA in the form and manner required by SBCS.
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The owner and the voucher holder must both sign the RFTA.
If families are approved to lease properties owned by relatives, the owner's current
address will be compared to the subsidized unit's address.
Owners must provide an employer identification number or social security number, as
well as a validation document supporting the number. Ownership will be verified
through assessor's office records or a review of the grant deed. SBCS will request a
copy of the management agreement for owners being represented by a management
company. SBCS to submit more than one RFTA at a time.
SBCS will review the proposed lease and the RFTA documents to determine if they
are approvable. The RFTA will be approved if:
• The unit is an eligible type of housing.
• The unit meets HUD's housing quality standards (HQS), and any additional
criteria identified in this Plan.
• The rent is reasonable.
• The proposed lease complies with HUD requirements.
• The owner is approvable, and there is no owner conflict of interest.
• There are no shared utilities with the exception of some special housing types.
• The family is not leasing a property owned by a parent, child, grandparent,
grandchild, sister or brother of any family member. SBCS will waive this
restriction as a reasonable accommodation for a family member with
disabilities who provides documentation demonstrating a clear and compelling
need for accommodation.
• The owner's address is not the same as the assisted unit except for some special
housing types.
In addition to the above, at the time a family initially receives assistance in the unit
(new admissions and moves), the family share of rent may not exceed 40 percent of
the family monthly -adjusted income.
DISAPPROVAL OF THE RFTA
If the RFTA cannot be approved for any reason, the landlord and the family are
notified by a phone call. The owner and family are advised of the steps necessary for
approval of the RFTA, and the family is issued another RFTA to continue to search
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for an eligible unit. An RFTA should be disapproved if the family would be in zero
HAP status.
The owner may be given the opportunity to, either provide another RFTA, or to
verbally change the information on the submitted RFTA to make it acceptable to
SBCS.
UNIT SIZE SELECTED
The family may select a different size dwelling unit than that listed on the voucher.
There are three criteria to consider:
Subsidy Limitation: The payment standard for a family shall be the lower of:
• SBCS payment standard amount for the unit size rented by the family, or
• The contract rent and utilities (gross rent).
Utility Allowance: The utility allowance used to calculate the gross rent is based on
the actual size of the unit the family selects, regardless of the size authorized on the
family's voucher.
Housing Quality Standards: The standards allow a maximum occupancy of two
persons per living/sleeping room as shown in the table below. Sleeping area would
include: living room, den, dining room, library, or other rooms used for sleeping.
HQS GUIDELINES FOR MAXIMUM OCCUPANTS
Unit Size
Maximum Number Allowed
in Household*
0 Bedroom 2
1 Bedroom 4
2 Bedrooms 6
3 Bedrooms 8
4 Bedrooms 10
5 Bedrooms 12
6 Bedrooms 14
*These guidelines are for an average unit. If there is a den, library
or dining room or other room that may be used for sleeping, in
addition to the living room, these standards may be increased. For
example, a two -bedroom house with a living room and a den may
have room for up to eight persons without violating HQS space
limitations.
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RENT LIMITATIONS
SBCS will make a determination as to the reasonableness of the proposed rent in
relation to comparable unassisted units available for lease. Rent reasonableness will
be determined: upon approval of a new lease, prior to an owner rent increase, and if
the annual HUD published fair market rents are reduced by five percent or more, 60
days prior to the HAP contract anniversary. All active participant files must contain a
copy of the most current rent reasonableness determination. An owner, with a 30-
day notice, could be required to reduce the rent, if it is found the unit is no longer rent
reasonable.
By accepting a monthly housing assistance payment from SBCS, the owner certifies
that the rent to owner is not more than rent charged by the owner for comparable
unassisted units on the premises. Units in a tax credit property are considered
assisted units and are not subject to this requirement. The owner may be required to
provide SBCS with information requested on rents charged elsewhere.
At all times during the tenancy, the rent to owner may not be more than the most
current reasonable rent as determined by SBCS.
DISAPPROVAL OF PROPOSED RENT
At the family's request, SBCS will negotiate with the owner to reduce the rent or pay
for more of the utilities in the following instances:
• The rent is not reasonable.
• The rent is not affordable because the family share
would be more than 40 percent of the family's monthly -
adjusted income.
If the rent is approved after negotiations with the owner, SBCS will notate, date and
initial the RFTA and continue processing. If the revised rent involves a change in the
provision of utilities, SBCS may notate, date and initial the changes on the submitted
RFTA, or may request the owner to submit another RFTA.
If the owner does not agree to the rent reduction after SBCS has attempted to
negotiate a revised rent, the family and owner will be notified in writing that the lease
is disapproved.
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ELIGIBLE TYPES OF HOUSING
SBCS will approve the following types of housing:
• All structure types that meet HQS.
• Manufactured homes where the tenant leases the mobile home and the pad.
• Manufactured homes where the tenant owns the mobile home and leases the
pad.
• Shared housing that meets HQS.
Travel trailers, motor homes, or other structures designed to be mobile are not
eligible.
A mobile home that is designed to be set-up permanently in one location is eligible
for TBRA.
A family can own a rental unit but cannot reside in it while being assisted, except in
the case of the family owning the mobile home and leasing the pad or the owner of a
cooperative. The owner of the assisted unit, except in the case of a mobile home
owner leasing the pad or the owner of a cooperative, may never benefit from the
assistance. The owner of the assisted unit may never be a live-in aide for the family.
In shared housing, the family may never, in any circumstances, reside with a resident
owner who is a relative and there are no exceptions for reasonable accommodation
in this instance.
SBCS may not permit a voucher holder to lease a unit that is receiving project -based
Section 8 assistance or any other duplicative rental subsidies.
SECURITY DEPOSIT
The owner is not required to, but is encouraged to collect a full security deposit from
the tenant. Owner will deal directly with the tenant in the event of damages, unpaid
rent, vacancy loss, or security deposit refund.
SBCS may provide a security deposit grant (up to one month's rent) to households
enrolled in the TBRA Program based on the household's need and at SBCS'
discretion.
The TBRA Program Application will request applicant to inform SBCS of the amount
the household can contribute towards the security deposit. Based on the answer,
SBCS may provide a security deposit grant of up to one month's rent per household
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on a one-time basis. Households will be required to provide bank statements to
support lack of funds available for a security deposit during the initial interview.
The family is responsible for the difference between the security deposit required by
the owner and the grant covered by SBCS. Security deposit grants will be paid
directly to the owner once HQS Inspection has been completed and approved, and
landlord returns necessary contract documents and unit passes inspection.
SBCS will reveal amount of the security deposit grant awarded to each applicant in
the "Notice of Contract Calculations" given to the Owner and the Participant.
Security deposit assistance shall be given in the form of a grant on the basis that
neither the owner nor the tenant (applicant) will have to repay the amount to SBCS.
After the Tenant has moved from the dwelling unit, the owner may, subject to state
and local law, use the security deposit, including any interest on the deposit, as
reimbursement for rent or any other amounts payable by the Tenant under the
Lease. The Owner will 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 as
reimbursement to the Owner, the Owner shall promptly refund the full amount of the
balance to the Tenant.
TENANT SCREENING FOR SUITABILITY
SBCS will take into consideration any of the criteria for admission described in the
chapter on eligibility factors.
SBCS will not screen family behavior or suitability for tenancy. SBCS will not be liable
or responsible to the owner or other persons for the family's behavior or the family's
conduct in tenancy.
The owner is responsible for screening and selection of the family he/she approves
for tenancy. At or before SBCS approval of the tenancy, SBCS will inform the owner
that screening and selection for tenancy is the responsibility of the owner.
The owner is responsible for screening families based on their tenancy histories,
including such factors as:
• Payment of rent and utility bills.
• Caring for a unit and premises.
• 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.
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• Compliance with other essential conditions of tenancy.
INFORMATION TO OWNERS
In accordance with HUD requirements, SBCS will furnish prospective owners upon
written or verbal permission from the family, the family's current address as shown in
its records and, if known to SBCS, the name and address of the landlords for the
family's current and prior addresses.
SBCS will make an exception to this requirement, if the family's whereabouts must
be protected due to domestic abuse or witness protection.
SBCS will inform owners that it is the responsibility of the landlord to determine the
suitability of prospective tenants. Owners will be encouraged to screen applicants for
rent payment history, payment of utility bills, eviction history, respecting the rights of
other residents, damage to units, 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.
A statement of SBCS' policy on release of information to prospective landlords is
applied uniformly to all families, and will be included in the family's briefing packet.
SBCS will not release any criminal information or sex offender information to the
owner, but a housing supervisor will review the information, and if no information
relevant to application or eviction is found, will notify the owner. If information
relevant to the application or eviction is found, the housing supervisor will present
his/her findings in writing to the program manager who will authorize the findings and
sign the letter issued to the owner. The letter will not specify the criminal or sex
offender history, but will merely state that there may be cause for denial or eviction of
the tenant. If the owner sends documentation of needing specific information for an
eviction, the program manager must approve the release of any information in
accordance with the regulations.
SBCS will NEVER release specific personal information to owners regarding their
former participants.
OWNER DISAPPROVAL
The owner does not have a right to participate in the program. For purposes of this
section, "owner" includes a principal or other interested party.
SBCS will disapprove the owner for the following reasons:
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• HUD, or another agency, has notified SBCS in writing that the owner has been
disbarred, suspended, or subject to a limited denial of participation under 24
CFR part 24.
• HUD has notified SBCS in writing that the federal government has instituted
an administrative or judicial action against the owner for violation of the Fair
Housing Act or another federal equal opportunity requirements and such
action is pending.
• HUD has notified SBCS in writing that a court or administrative agency has
determined that the owner has violated the Fair Housing Act or other federal
equal opportunity requirements.
• The owner may not be a parent, child, grandparent, grandchild, sister or
brother of any family member.
In cases where the owner and tenant bear the same last name, SBCS may, at its
discretion, require the family and/or owner to certify whether they are related to each
other in any way.
SBCS will never issue a payment to the owner at the participant's address with the
exception of some special housing types.
In cases where the payment is mailed to a post office box, and there is a question
regarding the relationship between the owner and the tenant, the SBCS may submit a
post office request to confirm the owner's physical address.
OWNER RESTRICTIONS AND PENALTIES
If an owner has committed fraud or abuse, or is guilty of frequent or serious contract
violations, SBCS may restrict the owner from future participation in the program for a
period of time commensurate with the seriousness of the offense. SBCS may also
terminate some or all contracts with the owner.
Before imposing any penalty against an owner, SBCS will review all relevant factors
pertaining to the case, and will consider such factors as the owner's record of
compliance, and the seriousness and number of violations.
Refer to chapter on fraud investigations for further information.
LEASE REQUIREMENTS
SBCS will review the lease for HUD required lease provisions. The tenant must have
legal capacity to enter a lease under state and local law. Responsibility for utilities,
appliances and optional services must correspond to those provided on the RFTA.
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The family may not lease properties owned by a parent, child, grandparent,
grandchild, sister or brother of any family member.
The family and owner must submit a standard form of lease used in the locality by
the owner and that is generally used for other unassisted tenants on the premises. If
the owner does not use a standard lease for rental to unassisted tenants, the owner
may use another form of lease, such as a SBCS model lease. The terms and
conditions of the lease must be consistent with state and local law.
The lease must specify:
• The names of the owner and tenant, and
• The address of the unit rented, and
• The amount of the security deposit (amount paid by SBCS and amount paid
by tenant, if applicable)
• The amount of the monthly rent to owner, and
• The utilities and appliances to be supplied by the owner, and
• The utilities and appliances to be supplied by the family.
The HUD prescribed tenancy addendum must be included in the lease.
The owner's lease must include the lead warning statement, and disclosure
information required by 24 CFR 35.92(b).
The lease must state that drug -related criminal activity engaged in by the tenant, any
household member, any guest on or near the premises, or any person under the
tenant's control on the premises, is grounds for termination of tenancy.
The lease must state that the family may be evicted if the owner determines:
• Any household member is illegally using a drug.
• A pattern of illegal use of drugs by any household member interferes with the
health, safety, or right to peaceful enjoyment of the premises by other residents.
The lease must state that the following types of criminal activities by a "covered
person" are grounds for termination of tenancy:
• Any criminal activity that threatens the health, safety, or 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, safety, or right to peaceful
enjoyment of the residences by people residing in the immediate vicinity of the
premises.
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• Any violent criminal activity on or near the premises by a tenant, household
member, or guest.
• Any violent criminal activity on the premises by any other person under the
tenant's control.
The lease must state that the owner may terminate tenancy if a tenant is:
• Fleeing to avoid prosecution, custody, or confinement for a felony (high
misdemeanor in New Jersey) after conviction for a crime, or attempt to commit
a crime.
• Violating a condition of probation or parole imposed under state or federal law.
ACTIONS BEFORE LEASE TERM
All of the following must always be completed before the beginning of the initial term
of the lease for a unit:
• SBCS staff has inspected the unit and has determined that the unit satisfies
HQS.
• SBCS has determined that the rent charged by the owner is reasonable.
• The landlord and the tenant have executed the lease, including the HUD -
prescribed tenancy addendum.
• SBCS has approved the lease in accordance with program requirements.
• For the initial lease for the unit, the family share (total family contribution) is
not more than 40% of the family's monthly -adjusted income.
• A determination has been made the family is eligible for a HAP payment.
SEPARATE AGREEMENTS
Separate agreements are not necessarily illegal side agreements. However, SBCS
must be informed of all separate agreements. Owners are prohibited from collecting,
and tenants are prohibited from paying, additional rent not authorized by SBCS.
Owners are prohibited from charging for items normally included in the rent of
unassisted units.
Owners and families may execute separate agreements for services, appliances, and
other items not included in the lease.
Any appliances, services or other items, routinely provided to unassisted families as
part of the lease (such as, air conditioning, dishwasher or garage) or are permanently
installed in the unit, cannot be put under separate agreement and must be included
in the lease. In order to have a separate agreement, the family must have the option
of not utilizing the service, appliance or other item.
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CONTRACT EXECUTION PROCESS
SBCS cannot enter into a HAP contract if a family is in zero HAP status. If that is the
case, SBCS must deny the RFTA. If the family is eligible for assistance during the
term of its voucher, an RFTA may be processed.
SBCS prepares the HAP contract for execution. The family and the owner will
execute the lease agreement, and the owner and SBCS will execute the HAP
Contract. Copies of the documents will be furnished to the parties who signed the
respective documents. SBCS will retain copies of all signed documents. The terms
of the lease and the contract MUST match.
SBCS may change the amount of its assistance or contract rent with a contract
amendment. Changes in lease term and utilities require a new contract.
SBCS makes every effort to execute the HAP contract before the commencement of
the lease term. The HAP contract may not be executed (signed and dated) more than
60 days after commencement of the lease term, and no payments will be made until
the contract is executed. However, regardless of the execution date of the contract,
the beginning and ending term of the contract must always match the term of the
lease.
The following SBCS representatives are authorized to execute a contract on behalf of
SBCS:
• SBCS Shelter & Support Services staff
The owner or owner's representative must provide a telephone number.
CHANGE IN OWNERSHIP
A change in ownership does not require execution of a new contract and lease.
SBCS will process a change of ownership only upon the written request of the new
owner, accompanied by a copy of the escrow statement, or other document showing
the transfer of title, such as a recorded deed, the employee identification number or
social security number of the new owner, and validation documents to verify
employee identification or social security number.
SBCS, upon approval of assignment of the contract to the new owner, may notify the
new owner in writing that the contract assignment was approved, and the new owner
assumes the conditions and obligations of the existing contract. The new owner will
be mailed a copy of the contract, upon request.
If the new owner does not want an assignment of the contract, SBCS will terminate
the HAP contract with the old owner, since he/she is no longer the owner. The new
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owner may offer the family a new assisted lease. The family may elect to enter into
the new lease or move to another unit. If the family enters into a new lease, the
owner must enter into a new HAP contract with SBCS.
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Chapter 9
HOUSING QUALITY STANDARDS
AND INSPECTIONS
INTRODUCTION
Housing Quality Standards (HQS) are the HUD minimum standards for assisted
rental units for tenant -based programs. HQS standards are required both at initial
occupancy and during the term of the lease. HQS standards apply to the building and
premises, out buildings, as well as the unit. Newly leased units must pass an HQS
inspection before the beginning of the housing assistance payment.
SBCS staff will inspect each unit under contract at least annually. The HQS
inspections will ensure program consistency, and that the HUD required standards
are being met. This chapter describes SBCS' procedures for performing HQS and
other types of inspections, as well as the standards for the timeliness of repairs. In
addition, this chapter explains the responsibilities of the owner and family, and the
consequences of non-compliance with HQS requirements. The use of the term
"HQS" in this Administrative Guide refers to the combination of both HUD and the
County's requirements.
INSPECTION TYPES AND GUIDELINES
SBCS may adopt local requirements of acceptability in addition to those mandated by
the HUD Regulations.
Efforts will be made at all times to encourage owners to provide housing above HQS
minimum standards. In addition, SBCS will not promote any additional criteria likely
to adversely affect the health or safety of participant families, or severely restrict
housing choice.
All utilities must be in service when the unit is inspected.
If the tenant is responsible for supplying the stove and/or the refrigerator, SBCS will
allow the stove and refrigerator to be placed in the unit after the unit has passed all
other HQS. The family must then certify, by telephone, the date the appliances are in
the unit and working. SBCS will not conduct a re -inspection. The term of the lease
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and HAP contract will not begin until the confirmed date of the stove and/or
refrigerator in -place and working.
There are five types of inspections the County performs:
1. Initial/move-in: Conducted after receipt of the RFTA.
2. Annual: Must be conducted within twelve months of the last annual inspection.
3. Move-out/vacate: May be conducted, upon request, to observe and document
reported excessive tenant damage in order to make a determination of tenant
violations of the lease.
4. Special/complaint: At request of owner, family, an agency, or another third
party.
5. Quality Control (QC): This inspection involves a required minimum random
sample of previously completed inspections.
INITIAL HQS INSPECTION
TIMELY INITIAL HQS INSPECTION
Once SBCS receives the RFTA, assigned staff will attempt to make telephone
contact within three business days after SBCS has received the RFTA. SBCS will
inspect the unit, determine whether the unit satisfies the HQS, and notify the family
and owner of the determination within ten calendar days after the family and the
owner have submitted a RFTA, and the unit is ready for inspection.
The ten-day inspection and notification requirement does not apply in instances when
the unit is not available for inspection. The RFTA will include a "date unit available for
inspection" section.
SBCS will make every reasonable effort to conduct timely initial HQS inspections for
the family.
The initial inspection will:
• Determine if the unit and property meet HQS as defined in this Plan.
• Document the information to be used for determination of rent -
reasonableness.
If the unit fails the initial HQS inspection, the owner and/or the tenant will be advised
to notify SBCS once repairs are completed.
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On an initial inspection, the owner will be given a reasonable amount of time to
correct the items noted as fail, depending on the amount of fail items, and the
complexity of work to be done.
The owner will be allowed up to three re -inspections for repair work to be completed.
If the time period given by the inspector to correct the repairs has elapsed, or the
maximum number of failed re -inspections has occurred, the family must select
another unit. SBCS will deny the RFTA with copies to the family and the owner, along
with another RFTA packet to the family.
ANNUAL HQS INSPECTIONS
SBCS conducts an inspection in accordance with HQS at least annually as required
by HUD and no more than 120 days prior to the current annual recertification, when
applicable. Special inspections may be scheduled, upon request, between
anniversary dates.
The landlord must correct HQS deficiencies that cause a unit to fail, unless the fail is
the tenant's responsibility.
The family must allow SBCS to inspect the unit at reasonable times with reasonable
advance notice.
Inspections and re -inspections will be conducted on business days only, or on
weekends as a reasonable accommodation for the disabled.
SBCS will notify the family in writing, or by telephone, at least five days prior to the
inspection. The County five-day advance notification requirement is not necessary, if
the family agrees to an inspection with less than five days notice; however, the family
will not be penalized for not being available.
If the family does not contact SBCS to reschedule a scheduled inspection, or if the
family misses two inspection appointments, SBCS may consider the family to have
violated a family obligation, and the family's assistance may be terminated in
accordance with the termination procedures in the Plan.
TIME STANDARDS FOR REPAIRS
Emergency items that endanger the family's health or safety must be corrected by
the owner or family within 24 hours of notification.
For non -emergency items, repairs must be made within 30 days.
For major repairs, the housing specialist may approve an extension beyond 30 days.
RENT INCREASES OR EXTENSIONS ON 30-DAY MOVE -OUT NOTICES
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Rent to owner increases or extensions on 30-day move -out notices may not be
approved if the unit is in a failed condition.
HQS BREACH
The inspector will determine if an HQS breach as identified in 24 CFR 982.404 (b) is
the responsibility of the family. Families may be given extensions to cure HQS
breaches.
MOVE OUTNACATE INSPECTION
A move out inspection may be performed, upon landlord request, to observe and
document possible tenant lease violations.
SPECIAL/COMPLAINT INSPECTION
SBCS will conduct a complaint inspection when it receives landlord or tenant notice
that the unit does not meet HQS.
SBCS may conduct a special inspection based on information from third parties, such
as neighbors or public officials.
SBCS will inspect only the items that were reported, but if the inspector notices
additional deficiencies that would cause the unit to fail HQS, the responsible party will
be required to make the necessary repairs.
When the annual inspection date is within 120 days of a special inspection, the
special inspection may be categorized as an annual inspection, as long as all annual
inspection procedures are followed.
QUALITY CONTROL INSPECTION
Housing supervisors or other qualified personnel will conduct quality control (QC)
inspections. The purpose of QC inspections is to ascertain that each inspector is
conducting accurate and complete inspections, and to ensure consistency among
inspectors in the application of HQS.
The sampling of files will include recently completed inspections (within the three
prior months) reflecting a representative sample of neighborhoods, types of
inspections (initial, transfer and new lease), and inspectors.
ADDITONAL SBCS HQS CRITERIA
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SBCS adheres to HUD HQS, as well as the following local standards.
LOCAL STANDARDS
No interior door double cylinder deadbolt locks or interior door locks that unlock only
from the outside of the room.
No double cylinder deadbolt locks allowed on exterior door unless the unit has
another exterior door without said lock.
If bedrooms have security bars, at least one window in each bedroom must have no
security bars or security bars with a quick release device usable and accessible to a
small child.
EMERGENCY REPAIR ITEMS
The following items are considered of an emergency nature and must be corrected
by the owner or tenant (whoever is responsible) within 24 hours of notice by the
Inspector:
• Waterlogged ceiling in imminent danger of falling.
• Major plumbing leaks or flooding.
• Strong smelling natural gas leak or fumes.
• Electrical problem likely to cause shock or fire.
• Jagged, broken glass where someone could be injured.
• Other immediate observable danger to the health and safety of thefamily.
SBCS may give a short extension of not more than 24 additional hours whenever the
responsible party cannot be notified, or it is impossible to complete the repair within
the 24-hour period.
In those cases where there is leaking gas or potential of fire or other threat to public
safety, and the responsible party cannot be notified, or it is impossible to make the
repair, the proper authorities will be notified by SBCS. SBCS will take the necessary
steps to advise and assist the family on relocation.
If the emergency repair item(s) are not corrected in the time period required by
SBCS, and the owner is responsible, the housing assistance payment will be abated
and the HAP contract may be terminated.
If the emergency repair item(s) are not corrected in the time period required by
SBCS, and it is an HQS breach that is a family obligation, SBCS will terminate the
assistance to the family with a 30-day termination notice.
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NON -EMERGENCY REPAIR ITEMS
All repair items not described above are considered non -emergency, 30-day repair
items.
SMOKE DETECTORS
Inoperable smoke detectors will be treated by SBCS as 30-day fail items.
The owner must install working batteries in the smoke detectors upon initial lease.
After that, the family must replace the batteries, when the need arises.
If SBCS determines that the family has purposely disconnected the smoke detector
(by removing batteries or other means), the family will be required to repair the
smoke detector within 30-days.
SBCS will issue a verbal warning to any family determined to have purposely
disconnected the unit smoke detector. The warning will state that deliberate
disconnection of the unit smoke detector is considered a violation of the HQS. The
family's assistance may be terminated for multiple violations of this requirement.
DETERMINATION OF RESPONSIBILITY
Certain HQS deficiencies are considered the responsibility of the family:
• Tenant -paid utilities not in service.
• Failure to provide or maintain family -supplied appliances.
• Failure to allow the owner access to the premises to make repairs after
reasonable notice was given.
• Damage to the unit or premises caused by a household member or guest
beyond normal wear and tear.
"Normal wear and tear" is defined as items that could not be charged against the
tenant's security deposit under state law or court practice.
SBCS will attempt to make a determination of family or owner responsibility. The
owner or tenant may appeal SBCS' determination by phone, or in writing and must
provide documentation from an industry expert, such as a plumber or electrician, to
substantiate the appeal.
The owner is responsible for all other HQS violations.
The owner is responsible for vermin infestation even if caused by the family's living
habits. However, if such infestation is serious and repeated, it may be considered a
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lease violation and the owner may evict the family for serious or repeated violations
of the lease. SBCS may terminate the family's assistance on that basis.
If the family is responsible, but the owner carries out the repairs, the owner will be
encouraged to bill the family for the cost of the repairs and the family's file will be
notated regarding the family violations.
CONSEQUENCES IF OWNER IS RESPONSIBLE
When it has been determined that a unit on the program fails to meet HQS for items
that are the owner's responsibility, the owner must complete the necessary repair(s)
in the time period specified by SBCS. If the necessary repairs are not made within
the required time period, the assistance payment to the owner will be abated on the
first of the following month.
ABATEMENT
A notice of abatement will be sent to the owner, and the abatement will be effective
the first of the month following the deadline for correction.
SBCS will inspect abated units within five days of the owner's notification that the
work has been completed.
If the owner makes repairs during the abatement period, payment will resume on the
day the unit passes inspection.
No retroactive payments will be made to the owner for the period of time the rent was
abated and the unit did not comply with HQS.
EXTENSION IN LIEU OF ABATEMENT
SBCS will grant an extension in lieu of abatement in the following cases:
• The owner has a good history of HQS compliance.
• The failed items are minor in nature.
• There is an unavoidable delay in completing repairs due to difficulties in
obtaining parts or contracting for services.
• The owner makes a good faith effort to make the repairs.
• The repairs are delayed due to climate conditions.
The extension will be made for a period of time not to exceed 30 additional days. At
the end of that time, at SBCS' discretion, if the work is not completed, or substantially
completed, assistance may be terminated.
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TERMINATION OF CONTRACT
If the owner is responsible for repairs, and fails to correct all the deficiencies cited
prior to the end of the abatement period, the owner will be sent a contract termination
notice. Prior to the effective date of the termination, the abatement will remain in
effect.
If repairs are completed before the effective termination date, SBCS may rescind the
termination if the tenant chooses to remain in the unit. Only one HQS inspection will
be conducted after the termination notice is issued.
CONSEQUENCES IF FAMILY IS RESPONSIBLE
If emergency or non -emergency violations of HQS are determined to be the
responsibility of the family, the family will be required to make any repair(s) or
corrections within 30 days. The owner's rent will not be abated for items found to be
the family's responsibility.
If the repair(s) or correction(s) are not made by the deadline, SBCS will issue a
notice to terminate assistance to the family, along with an opportunity to request an
informal hearing, and an owner notice to terminate the HAP contract on the same
date. If the family requests an informal hearing, the housing assistance payments
must continue until a decision is rendered. In addition, the owner must be notified
that the housing assistance payments will continue until a hearing decision is
rendered.
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Chapter 10
OWNER PAYMENTS, RENT LIMITS
AND RENT REASONABLENESS
INTRODUCTION
This chapter discusses SBCS processes and procedures for Tenant Based Rental
Assistance rent reasonableness determinations, payments to owners, and rent
adjustments. It is SBCS' responsibility to ensure that the rents charged by owners are
reasonable based upon unassisted comparables in the rental market, as specified in 24
CFR 982.507(b).
RENT LIMITATIONS
The rent to owner is limited by rent reasonableness, the maximum rent allowed at
initial occupancy (24 CFR 982.508), and the lease.
SBCS must demonstrate that the rent to owner is reasonable in comparison to rent
for other comparable unassisted units.
A unit cannot be approved if the family will be in zero HAP status.
At the time a family initially receives tenant -based assistance for occupancy of a
dwelling unit, whether it is a new admission or a move to a different unit, the family's
rent share may not exceed 40% of the family's monthly -adjusted income. [24 CFR
982.508]
During the initial term of the lease, the owner may not raise the rent to the family.
After the initial lease term, the owner may request a rent adjustment with a 60-day
written notice to the family and SBCS. [24 CFR 982.308(g)] A rent adjustment is
subject to the approval of SBCS for rent reasonableness.
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RENT REASONABLENESS DETERMINATIONS
SBCS will determine and document, on a case -by -case basis, that the approved rent
is reasonable in comparison to rent for other comparable unassisted units in the
market. This applies to all programs.
SBCS will not approve a lease until reasonable initial rent has been determined.
SBCS must determine the reasonable rent before any increase in the rent to the
owner, and if there is a five percent decrease in the published fair market rent (FMR)
in effect 60 days before the contract anniversary (for the unit size rented by the
family), as compared with the FMR in effect one year before the contract anniversary.
SBCS active participant files will contain documentation of the last applicable
reasonable rent determination.
SBCS must redetermine rent reasonableness, if directed by HUD. SBCS may elect to
redetermine rent reasonableness at any other time. At all times during the assisted
tenancy, the rent to owner may not exceed the reasonable rent as most recently
determined or redetermined by SBCS.
The owner will be advised that upon acceptance of each monthly payment, he/she is
certifying that the rent to the owner is not more than rent charged by the owner for
comparable unassisted units in the area.
If requested, the owner must give SBCS information on rents charged by the owner
for other units on the premises or elsewhere. Units of a density bonus or tax credit
property are not considered comparable because they are considered assisted.
SBCS may request additional information, such as owner rent rolls, if it appears the
owner has a tendency to charge higher rents to program participants, or if needed for
rent reasonableness comparables.
The data for other unassisted units will be gathered from newspapers, realtors,
professional associations, owners, market surveys, and other available sources.
The market areas for rent reasonableness determinations are the nearby
neighborhoods or communities of the subject unit. Subject units within a defined
housing market area will be compared to similar units within the same area.
Generally, bedroom size and location of units are the most important rent
reasonableness criteria.
The following items may be used for rent reasonableness documentation:
• Size (number of bedrooms/square footage)
• Location
• Quality
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• Amenities (bathrooms, dishwasher, air conditioning, etc.)
• Housing Services
• Unit Age
• Unit Type
• Maintenance
• Utilities provided by the owner
RENT REASONABLENESS METHODOLOGY
SBCS uses an "appraisal" method to evaluate the subject unit against selected units
in the same area with similar characteristics. Adjustments are made for favorable and
unfavorable differences between the subject unit and the comparables.
OWNER PAYMENTS
Once the HAP contract is executed, SBCS begins forwarding payments to the
landlord by mail. Each month, around the first working day of the month, SBCS will
disburse housing assistance payments to the landlords.
Payments not received by the 10th working day of the month, will be replaced upon
request from the payee, and a stop payment will be put on the check.
EXCESS PAYMENTS
The total of rent paid by the tenant, plus the housing assistance payment to the
owner may not exceed the contract rent. The owner must immediately return any
excess payments to SBCS. SBCS may deduct the monies owed from future
payments to the landlord.
Owners who do not return excess payments may be subject to penalties, as outlined
in the "Owner or Family Debts to SBCS" chapter of this Plan.
LATE PAYMENTS TO OWNERS
In keeping with generally accepted practices in the local housing market, SBCS must
make housing assistance payments to the owner promptly, and in accordance with
the HAP contract.
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SBCS will, upon owner request, pay a reasonable late fee for housing assistance
payments not mailed to the owner by the first working day of the month. The late fee
will conform to the late fee for the tenant on the owner's lease, or a reasonable late
fee, as determined by SBCS.
Proof of date of mailing is:
Date the HAP register was run.
Proof of date owner received is:
Five calendar days after date of mailing by SBCS.
In the case of payments electronically deposited into the owner's designated bank
account, the date the bank shows as the deposit date will be the official date of
record and will be the determining factor in cases involving late paymentpenalties.
SBCS will not be obligated to pay any late payment penalty if HUD determines that
late payment is due to factors beyond SBCS' control, such as a delay in the receipt of
program funds from HUD. SBCS will use only administrative fee income or the
administrative fee reserve as its source of late payment penalty payments.
SBCS will not use any program funds for the payment of late fee penalties to the
owner.
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Chapter 11
INTERIMS AND OTHER REGULAR
ACTIVITIES
INTRODUCTION
ONLY APPLICABLE FOR ASSISTANCE BEYOND 12 MONTHS: In accordance
with HUD requirements, SBCS will reexamine the income household composition of
families at least annually. Families will be provided accurate annual an interim rent
adjustments, and will be given reasonable notice of rent increases. All annual activities
are coordinated in accordance with HUD regulations. It is a HUD requirement that
families report all changes in household composition. This chapter defines SBCS'
policy for conducting annual recertifications and coordinating annual activities. It also
explains the interim reporting requirements for families, and the standards for timely
reporting.
MISREPRESENTATION OF FAMILY CIRCUMSTANCES
If any participant deliberately misrepresents the information on which eligibility or
tenant rent is established, SBCS may terminate assistance and may refer the family
file/record to the proper authorities for appropriate disposition, including prosecution.
ANNUAL ACTIVITIES
There are two activities SBCS must conduct every 12 months IF a family's
assistance is continued:
• Recertification of family income, assets, and composition, and
• HQS inspection
SBCS conducts the recertification of the family income, assets, and composition first
and follows with an HQS inspection. SBCS produces a monthly listing of units under
contract scheduled for annual review. This review complies with the HUD
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requirement for an annual review of family income, assets, and composition, and
HQS inspections.
ANNUAL RECERTIFICATION
Families must be recertified at least annually.
MOVES BETWEEN REEXAMINATIONS
When families move to another dwelling unit, a reexamination will be scheduled
unless a recertification has occurred within 120 days of the new HAP contract
effective date. The anniversary date will always be changed to the month of the
execution of the new HAP contract.
Income limits are applicable upon reexamination or transfer and the 40% limitation
rule does apply, and the family must be eligible for a HAP at the new unit.
REEXAMINATION NOTICE TO THE FAMILY
SBCS maintains a reexamination tracking system. The household will be notified, in
advance of the anniversary date, by mail or telephone, of the date and time for the
interview and inspection. If requested as an accommodation for a person with a
disability, SBCS will contact the person by telephone, through a relay service for the
hearing impaired, or in another appropriate manner. SBCS will also mail the notice to
a third party, if requested, as reasonable accommodation for a person with
disabilities. These accommodations will be granted upon verification of the need
presented by the disability.
Procedure
SBCS procedure for conducting annual recertifications will be:
• Schedule the date and time of appointments, and mail an advance notification
to the family.
• Contact the family by telephone, but if less than five days advance notice is given,
the family will not be penalized for declining the appointment.
COMPLETION OF ANNUAL RECERTIFICATION
SBCS will start the recertification process at least 90 days prior to the family's anniversary
date, unless a delay is caused by a family action or inaction. SBCS will issue, a reasonable
time in advance, a family rent change notice, unless the delay in notification was the result of
a family action or inaction. The process should be complete by 30 days before anniversary
date.
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PERSONS WITH DISABILITIES
Persons with disabilities unable to come to SBCS office will be granted an
accommodation by conducting the interview at the person's home, upon confirmation
that the accommodation is appropriate for the disability.
COLLECTION OF INFORMATION
SBCS has established recertification procedures that ensure that the income data
provided by families is complete and accurate.
The family must complete the recertification forms. SBCS may require the family to
complete a personal declaration form prior to the recertification interview.
SBCS representative may, upon request for reasonable accommodation for a person
with a disability, and if appropriate for the disability, interview the family at home,
enter the information provided by the family on the recertification forms, review the
information with the family, and have the adults sign the forms.
Assigned SBCS staff will conduct the HQS inspection.
SBCS must request written third -party verification of income, assets, allowances and
deductions.
REQUIREMENTS TO ATTEND
The following family member is required to attend a recertification interview, show
picture identification, and sign a certification in the presence of a housing
representative:
• The head of household, spouse, or co-head
If the head, spouse or co-head are unavailable for an interview at the time of the
inspection, he/she will be provided an office appointment for an interview.
Exceptions may be given as a reasonable accommodation, or in emergency
circumstances, such as hospitalization.
FAILURE TO RESPOND TO NOTIFICATION TO RECERTIFY
Families scheduled for an interview appointment must attend that appointment, or
call to reschedule the appointment. The appointment will be rescheduled one final
time, upon request of the family.
If the family fails to attend a scheduled appointment, and fails to call to reschedule,
SBCS will notify the HOME Tenant Based Rental Assistance participant and do one
of the following things:
• Reschedule the appointment one final time, or
• Send a notification of termination of assistance, and opportunity for an
informal hearing.
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The family will not be offered a third appointment, unless it can provide
documentation of an emergency situation that prevented it from attending the
appointment, or if requested as a reasonable accommodation for a person with a
disability.
DOCUMENTS REQUIRED FROM THE FAMILY
In the notification letter to the family, SBCS will include instructions for the family to
provide the following:
1. Documentation of income.
2. All forms and releases completed and/or signed and dated by the
family.
3. Documentation of assets.
4. Documentation of deductions/allowances.
5. Personal declaration form completed by head of household.
6. Other information, as requested.
Releases and certifications altered or amended by the family are unacceptable and
would be considered "failure to provide."
VERIFICATION OF INFORMATION
SBCS will follow the verification procedures and guidelines described in this Plan.
Verifications for reexaminations must be less than 120 days old, as of the effective
recertification date.
TENANT RENT INCREASES
A reasonable advance notice of a tenant rent increase is mailed to the family prior to
the scheduled effective date of the increase, unless the delay in notification was
caused by an action or inaction of the family.
If a reasonable advance notice cannot be issued, the tenant rent increase will be
effective on the first of the second month after notification, unless the delay in
notification was caused by an action or inaction of the family.
If there has been a misrepresentation or a material omission by the family, or if the family
causes a delay in the reexamination processing, there may be a retroactive increase in
rent back to the scheduled effective date of the annual recertification.
An approved contract rent increase in which the landlord provided proper notices to both
SBCS and the family will be processed the effective date of the rent increase. A contract
rent increase will not be approved if the landlord failed to provide proper advance notice
to both SBCS and thefamily.
TENANT RENT DECREASES
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A decrease in tenant rent will be processed in a timely manner. If the family causes
a delay, so that the processing of the reexamination is not complete by the
anniversary date, the rent change will be effective on the first day of the month
following completion of the reexamination processed by SBCS.
The family must provide a special written request and appropriate documentation for
a rent decrease to be processed on a date other than the reexamination date.
If SBCS is responsible for a delay in processing the tenant rent decrease, the tenant
rent decrease may be processed retroactive to the date the decrease should have
been effective, and a supplemental payment would be issued to the owner.
INTERIM CHANGES
Program participants must report, in writing, all changes in household composition
and must be reported to SBSC within fourteen days of the change. The family must
obtain prior SBCS approval for all household additions except those due to birth,
return of disabled or minor children to the household, adoption or court -awarded
custody. Please refer to the chapter on subsidy standards for information on when a
family may be allocated a larger voucher size. The owner must approve all additions
to the household in writing.
PROCEDURES WHEN THE CHANGE IS REPORTED IN A TIMELY MANNER
SBCS will notify the family and the owner of any change in the housing assistance
payment according to the following guidelines:
Increases in the Tenant Rent will be effective on the first of the month
following a reasonable advance notice, unless the notification delay was the
result of a family action or inaction.
Decreases in the Tenant Rent are effective the first of the month following that
in which the change is reported, unless the delay was caused by family action
or inaction. Also, no rent reductions will be processed until all the facts have
been verified, even if a retroactive adjustment results.
The change is implemented based on documentation provided by the family.
PROCEDURES WHEN CHANGE IS REPORTED IN AN UNTIMELY MANNER
If the family does not report the change as described under timely reporting, the
family will have caused an unreasonable delay in the interim reexamination
processing, and the following guidelines will apply:
Increase in Tenant Rent will be effective retroactive to the date it would have
been effective, had it been reported in a timely manner.
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Decrease in Tenant Rent will be effective on the first of the month following
the month that the change was reported.
PROCEDURES WHEN THE CHANGE IS PROCESSED BY SBCS IN AN
UNTIMELY MANNER
"Processed in a timely manner," means that the change goes into effect on the date it
should when the family reports the change in a timely manner. If the change cannot
be made effective on that date due to a SBCS action or inaction, SBCS has
processed the change in an untimely manner.
In this case, a family rent increase will be effective after the required reasonable
advance notice, and after completion of processing by SBCS.
If the change resulted in a family rent decrease, the rent decrease for the family will
be calculated retroactively to the date it should have been effective, and the owner
will be mailed a supplemental payment for that amount.
REPORTING ADDITIONS TO OWNER AND SBCS
Reporting changes in household composition to SBCS is both a HUD and a SBCS
requirement.
SBCS will deny a family's request to add additional family members who are
prohibited from program participation for the time period indicated elsewhere in this
Plan.
Participation is denied to:
• Persons who have been evicted from public housing.
• Persons who have previously violated a family obligation listed in 24 CFR
982.51 of the HUD regulations.
• Persons who were part of a family whose assistance was terminated under
the certificate or voucher program for program violations. (Determination will
be made on a case -by -case basis depending on the termination reason.)
• Persons who commit, or have committed, drug -related criminal activity or
violent criminal activity as outlined in this Plan.
• Persons who commit, or have committed, fraud, bribery or any other corrupt or
criminal act in connection with any federal housing program, or state or local
fraud involving public funds.
• Persons who currently owe rent or other amounts to SBCS, the County of San
Diego, or to another PHA in connection with Section 8 or public housing
assistance under the 1937 Act.
• Persons who have engaged in, or threatened, abusive or violent behavior
toward SBCS or City personnel.
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• Persons who have been involved in any criminal activity which may threaten
the health, safety, or right to peaceful enjoyment of the premises by other
residents or persons residing in the immediate vicinity.
• Persons who have been involved in any criminal activity which may threaten
the health or safety of the owner, property management staff, or persons
performing a contract administration function or responsibility on behalf of the
PHA.
• Persons who will overcrowd the unit.
• Persons who commit fraud, bribery or any other corrupt or criminal act in
connection with any federal housing program.
• Persons who have engaged in threatened abusive or violent behavior toward
PHA personnel.
The income of the additional member will be included in the family income as
applicable under the HUD regulations once SBCS and the owner approve the
person. SBCS will conduct a reexamination to determine such additional income and
will make the appropriate adjustments in the housing assistance payment and family
unit size.
If the family does not obtain prior written approval from SBCS, with the exceptions
noted elsewhere, any person the family has permitted to move in will be considered
an unauthorized household member.
Families are required to report any additions to the household in writing to SBCS
within fourteen days of the move -in date for birth, adoption, minor or disabled children
returning to the family, or court awarded custody.
A full interim reexamination will be conducted for any additions to the household,
except for additions due to birth.
In addition, the family must obtain prior written approval from the owner for additions
to the household other than by birth, adoption, a minor or disabled child returning to
the family, or court awarded custody. However, the owner may disapprove any
additions to the household unless to do so would be a violation of law.
REPORTING ABSENCES TO SBCS
Reporting changes in household composition is both a HUD and a SBCS
requirement.
If a family member leaves the household, the family must report this change to SBCS
in writing, within 30 days of the change, and certify as to whether the member is
temporarily absent or permanently absent.
SBCS will conduct an interim evaluation for changes that affect the total tenant
payment in accordance with the interim policy.
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When the family notifies SBCS, it must furnish the following information:
• The date the family member moved out.
• The new address, if known, of the family member.
• A statement as to whether the family member is temporarily or permanently
absent.
OTHER INTERIM REPORTING ISSUES
An interim reexamination does not affect the date of the annual recertification.
An interim reexamination will be scheduled for families with zero income every 90
days. However, having zero income is grounds for being terminated as a participant
of the HOME TBRA program.
Any changes reported by participants, other than those listed in this section, will be
noted in the file by the staff person, or will be indicated by documents provided by the
family, but will not be processed between regularly scheduled annual recertifications.
INTERIM REEXAMINATION POLICY
Changes in Household Composition
SBCS will usually not conduct interim reexaminations when families experience a
change in income; however, families are required to report changes in household
composition within 14 days. SBCS may, at its discretion, conduct interim
reexaminations in the following instance:
• When it appears the family is manipulating the program by a pattern of
reducing income just prior to the annual recertification and increasing its
income right after.
• When the participant demonstrates unusual circumstances such as
unanticipated job loss that exceeds a two month period, disability, or loss of
the head of household.
SBCS Errors
If SBCS makes a calculation error at admission to the program, an interim
reexamination will be conducted, if necessary, to correct the error, but the family will
not be charged retroactively. Families will be given decreases, when applicable,
retroactive to when the decrease would have been effective if calculated correctly. In
this instance, a supplemental payment will be issued to the owner.
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HOUSEHOLD COMPOSITION CHANGES THAT REQUIRE A
CHANGE IN THE SUBSIDSY STANDARDS
Additions to the household are not allowed if the unit will be overcrowded. If an
addition occurs due to birth, addition of disabled or minor children of the assisted
family, adoption, or court awarded custody and the unit is overcrowded, the family
must give notice to move or the assistance must be terminated within 60 days of
notification of the change in household composition. The family must be assisted in
transferring to an adequately sized unit. The subsidy standard will not be increased
upon return of an adult previously in the household.
For a reduction in the subsidy standards, the family must be given notice as of the
later of the next annual reexamination or 60 days from the date of the notice. If an
error is discovered that resulted in subsidy standards not being reduced at the
appropriate time, the subsidy standards will be reduced with a 60-day notice.
NOTIFICATION OF RESULTS OF RECERTIFICATIONS/
INTERIMS
The notice of rent change is mailed to the owner and the tenant. SBCS does not
require signatures. If the family disagrees with the rent adjustment, it may request an
informal hearing.
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Chapter 12
MOVES WITH CONTINUED
ASSISTANCE/PORTABILITY
INTRODUCTION
Regulations permit families to move with continued assistance to another unit within
the HOME jurisdiction. The regulations also allow SBCS the discretion to develop
policies to define any limitations or restrictions on moves. This chapter describes the
procedures for moves within the HOME jurisdiction, and the policies for restrictions
and limitations on moves.
ALLOWABLE MOVES
A family may move continued assistance if:
• The assisted lease for the old unit has terminated because SBCS has
terminated the HAP contract for owner breach, or the lease was terminated by
mutual agreement of the owner and the family.
• The owner has given the family a notice to vacate, or has commenced an
action to evict the tenant, or has obtained a court judgment or other process
allowing the owner to evict the family (unless assistance to the family will be
terminated).
• The family has given proper notice of lease termination (and if the family has a
month -to -month rental agreement a right to terminate the lease on notice to
owner).
• The owner and tenant agree to early termination of tenancy by executing and
returning a SBCS waiver form.
RESTRICTIONS ON MOVES
Families generally will not be permitted to move within the City of National City and/or
surrounding area during the initial term of the lease.
Families will not be permitted to move more than once in a twelve-month period,
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unless they can demonstrate a compelling reason for the move, such as a medical
emergency or the landlord issuing a termination of tenancy notice.
Families will not be eligible to move with continued program participation if they are in
zero pay status at the new unit.
SBCS will deny the family permission to move if there is insufficient funding for
continued assistance.
SBCS will deny the family permission to move if:
• The family has violated a family obligation.
The family owes SBCS, the County of San Diego or a Public Housing Authority
money. The housing supervisor may make exceptions to these restrictions if there
is an emergency reason for the move over which the participant has no control.
• The family is ineligible because of criminal history or criminal activities.
PROCEDURE FOR TRANSFERS
ISSUANCE OF HOME VOUCHER
Subject to the restrictions on moves, if the family has not been recertified within the
last 120 days as of the date of the new HAP contract, SBCS will issue the voucher to
move after conducting the recertification and verifying criminal history*.
If the family does not locate a new unit, it may remain in the current unit if the owner
allows the family to stay, the unit meets housing quality standards, and the family and
owner submit a written confirmation to SBCS.
When a family transfers to a new unit, the annual recertification date will be changed
to coincide with the new lease date.
NOTICE REQUIREMENTS
The initial briefing session will emphasize the family's responsibility to give the owner
and SBCS proper written notice of any intent to move.
The family must give the owner the legally required advance written notice of its
intent to vacate, and must forward a copy to SBCS at the same time.
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TIME OF CONTRACT CHANGE
A move within the same building or project, or between buildings owned by the same
owner, will be processed like any other move, except that there will be no
overlapping assistance.
TIME OF CONTRACT CHANGE
In a move, assistance stops at the old unit on the date the participant has notified
SBCS he/she will be vacating the unit, unless the participant and owner request an
extension of the lease termination date in writing.
Unless SBCS determines extenuating circumstances, assistance on the old and new
units may not overlap more than seven days. SBCS may never pay assistance on a
unit beyond the end of the month the family moves.
PORTABILITY
Portability does not apply to families participating in the HOME Tenant Based Rental
Assistance Program. Families must find a unit within the previously defined
boundaries.
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Chapter 13
PROGRAM REVIEW AND
PROGRAM INTEGRITY
INTRODUCTION
The United States Department of Housing and Urban Development (HUD)
conservatively estimates that 600 million dollars are paid annually to program
participants who falsify, provide, or omit material facts in order to gain more rental
assistance than they are entitled to under the law. HUD further estimates that 12%
of all HUD -assisted families are either totally ineligible, or are receiving benefits
which exceed their legal entitlement.
SBCS is committed to assuring that the proper level of benefits is paid to all
participating families, and that housing resources reach only income -eligible families.
SBCS will take all steps necessary to prevent fraud, waste, and mismanagement, so
that program resources are utilized judiciously.
This chapter outlines SBCS' policies for the prevention, detection and investigation of
program abuse and fraud. In addition, this chapter discusses quality control
procedures taken to ensure the program is operated in conformance with the
regulations, as well as industry standards.
COMPLAINTS TO SBCS
SBCS will respond promptly to complaints from families, owners, employees, and
members of the public. All complaints will be documented. SBCS may request
complaints be submitted in writing. HQS complaints may be reported by telephone.
SBCS hearing procedures are provided to families in the family handbook. The
Family Handbook is presented to families at briefings, transfers, upon request, and
frequently at recertifications.
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CATEGORIES OF COMPLAINTS
Complaints from families: A family disagrees with an action or inaction of SBCS, or
owner.
• An SBCS staff will make every effort to resolve complaints from families. If the
complaints are not resolved, they will be referred to the Program Director. The
Program Director will make every effort to resolve the complaints. If the complaints
are not resolved, they will be referred to theDepartment Director.
Complaints from owners: An owner disagrees with a family, or SBCS action or
inaction.
• A SBCS staff will make every effort to resolve owner complaints. If the owner
complaints are not resolved, they will be referred to the housing supervisor.
The Program Director will make every effort to resolve the complaints. If the
complaints are not resolved, they will be referred to the Department Director.
Complaints from staff: A staff person reports an owner or family either violating or not
complying with program rules.
• The complaint will be referred to the Program Director.
Complaints from the general public: Someone from the public complains about staff,
participants, owners, or other matters.
• Complaints or referrals from persons in the community in regard to SBCS, a
family, or an owner will be referred to the housing supervisor. If the complaints
are not resolved, they will be referred to the program coordinator.
Complaints from the press, politicians, supervisors or other high profile individuals:
• High profile complaints will be referred to a SBCS Department Director.
CRITERIA FOR INVESTIGATION OF SUSPECTED
PROGRAM ABUSE AND FRAUD
SBCS expects participating families to comply with HUD requirements, provisions of
the HOME Voucher and other program rules. SBCS staff will make every effort
(formally and informally) to orient and educate all families to avoid unintentional
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violations. However, SBCS has a responsibility to HUD, to the community, to the
taxpayer, and to eligible families in need of housing assistance to monitor
participants and owners for compliance and, when indicators of possible abuse come
to SBCS' attention, to vigorously investigate such claims.
SBCS will initiate an investigation of a participating family in the event of one or more
of the following circumstances:
Referrals, Complaints, or Tips: SBCS will follow up on written, telephoned, or in -
person referrals from other agencies, companies or persons, which allege that a
family is in non-compliance with the program, or otherwise violating family
obligations or any other program rules. Such follow-up will be conducted providing
the referral contains at least one item of information that is independently
verifiable. A copy of the allegation will be retained in the family's file.
Internal File Review: A follow-up is made when SBCS staff discovers (as a
function of a certification or recertification, an interim redetermination, or a quality
control review), information or facts which conflict with previous file data, SBCS'
knowledge of the family, or is contrary to statements made by the family.
Verification of Documentation: A follow-up is made if SBCS receives independent
verification or documentation, which conflicts with representations in the family's
file (such as public record information, credit bureau reports, or reports from other
agencies).
Routine Program Review Activities: SBCS may routinely request a copy of the
criminal history of program participants on a regular basis.
PREVENTION OF PROGRAM ABUSE AND FRAUD
SBCS staff employs various methods and practices (listed below) to prevent program
abuse, non-compliance, and willful violations of program rules by applicants and
participating families. SBCS policy objective is to minimize family and owner non-
compliance by providing clear and concise program education to eliminate violations
that occur as a result of a misunderstanding of the program rules and requirements.
Participant Orientation Session: All prospective program participants will attend a
mandatory orientation session provided by SBCS staff either prior to, or upon
issuance of, a HOME voucher. At the conclusion of all program orientation
sessions, the family representative will be required to sign a confirmation that all
rules and pertinent regulations were explained to them.
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Participant Counseling: SBCS will routinely provide information to participants,
upon request, to clarify any confusion regarding program rules and requirements.
Review and Explanation of Forms: Staff will explain all required forms, upon
request, and review the contents of all recertification documents prior to the
participant signature to affirm that all information provided is true, complete, and
correct.
Participant Certification: All adult family representatives are required to complete
and sign an eligibility declaration that discloses important eligibility information
such as family members, income, assets, criminal history and other eligibility
information.
OTHER PROGRAM INTEGRITY ACTIVITIES
All adults are required to sign an authorization for release of information.
All adults are required to sign "An Important Points to Remember" listing of things
they should know.
Credit report and Department of Motor Vehicles (DMV) inquiries may be conducted.
DETECTION OF PROGRAM ABUSE AND FRAUD
SBCS staff maintains a high level of awareness to indicators of possible abuse and
fraud by assisted families.
Quality Control File Reviews
Prior to initial certification, files will be reviewed for accuracy. Such reviews shall
include, but are not limited to:
• Assurance that verification of all income and deductions is present.
• Changes in reported dates of birth.
• Authenticity of file documents.
• Review of signatures for consistency with previously signed file documents.
• Forms are correctly dated and signed.
• Rent reasonableness documentation, if applicable.
• Unit passed HQS inspections prior to execution of HAP contract.
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OBSERVATION
SBCS staff will maintain high awareness of circumstances that may indicate program
abuse or fraud, such as unauthorized persons residing in the household and
unreported income.
• Observations will be documented in the family's file.
• Management and staff may review public record bulletins.
STATE WAGE DATA RECORDS
Inquiries to state wage and employment record keeping agencies as authorized
under Public Law 100-628, the Stewart B. McKinley Homeless Assistance
Amendments Act of 1988, may be made on a case -by -case basis, in order to detect
unreported wages or unemployment compensation benefits.
ALLEGATIONS OF PROGRAM ABUSE AND FRAUD
SBCS staff will encourage all participating families to report suspected abuse to
SBCS. All such referrals, as well as referrals from community members and other
agencies, will be thoroughly investigated, documented, and placed in the participant's
file. All allegations, complaints and tips will be carefully evaluated in order to
determine if they warrant follow-up. Program Review will not follow-up on vague or
non-specific allegations. It will only review allegations that contain one or more
independently verifiable facts.
FILE REVIEW
An internal file review will be conducted to determine:
• A program participant is involved and, if so, if the information reported has
been previously disclosed by the family.
SBCS will then determine the appropriate authority to follow-up (e.g., police or social
services). Any file documentation of past behavior, as well as corroborating
complaints, will be evaluated.
CONCLUSION OF PRELIMINARY REVIEW
If at the conclusion of the preliminary file review there is/are fact(s) contained in the
allegation which conflict with file data, and the fact(s) are independently verifiable, the
housing specialist will initiate an investigation to determine if the allegation is true or
false.
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INVESTIGATION OF ALLEGATIONS OF PROGRAM ABUSE
AND FRAUD
When SBCS determines that an allegation or referral warrants follow-up, either the
staff person who is responsible for the file, or a person designated by the executive
director to monitor program compliance, will conduct the investigation. The steps
taken will depend upon the nature of the allegation and may include, but are not
limited to, the items listed below. In all cases, SBCS will secure the written
authorization from the program participant for the release of information.
Credit Bureau Inquiries
In cases involving previously unreported income sources, a credit bureau inquiry may
be made to determine if there is financial activity that conflicts with the reported
income of the family.
Verification of Credit
In cases where the financial activity conflicts with file data, a verification of credit form
may be mailed to the creditor in order to determine the unreported income source.
Prior to obtaining verification of credit, all SBCS staff must obtain approval from
Program Director and client.
EMPLOYERS AND EX -EMPLOYERS
Employers or ex -employers may be contacted to verify wages that may have not
been previously disclosed or previously misreported.
NEIGHBORS/WITNESSES
Neighbors and/or other witnesses may be interviewed regarding facts pertaining to
SBCS' review.
OTHER AGENCIES
Investigators, caseworkers or representatives of other benefit agencies may be
contacted.
PUBLIC RECORDS
If relevant, SBCS will review public records. Examples of public records which may
be checked are: real estate, marriage, divorce, uniform commercial code financing
statements, voter registration, judgments, court or police records, state wage
records, utility records, postal records, school records, or other types of records.
INTERVIEWS WITH HEAD OF HOUSEHOLD OR FAMILY MEMBERS
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SBCS may discuss the allegation (or details thereof) with the head of household or
family member by telephone, or by scheduling an appointment for the family to come
to SBCS' office. SBCS staff members will conduct interviews with a high standard of
courtesy and professionalism. SBCS staff members will, under no circumstances,
use inflammatory language, accusations, or any unprofessional conduct or language
in the course of doing business. If possible, more than one staff person will attend the
interviews.
OVERPAYMENTS TO OWNERS
When the landlord has been overpaid as a result of fraud, misrepresentation or
violation of the HAP contract, SBCS may terminate the HAP contract, and arrange for
restitution to SBCS and/or family, as appropriate.
SBCS will attempt to recover overpayments resulting from landlord fraud or abuse.
Payments due to the owner may be debited in order to repay SBCS or the tenant, as
applicable. A more thorough discussion of owner debts is found in Chapter 15.
In instances where it is found that the family rented from a relative without the
required SBCS permission, an overpayment will be collected from both the owner
and the participant — each party responsible for repayment of 50% of the HAPs paid.
DOCUMENT AND/OR EVIDENCE HANDLING
Documents and other evidence obtained by SBCS during the course of an
investigation will be considered "work products" and will be kept in the participant's
file. The participant's file shall be kept in a secure location. The cases under review
will not be discussed among SBCS staff members, unless they are involved in the
process, or have information that may assist in the investigation.
CONCLUSION OF THE COUNTY'S INVESTIGATIVE REVIEW
At the conclusion of the investigative review, the reviewer will place the findings in
the participant's file. The findings in the participant's file will narrate if a violation has
or has not occurred, or if the facts are inconclusive.
EVALUATION OF THE FINDINGS
When it is determined that a program violation has occurred, SBCS will review the
facts to determine:
• The type of violation (procedural, non-compliance, fraud).
• Whether the violation was intentional or unintentional.
• The amount of money (if any) owed by the family.
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• The family's eligibility for continued assistance.
PROCEDURES FOR DOCUMENTED VIOLATIONS
When a program violation has been documented, SBCS will propose the most
appropriate remedy based upon the type and severity of the violation.
PROCEDURAL NON-COMPLIANCE
This category applies to a family "failure" to observe a procedure or requirement of
SBCS, but the family did not misrepresent a material fact, and there are no
retroactive assistance payments owed by the family.
Examples of procedural non-compliance violations are:
• Failure to appear at a pre -scheduled appointment.
• Failure to return verifications in the time period specified by SBCS.
Warning Notice to the family. In such cases, a notice may be sent to the family that
contains the following:
• A description of the non-compliance and the procedure, policy or obligations
violated.
• The date by which the violation must be corrected.
• The action that will be taken by SBCS, if the violations are not corrected by the
deadline.
• The consequences of repeated (similar) violations.
OVERPAID ASSISTANCE
When the family owes money to SBCS for failure to report changes in income or
assets, SBCS will issue a notification of overpayment of assistance. This notice will
contain the following:
• A description of the violation and the date(s).
• Any amounts owed to SBCS.
• A fourteen -day response period.
• The right to disagree and to request an informal hearing with instructions for
the request of such hearing.
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Participant Fails to Comply with SBCS Notice. If the participant fails to comply with
SBCS notice, and a family obligation has been violated, SBCS will initiate termination
of assistance.
Participant Complies with SBCS Notice. When a participant complies with SBCS
notice, the staff person responsible may meet with him/her, or telephone, to discuss
and explain the family obligation or program rule that was violated. The staff person
will narrate in the tenant record, and may ask the family to write a statement of
understanding of the requirement that was violated for the family's file.
INTENTIONAL MISREPRESENTATIONS
When a participant falsifies, misstates, omits or otherwise misrepresents a material
fact, SBCS will evaluate whether or not:
• The participant had knowledge that his/her actions were wrong, and
• The participant willfully violated the family obligations or the law.
Knowledge that the action or inaction was wronq. The facts will be evaluated by
determining if the participant was made aware of program requirements and
prohibitions. The participant's signature on various certifications, briefing
certifications, personal declaration, and other documents that reflect the participant's
knowledge of program rules, are adequate to establish knowledge ofwrongdoing.
The participant willfully violated the law. Any of the following circumstances will be
considered adequate to demonstrate willful intent:
• An admission by the participant of the misrepresentation.
• The act was done repeatedly.
• A false name or social security number was used.
• There were admissions to others of the illegal action or omission.
• The participant omitted material facts, which were known to him/her
(e.g., employment of self or other household members).
• The participant falsified, forged or altered documents.
• The participant uttered and certified to statements at an interim or
annual (re) determination which were later independently verified to be
false.
DISPOSITION OF CASES INVOLVING MISREPRESENTATIONS
In all cases of misrepresentations involving efforts to recover monies owed, SBCS
may pursue, depending upon its evaluation of the criteria stated above, one or more
of the following actions:
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Criminal Prosecution: If SBCS has established criminal intent, and the case
meets the criteria for prosecution, SBCS will:
Refer the case to the local state or district attorney, notify HUD, and terminate
rental SBCS will:
• Terminate assistance and demand payment of restitution in full
The Case Conference for Serious Violations and Misrepresentations
When SBCS has established that material misrepresentation(s) have occurred, a
case conference may be scheduled with the family representative and SBCS staff
person who is most knowledgeable about the circumstances of the case. This
conference may be held if there is some indication of extenuating circumstances, or
upon family request.
This conference may take place prior to any proposed action by SBCS. The purpose
of such conference is to review the information and evidence obtained by SBCS with
the participant, and to provide the participant an opportunity to explain any document
findings which conflict with representations in the family's file. Any documents or
mitigating circumstances presented by the family will be taken into consideration by
SBCS.
A secondary purpose of the participant conference is to assist SBCS in determining
the course of action most appropriate for the case. Prior to the final determination of
the proposed action, SBCS may consider:
• The duration of the violation and number of false statements.
• An admission by the participant of the misrepresentations.
• Repetition of the misrepresentation.
• The family's ability to understand the rules.
• The family's willingness to cooperate, and to accept responsibility for its
actions.
• The amount of money involved.
• The family's past history.
• Whether or not criminal intent has been established.
• The number of false statements.
Notification to Participant of Proposed Action
SBCS will notify the family of the proposed action no later than 30 days after the
case conference, if one is held
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Chapter 14
TERMINATIONS, DENIALS,
HEARINGS AND REVIEWS
INTRODUCTION
The HOME Tenant Based Rental Assistance Program operates through a
relationship between SBCS, the owner and the participant. These parties enter into
agreements with each other in the form of the lease between the owner and the
participant, the contract between the owner and SBCS, and the HOME Voucher
between SBCS and the participant. Each party to these agreements is obligated to
comply with certain requirements of the program and the agreements may be
terminated under program guidelines. This chapter describes the process for
termination or denial of assistance, as well as the process for termination of the HAP
Contract and the policies and procedures for such terminations.
SBCS may deny or terminate assistance for a family because of the family's action or
failure to act. SBCS will provide families with a written description of the family obligations
under the program, the grounds under which SBCS can deny or terminate assistance,
and SBCS' informal hearing or informal review procedures. For more information family
eligibility, please refer to chapter three.
The informal hearing or informal review requirements defined in HUD regulations
apply to participant or applicant families who disagree with an action, decision, or
inaction of SBCS. This chapter describes the policies, procedures and standards
used when families disagree with a SBCS decision. It is the policy of SBCS to ensure
that all families have the benefit of all protections due to them under HUD rules and
regulations governing the program.
DENIAL OR TERMINATION OF PROGRAM PARTICIPATION
SBCS REQUIREMENTS FOR PARTICIPATION
The following criteria are requirements, by SBCS for participation in the HOME Tenant
Based Rental Assistance Program:
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• The participant must agree to be available for monthly in -home visits by SBCS.
• The participant agrees to pay their monthly rent on time every month.
• The participant agrees to have employment and/or a legal source of income on a
continuous basis.
If the participant stops working or has not had a legal source of income for 15 or more
days or is not complying with any one of the conditions listed above they will receive a
warning letter. If the issue is not resolved within an additional 30 days there may be a
recommendation by SBCS for termination from the HOME Tenant Based Rental
Assistance Program.
SBCS must provide participants the opportunity for an informal review when they are
being recommended for termination. A SBCS staff member, who was not involved in
the denial process, may conduct the review.
LEASE VIOLATIONS
The following criteria will be used to decide if serious or repeated violations of the
lease will result in termination of assistance:
• If the owner terminates tenancy through court action for serious or repeated
violations of the lease.
• If the family violates any family obligation listed in the lease.
• If the owner notifies the family of termination of tenancy or assistance for
serious or repeated lease violations, the family moves from the unit prior to the
completion of court action, and SBCS determines that the cause is a serious
or repeated violation of the lease.
• If the owner notifies the family of termination of tenancy for serious or
repeated lease violations, the family moves from the unit prior to the initiation
of court action, and police reports, neighborhood complaints, pictures, an
inspection from SBCS, or other verified third -party information confirms
serious or repeated lease violations.
• Nonpayment of rent is always considered a serious violation of the lease.
o The participant cannot withhold rent under the program for
uninhabitability without permission of SBCS, as SBCS must be notified
along with the owner of the problems in the unit, the owner must be
given an opportunity to remedy the problems, and SBCS must be given
the opportunity to conduct a special inspection to determine if the unit
fails HQS. If the participant fails to pay rent without permission of
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SBCS, the participant's non-payment of rent will be considered a
serious lease violation.
• If the family moves during the term of the lease without the owner's
permission.
o The participant cannot move during to term of the lease, even if the
participant claims inhabitability, as SBCS must be notified along with
the owner of the problems in the unit, the owner must be given an
opportunity to remedy the problems, and SBCS must be given the
opportunity to conduct a special inspection to determine if the unit fails
HQS. If the participant abandons the unit during the term of the lease
without permission of SBCS, the participant's action will be considered
a serious lease violation.
NOTIFICATION OF EVICTION
If the family requests assistance to move, but has not notified SBCS of an eviction
within 14 days of receiving the notice of lease termination, the move will be denied.
ZERO ($O1 ASSISTANCE TENANCIES
SBCS has no liability for unpaid rent or damages, and the family may remain in the
unit at zero assistance for up to six months after the last HAP payment. If the family
is still in the unit after six months, the program participation will end. If, within the six-
month timeframe, an owner rent increase or a decrease in the total tenant payment
causes the family to be eligible for a housing assistance payment, SBCS will resume
assistance payments for the family upon documentation of the change.
The family may not move to another unit during the six months and continue program
participation, unless the family is eligible for assistance at the new location. If the
family moves, and is not eligible for assistance, the family will be issued a termination
of participation notice, and the opportunity for an informal review. SBCS may not
enter into a HAP Contract for a zero assistance tenancy.
OPTION NOT TO TERMINATE FOR MISREPRESENTATON
If the family has misrepresented information so that an overpayment of assistance
was disbursed, SBCS may choose to allow the family to continue participation, if the
family executes a repayment agreement for overpaid assistance, and makes
payments in accordance with the agreement. The determination to not terminate
family participation depends on the seriousness of the misrepresentation and the
family's history of complying with the program and the lease.
MISREPRESENTATION IN COLLUSION WITH OWNER
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If the family intentionally, willingly, and knowingly commits fraud, or is involved in an
illegal scheme with the owner, SBCS will deny or terminate assistance. SBCS may
consider all extenuating circumstances in making its determination.
MISSED APPOINTMENTS AND DEADLINES
It is a family obligation to supply information, documentation, and certification as
needed for SBCS to fulfill its responsibilities. SBCS schedules appointments and sets
deadlines in order to obtain the required information. The family obligations require
that the families allow SBCS to inspect the unit with a reasonable advance notice.
SBCS may issue a notice to deny or terminate assistance, when an applicant or
participant fails to keep an appointment, supply information by the deadline, or fails to
allow a scheduled inspection.
The family will be informed of the requirement to keep appointments.
Appointments or deadlines may be required in the following circumstances:
• Eligibility for admissions
• Verification procedures
• Voucher issuance and briefings
• Housing quality standards and inspections
• Recertification
• Appeals
The following documented extenuating circumstances may be considered for missed
appointments or deadlines:
• Medical emergency
• Incarceration
• Family emergency
Procedure When Appointments Are Missed or Information Not Provided
In most instances, the family will be given two opportunities before a notice of
termination of assistance or denial of participation is issued. The family must call to
reschedule a missed appointment, and if not, a termination of assistance or denial of
participation may be issued. SBCS may rescind the notice, if the family then calls to
reschedule the appointment. SBCS will not reschedule a missed appointment more
than once, unless it determines extenuating circumstances.
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SBCS may rescind a notice, if the family offers to correct a breach in program
requirements within the 14-day informal hearing/review request deadline. The notice
may not be rescinded, if the family has a history of non-compliance.
Notice of Termination of Assistance
SBCS termination of assistance to the family, SBCS must give the family a written
notice that states:
• The reason(s) for the proposed termination,
• The effective date of the proposed termination,
• The family's right to request an informal hearing to be held before
termination of assistance, and
• The deadline for the family's informal hearing request.
If SBCS proposes to terminate assistance for criminal activity based on a criminal
record, SBCS will allow the family to make an appointment to review a copy of the
criminal record.
SBCS will provide written notice of the contract termination to the owner to coincide
with the termination of assistance. The notice to the owner will not include any details
regarding the reason for termination of assistance.
REASONABLE ACCOMMODATION
If denial of admission, or termination of assistance, is based on behavior due to a
disability, SBCS will delay the denial or termination in order to determine if the
problem could be corrected by reasonable accommodation. For example, a visually
impaired person fails to return information because the request for information was in
writing. SBCS makes a reasonable accommodation, upon request, to call the person
to tell him/her of the information that is needed.
FORMAT FOR DENIAL/TERMINATION NOTICES
Applicants and participants will be notified of denial or termination of assistance in
writing on SBCS approved notices and advised they will have 14 days from the date
of the notice to request an informal review or hearing. The notices will contain a full
explanation of the reason(s) for termination/denial, including a full description of
crimes or actions of the family, and the sections of the Code of Federal Regulations
that provide authority for the denial or termination of assistance. A request form will
be provided for applicants or participants to request informal reviews or hearings.
REQUIRED EVIDENCE
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Preponderance of 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.
The intent is not to prove criminal liability, but to establish that the act(s) occurred.
Preponderance of evidence may not be determined by the number of witnesses, but
by the greater weight of all evidence.
Credible evidence may be obtained from police and/or court records. Testimony from
neighbors, when combined with other factual evidence can be considered credible
evidence. Other credible evidence includes documentation of drug raids or arrest
warrants.
If SBCS determines, based on a preponderance of the evidence, that a household
member, or guest, has engaged in prohibited criminal activity, regardless of whether
the household member or guest has been arrested or convicted for the activity,
SBCS will terminate assistance.
SBCS will pursue fact-finding efforts as needed to obtain credible evidence.
TERMINATION OF CONTRACT OR LEASE
The term of the HAP contract between SBCS and the owner is the same as the term
of the lease. SBCS or the owner may terminate the contract, or the contract
terminates upon owner or tenant termination of the lease.
SBCS will terminate payments, on behalf of the family to the owner, upon contract
termination. The owner must reimburse SBCS for any subsidies paid after the
contract termination.
If the family continues to occupy the unit after the contract is terminated, the family is
responsible for the total amount of rent due to the owner.
After a contract termination, if the family meets the criteria for a move with continued
assistance, the family may lease in another unit. The contract for the new unit may
begin during the month in which the family moved from the old unit, as long as the
assistance does not overlap more than seven days, unless SBCS determines
extenuating circumstances.
TERMINATION BY THE FAMILY: MOVES
Family termination of the lease must be in accordance with the terms of the lease.
TERMINATION OF TENANCY BY THE OWNER: EVICTIONS
The owner is required by law, and under the lease, to provide a proper termination
notice.
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During the term of the lease, the owner may not terminate the tenancy, except for the
grounds stated in the HUD regulations.
During the initial term of the lease the owner may terminate the lease for:
• Serious or repeated violations of the lease, including but not limited to, failure
to pay rent or other amounts due under the lease, or repeated violation of the
terms and conditions of the lease.
• Violations of federal, state or local law that imposes obligations on the tenant
in connection with the occupancy or use of the premises, or criminal activity by
the tenant, any member of the household, a guest or another person under the
tenant's control that threatens the health, safety or right to peaceful enjoyment
of the premises by the other residents, or persons residing in the immediate
vicinity of the premises or any drug -related criminal activity on or near the
premises.
• Other good cause.
During the initial term of the lease, 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 (see CFR 982.310).
SBCS will not be involved in termination of the lease, nor will advise the landlord or
the tenant regarding the legal process. SBCS staff will immediately issue transfer
papers to the participant and act to expedite the transfer process.
Evidence of Criminal Activity
The owner may terminate family tenancy and evict by judicial action for criminal
activity by a covered person, if the owner determines he/she has engaged in criminal
activity:
• Regardless of arrest or conviction.
• Without satisfying the standard proof used for criminal conviction.
Release of Sex Offender Reaistration Information or Criminal History
Information to the Owner
The owner may request that SBCS obtain and review criminal or sex offender
registration records for grounds to deny a tenant application, or evict a tenant. SBCS
will charge the owner a fee based on the costs incurred by SBCS, including the costs
charged by the law enforcement agency, SBCS staff time and administrative costs.
The owner may not charge the tenant for this fee.
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SBCS must not release any criminal information or sex offender information to the
owner, but a Department Coordinator will review the information, and if no information
relevant to application or eviction is found, will notify the owner. If information relevant to
the application or eviction is found, the housing supervisor will present his/her findings in
writing to the program manager who will authorize the findings and sign the letter issued
to the owner. The letter will not specify the criminal or sex offender history, but will merely
state that there may be cause for denial or eviction of the tenant. If the owner sends
documentation of needing specific information for an eviction, the program manager must
approve the release of any information in accordance with the regulations. [24 CFR
5.903, 24 CFR 5.905]
Termination of Tenancy Decision
The owner can decide whether to take an action against a tenant, if the law and the
regulations permit. The circumstances to be considered by the owner include:
• The seriousness of the offense.
• The effect on the community.
• The extent of participation by household members.
• The demand for assisted housing by families who will adhere to
responsibilities.
• The extent the tenant has taken personal responsibility.
• The extent the tenant has taken all reasonable steps to mitigate the offending
action(s).
• The effect on the integrity of the program.
Exclusion of Culpable Household Member
The owner may require the tenant to remove a household member, in order to continue
to reside in the assisted unit.
Consideration of Rehabilitation
When determining whether to terminate the tenancy for illegal drug use, or alcohol
abuse, the owner may consider whether the member:
• Is no longer engaged in the offending activities.
• Has successfully completed a supervised drug or alcohol rehabilitation
program.
• Has otherwise been rehabilitated.
The owner may require the tenant to submit evidence of rehabilitation.
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Actions of termination must be consistent with fair housing and equal opportunity
laws as stated in 24 CFR 5.105.
The owner must provide the tenant a written notice specifying the grounds for
termination of tenancy, at or before the commencement of the eviction action. The
notice may be included in, or may be combined with, any owner eviction notice to the
tenant.
The 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 should specify lease violations and cite some, or all of the ways the tenant
has violated the lease, as documentation for SBCS' decision regarding termination of
assistance.
Housing assistance payments are paid to the owner under the terms of the HAP
contract. If the owner has begun eviction and the family continues to reside in the
unit, SBCS must continue to make housing assistance payments to the owner until
the tenant has moved, the owner has obtained a court judgment, or otherwise evicted
the tenant. By endorsing the monthly check from SBCS, the owner certifies that the
tenant is still in the unit, the rent is reasonable, and he/she is in compliance with the
contract. Rental assistance cannot be paid if the unit has an HQS violation that is the
owner's responsibility.
If the action is finalized in court, the owner will be asked to provide SBCS with the
documentation, including notice of the lockout date.
SBCS may issue a new voucher to the family and process its transfer, if the family is
found to have been in compliance with the lease, and all program requirements.
TERMINATION OF THE CONTRACT BY SBCS
The HAP contract terminates when the lease terminates, SBCS terminates program
assistance for the family, or when the owner has breached the HAP contract.
SBCS may also terminate the contract if:
• Funding is no longer available under the ACC.
The contract will terminate automatically 180 days after the last housing assistance
payment to the owner.
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Notice of Termination
In most instances, SBCS will terminate the contract the end of the month following
the month the owner is issued a termination notice. However, the contract will
terminate the end of the month the family vacates the unit and may terminate the end
of the month that serious, life -threatening conditions are noted.
SBCS will forward transfer papers to an eligible family with its termination of contract
notice.
INFORMAL MEETINGS AND REVIEWS
INFORMAL REVIEW PROCEDURES
Upon SBCS determination of applicant ineligibility, the family must be notified in
writing. The notice must contain:
• The reason(s) the family is ineligible.
• The procedure for requesting a review, if the applicant does not agree with the
decision.
• The deadline to request a review.
When denying admission for criminal activity as shown by a criminal record, SBCS
will allow the family to review the criminal record at SBCS office upon family request.
Informal reviews for applicants are not required for established policies and
procedures such as:
• Discretionary administrative determinations by SBCS.
• General policy issues or class grievances.
• A determination of the family unit size under SBCS subsidy standards.
• Refusal to extend or suspend a voucher.
• Refusal to grant approval of the tenancy.
• Determination that unit is not in compliance with HQS.
• Determination that unit is not in accordance with HQS due to family size or
composition.
NOTIFICATION OF REVIEW
SBCS will ensure applicants receive all the rights afforded by laws and regulations.
When SBCS receives a request for an informal review, the informal review shall be
scheduled within 30 days of receipt. The informal review may be conducted by
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telephone, or in person. The applicants will be advised of the time and date of the
informal review, and the right to submit oral or written objections.
Procedure for Informal Review
SBCS must receive a request for an informal review in writing by the close of the
business day, no later than 14 days from the date of the notification of denial of
referral. The informal review will be scheduled within 30 days of the date the request
is received.
The applicant will be given the option of presenting oral or written objections to the
decision. SBCS and the family may present evidence and witnesses. The family may
be accompanied by an attorney or other representative at their own expense.
The review may be conducted by mail and/or telephone if acceptable to both parties.
A notice of the review findings will be provided in writing to the applicant within 20
days after the review. It shall include the decision of the review officer, and an
explanation of the reasons for the decision.
All requests for a review, supporting documentation and a copy of the final decision
will be retained in the family's file.
INFORMAL HEARINGS
SBCS must notify participants, in writing, upon a decision regarding eligibility and/or
the amount of assistance. SBCS will give the family prompt notice of such
determinations, which will include:
• The proposed action or decision of SBCS.
• The date the proposed action or decision will take place
• The family right to an explanation of SBCS decision.
• The procedures to request a hearing, if the family disputes the action or
decision.
• The deadline to request the hearing.
• Where the hearing request must be submitted.
• A copy of SBCS' hearing procedures.
When terminating assistance for criminal activity as shown by a criminal record,
SBCS will allow the participant to come into the office to view the alleged offender
copies of the relevant criminal record(s). In addition, the termination notice will
provide specific information on the criminal history discovered.
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SBCS must provide participants the opportunity for an informal hearing for decisions
related to any of the following:
• Determination of the family's annual or adjusted income.
• The computation of the housing assistance payment.
• The utility allowance schedule used.
• Family unit size determination under SBCS subsidy standards.
• Termination of assistance for any reason.
Informal hearings are not required for established policies and procedures and SBCS
determinations such as:
• Discretionary administrative determinations by SBCS.
• General policy issues or class grievances.
• Establishment of the schedule of utility allowances for families on the program.
• Determination not to approve an extension or suspension of a voucherterm.
• Determination not to approve a unit or lease.
• Determination of owner violation of HQS (SBCS must provide a hearing for
termination of assistance for a family breach of HQS).
• Determination that the unit is not in accordance with HQS because of the
family size.
• Determination to exercise, or not exercise, any right or remedy against the
owner under a HAP contract.
NOTIFICATION OF HEARING
It is SBCS' objective to resolve disputes at the lowest level possible to avoid the most
severe remedies. However, if this is not possible, SBCS will ensure that applicants
and participants receive all of the protections and rights afforded by the law and the
regulations.
When SBCS receives a request for an informal hearing, a hearing will be scheduled
within 30 days. The notification of hearing will contain:
• The date and time of the hearing.
• The location of the hearing.
• The family's right to bring evidence, witnesses, legal or other representation at the
family's expense.
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• The family's right to view any documents or evidence in the possession of
SBCS upon which the proposed action was based.
• A notice to the family stating SBCS requires copies of any documents or
evidence the family will use at the hearing.
PROCEDURE FOR HEARING
A request for an informal hearing must be received in writing by the close of the
business day, no later than 14 days from the date of the notification of denial or
termination of assistance. The informal hearing will be scheduled within 30 days of
the date the request is received.
After a hearing date is scheduled, the family may request to reschedule only upon
showing "good cause," defined as: an unavoidable conflict that seriously affects the
health, safety or welfare of the family.
Families may, during or before the hearing:
• Present written or oral objections to SBCS' determination.
• At least seven days from the date of the Notice of Informal Hearing, examine
and request copies at the family's expense, any unprivileged documents in the
file that are directly relevant, as determined by SBCS, to the issues to be
considered at the hearing which form the basis for SBCS' action, and all
documents submitted to the hearing officer.
• Present any information or witnesses pertinent to the issue of the hearing.
• Request that SBCS staff be available to answer questions pertinent to the
case.
• Be represented by legal counsel, advocate, or other designated representative
at his or her own expense.
In addition to other rights contained in this chapter, SBCS has a right to:
• Present evidence and any information pertinent to the issue of the hearing.
• Be notified if the family intends to be represented by legal counsel, advocate,
or another party.
• Examine and copy any documents to be used by the family at least seven
days prior to the hearing.
• Have its attorney present.
• Have staff persons and other witnesses familiar with the case present.
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The informal hearing shall only concern relevant issues. Evidence presented will be
considered without regard to admissibility under the rules of evidence applicable to
judicial proceedings.
Documents not provided to both parties in advance may not be admitted without
permission of the opposing party. "Documents" includes records or regulations.
The hearing officer may request additional information, or may reconvene the hearing
for a later date before reaching a decision.
If the family misses an appointment or deadline ordered by the hearing officer, the
action of SBCS shall take effect, and another hearing will not be granted.
The hearing officer will determine, based on the evidence and testimony, if the
action, inaction, or decision of SBCS is in accordance with HUD regulations and this
Plan. Factual determinations will be based on a preponderance of the evidence
presented at the hearing.
A notice of the hearing findings provided in writing to SBCS and the family within 20
days shall include:
• A clear summary of the decision and reasons for the decision.
• The effective date of the decision.
• A statement that the tenant may seek judicial review by filing a petition with
the San Diego Superior Court pursuant to section 1094.6 of the California
Code of Civil Procedure. The petition must be filed within 90 days of the date
of this decision.
SBCS is not bound by hearing decisions that:
• Do not require an informal hearing.
• Conflict or contradict HUD requirements or regulations.
• Exceed the hearing officer's authority.
SBCS shall, within 30 days, send a letter to the participant, if it determines it is not
bound by the hearing officer's determination. The letter shall include SBCS decision.
All requests for an informal hearing, supporting documentation, and a copy of the
final decision will be retained in the family'sfile.
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MITIGATING CIRCUMSTANCES FOR APPLICANTS/
PARTICIPANTS WITH DISABILITIES
When applicants are denied placement on the waiting list, or SBCS is terminating
assistance, the family will be informed that the presence of a disability may be
considered as a mitigating circumstance during the informal review or informal
hearing process. However, the presence of a disability is never considered as a
mitigating circumstance for violations of the regulations, criminal activities, violations
of the lease, or for violations of the requirements of agency.
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Chapter 15
OWNER OR FAMILY DEBTS TO SBCS
INTRODUCTION
This chapter describes SBCS' policies for the recovery of monies overpaid to families
and owners. In addition, this chapter outlines the collection methods and guidelines for
the handling and collection of different types of debts. SBCS' policy is to communicate
program guidelines to owners and families in order to minimize SBCS overpayments.
SBCS clearly documents, in the tenant file, the amount and nature of owner or family
debts, as well as the method of calculation. Owners and families may receive copies of
all relevant documentation regarding their debts, upon request.
SBCS will make every effort to collect delinquent family or owner debts. SBCS will use a
variety of collection tools to recover debts including, but not limited to:
• Request for lump sum payments
• Small claim or civil court actions
• Payment agreements
• Termination of family program participation
• Reductions in HAP to owner
• Abatements
• Collection agencies
PAYMENT AGREEMENTS FOR PARTICIPATING FAMILIES
A payment agreement or repayment agreement, as used in this Plan, is a document
entered into between SBCS and a person who owes a debt to SBCS. It is similar to a
promissory note, but contains more details regarding the nature of the debt, the terms of
payment, any special provisions of the agreement, and the remedies available to SBCS
upon default of the agreement.
If SBCS offers a payment agreement, it will determine the terms. SBCS may not offer a
payment agreement in all circumstances.
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The maximum length of time SBCS will enter into a payment agreement with a family
may be as little as 120 days, but a longer period of up to one year may be approved
when family circumstances make it difficult to honor a repayment agreement of a
shorter duration. The Program Director may approve a longer period.
PAYMENT AGREEMENTS FOR FAMILIES NO LONGER ON
THE PROGRAM
A family whose program participation has been terminated will be offered a repayment
agreement. The repayment agreement will ask the family to repay its debt within 120
days, but a longer period of up to one year may be approved, upon request, when family
circumstances make it difficult to honor a repayment agreement of a shorter duration.
The Program Director may approve a longerperiod.
A calculation of the estimated participant debt may be included on the notice of
termination of assistance, whenever possible.
DELINQUENT PAYMENTS
A payment will be considered to be in arrears if:
• The payment has not been received by the close of the business day on
which the payment was due. If the due date is on a weekend or holiday,
the due date will be at the close of the next business day.
If the family's payment agreement is in arrears, and the family has not contacted or
made arrangements with SBCS, SBCS will:
• Require the family to pay the balance in full.
• Pursue civil collection of the balance due.
• Terminate the housing assistance.
A transferring family, delinquent on its payment agreement, is required to pay the
balance in full prior to the issuance of a voucher.
DEBTS DUE TOMISREPRESENTATIONS/NON-REPORTING
OF INFORMATION
HUD's definition of program fraud and abuse is a single act, or pattern of actions that
constitutes false statement, omission, or concealment of a substantive fact, made with
intent to deceive or mislead, and that results in payment of Section 8 program funds in
violation of Section 8 program requirements.
FAMILY ERROR/LATE REPORTING
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Families who owe money to SBCS due to the family's failure to report increases in
income or fail to report any information which will cause an incorrect HAP to be paid to
the owner, will be required to repay in accordance with the guidelines in the payment
agreement section of this chapter.
PROGRAM FRAUD
If a family owes money as a result of program fraud, the case may be referred for
prosecution. The family's program participation will be terminated.
RENTING FROM A RELATIVE
In instances where it is found the family rented from a relative without the required
SBCS permission, an overpayment will be collected from both the owner and the
participant — each party responsible for repayment of 50% of the HAPs paid.
GUIDELINES FOR PAYMENT AGREEMENTS
Payment agreements will be executed between SBCS and the head of household
and/or spouse.
Monthly payments may be decreased in cases of family hardship, and if requested with
reasonable notice from the family, upon verification of the hardship, and the approval of
the program manager.
A family current on its repayments may transfer. No transfer will be approved until a
delinquent debt is paid in full.
If the family already has a payment agreement in place and incurs an additional debt to
SBCS:
• SBCS will not enter into more than one payment agreement with the family.
The family may be allowed 30 days to pay the second debt in full.
OWNER DEBTS TO SBCS
If SBCS determines that the owner has retained housing assistance or claim payments
the owner is not entitled to, SBCS may reclaim the amounts from future housing
assistance or claim payments owed the owner for any units under contract.
When the landlord has been overpaid as a result of fraud, misrepresentation or violation
of the HAP contract, SBCS may terminate the HAP contract, and arrange for restitution
to SBCS and/or family, as appropriate.
In instances where it is found the family rented from a relative without the required
SBCS permission, an overpayment will be collected from both the owner and the
participant — each party responsible for repayment of 50% of the HAPs paid.
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If future housing assistance or claim payments are insufficient to reclaim the amounts
owed, SBCS will seek one or more of the following remedies:
• Require the owner to pay the amount in full within 30 days.
• Pursue collections through collection agencies and/or the local courtsystem.
• Restrict the owner from future participation.
WRITING OFF DEBTS
Department Coordinator may write off uncollectable debts. In determining whether a
debt is uncollectable, the lack of success in collecting, along with the following factors
will be considered:
• The debtor's whereabouts is unknown.
• The debt is more than one year old.
• The debtor is judgment proof.
• The debtor is deceased.
• The amount is Tess than $250.
The writing off of a debt does not remove the debtor's responsibility to repay, or SBCS'
ability to collect the monies owed. SBCS will still deny program admission to an
applicant who has failed to repay monies owed.
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Chapter 16
SPECIAL HOUSING TYPES
INTRODUCTION
The federal regulations allow assistance to be paid on behalf of special housing types.
It is the intent of SBCS to provide as great an opportunity as possible for affordable
housing and wherever possible will allow assistance to be paid on behalf of permissible
special housing types. This chapter describes the special housing types recognized by
SBCS and how these special housing types are handled.
SBCS will not set aside any program funding for any special housing type. A family may
choose to rent housing that qualifies as a special housing type, or to rent other eligible
housing in accordance with requirements of the program.
SPECIAL HOUSING TYPES TO EXPAND AFFORDABLE
HOUSING OPPORTUNITIES
SBCS will consider requests for special housing types on a case -by -case basis. SBCS
is open to special housing types for all families, if their use will expand affordable
housing opportunities. In all cases, SBCS will authorize the use of special housing types
as a reasonable accommodation to those with a disability, so that the program is readily
accessible and usable.
The requested housing type must be approvable by all other HUD standards and HQS
requirements in accordance with 24 CFR 982 Section M - Special Housing Types.
SHARED HOUSING
OCCUPANCY
An assisted family may reside in shared housing. In shared housing, an assisted family
may share a unit with another resident or residents of a unit. The unit may be a house
or an apartment.
SBCS may approve a live-in aide to reside with a family in order to care for a person
with a disability. SBCS must approve a live-in aide, if needed as a reasonable
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accommodation so that the program is readily accessible to and usable by persons with
disabilities.
Other persons who are assisted or not assisted under the tenant -based program may
reside in a shared housing unit. The owner of a shared housing unit may reside in the
unit, but may never be related to the family by blood or marriage even for reasonable
accommodation.
A resident owner may enter into a HAP contract with SBCS. However, housing
assistance may not be paid on behalf of an owner.
There will be a separate housing assistance payment contract and lease for each
assisted family residing in a shared housing unit.
RENT AND HAP CONTRACT
For shared housing, the term "pro-rata portion" means the ratio derived by dividing the
number of bedrooms in the private space available for occupancy by a family, by the
total number of bedrooms in the unit. For example, for a family entitled to occupy three
bedrooms in a five -bedroom unit, the ratio would be 3/5.
The rent to owner for the family may not exceed the pro-rata portion of the reasonable
rent for the shared housing dwelling unit. The reasonable rent must be in accordance
with the standard Section 8 regulations in this Plan.
Maximum Subsidy
The maximum amount that the HOME TBRA program may pay to assist any given
household is the difference between 30 percent of the household's adjusted monthly
income and the lower of the contract rent or payment standard amount on SBCS
payment standard schedule for the family unit size.
If SBCS approves a live-in aide, the live-in aide will be counted in determining the family
unit size. The live-in aide may never be the owner of the assisted unit.
UTILITY ALLOWANCE
The utility allowance for an assisted family living in shared housing is the pro-rata
portion of the utility allowance for the shared housing unit.
HOUSING QUALITY STANDARDS
SBCS will ensure that all shared housing units approved for the program are in
compliance with all of the housing quality standards for shared housing as regulated in
24 CFR 982.618.
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MANUFACTURED HOMES
SBCS will permit a family to lease a manufactured home and space with assistance
under the program just as a house or apartment may be leased. SBCS will provide
assistance for a family that owns the manufactured home and leases only the space.
SBCS may approve a live-in aide to reside with a family to care for a person with
disabilities. SBCS will approve a live-in aide, if needed, as a reasonable
accommodation so the program is accessible to and usable by persons with disabilities.
If SBCS approves a live-in aide, the live-in aide must be counted when determining the
family unit size. A live-in aide may never be an owner of the manufactured home or the
park.
HOUSING QUALITY STANDARDS
A manufactured home must meet all the HQS requirements outlined in the Housing
Quality Standards and Inspections section of this Plan and regulated by 24 CFR
982.401. In addition, the manufactured home also must meet the following
requirements:
• 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.
• SBCS has a HUD waiver of the tie -down requirement for manufactured
homes.
MANUFACTURED HOME SPACE RENTAL
Rent to owner for a manufactured home space will include payment for maintenance
services the owner must provide to the tenant under the lease for the space.
Rent to owner does not include the cost of utilities and trash collection for the
manufactured home. However, the owner may charge the family a separate fee for the
cost of utilities or trash collection provided by the owner.
REASONABLE RENT
During the assisted tenancy, the rent to owner for the manufactured home space may
not exceed a reasonable rent as determined by SBCS.
SBCS will not approve a lease for a manufactured home space until SBCS has
determined that the initial rent to owner for the space is a reasonable rent. At least
annually during the assisted tenancy, SBCS will re -determine that the rent is
reasonable.
SBCS will determine whether the rent to the owner for a manufactured home space is a
reasonable rent in comparison to rents for other comparable manufactured home
spaces. SBCS will consider the size and location of the space and any services and
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maintenance provided by the owner in accordance with the lease. SBCS will evaluate
reasonable rent annually whether the rent has increased or not.
By accepting each monthly housing assistance payment from SBCS, the owner of the
manufactured home space certifies that the rent to owner for the space is not more than rent
charged by the owner for unassisted rental of comparable spaces in the same manufactured
home park, or elsewhere. If requested by SBCS, the owner must provide SBCS information
on rents for other manufactured home spaces.
PAYMENT STANDARD
There is a separate fair market rent (FMR) for a family renting a manufactured home
space. The payment standard, based on the FMR, is used to calculate the monthly
housing assistance payment for a family. While the FMR for a manufactured home
space rent is generally 40% of the published two -bedroom FMR, historically, the San
Diego County region has been awarded a higher FMR for space rent than the standard
formula.
SUBSIDY CALCULATION
During the term of a voucher tenancy, the amount of the monthly housing assistance
payment for a family will equal the lesser of:
• The payment standard minus the total tenant payment, or
• The gross rent for rental of the real property on which the manufactured home
owned by the family is located (the space rent) minus the total tenant payment.
The space rent is the sum of the following as determined by SBCS:
• Rent to owner for the manufactured home space,
• Owner maintenance and management charges for the space, and
• The utility allowance for tenant paid utilities.
UTILITY ALLOWANCE SCHEDULE FOR MANUFACTURED HOME SPACE RENTAL
SBCS will establish utility allowances for manufactured home space rental. For the first
twelve months of the initial lease term only, the allowances will include a reasonable
amount for utility hook-up charges payable by the family, if the family actually incurs the
expenses because of a move.
Expenses include:
• Principal and interest on mortgage debt.
• Mortgage insurance premium.
• Taxes and insurance.
• SBCS utility allowance used for the voucher program.
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If the home is a cooperative or condominium, expenses also include operating
expenses or maintenance fees assessed by the homeowners' association.
SBCS will not include allowances for maintenance or major repairs and replacements.
MOVE -OUT AND CLOSE-OUT INSPECTIONS
The HOME Tenant Based Rental Assistance Program has no damage claim provision.
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GLOSSARY
ACRONYMS USED IN SUBSIDIZED HOUSING
ACC Annual Contributions Contract
BR Bedroom
CDBG Community Development Block Grant
CFR Code of Federal Regulations. Commonly referred to as "the regulations."
The CFR is the compilation of Federal rules first published in the Federal
Register to define and implement a statute.
CPI Consumer Price Index. CPI is published monthly by the Department of
Labor as an inflation indicator.
ELI Extremely low income
FDIC Federal Deposit Insurance Corporation
FHA Federal Housing Administration
FICA Federal Insurance Contributions Act - Social Security taxes
FmHA Farmers Home Administration
FMR Fair Market Rent
FY Fiscal Year
FYE Fiscal Year End
GAO Government Accounting Office
GFC Gross Family Contribution. Has been replaced by the term Total Tenant
Payment (TTP).
GR Gross Rent
HAP Housing Assistance Payment
HAP Plan Housing Assistance Payment Plan
HCDA Housing and Community Development Act
HQS Housing Quality Standards
HUD The Department of Housing and Urban Development or itsdesignee.
HURRA Housing and Urban/Rural Recovery Act of 1983; resulted in most of the
1984 HUD regulation changes to definition of income, allowances, rent
calculations
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IG Inspector General
IGR Independent Group Residence
IPA Independent Public Accountant
IRA Individual Retirement Account
MSA Metropolitan Statistical Area established by the U.S. Census Bureau
PHA Public Housing Agency
PMSA A Primary Metropolitan Statistical Area established by the U.S.
Census Bureau
PS Payment Standard
QC Quality Control
RFTA Request for Tenancy Approval
RFP Request for Proposals
RRP Rental Rehabilitation Program
SRO Single Room Occupancy
SSMA Standard Statistical Metropolitan Area. Has been replaced by
MSA, Metropolitan Statistical Area.
TR Tenant Rent
TTP Total Tenant Payment
UA Utility Allowance
URP Utility Reimbursement Payment
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GLOSSARY OF TERMS IN SUBSIDIZED HOUSING
1937 ACT. The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.)
ADMINISTRATIVE PLAN. The HUD required written policy of the PHA governing its
administration of the Section 8 tenant -based programs. The Administrative Plan and
any revisions must be approved by the PHA's board and a copy submitted to HUD as
a supporting document to the PHA Plan.
ABSORPTION. In portability, 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.
ACC RESERVE ACCOUNT (FORMERLY "PROJECT RESERVE"). Account
established by HUD from amounts by which the maximum payment to the PHA under
the consolidated ACC (during a PHA fiscal year) exceeds the amount actually
approved and paid. This account is used as the source of additional payments for the
program.
ADA. Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)
ADJUSTED INCOME. Annual income, less allowable HUD deductions.
ADMINISTRATIVE FEE. Fee paid by HUD to the PHA for administration of the
program.
ADMINISTRATIVE FEE RESERVE (Formerly "Operating reserve"). Account
established by PHA from excess administrative fee income. The administrative fee
reserve must be used for housing purposes.
ADMISSION. The effective date of the first HAP contract for a family (first day of
initial lease term) in a tenant -based program. This is the point when the family
becomes a participant in the program.
ANNUAL BUDGET AUTHORITY. The maximum annual payment by HUD to a PHA
for a funding increment.
ANNUAL CONTRIBUTIONS CONTRACT (ACC). A written contract between HUD
and a PHA. Under the contract HUD agrees to provide funding for operation of the
program, and the PHA agrees to comply with HUD requirements for the program
ANNUAL INCOME. The anticipated total Annual 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 and as defined in 24 CFR, Part 5,
Subpart F (Section 5.609).
ANNUAL INCOME AFTER ALLOWANCES. The Annual Income (described above)
less the HUD -approved allowances.
APPLICANT. (or applicant family). A family that has applied for admission to a
program, but is not yet a participant in the program.
"AS -PAID" STATES. States where the welfare agency adjusts the shelter and utility
component of the welfare grant in accordance with actual housing costs.
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ASSETS. (See Net Family Assets.)
ASSISTED TENANT. A tenant who pays less than the market rent as defined in the
regulations. Includes tenants receiving rent supplement, Rental Assistance
Payments, or Section 8 assistance and all other 236 and 221 (d)(3) BMIR tenants,
except those paying the 236 market rent or 120% of the BMIR rent, respectively.
AUXILIARY AIDS. Term refers to 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. For example, auxiliary aids for persons with impaired vision may
include: readers, Brailed materials, audio recordings, and other similar services and
devices. Auxiliary aids for persons with impaired hearing may include: telephone
handset amplifiers, telephones compatible with hearing aids, telecommunication
devices for deaf persons (TDDs), interpreters, note takers, written materials, and
other similar services and devices.
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 CARE EXPENSES. Amounts paid by the family for the care of minors under
13 years of age where such care is necessary to enable an adult family member to
be employed, actively seek work or to further his/hereducation.
CO-HEAD. An individual in the household who is equally responsible for the lease
with the head of household. (A family never has a co-head and a spouse and; a co-
head is never a dependent).
COMMON SPACE. In shared housing: Space available for use by the assisted family
and other occupants of the unit.
CONGREGATE HOUSING. Housing for elderly persons or persons with disabilities
that meets the HQS for congregate housing.
CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT. (Consolidated ACC).
See 24 CFR 982.151.
CONTIGUOUS MSA. In portability, 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
Housing Act if the family is already receiving assistance under any 1937 Housing Act
program when the family is admitted to the voucher program.
CONTRACT. (See Housing Assistance Payments Contract.)
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. A cooperative also is
defined as a dwelling unit owned and/or shared by a group of individuals who have
individual sleeping quarters and share common facilities such as kitchen, living room
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and some bathrooms.
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.
DEPENDENT. A member of the family household (excluding foster children) other
than the family head or spouse, or co-head, who is under 18 years of age or is a
disabled person or handicapped person, or is a full-time student 18 years of age or
over.
DISABILITY ASSISTANCE EXPENSE. Anticipated costs for care attendants and
auxiliary apparatus for disabled family members to enable a family member
(including the disabled family member) to work.
DISABLED FAMILY. Means a family whose head, or spouse, or sole member
(head), is a person with disabilities. The term "disabled family" may include: two or
more persons with disabilities living together, or one or more persons with disabilities
living with one or more persons determined to be essential to the care or well-being
of the person or persons with disabilities (live-in aides). A disabled family may include
persons with disabilities who are elderly.
DISABLED PERSON. See Person with Disabilities.
DISPLACED PERSON/FAMILY. A person or family 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 under federal disaster
relief laws.
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,
use, or the possession with intent to manufacture, sell distribute or use, of a
controlled substance (as defined in Section 102 of the Controlled Substance Act (21
U.S.C. 802).
DRUG TRAFFICKING. The illegal manufacture, sale, distribution, use, or possession
with intent to manufacture, sell, distribute or use, of a controlled substance (as
defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)).
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).
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ELDERLY FAMILY. A family whose head, spouse, or sole member (head) is a
person who is an elderly person (at least 62 years of age). The term "elderly family"
includes 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. An elderly family may include elderly persons with disabilities, and non -elderly
family members.
ELDERLY HOUSEHOLD. A family whose head or spouse or whose sole member is
at least 62 years of age. The term "elderly family" may include two or more elderly
persons living together or one or more such persons living with another person who
is determined to be essential to his/her care and wellbeing.
ELDERLY PERSON. A person who is at least 62 years old.
ELIGIBILITY INCOME. May 10, 1984, regulations deleted eligibility income, per se,
because Annual Income is now for eligibility determination to compare to income
limits.
ELIGIBLE FAMILY. (Family). A family is defined by the PHA in the Administrative
Plan, approved by HUD.
EXCEPTIONAL MEDICAL OR OTHER EXPENSES. Prior to the regulation change
in 1982, this meant medical and/or unusual expenses as defined in Part 889 which
exceeded 25% of the annual income. It is no longer used.
EXCEPTION RENT. In the pre -merger certificate program, an initial rent (contract
rent plus any utility allowance) in excess of the published FMR. See FMR/Exception
rent.
EXCESS MEDICAL EXPENSES. Any medical expenses incurred by elderly or
disabled families in excess of 3% of annual income which are not reimbursable from
any other source.
EXTREMELY LOW-INCOME FAMILY. A family whose annual income does not
exceed 30 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larger families. HUD may establish income ceilings
higher or lower than 30% of median income if HUD finds such variations are
necessary due to unusually high or low family incomes.
FAIR HOUSING ACT. Title VIII of the Civil Rights Act of 1968, as amended by the
Fair Housing Amendments Act of 1988 (42 U.S.C. 3601 et seq.)
FAIR MARKET RENT (FMR). The rent including the cost of utilities (except
telephone) that would be required to be paid in the housing market area to obtain
privately owned existing decent, safe and sanitary rental housing of modest (non -
luxury) nature with suitable amenities. Fair market rents for existing housing are
established by HUD for housing units of varying sizes (number of bedrooms) and are
published in the Federal Register.
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FAMILY. "Family" includes but is not limited to:
A family with or without children (the temporary absence of a child from the
home due to placement in foster care shall not be considered in determining
family composition and family size);
An elderly family;
A near -elderly family;
A displaced family
The remaining member of a tenant family; and
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" can be further defined by the PHA).
FAMILY OF VETERAN OR SERVICE PERSON. A family is a "family of veteran or
service person" when:
The veteran or service person (a) is either the head of household or is related
to the head of the household; or (b) is deceased and was related to the head
of the household, and was a family member at the time of death.
The veteran or service person, unless deceased, is living with the family or is
only temporarily absent unless s/he was (a) formerly the head of the
household and is permanently absent because of hospitalization, separation,
or desertion, or is divorced; provided, the family contains one or more persons
for whose support s/he is legally responsible and the spouse has not
remarried; or (b) not the head of the household but is permanently
hospitalized; provided, that s/he was a family member at the time of
hospitalization and there remain in the family at least two related persons.
FAMILY RENT TO OWNER. In the voucher program, the portion of the rent to owner
paid by the family.
FAMILY SELF-SUFFICIENCY PROGRAM (FSS PROGRAM). The program
established by a PHA to promote self-sufficiency of assisted families, including the
provision of supportive services.
FAMILY SHARE. The amount calculated by subtracting the housing assistance
payment from the gross rent.
FAMILY UNIT SIZE. The appropriate number of bedrooms for a family, as
determined by the PHA under the PHA's subsidy standards.
FMR/EXCEPTION RENT. The fair market rent published by HUD headquarters. In
the pre -merger certificate program the initial contract rent for a dwelling unit plus any
utility allowance could not exceed the FMR/exception rent limit (for the dwelling unit
or for the family unit size). In the voucher program the PHA adopts a payment
standard schedule that is within 90% to 110% of the FMR for each bedroom size.
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FOSTER CHILD CARE PAYMENT. 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).
FUNDING INCREMENT. Each commitment of budget authority by HUD to a PHA
under the consolidated annual contributions contract for the PHA program.
GROSS FAMILY CONTRIBUTION. Changed to Total Tenant Payment.
GROSS RENT. The sum of the Rent to Owner and the utility allowance. If there is no
utility allowance, Rent to Owner equals Gross Rent.
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).
HANDICAP. Any condition or characteristic that renders a person an individual with
handicaps.
HAP CONTRACT. (See Housing Assistance Payments contract.)
HEAD OF HOUSEHOLD. The head of household is the person who assumes legal
and financial responsibility for the household and is listed on the application as head.
HOUSING AGENCY. A state, county, municipality or other governmental entity or
public body (or agency or instrumentality thereof) authorized to engage in or assist in
the development or operation of low-income housing. ("PHA" and "HA" mean the
same thing.)
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. Act in which the U.S.
Housing Act of 1937 (sometimes referred to as the Act) was recodified, and which
added the Section 8 Programs.
HOUSING ASSISTANCE PAYMENT. The monthly assistance payment by a PHA.
The total assistance payment consists of:
A payment to the owner for rent to owner under the family's lease.
An additional payment to the family if the total assistance payment exceeds
the rent to owner. The additional payment is called a "utility reimbursement"
payment.
HOUSING ASSISTANCE PAYMENTS CONTRACT. (HAP contract). A written
contract between a PHA and an owner in the form prescribed by HUD headquarters, in
which the PHA agrees to make housing assistance payments to the owner on behalf
of an eligible family.
HOUSING ASSISTANCE PLAN. (1) A Housing Assistance Plan submitted by a local
government participating in the Community Development Block Program as part of the
block grant application, in accordance with the requirements of 570.303(c) submitted by
a local government not participating in the Community Development
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Block Grant Program and approved by HUD. (2) A Housing Assistance Plan meeting
the requirements of 570.303(c) submitted by a local government not participating in
the Community Development Block Grant Program and approved by HUD.
HOUSING QUALITY STANDARDS (HQS). The HUD minimum quality standards for
housing assisted under the tenant -based programs.
HUD. The Department of Housing and Urban Development.
HUD REQUIREMENTS. HUD requirements for the Section 8 programs. HUD
requirements are issued by HUD headquarters as regulations, Federal Register
notices, or other binding program directives.
IMPUTED ASSET. Asset disposed of for less than Fair Market Value during two
years preceding examination or reexamination.
IMPUTED INCOME. HUD passbook rate x total cash value of assets. Calculation
used when 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.
INDIAN. Any person recognized as an Indian or Alaska native by an Indian tribe, the
federal government, or any State.
INDIAN HOUSING AUTHORITY (IHA). A housing agency established either by
exercise of the power of self-government of an Indian Tribe, independent of State
law, or by operation of State law providing specifically for housing authorities for
Indians.
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 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 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 of the safety of others.
INITIAL PHA. In portability, the term refers to both:
A PHA that originally selected a family that later decides to move out of the
jurisdiction of the selecting PHA; and
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.
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INITIAL RENT TO OWNER. The rent to owner at the beginning of the HAP contract
term.
INTEREST REDUCTION SUBSIDIES. The monthly payments or discounts made by
HUD to reduce the debt service payments and, hence, rents required on Section 236
and 221 (d)(3) BMIR projects. Includes monthly interest reduction payments made to
mortgagees of Section 236 projects and front-end loan discounts paid on BMIR
projects.
JURISDICTION. The area in which the PHA has authority under State and local law
to administer the program.
LANDLORD. This term means 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.
LARGE VERY LOW INCOME FAMILY. Prior to the 1982 regulations, this meant a
very low-income family which included six or more minors. This term is no longer
used.
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. In cooperative housing, a written agreement
between a cooperative and a member of the cooperative. The agreement establishes
the conditions for occupancy of the member's family with housing assistance
payments to the cooperative under a HAP contract between the cooperative and the
PHA.
LEASE ADDENDUM. For pre -merger Certificate, pre -merger OFTO, and pre -merger
Voucher tenancies, the lease language required by HUD in the lease between the
tenant and the owner.
LIVE-IN AIDE. A person who resides with an elderly person or disabled person and
who is determined to be essential to the care and well-being of the person, is not
obligated for the support of the person, and would not be living in the unit except to
provide necessary supportive services.
LOCAL PREFERENCE. A preference used by the PHA to select among applicant
families.
LOW-INCOME FAMILY. A family whose annual income does not exceed 80 percent
of the median income for the area, as determined by HUD, with adjustments for
smaller and larger families. HUD may establish income ceilings higher or lower than
80% for areas with unusually high or low-income families.
MAJOR LIFE ACTIVITIES. The term is related to an individual with handicaps, and
refers to functions such as caring for one's self, performing manual tasks, walking,
seeing, hearing, speaking, breathing, learning, and working.
MANUFACTURED HOME. A manufactured structure that is built on a permanent
chassis, is designed for use as a principal place of residence, and meets HQS. A
special housing type. See 24 CFR 982.620 and 982.621.
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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
MARKET RENT. The rent HUD authorizes the owner of FHA insured/subsidized
multi -family housing to collect from families ineligible for assistance. For
unsubsidized units in an FHA -insured multi -family project in which a portion of the
total units receive project -based rental assistance, under the Rental Supplement or
Section 202/Section 8 Programs, the Market Rate Rent is that rent approved by HUD
and is the Contract Rent for a Section 8 Certificate holder. For BMIR units, Market
Rent varies by whether the project is a rental or cooperative.
MEDICAL EXPENSES. Those total 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% of Annual Income.
MERGER DATE. October 1, 1999 was the date the Voucher and Certificate
programs began to be converted to the Housing Choice Voucher program.
MINOR. A member of the family household (excluding foster children) other than the
family head or spouse who is under 18 years of age.
MIXED FAMILY. A family with citizens and those with eligible immigration status and
without citizens and those with eligible immigration status as defined in 24 CFR
5.504(b)(3)
MONTHLY ADJUSTED INCOME. 1/12 of the Annual Income after Allowances or
Adjusted Income.
MONTHLY INCOME. 1/12 of the 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. The family may
include: 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.
NEGATIVE RENT. Now called Utility Reimbursement. A negative tenant rent results
in a Utility Reimbursement Payment (URP).
NET FAMILY ASSETS. Value of equity in savings, checking, IRA and Keogh
accounts, real property, stocks, bonds, and other forms of capital investment. The
value of necessary items of personal property such as furniture and automobiles is
excluded from the definition.
NET FAMILY CONTRIBUTION. Former name for Tenant Rent.
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OCCUPANCY STANDARDS. [Now referred to as Subsidy Standards] Standards
established by a PHA to determine the appropriate number of bedrooms for families
of different sizes and compositions.
OVER-FMR TENANCY (OFTO). In the pre -merger Certificate program: A tenancy for
which the initial gross rent exceeds the FMR/exception rent limit. This program no
longer exists.
OWNER. Any persons or entity having the legal right to lease or sublease a unit to a
participant.
PARTICIPANT. A family that has been admitted to the PHA's 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. A person who has a disability as defined in 42 U.S.0
423 or a developmental disability as defined in 42 U.S.C. 6001. Also includes a
person who is determined, under HUD regulations, to have a physical or mental
impairment that is expected to be of long -continued and indefinite duration,
substantially impedes the ability to live independently, and is of such a nature that
the ability to live independently could be improved by more suitable housing
conditions. For purposes of reasonable accommodation and program accessibility for
persons with disabilities, means an "individual with handicaps" as defined in 24 C F R
8.3. Definition does not exclude persons who have AIDS or conditions arising from
AIDS, but does not include a person whose disability is based solely on drug or
alcohol dependence (for low-income housing eligibility purposes).
PHA PLAN. The annual plan and the 5-year plan as adopted by the PHA and
approved by HUD in accordance with 24 CFR 903.
PORTABILITY. Renting a dwelling unit with Section 8 tenant -based assistance
outside the jurisdiction of the initial PHA.
PREMISES. The building or complex in which the dwelling unit is located, including
common areas and grounds.
PRIVATE SPACE. In shared housing: The portion of a contract unit that is for the
exclusive use of an assisted family.
PROCESSING ENTITY. Entity responsible for making eligibility determinations and
for income reexaminations. In the Section 8 Program, the "processing entity" is the
"responsible entity."
PROGRAM. The Section 8 tenant -based assistance program under 24 CFR Part
982.
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PROGRAM RECEIPTS. HUD payments to the PHA under the consolidated ACC,
and any other amounts received by the PHA in connection with the program.
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). PHA includes any State, county, municipality
or other governmental entity or public body that is authorized to administer the
program (or an agency or instrumentality of such an entity), or any of thefollowing:
A consortia of housing agencies, each of which meets the qualifications in
paragraph (1) of this definition, that HUD determines has the capaCounty and
capability to efficiently administer the program (in which case, HUD may enter
into a consolidated ACC with any legal entity authorized to act as the legal
representative of the consortia members):
Any other public or private non-profit entity that was administering a Section 8
tenant -based assistance program pursuant to a contract with the contract
administrator of such program (HUD or a PHA) on October 21, 1998; or
For any area outside the jurisdiction of a PHA that is administering a tenant -
based program, or where HUD determines that such PHA is not administering
the program effectively, a private non-profit entity or a governmental entity or
public body that would otherwise lack jurisdiction to administer the program in
such area.
REASONABLE RENT. A rent to owner that is not more than rent charged for
comparable units in the private unassisted market, and not more than the rent
charged for comparable unassisted units in the premises.
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. There are
annual and interim recertifications.
REGULAR TENANCY. In the pre -merger certificate program: A tenancy other than
an over-FMR tenancy. This program no longer exists
REMAINING MEMBER OF TENANT FAMILY. Person left in assisted housing after
other family members have left and become unassisted.
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RENT TO OWNER. The total monthly rent payable to the owner under the lease for
the unit. 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 ("residency preference area").
RESIDENCY PREFERENCE AREA. The specified area where families must reside
to qualify for a residency preference.
RESIDENT ASSISTANT. A person who lives in an Independent Group Residence
and provides on a daily basis some or all of the necessary services to elderly,
handicapped, and disabled individuals receiving Section 8 housing assistance and
who is essential to these individuals' care or well being. A Resident Assistant shall
not be related by blood, marriage or operation of law to individuals receiving Section
8 assistance nor contribute to a portion of his/her income or resources towards the
expenses of these individuals.
RESPONSIBLE ENTITY. For the public housing and Section 8 tenant -based
assistance, project -based certificate assistance and moderate rehabilitation program,
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 (42 U.S.C. 1437f).
SECURITY DEPOSIT. A dollar amount to be paid by a tenant to a landlord and to be
applied to unpaid rent, damages or other amounts to the owner under the lease.
SERVICE PERSON. A person in the active military or naval service (including the
active reserve) of the United States.
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.
SINGLE PERSON. A person living alone or intending to live alone.
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 24 CFR 982, which 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 husband or wife of the head of the household.
SUBSIDIZED PROJECT. A multi -family housing project (with the exception of a
project owned by a cooperative housing mortgage corporation or association) which
receives the benefit of subsidy in the form of:
Below -market interest rates pursuant to Section 221(d)(3) and (5) or interest
reduction payments pursuant to Section 236 of the National Housing Act; or
Rent supplement payments under Section 101 of the Housing and Urban
Development Act of 1965; or
Direct loans pursuant to Section 202 of the Housing Act of 1959; or
Payments under the Section 23 Housing Assistance Payments Program
pursuant to Section 23 of the United States Housing Act of 1937 prior to
amendment by the Housing and Community Development Act of 1974;
Payments under the Section 8 Housing Assistance Payments Program
pursuant to Section 8 of the United States Housing Act after amendment by
the Housing and Community Development Act unless the project is owned by
a Public Housing Agency;
A Public Housing Project.
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.
SUBSTANDARD UNIT. Substandard housing is defined by HUD for use as a federal
preference.
SUSPENSION/TOLLING. Stopping the clock on the term of a family's voucher, for
such period as determined by the PHA, from the time when the family submits a
request for PHA approval to lease a unit, until the time when the PHA approves or
denies the request. If the PHA decides to allow extensions or suspensions of the
voucher term, the PHA administrative plan must describe how the PHA determines
whether to grant extensions or suspensions, and how the PHA determines the length
of any extension or suspension.
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.
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TENANT RENT. The amount payable monthly by the family as rent to the unit owner
(Section 8 owner or PHA in public housing). For a tenancy in the pre -merger
certificate program, tenant rent equals the total tenant payment minus any utility
allowance.
TOTAL TENANT PAYMENT (TTP). The total amount the HUD rent formula requires
the tenant to pay toward gross rent and utility allowance.
UNIT. Residential space for the private use of a family.
UNUSUAL EXPENSES. Prior to the change in the 1982 regulations, this was the
term applied to the amounts paid by the family for the care of minors under 13 years
of age or for the care of disabled or handicapped family household members, but
only where such care was necessary to enable a family member to be gainfully
employed.
UTILITIES. Utilities means water, electriCounty, gas, other heating, refrigeration,
cooking fuels, stove, trash collection and sewage services. Telephone service is not
included as a utility.
UTILITY ALLOWANCE. If the cost of utilities for water, sewer, gas, and
electriCounty and including range and refrigerator, and other housing services for an
assisted unit is not included in the Contract 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 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 healthy living environment.
UTILITY REIMBURSEMENT. In the voucher program, the portion of the housing
assistance payment which exceeds the amount of the rent to owner.
UTILITY REIMBURSEMENT PAYMENT. In the pre -merger certificate program, the
amount, if any, by which the Utility Allowance for the unit, if applicable, exceeds the
Total Tenant Payment for the family occupying the unit.
VACANCY LOSS PAYMENTS. (For pre -merger certificate contracts effective prior to
10/2/95) When a family vacates its unit in violation of its lease, the owner is eligible
for 80% of the Contract Rent for a vacancy period of up to one additional month,
(beyond the month in which the vacancy occurred) if s/he notifies the PHA as soon
as s/he learns of the vacancy, makes an effort to advertise the unit, and does not
reject any eligible applicant except for good cause.
VERY LARGE LOWER -INCOME FAMILY. Prior to the change in the 1982
regulations this was described as a lower -income family which included eight or more
minors. This term is no longer used.
VERY LOW INCOME FAMILY. A Lower -Income Family whose Annual Income does
not exceed 50% 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% 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 pre -merger certificate and voucher programs.
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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 under
conditions other than dishonorable.
VIOLENT CRIMINAL ACTIVITY. Violent criminal activity is 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 likely to cause, serious bodily injury or
property damage.
VOUCHER (rental voucher). A document issued by a PHA to a family selected for
admission to the voucher program. This document describes the program and the
procedures for PHA approval of a unit selected by the family. The voucher also
states the obligations of the family under the program.
VOUCHER HOLDER. A family holding an active voucher that has not yet expired
(search time).
VOUCHER PROGRAM. The Housing Choice Voucher program.
WAITING LIST. A list of families organized according to HUD regulations and PHA
policy waiting for a subsidy 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
Family Self Sufficiency 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.
WELFARE RENT. This concept is used ONLY for pre -merger Certificate tenants who
receive welfare assistance on an "AS -PAID" basis. It is not used for the Housing
Voucher Program.
If the agency does NOT apply a ratable reduction, this is the maximum a
public assistance agency COULD give a family for shelter and utilities, NOT
the amount the family is receiving at the time the certification or recertification
is being processed.
If the agency applies a ratable reduction, welfare rent is a percentage of the
maximum the agency could allow.
WELFARE -TO -WORK (WTW) FAMILIES. Families assisted by a PHA with voucher
funding awarded to the PHA under the HUD welfare -to -work voucher program
(including any renewal of such WTW funding for the same purpose.
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EXHIBIT C
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U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Tenant Based Rental Assistance (TBRA) Set Up Form
HOME Program
Check the appropriate box:
❑Original Submission EChange Owner's Address
['Revision
Name and Phone Number of Person Completing Form:
A. General and Activity Information.
1. Name of Participant:
2. County Code:
3. IDIS Activity ID Number:
4. Activity Name:
Set Up Activity
B. Objective and Outcome.
1. Objective (enter code): (2)
(1) Create suitable living environment
(2) Provide decent affordable housing
(3) Create economic opportunities
2. Outcome (enter code): (2)
(1) Availability/accessibility
(2) Affordability
(3) Sustainability
C. Household Characteristics. (Refer to code below where applicable) Assisting more than 8 tenants? Make copies of this page for
additional saace.
Monthly Rent
Household
Tenant Contract
Last
Name
# of
Bdrms
Sec
Dep
Tenant
Monthly
Rent
TBRA
Monthly
Rent
Total
Monthly
Rent
%
Med
Hispanic?
Y/N
Race
Size
Type
Paid To
0=Owner
T=Tenant
New?
Y/N
Months
(1 to 24)
D. Total/Subtotal of HOME Funds Requested: $
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E. TBRA Units
Number of TBRA Units:
Designated for the homeless:
Of those the number designated for the chronically homeless:
Was this activity carried out by a faith -based organization (Y/N)?
# of Bdrms
0 — SRO/Efficiency
1 — 1 bedroom
2 — 2 bedrooms
3 — 3 bedrooms
4 — 4 bedrooms
5 — 5 or more bedrooms
Household % of Med
1-0to30%
2-30+to50%
3-50+to60%
4 — 60+ to 80%
Household Race
11 — White
12 — Black/African American
13 — Asian
14 — American Indian/Alaska Native
15 — Native Hawaiian/Other Pacific Islander
16 — American Indian/Alaska Native & White
17 — Asian & White
18 — Black/African American & White
19 —American Indian/Alaska Native & Black/African American
20 —Other multi -racial
Household Size
1 — 1 person
2 — 2 persons
3 — 3 persons
4 — 4 persons
5 — 5 persons
6 — 6 persons
7 — 7 persons
8 — 8 or more persons
Household Type
1 — Single, non -
elderly
2 — Elderly
3 — Single parent
4 — Two parents
5 — Other
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HUD TBRA Set Up Form
C. Household Characteristics : Refer instructions and codes (below) where applicable.
Client ID#
Address
4•.sxsv z....
E
Move -in
Date
Security
Deposit
Gross Rent
Utility
Allowance
Notes:
Moths
7 1,0 2,1 The amounts In bold type are the tenant and HAP
amounts that should be constant going forward.
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Instructions for Completing the Tenant -Based Rental Assistance Set-up Report
HOME Program
Read the instructions for each item carefully before completing the form.
Applicability. The purpose of this report is to assist with the collection
of information to be entered into IDIS. This report is to be completed for
each TBRA activity set-up in IDIS. A single activity may include up to
99 tenants. For centralized State projects, the tenants must be in the
same county.
Timing. Data is to be entered into IDIS before funds may be drawn
down for the activity. An amended set-up report should be completed to
increase or decrease HOME funding for the activity.
A. General and Activity Information.
1. Name of Participant. Enter the name of the participating
jurisdiction or the agency administering the TBRA activity.
2. County Code. Enter the county code of the agency administering
this HOME activity.
3. IDIS Activity ID Number. Enter the activity number assigned by
IDIS.
4. Activity Name. Enter the name designated to the activity. The
blank boxes may be used for intemal tracking purposes.
B. Objective and Outcome:
Objective. Enter the code of the objective that best describes the
purpose of the activity. If a code is not entered in IDIS, the system will
default the answer to "2" — Decent affordable housing.
1. Suitable living environments. Applies to activities that benefit
communities, families, or individuals by addressing issues in their
living environment.
2. Decent affordable housing. Applies to housing activities that
meet individual family or community needs. This objective should
not be used for activities where housing is an element of a larger
effort.
3. Creating economic opportunities. Applies to activities
related to economic development, commercial revitalization, and
job creation.
Outcome. Enter code of the outcome that best describes the benefits
resulting from the activity. If a code is not entered in IDIS, the system
will default the answer to "2" — Affordability.
1. Availability/accessibility. Applies to activities that make
services, infrastructure, housing, and shelter available and
accessible. Note that accessibility does not refer only to physical
barriers.
2. Affordability. Applies to activities that provide affordability in a
variety of ways. It can include the creation or maintenance of
affordable housing, basic infrastructure hookups, or services such
as transportation or day care.
3. Sustainability. Applies to activities that promote livable or
viable communities and neighborhoods by providing services or by
removing slums or blighted areas.
C. Household Characteristics.
Complete one line for each tenant receiving tenant -based rental
assistance from the HOME Program.
Tenant's Last Name. Enter the tenant's last name if the name is 5
letters or less. Enter the first five letters of the last name if the name is
more than five letters or a unique file identification number.
# of Bdrms. Enter 0 for a single room occupancy (SRO) unit or for an
efficiency unit, 1 for 1 bedroom, 2 for 2 bedrooms, 3 for 3 bedrooms, 4
for 4 bedrooms, and 5 for 5 or more bedrooms.
Sec Dep. Enter the amount of HOME funds to be paid to the tenant or
owner as a security deposit payment (to the nearest dollar).
Tenant Monthly Rent. Enter the actual rent, including utilities, to be
paid by the tenant at the time of activity completion (to the nearest
dollar). If the rent includes utilities, or, if the rent includes partial utilities,
e.g., heat, but not electricity, these utility costs must be added to the
rent. Compute utility costs for the area (and in the case of partial
utilities, compute costs for utilities excluded from the rent), by using the
utility allowance schedule produced by the local Public Housing
Authority (PHA).
TBRA Monthly Rent. Enter the amount of HOME funds to be paid to
the tenant or owner as a rent subsidy payment, including any utility
allowances (to the nearest dollar).
Total Monthly Rent. The total monthly rent is automatically calculated
by IDIS.
Household % of Med. For each household assisted with HOME funds,
enter one code only based on the following definitions:
1. 0 to 30% refers to a household whose annual income is at or
below 30 percent of the median family income for the area, as
determined by HUD with adjustments for smaller and larger
families.
2. 30+ to 50% refers to a household whose annual income exceeds
30 percent and does not exceed 50 percent of the median family
income for the area, as determined by HUD with adjustments for
smaller and larger families.
3. 50+ to 60% refers to a household whose annual income exceeds
50 percent and does not exceed 60 percent of the median family
income for the area, as determined by HUD with adjustments for
smaller and larger families.
4. 60+ to 80% refers to a household whose annual income exceeds
60 percent and does not exceed 80 percent of the median family
income for the area, as determined by HUD with adjustments for
smaller and larger families.
Household Hispanic? YIN. For each household assisted with HOME
funds, enter the ethnicity of the head of household as either "Y" for
Hispanic or Latino or "N" for not Hispanic nor Latino. Hispanic or Latino
ethnicity is defined as a person of Cuban, Mexican, Puerto Rican,
South/Central American, or other Spanish culture or origin, regardless
of race. The term, "Spanish origin," can be used in addition to "Hispanic
or Latino."
Household Race. For each household assisted with HOME funds,
enter one code only based on the following definitions:
11. White. A person having origins in any of the original peoples of
Europe, North Africa or the Middle East.
12. Black/African American. A person having origins in any of the
black racial groups of Africa. Terms such as "Haitian" or "Negro"
can be used in addition to "Black or African American."
13. Asian. A person having origins in any of the original peoples of
the Far East, Southeast Asia, or the Indian subcontinent including,
for example, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand and Vietnam.
14. American Indian or Alaska Native. A person having origins in
any of the original peoples of North and South America (including
Central America), and who maintains affiliation or community
attachment.
15. Native Hawaiian or Other Pacific Islander. A person having
origins in any of the original people of Hawaii, Guam, Samoa or
other Pacific Islands.
16. American Indian/Alaska Native & White. A person having these
multiple race heritages as defined above.
17. Asian & White. A person having these multiple race heritages as
defined above.
18. Black/African American & White. A person having these
multiple race heritages as defined above.
19. American Indian or Alaska Native & Black or African
American. A person having these multiple race heritages as
defined above.
20. Other multi -racial. For reporting individual responses that are not
included in any of the other categories listed above.
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Page 3 of 4 Page 200 of 228Revised (8/06)
Household Size. Enter the appropriate number of persons in the
household: 1, 2, 3, 4, 5, 6, 7, or 8 (for households of more than 8, enter
8).
Household Type. For each household assisted with HOME funds,
enter one code only based on the following definitions:
1. Single, non -elderly. One -person household in which the person is
not elderly.
2. Elderly. One or two person household with a person at least 62
years of age.
3. Single parent. A single parent household with a dependent child
or children (18 years old or younger).
4. Two parents. A two -parent household with a dependent child or
children (18 years old or younger).
5. Other. Any household not included in the above 4 definitions,
including two or more unrelated individuals.
Tenant Contract Paid To. Enter an 0, if the TBRA Monthly Rent will
be paid to the Owner. Enter a T, if it will be paid to the Tenant.
Tenant Contract New? Enter a Y, if the tenant is newly assisted.
Enter an N, if the tenant's assistance is being renewed.
Tenant Contract Months. Enter the number of months in the contract
with the tenant. Valid entries are 1 to 24.
D. Total/Subtotal of HOME Funds Requested.
Enter the total amount of HOME funds requested for the activity. This
amount includes the TBRA Monthly Rent for each tenant multiplied by
the Tenant Contract Months. It also includes the security deposit
amount for each tenant, if requested.
E. TBRA: Units
Number of TBRA units designated for the homeless. Of the total
number of TBRA units in the activity, enter the number designated for
the homeless. Homeless is defined as (1) an individual or family who
lacks fixed, regular, and adequate nighttime residence; or (2) An
individual or family who has a primary nighttime residence that is: (a) a
supervised publicly or privately operated shelter designed to provide
temporary living accommodations (including welfare hotels, congregate
shelters, and transitional housing for the mentally ill; (b) an institution
that provides a temporary residence for individuals intended to be
institutionalized; or (c) a public or private place not designed for, or
ordinarily used as, a regular sleeping accommodation for human
beings.
Of those, the number designated for the chronically homeless. Of
the number of units designated for the homeless, enter the number
designated for the chronically homeless. A chronically homeless
person is defined as an unaccompanied homeless individual with a
disabling condition who has either: (1) been continuously homeless for
a year or more, or (2) has had at least four episodes of homelessness in
the past three years. A disabling condition is defined as a diagnosable
substance use disorder, serious mental illness, developmental disability,
or chronic physical illness or disability. For the purpose of determining
chronically homelessness, a homeless person an unaccompanied
individual sleeping in a place not meant for human habitation or in an
emergency homeless shelter.
Note: IDIS will default to zero if units are not entered in these fields.
Faith -based Organization. Was this activity carried out by a faith -
based organization (y/N)? Enter "Y" if it is known or if the organization
declares itself to be a faith -based organization. If not, enter "N".
Note: IDIS will enter the default answer of "N" if an answer is not typed
in the field.
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EXHIBIT D
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CHAPTER 7: TENANT -BASED
RENTAL ASSISTANCE
HOME permits participating jurisdictions (PJs) to create flexible
programs that provide assistance to individual households to enable
them to rent market -rate units. These programs are known as
"tenant -based rental assistance," or TBRA. This chapter highlights
eligible TBRA households and units, eligible types and levels of
subsidy, options for establishing a TBRA program, and key issues for
design and administration of a TBRA program.
NOTES
PART I: HOME PROGRAM
REQUIREMENTS
WHAT IS TENANT -BASED RENTAL
ASSISTANCE?
• Tenant -based rental assistance (TBRA) is a rental subsidy that
PJs can use to help individual households afford housing costs
such as rent and security deposits. PJs may also assist tenants
with utility deposits but only when HOME is also used for rental
assistance or security deposits.
• Types: There are many types of TBRA programs.
The most common type provides payments to make up the
difference between the amount a household can afford to
pay for housing and local rent standards.
✓ The Section 8 Voucher Program is an example of a
typical TBRA program.
Other TBRA programs help tenants pay for costs associated
with their housing, such as security and utility deposits.
(However, under the HOME Program, utility deposit
assistance can only be provided in conjunction with rental
assistance programs or security deposit programs.)
• How TBRA differs: HOME TBRA programs differ from other
types of HOME rental housing activities in three key ways:
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TBRA programs help individual households (rather than
subsidizing particular rental projects).
TBRA assistance moves with the tenant -- if the household
no longer wishes to rent a particular unit, the household may
take its TBRA and move to another rental property.
The level of TBRA subsidy varies -- the level of subsidy is
based upon the income of the household, the particular unit
the household selects, and the PJ's rent standard (rather
than being tied to the PJ's high and low HOME rents).
WHY CREATE A TBRA PROGRAM?
• PJs have developed TBRA programs for a wide variety of
reasons to serve a wide range of functions.
• Some of the most common advantages of establishing a TBRA
program are noted below.
Flexibility for Households
• TBRA programs offer a household the opportunity to choose its
neighborhood (including the school district) as well as its type of
housing (such as a single-family home, large apartment
building, duplex, garden -style unit, etc.).
• If the household needs to change location, the household may
take the TBRA assistance along when it moves to another rental
unit.
• At the discretion of the PJ, the TBRA may be used outside of
the PJ's jurisdiction.
Flexibility for PJs
• TBRA programs offer jurisdictions a way to meet fluctuating
demand for housing. A PJ may elect to provide TBRA
assistance to as many or as few households as it chooses,
subject to its HOME budget and consistent with its Consolidated
Plan.
• Also, PJs may design specialized TBRA programs tailored to
the distinctive housing needs of the community. This includes
programs designed specifically for persons with special needs.
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Cost -Effectiveness
• In communities where large public subsidies are needed to spur
the new construction or rehabilitation of units, TBRA may be
less expensive than using HOME for rehabilitation or new
construction.
• TBRA may be particularly effective in communities with high
vacancy rates, where the PJ wants to make units affordable, but
does not want to finance the development of additional units.
Risk Avoidance
• Financing the construction or rehabilitation of housing is
inherently risky. Owners and developers can (and sometimes
do) default on their financing, sending projects into foreclosure
and putting at risk the PJ's investment.
• Since TBRA programs are tenant -based, the PJ can terminate
the assistance if the tenant fails to meet program requirements.
• TBRA poses no long-term financial obligation to the PJ.
Relocation and Displacement Assistance
• PJs may use TBRA to
assist households
displaced by HOME
projects, facilitating the
rehabilitation of occupied
units.
One Exception: Relocation Assistance
PJs are not allowed to require households
who receive TBRA as relocation
assistance to participate in self-sufficiency
programs.
ELIGIBLE ACTIVITIES
Rental Assistance Programs
• The HOME rules are flexible regarding the types of TBRA
programs that may be developed by PJs.
HOME TBRA programs may be designed to serve the
general objective of making housing more affordable for a
wide range of low-income households within the jurisdiction.
PJs may want to create a TBRA program that serves the
entire community in response to a high level of rent burden
and/or a long Section 8 waiting list.
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Alternately, TBRA programs may focus on a special purpose
or specific housing need. Options for special purpose
programs are also described below.
• Self-sufficiency programs: PJs may require HOME TBRA
recipients to participate in self-sufficiency programs as a
condition of rental assistance.
For example, the PJ may operate a "bootstrap program" that
provides TBRA to low-income persons who are attending job
training.
• Homebuyer programs: HOME TBRA may assist a tenant who
has been identified as a potential low-income homebuyer under
a lease -purchase program. The PJ may provide HOME TBRA
to these homebuyers until the purchase is completed.
The HOME TBRA payment must be used for monthly rental
and/or utility expenses. This means that HOME -funded
TBRA may not be used to create equity in the unit on behalf
of the homebuyer. However, all or a portion of payments
made by the homebuyer may be used to build such equity.
When the homebuyer is ready to purchase the unit, HOME
funds may also be used for downpayment assistance.
• Targeted populations programs: The PJ may establish local
preferences for special -needs groups within its broad,
community -wide program, or it may design a specific program
that exclusively serves one or more special needs groups.
Examples of such special needs groups may include:
✓ Homeless persons;
✓ Persons with disabilities; or
✓ Persons with AIDS.
If TBRA is provided exclusively to persons with a particular
type of special need, the need must be identified in the PJs
Consolidated Plan as an unmet need and the preference
must be needed to fill the gap in benefits and services
available to such persons.
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Anti -
displacement
assistance
programs: TBRA
may be used to
minimize
displacement associated with HOME -funded activities.
Tenants Avoiding Displacement
Tenants who receive HOME TBRA to avoid
displacement from a HOME -funded project
may remain in the project or move to another
suitable unit, taking the TBRA with them.
Security Deposit Programs
• The PJ may establish a program that limits assistance to help
tenants with security deposits.
The term "security deposit" is defined by the local or state
tenant -landlord law covering the jurisdiction.
The maximum amount of HOME funds that may
for the security
deposit is the
equivalent of two
months' rent for
the unit.
Only the tenant
(not the landlord)
may apply for
security deposit
assistance.
be provided
Utility Deposit Assistance
Utility deposit assistance must be provided in
conjunction with a TBRA security deposit or
monthly assistance program. In addition,
utility deposit assistance may be used only
for utilities permitted under the Section 8
utility allowance. This includes electric, gas,
water and trash, but does not include
telephone and cable television.
The lease between the landlord and tenant may
certain prohibited lease provisions (see "Lease
Requirements" later in this chapter) and must be in effect for
at least one year.
not contain
The security deposit may be paid to the tenant or directly to
the landlord.
The security deposit may be made as a grant or a loan. If
the deposit is a loan, the terms of that loan, including
provisions for repayment, should be set out in a written
agreement between the PJ and the tenant.
Ineligible Program Activities
• Despite the flexibility the HOME Program provides for TBRA,
there are a number of program activities that are ineligible for
HOME TBRA assistance.
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TBRA may not be used to assist a resident owner of a
cooperative or mutual housing unit when that resident is
recognized by state law as a homeowner.
✓ However, under the provisions of some cooperative or
mutual housing agreements, the units are considered
rental housing under state law. The residents of this
rental housing may receive TBRA.
✓ Under any circumstance, a tenant who rents from an
owner of a cooperative or mutual housing unit may
receive HOME TBRA.
HOME TBRA may not be used to prevent the displacement
of tenants from projects assisted with Rental Rehabilitation
Program funds.
PJs may not provide HOME TBRA to homeless persons for
overnight or temporary shelter.
HOME TBRA may not duplicate existing rental assistance
programs that already reduce the tenant's rent payment to
30 percent of income. For example, if the household is
already receiving assistance under the Section 8 Program,
the household may not also receive assistance under a
HOME TBRA program.
ELIGIBLE APPLICANTS/BENEFICIARIES
Income Eligibility Requirements
• Key rules: There are two key rules regarding eligible income of
households under a HOME TBRA program:
Low-income: HOME TBRA is limited to tenants who are at or
below the HUD low-income limit. The low-income limit is
defined as 80 percent or below of area median income.
HUD establishes and periodically publishes this income limit
by family size for each jurisdiction.
Funding allocation: For each fiscal year allocation, at least
90 percent of the families assisted through HOME TBRA
and the households occupying assisted units in HOME
rental developments (taken together) must be at or below 60
percent of area median income. This means that although
the program permits assistance to households with incomes
of up to 80 percent of median, the PJ will only be able to
serve a limited number of households whose incomes are
between 60 percent and 80 percent of median.
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• Timing: The PJ needs to assure that the applicant is income -
eligible prior to signing a contract for TBRA for the household.
• Family income: For initial eligibility purposes, family income
under HOME -funded TBRA programs may be calculated using
one of the three definitions of annual income. (See Chapter 2:
General Program Rules for information on the three definitions.)
The Program Administrator must determine annual income
by reviewing source documents evidencing annual income
(for example, wage statement, interest statement,
unemployment compensation) for the family.
✓ Income determinations for new TBRA recipients are
valid for six months.
✓ Eligibility criteria must be met regardless of the type of
TBRA program operated by the PJ (for example, anti -
displacement, security deposit, special needs, etc.).
TENANT SELECTION REQUIREMENTS
Overview
• PJs administering HOME -funded TBRA programs must have a
written tenant selection policy that clearly specifies how families
will be selected for participation in their programs. There are
two major components of tenant selection -- income eligibility
and preferences. Both are discussed below.
Income eligibility: As discussed previously in this chapter,
households who receive HOME -funded TBRA must have an
annual income that does not exceed 80 percent of the area
median income.
Preferences: PJs can use HOME -funded TBRA programs
to support a variety of local goals and initiatives. In fact, with
the repeal of the Federal preferences in the 1999
Appropriations Act, PJs have more discretion than ever
concerning tenant selection in their TBRA programs.
Preferences are discussed in more detail below.
Establishing Preferences
• General community -wide program: A community -wide
program can address the general need for affordable housing
by giving more "buying power" to eligible low-income
households. Within a community -wide program, the PJ may
elect to:
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Select households from the public housing authority's (PHA)
Section 8 waiting list, using the PHA preference criteria; or
Establish its own preferences and waiting list (see below).
• Community -wide programs with preferences: Through the
use of local preferences, PJs can target funds to meet specific
needs or serve specific purposes.
Residency preference: The PJ may opt to establish a
residency preference as part of its community -wide program.
A residency preference requires TBRA participants to be
residents of the PJ.
✓ PJs may establish a residency preference as long as
the application of the preference does not have the
effect of discriminating on the basis of race, color,
religion, sex, national origin, handicap or familial status.
✓ The PJ's definition of "resident" must include persons
who currently reside in the jurisdiction, and those who
are currently working or have a bonafide job offer in the
jurisdiction.
✓ PJs may not establish a requirement for minimum
length of residency.
Disabilities preference: PJs may establish local preferences
for all persons with disabilities within a broad, community -
wide TBRA program. A PJ may also target its TBRA
program to persons with a particular type of disability (see
below).
Self-sufficiency program: As discussed earlier in this
chapter, PJs may require HOME TBRA recipients to
participate in self-sufficiency programs as a condition of
assistance. However, tenants living in a HOME -assisted
project who receive TBRA as relocation assistance may not
be required to participate in self-sufficiency programs.
• Targeted programs: As discussed previously in this chapter,
PJs are permitted to design local selection criteria that meet the
housing needs of specific populations. Below are several
examples of targeted TBRA programs.
Preferences for persons with disabilities: PJs may establish
a preference for individuals with mental or physical
disabilities.
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✓ Generally, TBRA and related services should be made
available to all persons with disabilities that can benefit
from such services (see above).
✓ PJs may also provide a preference for a specific
category of individuals with disabilities (for example,
persons with AIDS or chronic mental illness) if the
specific category is identified in the PJ's Consolidated
Plan as having unmet needs, and if the preference is
needed to narrow the gap in benefits and services
received by such persons.
✓ Preferences may not be administered in a manner that
limits the opportunities of persons in a protected class.
For example, a person given a preference under the
TBRA program may not be prohibited from applying for
or participating in other available programs or forms of
assistance.
Preferences for persons with other special needs: PJs may
establish a preference for individuals with special needs.
✓ TBRA may be provided exclusively to persons with a
particular type of special need, if the specific category of
need is identified in the PJ's Consolidated Plan as
having unmet need and the preferences is necessary to
bridge the gap in benefits and services received by
such persons. Examples include the elderly and
battered spouses.
✓ As with a general TBRA program, appropriate, non -
mandatory social services may be provided in
conjunction with the TBRA.
✓ As stated previously, PJs may require HOME TBRA
recipients to participate in self-sufficiency programs as a
condition of assistance. However, tenants living in a
HOME -assisted project who receive TBRA as relocation
assistance may not be required to participate in self-
sufficiency programs.
ELIGIBLE TBRA UNITS
• The HOME TBRA program offers households great flexibility in
selecting a housing unit. Households must be free to select the
unit of their choice.
Public or private: Units under the TBRA program may be
publicly- or privately -owned.
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• Rents must be reasonable: PJs must disapprove a lease if
the PJ determines the rent is not reasonable, based on rents
that are charged for comparable unassisted rental units.
HOME -funded units are OK: Households may select units
developed or rehabilitated with HOME assistance.
However, the PJ may not require the household to select a
HOME unit as a condition of receiving TBRA.
✓ In addition, PJs may not require TBRA-assisted
households to remain in units developed/rehabilitated
under HOME. Households must be permitted to move
out at the end of the lease term, taking their TBRA
assistance with them.
y Portability is an option: PJs may require eligible TBRA
participants to use their TBRA assistance in units within the
jurisdiction, or permit TBRA assistance to be used to rent
units in other jurisdictions.
PROPERTY AND OCCUPANCY
STANDARDS
Section 8 HQS
• Although the Final Rule permits flexibility with regard to the
property standards used for HOME -assisted acquisition and
development projects, the Section 8 Housing Quality Standards
(HQS) must be used for HOME TBRA activities.
➢ PJs may request waivers from HUD to permit HQS
variations for local climatic or geologic conditions, or to
create consistency with local codes.
• Inspections to verify compliance with HQS and occupancy
standards are made both at initial move -in and annually
during the term of the TBRA assistance.
Occupancy Standards
• Program administrators must
develop local occupancy
standards that specify the
number of bedrooms needed
by households of various
sizes and composition.
Further guidance on HUD
occupancy standards can be
found in a Federal Register Notice
from December 1998 (FR-4405-N-
01 dated 12-18-98).
NOTES
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• Eligible unit size: The occupancy standards are used to
provide consistent criteria for determining the unit size for which
the household is eligible.
When the household is selected for the HOME TBRA
program, the PJ should counsel the household about the
unit size for which the household is eligible.
✓ If the household will be permitted to select a unit that is
larger or smaller than the eligible unit size, the PJ
should explain the impact of this choice on the tenant's
payment.
✓ The PJ may refer the household to appropriate units,
but may not require the household to select the referral
unit.
Lease Requirements
• Term: The term of the lease between the tenant and the owner
must be at least one year, unless both agree otherwise.
• What the lease may not say: The lease may not contain the
following provisions:
Agreement by the tenant to be sued or to admit guilt, or a
judgment in favor of the owner in a lawsuit brought in
connection with the lease;
Agreement by the tenant that the owner may take, hold or
sell the personal property of household members without
notice to the tenant and a court decision on the rights of the
parties (this does not apply to personal property left by the
tenant after move -out);
Agreement by the tenant not to hold the owner or its agents
legally responsible for any action or failure to act, whether
intentional or negligent;
Agreement by the tenant that the owner may institute a
lawsuit without notice to the tenant;
Agreement that the owner may evict the tenant (or other
household members) without a civil court proceeding where
the tenant has the right to present a defense, or before a
court decision on the rights of the tenant and the owner;
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➢ Agreement by the tenant to waive a trial by jury;
➢ Agreement by the tenant to waive the tenant's right to
appeal or otherwise challenge a court decision; or
Agreement by the tenant to pay attorney fees or other legal
costs, even if the tenant wins in court.
• Termination: The PJ
must establish
standards for when a
landlord may elect to
terminate or refuse to
renew the lease of a
TBRA household. These standards must be in writing. They
must also be included within the lease and/or in the contract
between the PJ and the tenant.
Notice of Termination
The requirement for 30 days' notice of
refusal to renew or termination of tenancy
that is required of HOME -funded rental
projects does not apply to TBRA.
PARAMETERS OF ASSISTANCE
• PJs are given significant flexibility in modeling the local method
of providing TBRA assistance.
• However, HOME program rules do impose some basic
parameters on the level of household and PJ payment, and the
length of time for a single TBRA contract with a household.
• In addition, the HOME program requires that the PJ establish
certain standards for the cost of the unit.
Minimum and Maximum Payment
• The HOME program rules establish a maximum TBRA
assistance payment and require the PJ to establish a minimum
tenant payment.
Minimum tenant payment: The PJ may use its discretion in
setting this minimum payment level. The minimum payment
may be established at a dollar figure (such as $50) or at a
percentage of income (such as 10 percent of monthly
income).
Maximum TBRA payment: The maximum amount that the
HOME TBRA program may pay to assist any given
household is the difference between 30 percent of the
household's adjusted monthly income (see Chapter 2:
General Program Rules for more information about income
definitions) and a jurisdiction -wide rent limit established by
the PJ (known as the payment (rent) standard).
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Length of TBRA Assistance
• HOME TBRA rental assistance contracts with individual
households may not exceed two years. Contracts can be
renewed, subject to availability of HOME funds.
• The two-year period begins on the first day of the lease and will
end upon termination of the lease (if the TBRA payment is made
directly to the landlord).
• Rental assistance contracts may be shorter than two years. For
example, if TBRA is used in conjunction with a self-sufficiency
program, a PJ may want to have a shorter contract term of 18
months.
• In circumstances where the payment is made directly to the
tenant, the TBRA payment ends when a lease is terminated.
However, payments can begin again once the household enters
into a new lease.
Program Models
• Within the broad HOME Program parameters, PJs are free to
design their own individual TBRA program models. Many
jurisdictions have elected to model their TBRA program models
on either the Section 8 Certificate or the Section 8 Voucher
programs. Other PJs have developed unique program designs
based upon the special needs of their communities.
• Section 8 Certificate Program model: Under a TBRA
program modeled after the Section 8 Certificate Program,
(which was recently combined with the Section 8 Voucher
program), tenants pay 30 percent of their monthly adjusted
income toward rent. The TBRA assistance then makes up the
gap between the tenant's payment and the actual rent plus
utilities for the tenant's unit.
➢ The rent and utilities of the unit selected by the household
may not exceed the PJ's payment (rent) standard.
• Section 8 Voucher Program model: Under a TBRA program
modeled after the Section 8 Voucher Program, the PJ calculates
the difference between 30 percent of the household's monthly
adjusted income and the payment (rent) standard. This gap is
then the constant amount of the monthly TBRA assistance. The
household is free to select an actual unit that costs more or Tess
than the PJ's payment (rent) standard.
Unit costing more: If the household selects a unit costing
more than the payment (rent) standard, the household's
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monthly payment will exceed 30 percent of its monthly
adjusted income.
Unit costing less: If the household selects a unit costing
less than the payment (rent) standard, the household's
monthly payment will be less than 30 percent of its monthly
adjusted income.
• Regardless of whether the unit costs are more or less than the
payment (rent) standard, the monthly TBRA to the household
remains fixed at the gap between what it can afford and the
payment (rent) standard, regardless of the actual unit selected.
• Individualized program models: As stated, some PJs may
decide to design an altogether new program. The most
compelling reasons for electing to design a new program would
be a PJ's desire to administer a security deposit -only program
or a specialized program which addresses a special needs
group. Within the general HOME TBRA rules, the PJ may
decide how it wishes to establish limits for these types of
programs.
Payment (Rent) standard
• As noted above, all PJs administering a TBRA program must
establish a payment (rent) standard.
• Characteristics: This payment (rent) standard should
represent the rent plus utility cost of moderately priced units that
meet HUD HQS in the jurisdiction. The payment (rent) standard
is established by bedroom size.
The payment (rent) standard is similar to the Fair Market
Rent (FMR) that is established by HUD for the Section 8
program.
The FMR is established by HUD for individual jurisdictions,
based upon the rent for standard units within that
jurisdiction.
The FMR is set at the 40th percentile of these rents (that is,
just below the median rent for standard units within the
community).
In certain cases, HUD has approved a Section 8 FMR
community -wide exception rent for a particular municipality,
county or locality within the overall jurisdiction.
This approval permits rents under the Section 8 Program to
go as high as 120 percent of the FMR for the jurisdiction
overall.
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HUD publishes the FMR in the Federal Register by bedroom
size for each jurisdiction. The FMR is updated annually.
• Establishing the payment (rent) standard: PJs are given
several options for establishing the payment (rent) standard --
including using the FMR as a basis. The PJ may develop the
payment (rent) standard using one of two methods.
First method: The PJ may develop a payment (rent)
standard based on local market conditions.
Example: The published Section 8 FMR for a two -bedroom
unit is $500, but the PJ has analyzed the market and
established that a reasonable price for a two -bedroom unit is
$520, given the local market conditions and location. In this
instance, the payment (rent) standard may be the $520.
Second method: If the PJ does not establish its own
payment (rent) standard, then the HOME payment (rent)
standards must be based upon the Section 8 FMRs. The
payment (rent) standard must not be less than 80 percent of
the published FMRs, and not more than the FMR or area -
wide exception rent.
Example: The published FMR for a two -bedroom unit is
$500, and HUD has approved a six percent community -wide
exception rent of $530. The payment (rent) standard
established by the PJ could be anywhere between $400 (80
percent of $500) and $530.
• Administering the payment (rent) standard: Once
established the payment (rent) standard remains constant for all
units for the PJ's entire program year. However, HUD does
permit the PJ to have some flexibility in the administration of this
payment (rent) standard.
Unit -specific: For up to 20 percent of the units under its
TBRA program, the PJ may approve a unit -specific payment
(rent) standard. This unit -specific payment (rent) standard
may be up to 10 percent above the payment (rent) standard
established for all units.
Example: A PJ that has 200 TBRA-assisted families could
approve up to 40 unit -specific payment (rent) standards. If
the established payment (rent) standard for the PJ is $400,
these 40 units may each have a unit -specific payment (rent)
standard of anywhere between $400 and $440.
Although the HOME regulation does not specify the reasons
for approving this unit -specific payment (rent) standard
exception, a typical use of the exception authority is to:
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✓ Address discrepancies between the published FMR and
the local market (for example, units with a large number
of bedrooms rent for more than the published FMR); or
✓ Obtain units adapted for handicapped residents or large
families that are hard to place.
• Deciding the payment (rent) standard amount: To decide the
amount of the payment (rent) standard, the PJ should compare
the FMR to the actual cost (including utilities) of housing in the
area.
If the FMRs are high relative to the actual cost, the PJ
should consider setting the payment (rent) standard at a
lower amount.
If the FMR seems appropriate, the PJ should set the
payment (rent) standard at the FMR.
If the FMR is low relative to the actual cost of housing, the
PJ may want to develop the documentation needed to
establish its own payment (rent) standard based upon the
market.
Ongoing Responsibilities
• PJs have significant on-
going responsibilities for
managing a TBRA
program.
• Occupancy
requirements: Primary among these responsibilities is
ensuring that the property standards and occupancy
requirements are still met.
Flexibility for
Security Deposit Only Programs
The requirements for ongoing income
determinations and HQS inspections do not
apply to security deposit only programs.
The PJ must conduct an annual inspection to ensure that
the unit still meets HQS.
The PJ must also ensure that the unit is the appropriate size
for the household in order to meet the occupancy standard.
• Rent increases: The PJ must also review and approve rent
increases by landlords renting to tenants participating in the
TBRA program. Owners may adjust rents as leases are
renewed (generally annually). The PJ must disapprove a lease
if the rent is not reasonable.
• Recertifying income: In addition, the incomes of tenants
receiving rental assistance must be re-examined at least
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annually using source documentation. The PJ must re-evaluate
family income, size and composition.
• Rent and assistance is adjusted accordingly, based on the
circumstances in effect at the time of recertification.
• If a tenant's income goes above the Section 8 low-income
limit at re-examination, assistance must be terminated after
the PJ gives reasonable notice to the tenant and the owner.
• Tenants on Section 8 waiting list: Special provisions are
needed for tenants receiving HOME TBRA who were on the
Section 8 waiting list at the time of selection.
➢ Households on the Section 8 waiting list when selected for
HOME -funded TBRA must remain in their place on the
waiting list while receiving the HOME -funded TBRA.
LEAD -BASED PAINT
• HUD's new consolidated Federal lead -based paint regulation
took affect September 15, 2000. This regulation makes several
important changes in the requirements for Federal community
development programs that fund housing. For more information
about lead -based paint, see the summary provided in the "Other
Federal Regulations" chapter of this manual. Other resources
PJs may find helpful are the training manual, Learning the
Rules: A Basic Overview of the Lead -Based Paint Regulations
for CPD Programs, the training manual, Making it Work:
Implementing the Lead Safe Housing Rule in CPD-Funded
Programs, and HUD's Office of Healthy Homes and Lead
Hazard Control website, http://www.hud.gov/offices/lead.
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PART II: PROGRAM DESIGN AND
IMPLEMENTATION ISSUES
There are a number of issues that PJs must consider when
establishing a TBRA program. Each of these issues is discussed
briefly below.
DETERMINING WHO WILL ADMINISTER
THE PROGRAM
• Public housing authorities as an option: The cost to
establish and manage a TBRA program can be great. With this
in mind, many jurisdictions have elected to sub -contract the
administration of their HOME TBRA programs to their PHAs.
There are a number of advantages to this arrangement:
The PHA is likely to have in place the infrastructure to run
and manage this type of program. This includes staffing,
check processing equipment and systems, and paperwork
processes.
The PHA is experienced in using Section 8 income limits to
screen eligibility and conduct recertifications.
The PHA is also experienced in conducting HOS inspections
for occupancy and housing quality.
• PJs should be aware that the PHA may want to run a TBRA
program that complements or parallels its normal Section 8
program, because of unmet demand in the community (as
evidenced by a long or closed waiting list) and administrative
ease (due to staff familiarity with the requirements and
procedures of its Section 8 program).
• The PJ, on the other hand, may wish to run a specialized
program that does not meet the demand for Section 8 or is not
modeled after the Section 8 program, but instead focuses on
particular types of households or particular types of assistance.
These special programs may be confusing for PHA staff who
simultaneously manage a Section 8 program.
DETERMINING THE TYPE OF PROGRAM
TO OFFER
• As noted in Part I of this chapter, the PJ may use the Section 8
housing program as the model for its TBRA program, or may
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design a wholly new program. The various options are
discussed in Part I of this chapter. Here are the different
arguments for each model.
• Using the Section 8 model: There are many arguments for
using the Section 8 Rental Certificate and Voucher Programs as
a model.
The Section 8 programs have a successful track record.
Using the Section 8 model could cut the amount of time it
would take to thoughtfully design a new program, which
some PJs could find prohibitive.
If the PHA will operate the PJ's program, the Section 8
Program Voucher model can be more efficient, due to the
PHA's familiarity with this program.
The program will likely be used by the same set of landlords
who participate in the Section 8 Program. However,
different rules may be confusing.
The rental assistance payment goes directly to the landlord
under the Section 8 Program. Therefore, the landlord knows
that the program's share of the rent is guaranteed.
• Designing a new program: The most compelling reasons for
electing to design a new program would be a PJ's desire to
administer a security deposit only program, or a program
tailored to serve special needs populations. These options are
not available under Section 8 Rental Vouchers.
PJs may use HOME
to assist families by
paying for not only
monthly rent and
utilities, but also
security deposits
and utility deposits.
(Remember: under
Caution on Security and
Utility Deposit Payments
Security deposit only (or security and utility
deposit only) programs are attractive
because limited funds can be used to serve
more families. However, they may not
provide enough assistance. Many families
who cannot afford the security deposit also
cannot afford the monthly rental payments.
HOME, utility deposit assistance may only be provided in
conjunction with a TBRA security deposit or monthly
assistance program). In contrast, the Section 8 Rental
Voucher Program only helps with rent and utility costs, and
not security deposits or security and utility deposits.
The Section 8 tenant -based assistance program makes
payments directly to the landlord on behalf of the tenant. By
paying the tenant, the PJ allows the tenant to make a full
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payment to the landlord each month. The payment to the
tenant gives the tenant an appearance of greater financial
independence in his or her dealings with the landlord.
CALCULATING THE RENTAL SUBSIDY
• One of the most important decisions PJs must make with regard
to TBRA programs is how to calculate the tenant and PJ
contributions to rent.
• Three important factors affect the PJ's (and the household's)
payment:
The family's income -- the lower the family's income, the
higher the PJ's payment;
The payment (rent) standard the PJ establishes for each
bedroom size; and
The cost of housing and utilities for the unit the family
selects.
• In addition, the subsidy depends upon the TBRA model selected
by the PJ. How to determine the subsidy under the different
methods is discussed below.
Using the Section 8 Certificate Model
• The Section 8 Rental Certificate Program model assumes a
fixed tenant payment.
The tenant's share of housing costs (Total Tenant Payment,
or TTP) is calculated by formula. The PJ then pays the
difference between the tenant's share and the approved rent
for the unit.
The formula for computing TTP under the Section 8 Rental
Certificate Program requires a tenant to pay the greater of:
✓ 30 percent of monthly adjusted income;
✓ 10 percent of monthly gross income; or
✓ The welfare rent in as -paid states.
Exhibit 7-1 demonstrates this method.
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EXHIBIT 7-1
The Cleavers have been issued a two -bedroom HOME TBRA Coupon.
Their annual (gross) and adjusted incomes are $22,500 and $18,300,
respectively. They find an apartment that rents for $725 (including
utilities).
The Cleavers must pay the greater of:
$458 30% of adjusted monthly income ($18,300 / 12 x 0.30)
OR
$188 10% of annual (gross) monthly income ($22,500 / 12 x 0.10)
The program administrator must pay the difference between the tenant's
share and the approved rent.
Approved Rent $725
Less Total Tenant Payment $458
PJ Share of the Rent $267
Using the Section 8 Voucher Model
• The Rental Voucher Program model assumes a fixed PJ
payment.
The maximum PJ subsidy is calculated, and the tenant pays
the difference between the subsidy and the approved rent
for the unit.
Using the Section 8 Rental Voucher method, the PJ first
establishes a payment (rent) standard for the program as a
whole.
The PJ generally pays the difference between its payment
(rent) standard and 30 percent of the tenant's adjusted
monthly income. However, a minimum tenant payment is
required. Exhibit 7-2 demonstrates this method.
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EXHIBIT 7-2
The Cleavers have been issued a two -bedroom HOME TBRA
Coupon. Their annual and adjusted incomes are $22,500 and
$18,300 respectively. As in Exhibit 7-1, their monthly annual (gross)
and adjusted income amounts are $458 and $188 respectively. They
find an apartment that rents for $800 (including utilities). The PJ's
rent standard is $775.
The maximum program administrator subsidy is:
$775 Rent standard
$458 (less) 30% of adjusted monthly income
$317 Maximum program administrator subsidy
The Cleaver's share of the rent is:
$800 Approved rent
$317 (less) Maximum subsidy
$483 Cleavers payment
In this example, the Cleavers will pay more than 30 percent of their
adjusted income for housing because they selected a unit that rents
for more than the payment (rent) standard.
Had the Cleavers found a very inexpensive unit, the requirement that
the family must pay at least 10 percent of monthly gross income
might apply.
$500 Approved rent
$317 (less) Maximum program administrator subsidy
$183 Calculated tenant share
However, the Cleavers must pay at least 10 percent of gross monthly
income
($22,500 / 12 months x 0.10 = $188).
The program administrator's contribution would be reduced by $5.
Utility Allowances
• To determine the portion of the housing cost that will be paid by
the PJ and the portion that will be paid by the household, the PJ
must establish a utility allowance schedule that estimates the
average cost of utilities for typical types of housing (single-
family, row house, high-rise, etc.) and for various utilities and
fuel sources (gas, oil, electricity).
Utilities included in the schedule generally include those
required for water/sewer, electric, gas and trash.
➢ Telephone and cable TV are not considered utilities for this
purpose.
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PJs may adopt the utility allowance schedule that the PHA
uses for its Section 8 program, or establish their own
schedule based on a survey of typical utility costs in the
area. (See Exhibit 7-3(a).)
EXHIBIT 7-3(a)
USING UTILITY ALLOWANCES
(1) The Jones family selects a unit which rents for $575. They
must pay electricity and gas separately.
(2) The PJ's utility allowance schedule indicates that the average
cost of electricity and gas for the unit size selected is $75.
(3) 30 percent of the family's adjusted income is $300.
(4) The family makes its tenant contribution as follows:
$75 For gas and electricity
+$225 Rent to the owner
$300
The PJ pays the difference between the rent the owner is
charging and the amount paid by the tenant:
$575 Rent to owner
-$225 Paid by family
$350 Subsidy
(5)
• Sometimes PHAs must make a utility reimbursement to the
family and a payment to the owner. (See Exhibit 7-3(b).)
EXHIBIT 7-3(b)
Assume that 30 percent of the Smith family's monthly adjusted
income is only $50, and that the Smith family rents a unit similar to
the Jones family's.
The family's $50 contribution is not enough to pay utilities (much
less contribute to rent). In this case, payments are made as
follows:
$50 Family retains $50 to pay utility bills
+ 25 PHA pays family $25 to cover remaining utility bills
$75 Entire utility allowance
$575 PHA pays entire rent to owner
PROCESSING APPLICATIONS
• Following are the key steps in processing applications for
TBRA.
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Step 1: Application Intake and Waiting Lists
• As noted above, the PJ may use the PHA Section 8 waiting list
or create a waiting list of its own. Whichever method is used,
the PJ must follow its written tenant selection plan, which
explains how local preferences will be applied.
If the PJ uses the PHA's waiting list, no additional
application intake is needed. The PHA will already have
taken applications from families seeking rental assistance.
If the PJ decides to set up a separate waiting list, it will have
to take applications. Good record -keeping is essential to
demonstrate that all eligible families had the opportunity to
apply and were treated fairly in the application process. PJs
should use a written application form and retain records on
the disposition of all applications.
Step 2: Eligibility Determinations
• PJs, or the PHA on behalf of the PJ, must verify all factors that
relate to the family's eligibility -- the household composition,
preference and income information provided by the family. The
HOME rules require examination of source documents (for
example, wage or interest statements) for TBRA households to
determine the family's income.
Step 3: Coupon Issuance
• Once a household is determined eligible and selected to receive
assistance, the PJ issues the family a TBRA coupon. This is
the family's authorization to look for housing (or to request that
the PJ approve the unit in which the family already lives.)
• The PJ should establish a deadline for the family to locate
housing. As a comparison, PHAs give CertificateNoucher
holders 60 days to find a unit. In extraordinary circumstances,
they may extend the search period for an additional 60 days.
Step 4: Request for Unit Approval
• When the household finds an acceptable unit and a landlord
willing to participate in the program, the tenant submits a
request for unit approval and for using TBRA to rent the unit.
• The PJ must inspect the unit to assure that it meets Section 8
HQS and to determine if the rent the owner is charging for the
unit is reasonable, based upon the rents for comparable units in
the area.
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Step 5: Lease Execution and C/MI System Project Set -Up
• Once the PJ has inspected and accepted the unit and
determined that the rent the owner is charging is reasonable,
two actions must occur:
Tenant lease: The owner and the tenant enter into a lease.
To cover the special requirements of the HOME program,
the PJ provides a lease addendum to be used in conjunction
with the owner's lease.
Owner agreement: The PJ and the owner enter into an
agreement in which the owner agrees to comply with the
HOME rules and the PJ agrees to make the PJ's share of
the payment.
• At this point, the TBRA Program must be set up in the
Integrated Disbursement and Information System (IDIS). Just
as a PJ might set up the construction of a multi -family building
as a "project" in the C/MI System or IDIS, the PJ sets up its
TBRA program as a project, with up to 99 tenants listed under a
single project.
USING TBRA FOR ANTI -DISPLACEMENT
AND RELOCATION ACTIVITIES
• When HOME funds are used to rehabilitate rental housing,
some tenants may be adversely affected.
Displacement
• In a HOME project, if post -rehabilitation gross rent (rents and
utilities) exceed the tenants' TTP (as defined for the Section 8
Certificate Program), the tenant is considered rent -burdened.
A tenant who moves for this reason is considered displaced.
• Rent burden may exist even when a tenant occupies a unit that
carries HOME rents. For example, the Low Home Rent is
designed to be affordable to households at 50 percent of
median income with 30 percent of their income. This rent would
not be affordable to a household whose income is 40 percent of
median income.
• To avoid displacement, HOME TBRA or Section 8 assistance
may be provided to make the proposed rent affordable to the
tenant.
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TBRA as Relocation Assistance
• HOME TBRA may be
offered to displaced
low-income tenants as
an alternative to the
replacement housing
payment required by
the Uniform Relocation
Act (URA) or Section
104(d). URA rules
require that displaced
tenants be given the choice of TBRA or a cash replacement
housing payment. Section 104(d) gives the option to the PJ,
if the PJ offers TBRA and the tenant prefers a replacement
housing payment, the tenant may receive the replacement
housing payment at URA (rather than Section 104(d)) levels.
Important: The tenant must be made aware
that HOME assistance will be terminated if,
upon annual recertification, the tenant's
income exceeds 80 percent of area median.
However, the PJ must continue to provide
assistance, either as continued rental
assistance payments funded through some
other source, or by providing the balance of
the assistance in the form of a replacement
housing payment.
• In this case, the value of the monthly HOME TBRA must be
equal to or greater than the monthly value of the tenant's
replacement housing payment.
but
• Tenants who accept HOME TBRA must be assured of at least
42 months of assistance when the URA applies and 60 months
of assistance when Section 104(d) applies.
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CONTRACT TRANSMITTAL FORM
(Attach to Documents dropped off to City Clerk's Office)
Date: J 1 2U
From (Dept.): Housing Authority
Submitted by (First, Last Name): Angelita Palma x4219
Vendor: South Bay Community Services
Resolution: YES - 2019-64 kre-FGf.cm G , 'in
Z Originals Provided to City Clerk
Department has copy
yst- Vendor has copy
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950
619-336-4228
Michael R. Dalla, CMC - City Clerk
January 8, 2020
Ms. Valerie Brew, Department Director
South Bay Community Services
430 "F" Street
Chula Vista, CA 91910
Dear Ms. Brew,
On January 7th, 2020, an Agreement was entered into between the City of National City
and South Bay Community Services.
We are enclosing for your records a fully executed original Agreement.
Singly,
,PQ1 Michael
City Clerk
Enclosure
Dalla, CMC