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1995-11-15 Housing Authority Reg. Agenda 11/15/95 4310/507-35 1 of 2 o -- - - -~~ " 1 i ! i , I AUTHORITY REGULAR MTG.~ 11/15/95 ,." .i CITY OF ENCINITAS HOUSING AUTHORITY SPECIAL MEETING AGENDA 505 South Vulcan Avenue Encinitas, California 92024 Wednesday, November 15, 1995, 6:00 P.M. THE ENCINITAS HOUSING AUTHORITY IS AN AFFIRMATIVE ACTION PUBLIC ENTITY AND DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, SEX, RELIGION, AGE OR DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICE. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETIl~G, PLEASE CONTACT THE CITY CLERK AT 633 - 2 6 0 1 . NOTIFICATION 48 HOURS PRIOR TO THE MEETING WILL ENABLE THE HOUSING AUTHORITY TO MAKE RrASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING. IF YOU WISH TO SPEAK TO AN ITEM ON THE AGENDA, J?IIEASE FILL OUT A PINK SPEAKER SLIP AND HAND IT TO THE BOARD CLERK BEFORE THAT ITEM HAS BEEN ANNOUNCED BY THE CHAIR. SPEAKER SLIPS WILL NOT BE ACCEPTED FOR AN ITEM ONCE THAT ITEM HAS BEEN ANNOUNCED. TO DONATE TIME TO ANOTHER PERSON, FILL OUT A SPEAKER SLIP INDICATING THAT FACT. THE PERSON OR PERSONS DONATING TIME MUST BE PRESENT WHEN THE SPEAKER TO WHOM THEY HAVE DONATED TIME IS HEARD. CALL TO ORDER ROLL CALL (Chairperson is Mayor; Vice Chairperson is Deputy Mayor) ITE!.1S ON THE CONSl';NT CALENDAR ARE MATTERS WHICH ARE EITHER ROUTINE, SELF EXPLANATORY OR HAVE BEEN DISCUSSED AT PREVIOUS MEETINGS. IT IS ANTICIPATED THEY WILL NOT BE DISCUSSED SEPARATELY. WITH A MOTION "TO ADOPT THE CONSENT CALENDAR II THE BOARD APPROVES ALL CONSENT CALENDAR STAFF RECOMMENDATIONS, AS SHOWN ON THE AGENDA. THESE ITEMS ARE GROUPED TOGETHER TO ALLOW 'rIME FOR OTHER ITEMS ON THE REGULAR AGENDA. HOWEVER, ITEMS MAY BE REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION ,EITHER BY A IIREQUEST TO SPEAK" FORM FROM THE PUBLIC, HANDED TO THE BOARD CLERK, OR A REQUEST BY A BOARD MEMBER. THE ONE EXCEPTION IS "INITIAL CONSIDERATION OF AN APPEAL" WHICH CAN ONLY BE REMOVED BY A BOA.RD MEMBER. ITEMS REMOVED BY A MEMBER OF THE PUBLIC WILL BE TAKEN UP IMMEDIATELY FOLLOWING ADOPTION OF THE CONSENT CALENDAR. ITEMS REMOVED BY A BOA~D MEMBER WILL BE TAKEN UP AT THE END OF THE REGULAR AGENDA. ~o , -. \ CLOSING AND ADOPTION OF THE CONSENT CALENDAR 1. Approval of Minutes: 9-27-95 Regular Meeting. Contact Person: Board Clerk Cervone. STAFF RECOMMENDATION: Approve minutes. 2. Consider amendments to the Section 8 Administrative Plan in order to conform with new federal regulations. Contact Person: Housing Coordinator Brown. STAFF RECOMMENDATION: Adopt amended Section a Administrative Plan. 3. Consider Authorizing Executive Director to Enter into Contracts with Two Members of the Acquisition/Rehabilitation Project Development Team: (1) Cuatro Corporation as the Rehabilitation Project Manager, and (2) an appraiser to be selected by the Executive Director based upon experience and cost. Contact Person: Housing Coordinator Brown. STAFF RECOMMENDATION: Authorize. Executive Director to enter into contracts with two members of the Acquisition/Rehabilitation Project Development Team: (1) Cuatro Corporation as the Rehabilitation Project Manager, and (2) Master Appraisers Institute (MAl) appraiser to be selected by Executive Director. ITEMS REMOVED FROM THE CONSENT CALENDAR BY THE PUBLIC ORAL COMMUNICATIONS (15 MINUTES) ORAL COMMENTS (MAXIMUM OF THREE MINUTES PER PERSON) WILL BE HEARD FROM PEOPLE WHO SUBMIT A WHITE SPEAKER SLIP TO THE CITY CLERK. BY LAW, COMMENTS AT THIS SPECIAL MEETING ARE RESTRICTED TO ITEMS NOTED ON THIS AGENDA. TIME DONATIONS ARE NOT PERMITTED FOR ORAL COMtIDNICATIONS. REGULAR AGENDA ITEMS REMOVED FROM THE CONSENT CALENDAR BY THE BOARD BOARD I EXECUTIVE DIRECTOR REPORT Information Items -- No discussion or action to be taken ADJOURNMENT .., ~ 'I v 'c , .. - I, Deborah Cervone, certify that I caused the above agenda to be I , pORted the Ci'ty Hall bulletin board 1995, 72 hou,rs on on before the meeting. Board Clerk \ '~ ~ 0 " " , ~ :) ':) MINUTES OF ENCINITAS HOUSING AUTHORITY REGULAR MEETING SEPTEMBER 27,1995,6:00 P.M., 505 SOUTH VULCAN AVENUE CALL TO ORDER ROLL CALL Chairperson DuVivier cal.1ed the meeting to order at 6: 45 P.M. Present: Chairperson Chuclc Duvi vier, Board Members Lou Aspell, James Bond, John Davis, and Gail Hano. Absent: None. Also Secretary Wasserman, Assistant Board Attorney Krauel, Present: Board Clerk Cervone, Assistant City Manager Benson, Community Development Director Holder, Housing and Grants Coordinator Brown, Deputy Board Clerk Greene. There being a quorum present, the meeting was in order. CLOSING AND ADOPTION OF THE CONSENT CALENDAR Chairperson DuVivier asked if the Housing Subcommittee agreed with the st.aff recommendation regarding Item #2. Subcommittee Board Member Hano stated that she and Subcommittee Board Member Bond agreed with the staff recommendation regarding Item #2. Hano moved, Aspell seconded to Ca1endar. Motion carried. Ayes: Hano; Nays: None. close and adopt the Consent Aspell, Bond, Davis, DuVivier, 1. ADDroval of Minutes: 5/24/95 Recrular Meetincr, 8/29/95 SDecial WorkshoD. Contact Person: City Clerk Cervone. STAFF RECOMMENDATION: Appro'Ve minutes. 2. ADDroval of James D. Williams as the financial consultant for gropertv acquisition Drocrram and authorization for City Manacrer to execute a contract in an amount not to exceed $30,400. Contact Person: Housinq Coordinator Brown. STAFF RECOMMENDATION: Approve James D. Williams as the financial consultant for the property acquisit~!on program that includes 162 elderly and family units and authorize the Executive Director to execute 8. contract in an am~:)Unt not to exceed $33,390. 09/27/95 Reg. Mtg. Mtg. #95-____, Bk. #1, Page Page 1 ;HI-I , ," .:; '~ 09/27/95 Regular Meeting .-" ':~ o ITEMS REMOVED FROM THE CONSENT CALENDAR BY THE POOLl!;' None. QRAL COMMUNICATIONS None. REGULAR AGENDA None. ITEMS REMOVED FROM THE CONSENT CALENDAR BY THE BOARD None. BOARD I EXECUTIVE DIRECTOR REPORT None. ADJOURNMENT Chairperson DuVivier declared the meeting adjourned at 6:46 P.M. i. --11- ~/ 1: "l{j'vv1 ~..,-;Uj~r..G ' Debor~h Cdrvone, Board Clerk By: Kathy Greene, Deputy Board Clerk Chuck DuVivier, Chairperson 09/27/95 Reg. Mtg. , Bk. #1, Page Mtg. #95- Page 2 ;111 ~~ ~ -. l;':;"'~ ::) o CITY OF ENCINITAS AGENDA REltORT HOUSING AUTHORITY Meeting Date: November 15, 1995 TO: Board of Commissioners Lauren M. Wasserma- ~- Secretary of the Boa~:':;;e Diredor VIA: FROM: Community Development Department 5JK' Sandra L. Holder, Community Development Director Lynn Brown, Housing and Grants COI)rdinator ", SUBJECT: Consider amendments to the Section 8 Administrative Plan in order to conform with new federal regulations. ISSUE: Whether to approve amendments to the Section 8 Administrative Plan in order to conform with new federal regulations. BACKGROUND: During the past two years, BUD has been issuing new regulations that combine the voucher and certificate program, as well as give mOfCl authority to the local housing authorities. The changes in the regulations have been issued in two parts. The ERA amended the Administrative Plan on November 16, 1994, in order to bring the Administrative Plan into conformance with Part I regulations issued in October 1994. On July 3, 1995, HUD issued the second part of the regulations. They were effective in September 1995. ANALYSIS: The new regulations include major changes in the administration of the Section 8 Program. As the new regulations give additional authority to the local housing authority, new policies have to he approved. The analysis is divided into three parts: (1) required changes by HUD, (2) new policy determined by the EHA, and (3) policy changes suggested by staG" cdl:er administering the program for five months. The changes required by BUD a. a listed in Attachment A. The new areas in which the EHA is proposing new policy are: . EHA defines composition of family and when consent will be given for change in family composition. This provides better control over the number of people living in the unit. (page 28) cdIglb/srl ~ IS95.hal (11106195) f/!/:2-1 ') .,] \..) ------~---'-. .....-.J-~..... . The amount ott\rne allowed for an extension has been changed. EHA policy will allow the maximum time (12Q days). (page 31) EHA allo~ the clock to stop on the term of a voucher during the time the EHA is approving or disapproving the request for lease approval. (page 32) EHA is limiting moves to once a year, unless the Executive Director detennines there is good ~ause, such as illness. (page 33) The EHA will accept recertifications from other housing authorities when a family "ports" to our jurisdiction, if completed within the last 60 days. (page 35) The EHA can determine if we will give tenant history or drug trafficking infonnation to owners. Previously, the EHA was not allowed ~J provide owners with information about families. Due to the newness of the Section 8 Program, staffis recommending that the ERA not provide infonnation about tenants to the. owner as we don't have the infonnation available. We will strongly recommend to owners that they screen the applicants .(page 36) ERA determines when an owner may be denied participation in the program. (page 42) The EHA can define "absence from the unit". (page 51) EllA can set policy on family obligations and responsibilities and what constitutes reasons for termination from the program, including criminal activity. (pages 54,55) . 41 . . . . . The areas in which staff is suggesting policy changes are: . The ERA detennines the preferences applicants can receive for placement on the waiting list. BUD requires we give a "federal" preference, but the EHA can determine other preferences to which we can give extra weight. We presently give preference for veterans (required by State law), elderly or disabled, and working fcU11ilies. StaiFis recommending adding full time students. These are usually single mothers going to school so they can leave welfare and subsidized housing. (pages 17,18) . The payment standard is the maximum amount of subsidy the ERA will pay for a unit. The EllA defines the payment standard as 100% of Fair Market Rent. mID determines FMR. The ERA can set our payment standard for vouchers at 80% to 100% of FMR. Staff is recommending 1000.10 ofFMR because of the high rents in. Encinitas. In a lower rental market the advantage in setting the payment standard lower than FMR. is that the housing authority can assist more families. The payment standard has been at 100% ofFMR ill the paat, but if we define our policy in the Plan, the Board won't have to vote on a change every time FMR changes. (page 32) FISCAL AND STAFF IMPACTS: The new regulations provide potential additional hard to house fees. They also require less staff time because there are no damage or unpaid rent claims to process. RECOMMENDATION: Adopt the amended Section 8 Administrative Plan. cdlglb/srl 1 IS95.hal (11106/95) 1/11;) .2-, , ''':J ~:f!J.' .~ REVISIONS TO ADMINISTRATIVE PLAN BASED ON NEW BUD REGULATIONS 1. Defines a family who is hard to house to include any family having difficulty renting. HUn pays the EHA an extra fee for hard to house. (page 7) 2. Requires verification of citizenship or immigration stams before accepting an application. (page 26) 3. Expands the requirements ofwhat must be provided in the briefing packet when issuing a vO'l1\.:her to an applicant. (page 29,30) 4. Expands the owner's rights and responsibilities. The EHA authority also increases. EHA, can now tenninate a contract with the owner, if the owner commits fraud, bribery, or other criminal acts. 5. Provides new deadlines for executing the Housing Assistance Payments (HAP) Contract. 6. Allows the owner to collect a security deposit equal to the deposits being allowed in the private rental market. Eliminates payments by the EHA for damage and unpaid rent claims. Previously, the amount of the security deposit was limited, but the EHA paid for all the damage and unpaid rent that the small deposit didn't cover. .' """~. 7. Increases the number of reasons for tenninating the lease. .J 8. Allows a voucher holder to select a HUD owned unit. 9. Changes rules on moving. Adds new sections on what to do. if the family breaks up or there is a long absence from the unit. EHA can define the absence from unit and who can benefit if the family breaks up. 10. The informal review and hearing procedures were revised to provide tenants more information but give the EHA more authority. 11. There were changes in the Housing Quality Standards. For example, allowing microwave ovens instead of regular ovens. 12. Having a legal profit-making business in the assisted unit is now allowed. 13. Violent criminal activity is defined and added to reasons for removing a family from the program. This expands the EHA authority. 14. The definitions for termination of assistance and denial of assistance are now the same. 15. The EHA can now deny assistance if the family owes any money to an 0\\ ':ler , EHA or another -'",", Authority. , ) ~ cdIglb/srII1595.hal (11/06/95) f/1'I:i-3 ~ """""""\ ....,,/ ",""' o cS1 16. N~w leases and contracts with the owner must be used. (HUD has provided new forms.) 17. Both certificates and vouchers can "port" anywhere in the U.S. Previously, only vouchers were portable thfOughout the U.S. 18. Occupancy standards changed to "subsidy" standards. The standards determine the number and g~nder of family members allowed per bedroom. 19. The HAP contract tenninates automatically six months after the last HAP is paid to the owner. Previously, the' program aJ!owed one year. 20. The F.:HA must pay the owner a late fee if the ERA rent payment is late. Determination is based on the requireme~lt in the lease agreement. 21. An owner must give notice to the family and ERA '90 days before a termination of a HAP contract. HOD defines "termination", "opt out" and "expiration". 22. E1'IA can approve any changes in family composition and the impact on the occupancy of the unit. 23. ERA may deny or tenninate assistance if a family has engaged in or threatened abuse or violent behavior toward EHA personnel. cdlgtb/srlI IS9S.bal (11106195) fhf:i-f . (:'. . , .. \ J.... \' o o o ADMINISTRATIVE PLAN 1 ;,j l ~ SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM HOUSING AUTHORITY OF THE CITY OF ENCINITAS, CA "POLICY HANDBOOK" Approved by Board of Commissioners: June 22, 1994 Amended by Board: November 16, 1994 Clarified for HUD: February 17, 1995 Amended by Board: November 15, 1995 ~~ ~'''c-~.u;~~~;o; t#f ~-6 j1I'o.i\'. ~. ....~.v ,~ \.".,1 ~o ',I '\\//~ "POLICY HANDBOOK" TABLE OF CONTENTS n~LE PAGE SECTION I. ADMINISTRATIVE POLICY . . . 1 . . . . . . . . . . SECTION II. DEFINITION OF TERMS. ......... . 2 1. Agreement for Mutual Recision of Lease. . . 2 2. Allowance for utilities. .............. 2 3. Annual contributions Contract ("ACC") . . . 2 4 . Annual Income. ................... 2 5. Annual Income After Allowances .. . . . . 2 6. Applicant. ............. . . . 2 7. certificate of Family participation ... . 2 8. Child Care Expenses . . . . . . , . . . . . . . . . . 2 9. Citizenship and Immigration Status . . . . . 3 10. contract. . . . . . . . . . . . . . . . . 3 11. contract Rent . . . . . . . . . . . . . . . . 3 12. continuously Assisted Person . . . . . . . 3 13 . Dependent. ......... . . . . . 3 14. Displaced, Involuntarily. . . . . . . . . . 3 15. Eligibility Income . . . . . . . . . . . . 4 16. Fair Market Rent . . . . . . . . . . . . . . . . 4 17. Family . . . . . . . . . . . . . . . . . II 4 18. Family of Veteran or Service person. ..... . 6 19. Full-Time Student . . . . . . . . . . . . . . . . . . 7 20. Gross Rent . . . . . . . . . . . . . . . . 7 21. Hard to House Family. . . . . . . . . . . . . . . . . 7 22. Head of Family. . . . . . . . . . . . . . . . . . . . 7 23. Housing Assistance Payments Contract ("Contract") . . 7 24. Homeless Family . . . . . . . . . . 7 25. BUD. . . . . . . . . . . . . . . . . . . . . . . 8 26 . Lease. . . . . . . . . . . . . . . . . . . 8 27. Lower-Income Family. . . . . . . . 8 28. Medical Expenses. . . . . . . . . . . . 8 29. Military Service of the united States . . . 8 30. Mutual Recision. . . . . . . . . . . . . . 8 31. Mutual Recision with continued Eligibility . . . . . 8 32. Mutual Recision without continued Eligibility . . 8 33. Net Family Assets. ........ .. . . . 8 3 4 . Owner. ...... . . . . . . . . . . . . . . . 9 35. participant. ........ .,9 36. Payment Standard. . . . . . . . . 9 37. Portability. . . . .. .......... . 9 38. Remaining Member of a Tenant Family. . 9 39 . Res ident . . . . .. . . . . . . . . . . 9 40. service person . . . . . . . . . . . . . 10 41. subsidy Standards. . . . . . . . . . 10 42. Substandard Dwelling. . . . . . . . . . 10 Ii /~:2-(, ., ~ o 43. Suspension . . . . . . . .. . . . . . . . .. 11 44. Tenant Rent. ................... 11 45. Total Tenant Payment. . . . . . . . . . . . . . .. 11 46. utility Allowance . . . . . . . . . . . . .. 11 47. utility Reimbursement. . . . . . . . . . .. 11 45. Very Low-Income Family. . . . . . . .. 12 46. Veteran. ......... . . . . . . .. 12 47. Violent criminal Activity. . . . . . .. 12 48. Voucher Contract . . . . 12 49. Voucher. ............. .. .. 12 so. Voucher Payment . . . . . . . . . . . . . .. 12 SECTION III. CONDITIONS GOVERNING ELIGIBILITY 13 . . A. B. Eligibility for Participation. . . Eligibility for continued Participation. 13 13 . . . SECTION IV. APPLICATIONS AND WAITING LISTS . . . 14 . . . . A. B. C. D. E. F. G. Public Notice to Lower-Income Families Receipt of Applications . . . . . . Establishment of a waiting List . . Removal from waiting List. . . . . . Notice to Families Determined to be Ineligible Notice to Families Determined to be Eligible Merger and Cross Listing. . . . . . . . . . . 14 14 14 15 15 16 16 . . . . SECTION V. SELECTION OF FAMILIES FOR ISSUANCE OF CERTIFICATES OF FAMILY PARTICIPATION. . . . . . . . . , 17 A. Governing Conditions. . . . . . . . . . . . . . 17 B. Order of Preference ............. 17 C. Time and Date Sequence of Applications.. . .. 18 SECTION VI. DETERMINA'l'ION OF INCOME FOR ELIGIBILITY AND TOTAL TENANT PAYMENT. .................... 20 A. Procedure for Determination of Income for Eligibility. . . . . . . . Annual Income Sources and computation. Total Ten~nt Payment. ......... . . . . . 20 20 23 B. C. SECTION VII. DETERMINATION OF ELIGIBILITY FOR ISSUANCE OF CERTIFICATES OF FAMILY PARTICIPATION. ......... 25 A. Procedure Governing Determination of Eligibility 25 B. verification and Documentation of Application Data 25 C. summary of Verification Data . . . . . . . .. 27 SECTION VIII. SUBSIDY STANDARDS FOR ISSUANCE OF CERTIFICATES AND VOUCHERS OF FAMILY PARTICIPATION. ............. 28 ili f/Jt!;;?-7 ~ SEC'rION IX. ISSUANCE OF CERTIFICATE OR VOUCHER. . . . . . 29 , A. Procedure Governing Issuance of certificate or Voucher of Family participation. . . . . . . . . . . . . . . . 29 B. Expiration and Extension of certificate. . . . . . 31 ~~) c. suspension. . . . . . . . . . . . . . . . . . 32 D. Progress Reports. . . . . . . . . . . . . 32 E. Payment Standard. . . . . . . . . . . . . . . . 32 SECTION X. HOLDERS OF CERTIFICATES OF FAMILY PARTICIPATION. . . . . . . . . 33 A. Finders Keepers Policy/Where the Family Can Live. . 33 B. Assistance of Public Housing Authority . . 33 C. Family Moves. . . . . . . . . . . . . . . . . . 33 D. Portability. . . . . . . . . . . . . . . . . . 35 SECTION XI. LEASING OF DWELLING UNITS TO CERTIFICATE AND VOUCHER HOLDERS. . . . . . . . . . . . . . . . . . . . . . 36 A. Information to Owner. . . . . . . . . 36 B. Request to ERA for Lease Approval. . . . . 36 C. Approval of Contract Rent. . . . . . . . . . 36 D. Decent, Safe, and sanitary Condition of Unit. . . . 37 E. Security Deposits . . . . . . . . 37 ..~ F. Family Move Out. . . . . . . . . . . . . 38 G. Family Move out with continued Tenant Based Assistance. . . . . . . 38 H. Approval of Lease. . . . . . . . . . . . . . 39 I. Amount of Rent Payable by The Family. . . . . . . . 40 J. Notice to Owner and Family. . . . . . . . 41 K. Owners Responsibilities and Breach of Contract 41 1. Late Fee to Owner. . . . . . . . . . . . 41 2. Owner responsibilities. . . . . . . . . . . . . 41 L. Business in Unit . . . . . . . . . . . . . . 42 SECTION XII. REEXMtINATION OF FAMILY ELIGIBILITY AND REDETERMINATION OF INCOME. . . . . . . . . . . . . . . . 43 A. o B. C. Periodic Reexamination of Family Status and Income. . . . . . . . . . . . Special Reexaminations. . . . . . . . . . . . . . . Interim Redetermination of Annual Income and Adjustm~nt of Rent. . . Reexamination Procedures. . . . Notice to Family and Owner FOllowing Reexamination. . . . . . . . . . . . . . Termination of Payments Due to Family Ineligibility. ............ Instances of Misrepresentation of Non-compliance by Fami ly . . . c . . . . . . . . . . . . . . . . . . . Annual Inspection of Unit. ............ 48 the 48 49 . . 43 43 44 46 . . . . . . D. E. . . . . . . . . 47 F. G. H. Iv JhfJ-8 ..~ :> H. Annual Inspection of unit. . . . . . . . . . . . . I. Evictions/Termination of Tenancy. . . . . . . . . . J. Owner Term Notice . . . . . . . . . . . . . . . . . K. Absence From unit . . . . . . . . . . . . . . . . . L. Family Break. Up . . . . . . . . . . . . . . . . . . SECTION XIII. TERMINATION OF ASSISTANCE .......... 49 50 51 51 51 52 A. Termination Because of Family Action or Inaction.. 52 B. Grounds for Denial or Termination of Assistance. 52 C. ERA Discretion to Consider Circumstances. . . . . . 53 D. Requirement to sign Consent Forms. . . . . . . .. 53 E. Restriction on Assistance to Noncitizens. . . 53 SECTION XIV. FAMILY OBLIGATIONS. . . . . . . 54 section XV. FAMILY SELF-SUFFICIENCY PROGRAM . . . . 56 EXHIBITS EXHIBIT TITL~ V VI Section 8 Informal Review and Hearing Procedures Income Limits for Section 8 Housing Allowances for Tenant Purchased utilities Fair Market Rents (Section 8 Existing certificates) Payment Standards (Section 8 Voucher Program) Housing Authority Law "~~A ) -" I II III IV .~ o v fI1P-f ') '::> """"" v ADMINISTRATIVE PLAN SECTION 8 HOUSING ASSISTANCE PROGRAM HOUSING AUTHORITY OF ENCINITAS, CALIFORNIA SECTION I. ADMINISTRATIVE POLICY OF THE HOUSING AUTHORITY OF THE CITY OF ENCINITAS (HUD PROGRAMS)L The Housing Authority Law of .~ the state of California, Health and Safety Code Section 34327.5, provides that the federal agency from which the housing authority receives funds shall h~:.,e the exclusive power to determine the type, amount and manner of expenditure of those funds so long as those determinations relate to the law or contract under which the funds are received. This Administrative Plan is intended to comply with existing HUD regulations and handbook provisions promulgated under Section 8 of the united states Housing Act of 1937 as amended. Any variation between this Administrative Plan and the rules and regUlations of the Department of Housing And Urban Development shall be resolved in favor of the determination made by HUD. Changes in HUD rules regarding the type, amount and manner of expenditure of any funds received from HUD shall be deemed incorporated into this Administrative Plan automatically and staff changes to this Administrative Plan to incorporate such HUD rules shall be deemed to have been authorized by the Board of Commissioners unless expressly :repudiated by said Board at its next regular meeting. It is the intent of this provision to allow staff to comply with HUD rules in order to facilitate the administration of these HUD programs for the best interests of the program recipients with the least amount of administrative disruption and controver- sy. In addition to the HUD regulations which this Administrative Plan embodies, the state Housing Authority Law specifies certain prohibited acts and certain duties which govern the activities of the this Housing Authority to the extent that the state Housing Authority Law is not preempted by the HUD rules, the Board of Commissioners hereby acknowledges the mandate of the Housing Auth()rity Law and expressly incorporated Section 34331 "Prohibit- ed Acts" and Section 34332 "Duties of Authority" into this Administrative Plan as Exhibit. VI. f/1fJ-jo "? ......., ,.) o SECTION II. DEFINITION OF TERMS. 1. Agreement for Mutual Recision of Lease. The legal document acco~plishing the mutual recision which is signed by both lessor and lessee and states the effective date of the action. 2. Allowance for Utilities. An amount determined by the ERA (see Exhibit III) as an allowance for the cost of utilities (except telephone) and other services paid directly by the Family. 3. Annual Contributions Contract ("ACC").a A written agreement between HUD and the EHA to provide annual contribution to the ERA to cover Housing Assistance Payments and other expenses pursuant to the Act. 4. Annual Income. The anticipated total annual income of an eligible Family from all sources before deductions for the 12-month period following the date of determination of income, computed in accordance with section IV. 5. Annual Income After Allowances. The annual income less: a. $480.00 for each dependent (see Item 13), and $400.00 for any Elderly Family b. Medical expenses (see Item 28) which exceed 3 percent of the annual income, and for any Elderly Family. c. Child care expenses (see Item 8). 6. Applicant. Designates one who has submitted an appli- cation for Section 8 housing assistance. This application does not create an entitlement of any i.ndividual to section 8 assistanc~. 7. Certificate of Family Participation ("Certificate"). A certificate issued by the EHA under the section 8 Existing Program declaring a Family to be eligible for participation in this program and stating the terms and conditions for such participation. 8. Child Care Expenses. Amount anticipated to be paid ~y the Family for the care of children under 13 years of age during the period of which annual income is computed, but only where such care is necessary to enable a Family member to be gainfully employed or to further his or her education. The amount deducted shall reflect reasonable charges for 2 ;11/;)- /1 j , child care, andt in the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of inoome received from such employment. 9. citiz~nship and Immiqration statu~. citizen means a citizen or national of the United states. Evidence ot citizenship or eligible immigration status means the documents which must be submitted to evidence citizenship or eligible immigration status. 10. contract~ See Housing Assistance Payment Contract. 11. Contract Rent. The rent payable to the owner under his contract including the portion of the rent payable by the Family. "J 12. continuously Assisted Person. 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 certificate or voucher program. 13. Dependent. A member of the Family household (excludiag foster children) other than the Family head or spouse, who is under 18 years of age or is a disabled person or handi- capped person, or is a full-time student. 14. Displaced. Involuntarily. An applicant is or will be involuntarily displaced if the applicant has vacated or will have to vacate his or her housing unit as a result of one or more of the following actions: a. A disaster, such as fire or flood, that results in the uninhabitablity of unit. b. Activity carried on by an agency or U.S. or by any state or local governmental body or agency in connec- tion with code enforcement or a public improvement or development program. c. Action by a housing owner that results in applica- tion having to vacate where the reason for the owner's action is beyond an applicant's ability to control or prevent. d. Applicant has vacated his or her housing unit as a result of actual or threatened physical violence di- rected against the applicant or one or more members of the applicant's family by a spouse or other member of the household. Or the applicant lives in a housing unit with such an individual who engages in such violence. v 3 j/Jt)-I2- ~ The victim does not have to have a property right to the unit where the violence occurred. The perpetrator of the violence may not reside with the applicant family after admission. e. Applicant has vacated unit to avoid reprisals when a family member has provided information on criminal activity to the law enforcement agency and the agency recommends rehousing the family. f. Displacement by hate crime. q. The unit is inaccessible when the family member has a mobility or other impairment that makes the person unable to use critical elements of the unit and the owner is not legally obligated to make the necessary changes as a reasonable accommodation to the disabled person. ,~ h. Displacement because of HUD disposition of a multi- family project. 15. Eliqibility Income. Eligibility/annual income includes the higher of (1) annual income from assets; (2) if net Family assets exceed $5,000, passbook rate set by HUD. 16. Fair Market Rent. The rent, including utilities (ex- cept telephone), ranges and refrigerators, and all mainte- nance, management and other services, which as determined at least annually by HUD, would be required to be paid in order ,to obtain privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities. separate fair market rents shall be established for dwelling units of varying sizes (number of bedrooms). 17. Family. Family means a group of two or more persons related by blood, marriage or operation of law (for example, adoption or common law), who will live regularly together in the same dwelling unit and whose head of Family is at least 18 years of age. Family also includes income eligible single persons, elderly or disabled single persons, as well as the remaining member of a tenant Family. There may also be considered as part of the Family other persons who will live regularly as part of the Family group (including mem- bers of the Family temporarily absent whose income and resources are available for use in meeting the living ex- penses of the group, and including foster children, payment for whom is not considered Family income. Lodgers or unre- lated persons (except foster children or person required to care for a sick or incapacitated member of the Family) may not be included in the Family. ;""\ "'J 4 tf() -/3 " / fl II( \) r:> v a. Elderly Family. A Family as defined above whose head or spouse, or whose sole member (1) has attained age 62, (2) is under a disability as defined in section 23310f the Social Security Act or in section 102(5) of the Developmental Disabilities Services and Facilities Construction Amendments of 19702; or (3) is handicappeQ with the meaning of section 2023 of the Housing'Act of 1959. It may include two or more elderly, disabled or handicapped persons living together or one or mor.e such persons living with any other person who is determined to be essent!al to their care or well-being. Elderly or disabled seniors, whether or not they have a feder.al preference must be assigned before other sin- gles. b. The definition of "Family" does not exclude a person living alone during the temporary4 absence of a Family member who will later live regularly as a part of the Family. 1 The term is there defined as "inability to engage in any substantial gainful employment by reason of any medically determi- nable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months"; or "in the case of an individual who has attained the age of 55 and is blind, and by reason of such blindness is unable to engage in substantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial periOd of time." 2 The term "developmental disability" means a disability attributable to mental retardation, cerebral palsy, epilepsy or another neurological condition closely related to mental retarda- tion or which requires treatment similar to that required for mentally retarded individuals, which disability originates before such individual attains age 18, which has continued or can be expected to continue indefinitely, and which constitutes a substantial handicap to such individual. 3 A person shall be considered as handicapped if such person is determined to have a physical impairment which (a) is expected to be long continued and indefinite duration, (b) substantially impedes his ability to live independently, and (c) is of such nature that such ability could be improved by more suitable housing. 4 The term, temporarily or temporary as used in this section, is defined as a period of 6 months or less. 5 jhf;1-/,/ o ::) 18. o .- ... . c. A person necessarily residing with a Family by reason of employment by or far such a Family (1) to permit the employment of a sole wage earner, or (2) for the health and welfare of a sick or incapacitated member of the Family, shall be considered as a member of the Family for the purpose of determining Family income or established rent, providing that (1) such person maintains no other home, (2) his or her income is available to the Family, and (3) if the person is expected to contribute towards the Family's support. In such cases, only that part of the income which is over and above wages paid by the Family shall be in- cluded. Conversely, if the person is not expected to and does not, therefore, contribute to the Family'S support, his or her income should not be counted. However, the head of the household must then submit a doctor's certificate or such other certificate as may be deemed necessary stating that his employment is necessary to the care and well-being of the sick or incapacitated Family member, or to enable another Family member to seek or obtain employment outside the home. If the Family pays out-of-pocket for the care provided, such payments may be deducted as unusual medical expenses (see Item 25). Under no circumstances will such an arrangement be continued longer than necessary or permitted only for the convenience of the tenant or such employee. This provision is applicable both 'for initial occupancy and continued participation and is not restricted to Elderly Families. Family of Veteran or Service person. a. A Family is a "Family of veteran or service per- son" when: 1. The head of the Family is a veteran or ser- vice person; 2. A member of the Family, related to the head by blood, marriage or operation of law is a veter- an or service person; 3. The former head of the Family is a deceased veteran or service person provided the spouse has not remarried; or 4. A former member of the Family; related to the head by blood, marriage or operation of law, is a deceased veteran or service person and was a mem- ber of the Family at the time of death. 6 ;/11,2 .;~ '? :) b. To qualify a Family as the "Family of veteran or service person," the veteran or service person, unless deceased, must be living with the Family or be only temporarily absent unless: 1. The veteran or service person, formerly the head, is permanently absent because of hospital- ization, separation or desertion; 2. The veteran or service person, formerly the head, is divorced, provided there remains in the Family one or more persons for whose support he is still legally or morally responsible and provided that the spouse has not remarried; or 3. The veteran or service person, not the Family head, is permanently hospitalized provided that he was a member of the Family at the time he was hospitalized and provided further there remain in the Family two or more persons related to him by blood, marriage or operation of law. 19. Full-Time student. A person who is carrying a subject load that is considered full time for day students under the standards and practices of the educational institution attended. An educational institution includes a vocational school with a diploma or certificate program, as well as an institution offering a college degree. 20. Gross Rent. The total monthly cost of housing an eligible Family, which is the same of the contract rent and any utility allowance for the assisted unit. In the case of rental of only a manufactured home space, gross rent also includes the Family'S monthly payment to amortize the pur- chase price of the manufactured home. 21. Hard to House Fami~y. Families who experience difficulty renting appropriate housing. 22. JIea(l of Famil~ The "head of a Family" is that member actually looked to and held accountable for the Family'S needs. 23. Housinq Assistance Payments Contract ("Contract"). A written contract between ERA and an owner on behalf of an eligible Family. 24. Homeless Family. An individual/individuals who are without housing, or residents of a recognized homeless shelter or transitional housing facility, through no fault of their own. u 7 ;I1f;;-/(, ~ 25. ~ The united states Department of Housing and Urban .. Development or its designee. 26. Lease. A written agreement between an owner and an eligible Family for the leasing of an existing housing unit in accordance with the contract, which agreement is in compliance with the provisions of this part. 27. Lower-Income Family. A Family whose annual income is between 50% and 80% of the median income for the area, as determined by HUD with adjustments for sma.ller and larger Families. ~UD may establish income limits higher or lower than 80% of the median income for the area on the basis of its finding that such variations are necessary because of the prevai.ling levels of construction costs or unusually high or low Family inco~ll.es. 28. Medical Expenses. Those medical expenses for Elderly Families which are to be anticipated during the 12-month period for which the annual income is computed, and which are not covered by insurance; however, premiums for such insurance may be included as medical expenses. 29. Military Service of the unitr:.d states. "Military service of the United states" means only the Army, Navy, Air Force, Marine Corps and Coast Guard. Such service does not include Merchant Marine, Red Cross or any other organization not actually part of the military service of the united s1;ates. :~ 30. Mutual Recision. When the lessor and lessee agree to completely rescind and release each other from further responsibility in accordance with any executed lease. 31. Mutual Recision with continued Eli9ibilit~ A mutual recision where the lessee ia reissued their certificate for the use on another approval unit. 32. Mutual Recision without continued Eligibility. A mutual recision where the lessee is DQt reissued their certificate for use on another approved unit. 33. Net Family Ass~. Value of equity in real property, savings, stocks, bonds and other forms of capital invest- ment, excluding interests in Indian trust land.. The value of necessary items of personal property such as furniture and automobiles shall be excluded. o In cases where a trust fund has been esta.blished and the trust is not revocable by, or under the cOlntrol of, any member of the Family or household, the value of the trust fund will not be considered an asset so long as the fund 8 fhI,J-/7 ::> continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under 813.106. In determining net Family assets, ERA and owners shall include the value of any assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefore. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair m~rket value if the applicant or, tenant receives important consideration not measurable in dollar terms. 34. ~nern Any person or entity, such as a cooperative or HUD, having the legal right to lease or sublease existing housing. ~\ '''''''~ 35. Participant. A Family becomes a participant when the ERA executes a contract with an owner for housing assistance payments on behalf of the Family. 36. Payment Standard. The amount of the monthly maximum ~ubsidy payment on behalf of an eligible Family based on unit size. The payment standard for the ERA is established at 100% of Fair Market Rent. 37. Portability. Renting a dwelling unit with section 8 tenant based assistance outside the jurisdiction of the initial housing authority. 38. Remaining Member of a Tenant Family. Person left in assisted unit who mayor may not normally qualify for assis- tance on own circumstances (for example, a widow, age 47, not disabled or handicapped). 39. Resident. For the purpose of determining eligibility and applying preference, a resident Family is one who is currently living in the City of Encinitas, or whose head of household or spouse is employed in the City of Encinitas or who has accepted employment in the city of Encinitas which will become effective within 14 days from the date of appli- cation. 40. service person. For the purpose of applying prefer- ence, a "service person" means a person (man or woman) in the active military service of the United states. v 9 f/fI:li~ ~ 41. subsidy standards~ standards to determine the . . appropriate number of bedrooms and amount of subsidy for . families of different sizes and compositions. 1\ 42. Sllbstandard Dwellinq. A "substandard dwellinlglt is a dwelling which is unsafe, unsanitary or overcrowded due to the existence of one or more of the following conditions: a. Location. The location of the dwelling is such that creates a health, fire or safety hazard for the occupants. b. condition of structure. The condition of the structure is such as to create serious safety or health hazards by reason of vermin infestation or structural deficiencies or by continuous dampness or exposure, brought about by neglect or dilapidation. c. Water Supply. Lack of potable running water . within the dwelling unit. d. Sewage system. No connection between plumbing fixtures and adequate sewage disposal system. e. Toilet Facilities. No flush toilet in the dwell- ing unit, or if present, unfit for use. ~.~ ...J f. Bath Facilities. No bathtub or shower in the dwelling unit, or if present, unfit for use. g. Kitchen Facilities. Lack of permanent, safe and reasonably efficient kitchen facilities with the dwell- ing unit, including sink with running water and provi- sions for a cooking stove. h. Lighting Facilities. Dwelling not wired or inade- quately wired for electric lighting. i. Heating Facilities. Heating facilities inadequate or unsafe. j. Light and ventilation. Living room, bedroom or ~ kitchen with no windows, or with windows opening on an C air shaft; or toilet or bathroom without adequate ventilation. k. Overcrowded. The number of persons occupying a dwelling unit exceeds the maximum subsidy standards (see Section VIII), or when two or more Families are occupying a dwelling unit designed for single Family occupancy. o 10 tf!JJ-/c; .-~.~~ Q 1. For the purpose of applying preferences Families residing in SRO's shall not be qualified as residing in substandard housing conditions. 43. Suspension. stop of the clock on the term of a certificate or voucher for the period of time ~ecessary for the EHA to approve/disapprove a request for lease approval. 44. Tenant Rent. (Formerly call Net Family contribution). The amount payable monthly by the Family as rent to the owner minus any utilities. Where all utilities (except telephone) and other essential housing services are supplied by the owner, tenant rent equals Total Tenant Payment. . Where some or all utilities (except telephone) and other essential housing services are not supplied by the owner and the cost thereof is not included in the amount as rent to the owner, tenant rent equals Total Tenant Payment less the utility allowance.' In the case of a Family renting only a manufactured home space, tenant rent equals th~ space rental minus the housing assistance payment 1 as defined in the applicable program regulation. 45. Total Tenant Payment~ (Formerly called Gross Family contribution). The portion of rent the Family is obligat.ed to pay toward the contract rent. This amount will be re- duced by any allowance for tenant paid utilities and servic- es. .:J 46. utility Allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the Family occupying the unit, an amount equal to the estimate made or approved by a ERA or HUD under applicable sections of the regulations (see 24 C.F.R. SS 880, 881, 882, 883, 884 an 886) of the monthly costs of a reasonable con- sumption of such utilities and other services for the unit by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary and healthful living environment. 47. utility Reimbursement. In the 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. v 45. Very Low-Income Family~ A lower income Family whose annual income does not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger Families. HUD may establish income limits higher or lower than 50 percent of the median income r/1I;(- :to 11 ~.~.. .~ '~"""'~'r..::;7" ') for the area on the basis of its finding that such varia- ,.tions are necessary because of unusually high or low Family incomes. 46. Veteran. For the purposes of applying preferences, a "veteran" means a person (man or woman) who has served in the active military service of the United states at any time and who shall have been discharged or released therefrom under conditions other than dishonorable. 47. Violent criminal Activity. Any illegal criminal activity that has as one of its elements the use, attempted use or threatened use of physical for'ce against another person or property of another. 48. Voucher Contract. A written contract between the Efm and owner whereby the ERA makes voucher payments to the owner on behalf of an eligible Family. 49. Voucher. A document issued by the ERA declaring a Family to be eligible for participation in the Voucher Program and stating certain terms and conditiQnsof participation. :) 50. Voucher Payment. Housing assistance payments made to owners on behalf of eligible Families (voucher holders). o. 12 fllJ ;J ~/ /) .t:-#>f' ~ v . I' /-1 SECTION III. COBDYTIONS GOYERNING ELIGIBILITY A. Eli9ibility for Participation. To be eligible for partici- pation in the Housing Assistance Payment Program (HAP) adminis- tered by this Public Housing Authority (EHA) only those appli- cants: (--~ 1. Who qualify as a Family (see section II(17)). 2. Whose Eligibility Income (see section VI), does not exceed the applicable income limit for participation as established by HUD (see Exhibit II). Except with the prior approval of HUD, no Lower-Income Family other than a Very Low-Income Family shall be approved for admission. The applicable income limit for voucher/certificate issuance is the income limit for the Housing Authority of the city of Ericinitas jurisdiction. The applicable income limit for admission (initial lease up) is the income limit for the location where the family actually leases the unit. 3. Who do not have an outstanding validated claim for rent and/or damages owed to a EHA or Owner relative to previous participation in a housing program'adnl:~istered by a EHA. B. Eliqibility for continued Participatio~ To be eligible for continued participation in the HAP administered by this EHA only those occupants: 1. Who qualify as a Family (see section II(17)), or who is the remaining member of an assisted Family: a. In the event a participant Family separates, the Certificate for continued participation shall be issued to the individual who has been designated by the Family as "head of household." 2. Whose monthly Total Tenant Payment (see section II(45)) is less than the gross rent as paid to the owner for the unit occupied. 3. Who conform to the subsidy standards (see section VIII). 13 //1f)-J;L, _AI!' ~ SECTION IV. APPLICATIQNS AND WAITING LISTS A. PUblic ~otice to Lower-Income Families. '~ ~~ ',-,' o 1. This EHA shall make known to the pUblic through pUbli- cation in a newspaper of general circulation, as well as through minority media and other suitable means, the avail- ability and nature of housing assistance for Very-Low Income Families. (see Equal Housing opportunity Plan) B. Receipt of Applications. 1. Applications which are in compliance with the EHA advertisement are to be accepted from all Families apparent- ly eligible for the issuance of a certificate of Family Participation. This rule is to hold unless the number of applicants on the waiting list for certificates is such that there is no reasonable prospect that additional applicants could be issued certificates within the next twelve (12) months. In such case, application taking will be temporari- ly suspended. The suspension of application taking will be publicly announced by pUblication of a notice in the media as specified in Paragraph A above. The announcement will be utilized prior to the resumption of application taking. 2. Each application shall reflect the date and time re- ceived, and shall be processed as set forth in section III. 3. The EHA must maintain records of applicants and par- ticipants which provide HUD with data on race, gender and ethnicity. C. Establishment of a Waiting List 1. Each apparently eligible applicant Family shall be placed on the waiting list and the file (or appropriate type of control records) maintained in a manner so as to assure compliance with the policies of selection set forth in section V. Submission of an application does not create an entitlement of any individual to section 8 Housing Assis- tance. 2. In the event it is determined that certificates cannot be issued to all eligj.ble applicant Families because of limited Annual contributions Contract authorization, such Families shall be notified of this fact and of the approxi- mate date that a certificate may be issued, insofar as such date can reasonably be determined. 3. The EHA may refuse to issue a certificate of Family Participation to an applicant or participant if: 14 j#1).~ " _ ~~~r-~ ~ "~ ~ '$~ V a. The applicant or any member of his/her household has a documented history ol destruction and abuse o~ property. b. The applicant or any member of his/her household has a history of criminal activity involving crimes of physical violence to persons or property. c. The applicant or any member of his/her household has engaged in drug-related criminal activity or vio- lent criminal activity as defined in 24 C.F.R. S 882.118(b)(4), or which could discredit the Housing Assistance Payments Program. d. The applicant or any member of his/her household currently owes rent or other amounts to the EHA or to another PHA in connection with section 8 Public Housing Assistance under the 1937 Housing Act or any other program administered by the Encinitas Housing Authori- ty. e. As a previous participant in the section 8 pro- gram, or as participant in any ERA program, has not reimbursed the EHA or another PHA for any amounts paid to an owner under a housing aasistance contract for rent or other amounts owed by the Family under its lease, or for a vacated unit. f. Has violated any Family obligations as a partici- pant in any of the EHA's assisted housing programs. g. Breaches or has breached a repayment agreement with the EHA. h. Has committed any fraud in connection with any federal housing program participation in the family self sufficiency program. D. Removal from Waiting List. The EHA may remove an applicant from the waiting list for a failure to respond to requests for information or updates or refusal of assistance under both certificate and Voucher programs. The EHA updates the waiting list annually, purging those applicants who do not respond or are no longer interested. E. Notice to Families Determined to be Ineliqible If an applicant is determined to be ineligible on the basis of income, family composition or for any other reason, the applicant shall be notified promptly by letter of the 15 fJ1I)-Jtf ') ",r;:'~tJ~- ~.~, '\ -..-J o F. determination and their reasons therefor. The applicant shall be informed in the letter of their right to an infor- mal review, if requested within 10 days from the date of the letter, to make written or oral objections to the ERA determination. If, after the review, the applicant is still determined to be ineligible, the applicant shall be notified in writing, including a brief statement of the reasons for the final decision. The EHA shall retain for three years a copy of the application, notice to the applicant, and the applicant's responses. Notice to Families Determined to be Eligible When a certificate is available, the next Family on the waiting list shall be notified in writing, advising its members to contact the Housing Authority office of said availability, and giving them no less than seven (7) calen- dar days to schedule an appointment to complete an applica- tion, provide required verifications and attend a briefing on the section 8 program and issuance of certificate of Family Participation. In the event the Family members fail to respond within the prescribed time or fail to keep their appointment for the completion of an application, fail to provide required verification within the time prescribed or fails to attend the briefing session, the application shall be canceled, and the reason for cancellation noted on the face of the application, including the date of cancellation, and the initials of the EHA staff person canceling the application. In the event the Family fails to keep any of its scheduled appointments with qood cause, at the discre- tion of the Assisted Programs Supervisor, the family members may be given the option to schedule a 2nd appointment given pripr to the next issuance of certificates. G. MerQer and Cross Listinq. The Housing Authority will merge the ERA tenant-based waiting list with other assisted housing programs including federal or local programs. HUD program requirements still apply to each separate housing program. 16 j!?I;J -;;;5' ~ SECTION V. SELECTION OF ~~ILIES FOR ISSUANCE OF CERTIFICATES OF FAMILY PARTICIPATIO~ A. Governinq con4itions. Among eligible applicant Families of the size and composition appropriate to the dwelling units authorized in the Annual contributions contract, selection for the issuance of certificates of Family participation shall be made without regard to race, color, creed, religion, sex, dis- ability, handicap or national origin; and on the basis of the priorities as set forth in Paragraphs Band C, EXCEPT as provided in sub-paragraphs 1 and 2 below. 1. Non-residents whose head of household or spouse are presently working in or who have been notified that they are hired to work in the city of Encinitas shall be treated as residents. 2. The EHA must deny issuance of a certificate, even though technically eligible for the program, if the Family is not a Very Low-Income Family unless the EHA is granted a HUD exception. B. Order of Preference in the Selection of Families t~ Issued a Certificate/Voucher of Family Participation. (see section II(13)). Each of the preferences carries a point value, '~~ and all applications will be ranked by the highest number of .~ points being given highest priority in the waiting list. 1. Irypes of Prefe+ences. a. Federal Preferences: Applicants who are . Involuntarily displaced (section II,13) . Living in substandard housing including being home- less. . Paying more than 50% of monthly income for rent. o b. Ranking Preferences: . Veteran Preference (Section II,lS) or Family of veteran (Section II, 46),or . Elderly or disabled, or . Working Families, or . Full Time Students. c. Local Preference: Resident of or employed in the city of Encinitas. (section II, 39) ERA can select from applicants with a local preference without regard to the federal preference. Only 10% of the annual waiting list admissions can receive a local preference. Admissions not counted against the 10% limit are: (a) families living in HUD funded projects such as section 236 projects; (b) a portable section 8 17 ~~ ') ,.,;/ "'co"""'" 1 "'w/ .0 family into the jurisdiction; (c) a non federal prefer- ence holder when there are not federal preference holders on the waiting list; (d) a disabled single person or a family whose head or spouse or single member is an elderly displaced person over a single person who is not elderly, disabled or displaced. Priority Order 2. PREFERENCE POINTS 70 or SO points Federal Preferences: Select one Involuntary displacement due to public action other displacements, substan- dard housing including home- less, paying more than 50% of monthly income for rent. Ranking Preferences: Select one Families of disabled veterans whose dlsability has been de- termined by the Veterans Ad- ministration to be service- connected or families of de- ceased veterans or service persons whose death has been determined by the Veteran Ad- ministration to be service- connected. 70 50 Maximum of 5 points 5 Families of other veterans or service persons. (Section II- 18) Elderly or disabled Working families Full time students 3 5 5 5 3. Section 8 applicants receiving tenant based HOME subsi- die~,~ retain the federal preference applicable when they began to receive HOME assistance. 18 f/1I)~7 j . Q () C. Timeartd Date Sequence of Applications. . In the event that two or more eligible applicant Families requiring the same unit size have identical preference or priority status, the date and time sequence of applications shall govern selection with the applicant who filed the earliest application shall be issued a certifica~e first (subject to the provisions contained in Para- graphs A(l) and A(2) of this section). 19 /~)~~ "1 J o SECTION VI. DETERMINATION OF INCOME FOR ELIGIBILITY AND TOTAL TBNANT PAYMENT. This section sets forth the policies and proce- dures for determining Income for Eligibility, and the Total Tenant Payment (Rent) for Eligible Families. These policies and procedures shall be applicable in making such determinations for purposes of initial occupancy as well as in connection with periodic or interim re-examinations of Family income, composition and the extent of medical or child care expenses. A. Procedure for Determination of Income for Eligibility. For purposes of determining if a Family is a Very Low-Income Family, its income shall be determined in accordance with the following paragraphs B(l) and B(2), except that where a Family has net Family assets in excess of $5,000, its income shall include the actual amount of income, if any, derived from all the net Family assets ~ the current passbook rate as established by the U.S. Department of HUD of the value of such assets, whichever is . greater. For purposes of this determination, Net Family Asset means value of equity in real property, savings, stocks, bonds, and other forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded. B. Annual Income Sources and Comput~tion. Annual income shall include all payments from all sources received or anticipated to be received during the twelve months following initial occupancy or re-determination of Family income5 by (1) the head of the household and spouse, and (2) each additional member of the Family. residing in the household who is at least eighteen years of age. Annual income shall include that of the head of the household or spouse temporarily absent which, in the determina- tion of the EHA is (or shall be) available to meet the Family'S needs. Excluded in the computation of annual income sh.all be (1) temporary, non-recurring or sporadic income. 1. Income Sources shall include, put not be limited to: a. The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal service. 5 In making the estimate, due consideration should be given to past recipients of income. Arbitrary assumptions or imputation of income of periodic receipts shall be avoided, including a lump- sum payment for the delayed start of a periodic payment. Benefits paid on behalf of a child are considered as income accruing to the parent. 20 . f/1/);;/7 ~ .~ b. The net income from operation of a business or profession or from rental of real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness and an allow- ance for depreciation of capital assets not be deducted to determine the net income from a business). c. Interests, dividends, and net income of any kind from real or personal property. When the applicant's total assets exceed $5,000, the ERA will calculate the dollar amount included in the Family's annual income which is specifically derived from assets. In addi- tion, if assets are greater than $5,000, annual income shall include the greater of the actual income derived from all Net Family Assets or a percentage of the value of such assets based on the current passbook savings rate as determined by HUD. ~ d. ' The full amount of'periodic payments received from social Security, pensions, retirement funds, annuities, insurance policies, disability or death benefits and other similar types. e. Payments in lieu of earnings, such as unemployment and disability compensation, workers' compensation and severance pay (but see paragraph 2(c) of this section). o f. Public Assistance: such as AFSC, SSI, and General Relief income shall include the amount of the allowance specifically designated for shelter and utilities plus the allowance paid directly to the recipient. g. Periodic and determinable allowances, such alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling. Child support is considered as income accru- ing to the parent. h. All regular pay, special pay and allowances of a member of the Armed Forces, except hazardous duty pay while away from home and exposed to hostile fire, whether or not living in the dwelling, who is head of the Family or spouse; or other person whose dependents are residing in the unit. i. The amount of educational scholarships, benefits, or grants paid to the student or educational institu- tion which are available for or used for subsistence purposes (see paragraph 2(d) of this section). j. Any earned income of full-time students age 18 or older. 21 ~* ~ 2. Temporary. Non-Recurrinq or Sporadic Income Not Includ- ed in the computation of Annual Income: a. Casual, sporadic or irregular gifts. b. Amounts which are specifically for or in reim- bursement of the cost of medical expenses. c. Lump-sum additions to Family assets, such as inheritances, insura.nce payments (including payments under health and accident insurance and workers compen- sation), capital gains and settlement for personal or property losses, or for the delayed start of Social security or SSI benefits. Such sums, however, may be included as assets in the determination of income for eligibility. d. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equip- ment. Any amounts of such scholarships, or payments to veterans, not used for the above purposes or which are available for subsistence are to included in-income. ').' /' ~ e. Student Loans, regardless of what the loan is used for. f. The special pay to a serviceman head of Family away from home and exposed to hostile fire. g. Relocation payments made pursuant to Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. h. Foster child care payments. o i. The value of the allotment provided to an eligible household for coupons under the Foc)d stamp Act of 1977. j. Payments received pursuant to participation in the following volunteer programs under the ACTION Agency: 1. National Volunteer Anti-Poverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs. 2. National Older American Volunteer Programs for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Programs, Older American community service Pro.' grams and National Volunteer Programs to assist 22 ~~ ~ >,') , """""'; "... \~ , Small Business Experience, Service Corps of Re- tired Executives (SCORE) and Active Corps of Exec- utives (ACE). 3. Payments to volunteers under the Domestic Volunteer Services Act of 1973. 4. Payments received under the Alaska Native Claims Settlement Act. . 5. Income derived from certain sub-marginal land of the United states that is held in trust for certain Indian tribes. 6. Payments or allowances made under the Depart- ment of Health and Human Services' Low-Income Energy Assistance Program. 7. Payments received from the Job Training Part- nership Act. 8. Income derived from the disposition of funds of the Grand River Bank of ottawa Indians. 9. The first $2,000 of per capita shares re- ceived from judgement funds awarded by the Indian Claims Commission or the Court of Claims or from funds held in trust for an Indian tribe by the Secretary of Interior. 10. subsidy allowance to recipients of SSI, in lieu of food stamps. C. Total Tenant Payment. Each eligible Family's Total Tenant Payment shall be either the greater of 30 percent of net income after allowable deductions or 10 percent of gross income. . Allowable Deductions: (a) $480 for each dependent (excluding head of house- hold or spouse). (b) Medical expenses which exceed 3 percent of the annual income for any Elderly Family. 23 fI11 ;;;"3::L ) (c) Child care expenses: :) Amounts paid by the Family for the care of minors under 13 years of age or for the care of disabled or handicapped Family members, but only where such care is necessary to enable a Family member to be gainfully employed, or to further his or her education, and the amount allowable as child care expenses shall not exceed the amount of income from such employment. Verification of child care expenses must be provided on a Housing Authority .' form, including name, address, social security number and a copy of the license of the child care provider (if license exists), must be included in the form. Also, if the Family is entitled to file for federal and state income tax, the amount claimed through the Housing Authority for child care must be reflected in the state and Federal Tax claim for the appropriate year, if the Family is eligible for a tax deduction for said child care. In the event the child care expenses are in part or whole paid for or reimbursed to the Family by any other government agency, the amount paid for or reimbursed to the Family shall not be counted as a deduction in the calculation of ten- ant rent. ~, '~ 24 fhI-;-$J ~ SECTION VII. DETERMINATION OF ELIGIBILITY FOR ISSUANCE OF 'J' CERTIFICATES OF FAMILY PARTICIEATION. This Section sets forth the basic steps which are to be taken in obtaining and verifying information from applicant Families for the purposes of (1) determining whether they meet the conditions of eligibility for participation set forth in Section IIIi (2) applying the priority and preference requirements established in Section Vi (3) deter- mining the size of dwelling required in accordance with Section VIlli and (4) the rent to be charged in accordance with Exhibit IV. A. Procedure Governing Determination of Eligibility 1. Before issuance of the Certificate by the EHA, the applicant will be interviewed by a staff member who will complete the Certification of Tenant Eligibility (HUD 50058). The applicant must submit verification of all information requested to assure that the data upon which determination of eligibility, priority and preference sta- tus, size of dwelling and Total Tenant Payment (rent) are full, true, and complet~. """", ~ 2. This Certification of Tenant Eligibility (HUD 50058) constitutes the basic record of each applicant Family and together with all other materials relating to the Family's eligibility and preference rating, etc. is to be maintained in a file for each applicant. 3. If, during the application process it is determined that the applicant is not eligible, the applicant is to be so informed in writing and classified as ineligible (see ~ection VI(E)). In such instances, sufficient information to establish the fact is to be attached to the application which is to be maintained for at least three (3) years. If the applications received are not consistent with the public advertisement, no written response is required. 4. All entries on the application of applicant history are to be made in ink, indelible pencil, or typed in. Correc- tions or changes are to be made by lining through the origi- nal entry and entering the correct data. Such changes are to be dated and initialed by the person recording the change and the reas~n and authority for such changes noted in the record. 5. The applicant is to review and sign the application. B. Verification and Documentation of Application Data o 1. Verifications will be required for information submit- ted by an applicant to assure accuracy in determining eligi- bility, and priority, preference status, rent to be paid, 25 ;fII}~ 31 ~ ~') "~ ~" v ':'&~ /,r;~---". ~nd0size of dwelling required. Verifications must be cur- \t ?c;",~Jent (no more than 60 days old). The EHA will: a. Provide forms to applicants to assure receipt of required information; b. Assist the elderly, disabled or handicapped with verifications when necessary. 2. complete accurate verification records consisting of, but not routinely limited to, the following are tr be main- tained: a. Letters or other statements from employers and other pertinent sources giving authoritative informa- tion concerning all items and amounts of income, to- gether with other eligibility and preference determina- tions; b. original or carbon copies of documents in the applicant's possession which substantiate his state- ments, or a brief summary of pertinent contents of such documents signed and dated by the staff member who viewed them; c. Certified statements, or summary data from books of account, from self-employed persons, and from per- sons whose earnings are irregular, such as salesmen, taxi-drivers, etc. setting forth gross receipts, item- ized expenses and net income; d. Memoranda of verification data obtained by person- al interview, telephone, or other means, with source, date reviewed, and the person receiving the information clearly indicated; e. Proof of displacement (see Section II(14)). f. Verification of uninhabitable conditions (see Section II(~2)). g. Verification of residency in the City of Encinitas (see Section II(39)). h. verification of payment of monthly rent in excess of 50% of monthly income. i,. Verification of involuntary displacement (see Section II(14)). j. Documentation for status of citizenship or immigration (see Section II (9). 26 f#1J-BS' ~.... :~ ' ~ ,) .~ ~ v c. Summary of Verification Da~~ 1. Verification data is to be reviewed and evaluated as received for completeness, accuracy, and conclusiveness. Where the information received is not completely adequate in all respects, follow-ups or new efforts to obtain ~uch information are to be made and carried through to conclu- sion. If during the verification process, it becomes evi- dent that for one or more reasons an applicant is ineligi- ble, the investigation is to be discontinued and the appli- cant promptly notified in writing of their ineligibility and the reasons therefore (see section IV(E)). The ERA is re- quired to offer the applicant the opportunity to present objections to a EHA decision denying assistance to the applicant. However, the regulation provides that the infor- mal review requirements for applicants does not apply to the following types of determinations, which are properly left to the administrative discretion of the EHA, or which are controlled by applicable program requirements: a. To review discretionary administrative determina- tions by the EHAr or to consider general policy issues or class grievances. b. To review the EHA's determination of the number of bedrooms entered on the certificate under the ERA's unit size standard. c. To review the EHA's determination that a unit located by a certificate holder does not comply with the HQS, or the EHA's determination not to approve the lease for the unit. d. To review the EHA's decision not to approve a request by a certificate holder for an extension of the term of the certificate. When verification of all necessary items for each applica- tion is completed, the certification of Tenant Eligibility (HUD-50058) is to be completed and signed by the staff member completing the form. This form, along with documen- tation of verification shall be retained for HUD audit or inspection in a file for each application or assisted Fami- ly. 27 tfIJ;-3' ~ SECTION VIII. SUBSIDY STANDARDS FOR ISSUANCE OF CERTIFICATES AND VOUCHERS OF FA~I~Y PARTICIPATION. Prior to issuing the Certificate of Family participation, the appropriate dwelling unit size for the Family will be determined by applying the following criteria: 1. The bedroom size assigned should not require more than two persons to occupy the same sleeping :room or liv- ing/sleeping room. A parent shall not be required to occupy a bedroom with an infant or child. 2. Every Family member regardless of a,ge is to be counted as a person. An unborn child wi.ll be counted as a person. These principles result irl the following standards: No of Bedroom Minimum Maximum 0 1 2 1 1 4 2 2 6 3 3 8 4 4 10 The foregoing guidelines determine the bedroom size to be designed on the Certificate. The Family may rent a larger dwelling provided the rent to owner plus any allowances for utilities and other services does not f~xceed the fair market rent for the bedroom size designated on the Certificate. Th. Pamily may rent a smaller bedroom sima unit provided the unit meets the st~ndards of acceptability. i.e.. .....at least on. sl.eping room or 1ivinq/s1eeping room of apprQpri- at. sima for each .two persons." A parent shall not be re- quired to occupy a bedroom with an infant or child. 3. Any live-in aide approved by EHA to reside in the unit is counted in determining unit size. 4. A family unit size for any family consisting of a single person must be zero or one-bedroom unit unless a live-in aide resides with the family. 5. The EHA must approve composition of the resident family at admission and must also approve later changes in family composition. The family must request EHA approval to add any family member as an occupant of the unit (exception is newborn, adoption or court-awarded custody of a child). EHA must approve addition of a foster child or live-in aide. v 28 f/11 )~37 ') ","" ."""" ,~ -cO> ..:J SECTION IX. ISSUANCE OF CERTIFICATE OR VOUCHER. A. Erocedure GoverninQ Issuance of certificate or Voucher of F&mily Participation. 1. After a Family has been determined to be eligible and is selected for participation, a certificate shall be pre- pared and signed by a designated staff member. The certifi- cate shall state the number of bedrooms approved for the Family (see subsidy Standard, section VIII); and the Total Tenant Payment (see section VI(C)). 2. The certificate/Voucher, along with a certificate holder's packet, shall be presented to the Family at a briefing session which the Family will be required to attend. The staff person conducting the briefing program will explain the program in detail and answer any questions the certificate holder may have. Each Certificate/Voucher holder's packet shall include the following: (1) Request for Lease Approval (HUD 52517); (2) The EHA's statement of housing quality standards and the forms for inspection for dwelling units. (3) Information regarding lead based paint, poisoning hazards, symptoms, and precautions; (4) "Fair Housing U.S.A." (HUO-63-EO(6); (5) Information on the tenant rent, the housing assistance payment, and the payment standard or Fair Market Rent. (6) The EHA's schedule of Allowance for utilities and Other services; (7) Housing Discrimination complaint Form (HUD-903); (S) Information on the EHA's procedure for conducting informal hearings for participants. This information shall contain a general description of the procedures for conducting informal hearings for participants in the EHA program; including a description of the circum- stances in which the EHA is required to provide the opportunity for an informal hearing and how to request a hearing. (9) Information on the term of the certificate or voucher and the EHA policy on extensions. 29 tIfI)-]8 '") ,."I (10) Information on what the family should consider in deciding to lease a unit. (11) Informatian as to where the family may lease a unit including portability procedures. (12) A statement about the ERA's policy on providing information about a family to prospective owners. (13) HUe brochure on selecting a unit. (14) A list of landlords known to be willing to lease 'a unit to the family. (15) If the eamily includes a disabled person, the family may request current listings of accessible units. (16) A list of the family's obligations under the Program. (17) A copy of the policy regarding the grounds on which the EHA may terminate assistance. .~ \ .J (lS) A copy of the SUbsidy standards. (19) A copy of the Lease Addendum (HUD 52647.3 for Vouchers and HUD 52535.3 for certificates). ( 20) Such other items as tht~ EHA may determine should be included. 3. The briefing session shall provide a full explanation and time for discussion of the following: (1) A description of how the program works, including portability. (2) Family and owner responsibilities under the lease and contract; (3) How to find a suitable unit; (4) The general locations and characteristics of the full range of neighborhoods in which the EHA is able to execute contracts. The units may be inside and outside the jurisdiction, including areas that do not have a high concentration of poor families. (5) Applicable housing quality standards and proce- dures for Family and owner inspections and for their '" ~) 30 /#1).-37 ~~~ J\J ,,,',....'" ,....,; . c ""~". o individual certifications of compliance with those standards; (6) significant aspects of applicable state and local laws; (7) significant aspects of federal, state and local Fair Housing laws; (S) Applicable Fair Market Rent, determination of Total Tenant Payment, establishment of housing assis- tance payments; (9) Information regarding applicable regulations pertaining to the portability of the Certificate; (10) That the Family may obtain copies of the Housing Quality standards, the contract and other pertinent forms on request; and (11) That the EHA will not be responsible for any damage caused by pets. B. ~xpiration and Extension of certificate.. 1. The certificate of Family Participation shall expire at the end of 60 days unless within that time the Family sub- mits a Request for Lease Approval. 2. If a certificate/voucher expires or is about to expire, a Family may submit the certificate/voucher to the EHA with a request for an extension. The EHA shall review with the Family the efforts it has made to find a suitable dwelling unit and the problems it has encountered. The ERA shall determine what advice or assistance might be helpful. If the ERA believes that there is a reasonable possibility that the Family may, with additional advice or assistance, find a suitable unit, the EHA may grant one or more extensions not to exceed a total of 60 days. The maximum amount of time a family may hold a certificate/voucher is a total of 120 calendar days from the beginning of the initial term. If a member of the family is a disabled person, and the family needs an extension because of the disability, the ERA may grant an exten~ion as a reasonable accommodation. Expiration of a certificate shall not preclude the Family from filing a n~w application for another certificate/vouCher at the time the program resumes accepting applications. 31 /#1 J -'10 - ~ C. SusRl'nsion. stop of the clock on the term of a certificate or voucher for the period of time necessary for the ERA to approve/disapprove a request for lease approval. D. Proqre~Reports. Progress reports are required by the ERA during the extended term of a certificate/voucher. E. Payment Starlda.t:.d. Because of the high rent levels in the city of Encinitas, the payment standard has been established at 100% of the Fair Market Rents. The Board has authorized the Executive Director to approve changes to the payment standard based on the annual HUD determination of the Fair Market Rent. /"'''''\ "-) "-""", ,) 32 IM)-'!/ ~.. ~ ~ ~ ~ECTION x. HOLDERS OF CERTIFICATES OF FAMILY PARTICIPATIONL A. Finders Keepers Policy/Where the Family Can Live. 1. Each holder of a Certificate of Family Participation shall be responsible for finding an Existing Housing unit suitable to the holder's needs and desires, within the area of jurisdiction of the Housing Authority, or as authorized under the portability regulations. 2. A holder of a Certificate may keep the dwelling unit that the holder already occupies, if the unit meets HUD requirements. 3. Holder may select ~ eligible unit, including a HUD owned unit. However, a family may not receive tenant based assistance for housing currently assisted by state or local rent subsidy. This does not include reduced rent from tax credits. The EHA must inform the family both orally and in writing that the family has the right to select any eligible dwelling unit and an EHA owned unit is freely selected by the family without EHA pressure or steering. 4. Ineligible housing units are: ~ public housing ~ unit receiving project based section 8 ~ homes, board and care homes ~ college or other school dormitories ~ units on penal, reformatory, medical, mental or similar institutions ~ unit occupied by its owner. or by a person with any interest in the dwelling unit B. Assistance of Public Housing Authority. This EHA will provide assistance in finding a unit for those Families who, because of age, handicap, or other reasons, are unable to locate approvable units. Assistance will also be provided in finding a unit for any Family which alleges that discrimination is prevent- ing it from locating a suitable unit. C. Family Moves. 1. The EHA may deny eligibility to those participants who have violated their lease under the section 8 Existing Program. 2. If an assisted Family wishes to move, in accordance with the lease provisions, the family must obtain approval from the EHA. The EHA shall issue another certificate or voucher or process a Request for Lease Approval, if the recertification is completed and the Family meets the following criteria: 33 ~~ i~ a. The Family has no unmet financial obliqations to the EHA or any other Housing Authority. b. The Family has not violated its certificate of Participation in the section 8 program. c. The family has not moved during the past year. The Executive Director can make an exception to this rule on a case-by-case basis for good cause. d. The assisted lease for the old unit has terminated because of the EHA terminating the HAP contract for the owner's breach, or the lease was terminated by mutual agreement of the owner and the tenant. e. The owner has given the tenant notice to vacate, or has commenced an action to evict the tenant, or has obtained a court judgement or other process allowing the owner to evict the tenant. f. The tenant has given notice of lease termination. g. The Family is in compliance with the terms of the lease. ,:) h. The Family continues to be eligible for housing assistance. i. Sufficient funds are available under the ACC. 3. A Family shall not be eligible for another certificate if it was evicted from an assisted unit in accordance with local law and the provisions of the contact, unless the Family has satisfied any liability to the owner and/or the EHA. 4. The EHA may refuse to issue a certificate of Family Participation to a Family wishing to move to another assist- ed unit if the EHA has determined that any member of the Family has been involved in drug-related or other criminal activity, as defined in the Code of Federal Regulations. 5. The EHA may refuse to issue a certificate of Family participation to a Family at the time of recertification or move out, if it has been determined by a EHA conducted pre- move out inspection of the dwelling unit that abuse of the property through participant negligence exists over and above normal wear and tear. 6. The EHA may allow a Family to receive another certifi- cate on a conditional basis for the purpose of moving to a .~.,,\ I ''-'" 34 /#1)- '13 ~ .:) '.'....-......" 1 "-.../ D. new unit with continued assistance, if the Family meets the criteria outlined in section C(2) above. portability. 1. A family may move anywhere in the united states in the jurisdiction of a housing authority administering section 8. 2. A family may lease a unit under portability quring the first year after admission, if either the househe~d head or spouse of the assisted family already had a legal residence in Encinitas at the time the family first submitted an application in the Encinitas' Program. However, if the family doesn't have the right to portability, the family may lease a unit outside Encinitas, if the EHA and the "receiving Housing Authority" voluntarily agree to allow a portability move. 3. The EHA will accept certification from the "initial housing authority" unless there are changes in income or family composition. The "initial housing authority" determines whether the family is income eligible in the area where the family wants to rent. If the family is moving between certificate and voucher programs, the family must meet income limits of the "receiving housing authority". 35 fI1I,) -'If '), ~ .~ ...."\ . I >"...,/. SECTION XI. LEASING OF DW~LLING UNITS TO CERTIFICATE AND VOUCijU HOLDERS. A. Information to Owner. The EHA will respond to inquiries from owners who have been approached by certificate/Voucher holders by explaining major program procedures, including lease provisions, lease approval procedure, housing quality inspections, contract provisions and payment procedures. The EHA will also furnish copies of the pertinent forms. The EHA must inform the owner that the EHA has not screened the family's behavior or suitability for tenancy and that such screening is the owner's rC3ponsibility. Owners are permitted and encouraged to screen families on the basis of their tenancy histories including such factors as: ~ payment of rent and utilities ~ caring for a unit and premises ~ respecting the rights of others ~ drug related criminal activity or other criminal activity that is a threat to the life, safety or property of others ~ compliance with other essential conditions of tenancy. B. Request to EHA for Lease Approval. When a Family has found a unit it wants and the owner is willing to lease, the Family shall submit to the EHA a request for lease approval signed by the owner and the Family. In addition, any further agreements between the owner and section 8 participant must be approved by the EHA. Failure to secure such approval could result in cancel- lation of the participant from the program. 1. A Family become a participant in the section 8 Existing Housing Program when the EHA executes a contract with an owner for housing assistance on behalf of the Family. 2. Requests for Lease Approval may not be approved for a single dwelling unit with a swimming pool, or mUlti-Family units if a member of the household is a child/children under the age of 12 and there exists an un-enclosed swimming pool that is accessible to said child/children. C. Approval of Contract Rent. The EHA shall determine whether the contract rent is approvable. 1. If the contract rent plus any applicable allowance (see Exhibit III) is at or below the reasonable rent and at or below the Fair Market Rent, it may be approved. 2. Rent reasonableness shall be determined by the inspec- tors, based on annual survey conducted by the Housing Au- thority market analyst. The survey shall be kept by census 36 1/11;-'15" ~ ,~" "'-;-~ .' ) '~ ~ track in" order to prevent higher rent being granted then , those which are appropriate for a comparable unit in the same neighborhood. 3. If the proposed rent plus any allowance is no more than 10 percent higher than the applicable Fair Market Rent, the EHA may approve it on a unit by unit basis if it feel such higher rent is justified. The ERA has authority to approve such higher rents for no more than 20 percent of the units authorized by an ACC. The EHA may request an extension of this authority from HUD. D. Decent, Safe, and Sanitary Condition of Unit. Before approving a lease, the EHA shall inspect the unit to determine that it is in decent, safe and sanitary condition in accordance with 24 CFR 882.109 as amended by 982.401, 982.402, and 982.405 (Housing Quality Standards). 1. If there are defects or deficiencies which must be corrected in order for the unit to be decent, safe and sanitary, the EHA shall so advise the owner, utilizing the Agency Determination form for this purpose. Before a con- tract is executed, the unit must be re-inspected to ascer- tain that.the necessary work has been done and the unit is decent, safe and sanitary. 2. A report for every inspection and re-inspection under this paragraph shall be prepared and maintained in the files of the ERA. Each report shall specify (a) any defects or deficiencies which must be corrected in order for the unit to be decent, safe and sanitary, and (b) any other defects or deficiencies, a record of which shall be maintained for use in the event of a subsequent claim by the owner that damages were caused during the period of occupancy by the Family. E. ~ecurity Deposits The owner may collect a security deposit that does not exceed an amount allowed by state law nor exceeds deposit requirements for other unassisted units. When the tenant moves out, the owner, subject to state or local law, may use the security deposit, including any interest on the deposit, in accordance with the lease as reimbursement for any unpaid rent payable by the tenant, damages to the unit or for other amounts the tenant owes under the lease. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount, if any, used to reimburse the owners, the owner must refund 37 ~14 ;;-'1" ~ ,rfI" """"" ~.J ..-"-'~~'''''" ,J promptly the full amount of the unused balance to the tenant. If the security deposit is not sufficient to cover amounts the tenant owes under the lease, the owner may seek to collect the balance from the tenant. F. Family Move Out. If the family moves out of the unit, the EHA may not make any housing assistance payment to the owner for any month after the month when the family moves out. The owner may keep the housing assistance payment for the month when the family moves out of the unit. If the family terminates the lease on notice to the owner, the family must give the EHA a copy of the notice at the same time. If the family wants to move to a new unit, the family must notify the EHA and the owner before moving from the old unit. If the family wants to move to a new unit that is located outside the initial housing authority jurisdiction, the notice to the initial housing authority must specify the area where the family wants to mOve. G. Family Move out with continued Tenant Based Assistance. A family may move to a new unit if: . The assisted lease for the old unit has terminated because of the EHA terminating the HAP contract for the owner's breach, or the lease was terminated by mutual agreement of the owner and the tenant. . The owner has given the tenant notice to vacate, or has commenced an action to evict the tenant~ or has obtained a court judgement or other process allowing the owner to evict the tenant. . The tenant has given notice of lease termination. . The Family has no unmet financial obligations to the EHA or any other Housing Authority. . The Family has not violated its certificate of Partici- pation in the Section 8 program. . The family has'DQt moved during the past year. If a participant family moves from an assisted unit with continued tenant based assistance, the term of the assisted lease for the new assisted unit may begin during the month 38 /III) - '11 o the family moves out of the first assisted unit. Overlap of the last housing assistance payment, for t~e month when the family moves out of the old unit, and the first assistance payment for the new units, is not considered to constitute a duplicate housing subsidy. The ERA may deny permission to move if the ERA does not have sufficient funding for continued assistance. H. ~pproval of Lease. ':) 1. The EHA shall approve the lease upon determining that the Contract Rent can be approved, that the unit the Family wishes to lease is in decent, safe and sanitary condition, and that the proposed lease complies with the program re- quirements. (a) No otherwise acceptable unit shall be disapproved on the grounds that it is either larger or smaller than the size unit specified on the Family's Certificate provided that: (1) Undersized Unit. The dwelling unit contains at least one sleeping room or living/sleeping room or appropriate size for each two persons. (2) Oversized Unit. The Contract Rent plus any allowances6 does not exceed the fair market rent for the smaller size unit as stated on the Family's certificate, or such higher rent can be approved by the EHA or HUD. (i) Family Requests for Transfers to Larqer Units. In the event a Family requests a transfer to a larger unit due to a change in Family composition (which the ERA must approve except for newborn, adoption or court awarded custody of a child), the unit into which the Family wishes to transfer will have a minimum number of bedrooms equivalent to the bedroom size specified in the certificate of Family Participation. 2. The HAP contract must be executed no later than 60 days from the beginning of the lease term. No payments may be made to the owner until the HAP contract is executed. within the 60 day period HAP payments can be made ~ 6 The utility and other allowances shall be for the size unit stated on the Certificate of Family Participation. 39 I~J-'1'l J , .(; ') ,,# retroactive to the beginning of the lease. 3. The ERA must not approve a unit if: .'........ ,...) . the owner has been debarred, suspended or subject to a limited denial of participation under 24 CFR part 24. the federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and such action is pending or the court has determined that the owner violated the Fair Housing Act the owner has violated obligations under a HAP contract. the owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. the owner has a history or practices of non- compliance with the HQS for units leased under the tenant-based programs or with applicable housing standards for units leased with project-based Section 8 assistance. the owner has a history or practices of renting units that fail to meet state or local housing codes, such as illegal units. the owner has not paid state or local real estate taxes, fines or assessments. " . .. . . . I. Amount of Rent Payable by The Family. 1. The EHA shall determine the amount of rent payable by the Family to the owner, which shall be the amount of ,the Total Tenant Payment, or the amount of such contribution less the amount of any allowance for utilities and other services not to be provided by the owner. 2. If the Total Tenant Payment is less than the allowance for utilities and other services, resulting in utility reimbursement, the EHA shall pay the difference directly to the Family. 3. A voucher holder may pay more than the payment standard providing they are willing to pay the difference from their own income sources. 4. When a voucher holder pays less than the payment standard, they receive the savings in the form of a reduction in their contribution toward the rent, except in no case shall they pay less than 10 percent of their total monthly income. ....,.. 'J 40 ;!/'IJ-tf9 } ,..".' ~,,~ } --' 'I",~~ -.:.-/ J. Notice to Owner and Family. \1 \1 II 1. Lease Disapproval. If the EHA determines that the lease cannot be approved for any reason, including the condition of the unit, the EHA shall so notify the owner and the Family, utilizing the agency determination form. 2. Lease Approval. a. Upon approval of the lease, a Housing Assistance Payments Contract shall be prepared by the EHA and presented to the owner for signature along with the lease and unit inspection form. b. I~nediately upon the return and execution of the above documents, the ERA shall mail the lease/addendum to lease, copy of HAP Contract and unit inspection form to the owner, and a copy of the lease and unit inspec- tion form to the Family. 3. Files. a. The EHA shall maintain files on all requests for lease approval together with dwelling inspection re- ports (see paragraph B) and agency dete~nination notic- es relating to any unit with deficiencies. b. All complaints by Families concerning compliance by the owner with the ERA's housing quality standards shall be retained in the ERA's files for three years. K. Owners Responsibilities and Breach of Contract 1. Late Fee to Owner. The ERA must pay the Housing Assistance Payment promptly in accordance with the HAP contract. If the EHA fails to make timely payment, the EHA may be obligated to pay a late payment fee in accordance with state or local law. The ERA may USe only administrative fee income or administrative fee reserve (formerly operating reserve) to pay the fee. If the owner claims non-receipt of HAP and ERA or contractor records show the check was issued in a timely manner, the EHA or contractor will issue the check no more than one time during a six month period without a charge for reissuance. If check must be issued more frequently, there will be a $10 charge to the owner for reissuance. 2. Owner responsibilities. The owner is responsible for performing all the owner's obligations under the HAP contract and the lease. 41 tI1 )-50 , ~ 3. Breach of Contract. Any of the following actions by the owner is a breach of contract: a. Any violation of the HAP contract, b. Owner has committed fraud, bribery or any other cor~upt or criminal act in connection with any federal housing program, c. Owner has failed to comply with regulations for applicable mortgage insurance or loan program, d. Owner engaged in drug trafficking. 4. Remedy for Breach of contract. EHA will abate HAP payments until breach corrected, as for HQS failures. ERA will terminate HAP payments for othe~' breaches, such as drug trafficking. L. Business in unit Legal prOfit-making activities in the unit are allowed to encourage work and earnings by assisted families, provided the use of the unit for business purposes is incidental to the primary use of the unit for residence by the family. Owner consent is not required. However, the owner may attach 'Uhouse rules" that restrict or govern business activity in the unit. ~ Business cannot violate related City codes nor HQS. I ".,I ,1j 'f .~"'"" J 42 fh'IJ-SI ~ o o SECTION XII. REEXAJtINATION OF FAMILY ELIGIBILITY AND REDETERMI- NATION~ INCOME. A. Periodic Re~xamination of Family status and IncomeL To assure that a Family continues to remain eligible for Housing Assistance Payments and to make appropriate adjustments in the rent paid by the Family, the reexamination of Family income, composition, and extent of exceptional medical and other child care expenses shall be made by the EHA at least annual~ from the effective date of the lease. After the Family's eligibility status and annual income have been redetermined, such action as necessary may be taken (see Paragraph D for procedures and Paragraphs E, F, and G for actions required). Families shall be advised of the applicable portabil- ity regulations at the time of recertification. B. Special Reexamination~J If at time of initial occupancy or periodic reexamination. a Family is clearly low-income, but it is not possible to make a reasonable accurate estimate of anticipat- ed incoMe for the next 12 month period, the following shall apply: 1. A special reexamination shall be scheduled 7 for speci- fied times (either 30, 60 or 90 days) depending upon the staff member's es'timate of time for Family' S circums'tances to stabilize. Controls must be established to assure com- pliance. a. If at the time of such special reexamination, it is still not possible to make a reasonably accurate estimate of the FamilY's income, special reexaminations shall continue to be scheduled and conducted until such time as a reasonable estimate can be made for a 12- month period. 2. For rent determination purposes, the Family's rate of income, based on the amount expected to be received by the Family from the date of the current determination to the date of the special reexamination, shall be projected for a 12-month period, even 'l:.hough it is known that incom~ in such amount or from such sources will not continue for that period. 7 Use of special reexamination prOV~S10ns assumes that in th~ year the Contract terminates, the required periodic reexaminations procedures will be started no later than the beginning of the third month prior to the Contract termination date and completed prior to the last month of the Contract Rent. 43 f/1f )- 5'2- '~ -do'" 3. Families whose past employment has b~en sporadic or who are on welfare, then work, then are unemployed, should not be given a special reexamination if such an income pattern is expected to continue, as a reasonable twelve months' estimate of their income may be based upon past and present rate of income. c. Jnterim Redetermination of Annual Income and Adjustment of ~ No adjustments to Family's Total Tenant Payment are to be effected between dates of periodic ~eexaminations or pre-sched- uled reexaminations (as set forth in paragraph B above) except as provided in the following subparagraph 1. 1. In addition to submitting such information as may be required, at time of periodic or special reexamination of eligibili.ty and redetermination of Family contribution, Section 8 participants and certificate hold~rs are to be required to report to the EHA within ten (10) days form the effective day the following defined changes in Family cir- cumstances: ~" '-/ a. Changes Affecting Head of Household - Loss of head of household through death, divorce or other continuing circumstances, or addition of a Family member who in accordance with EHA policy should become Head of House- hold. b. Changes Affecting Head or Spouse or Family Member over the Age of Eighteen. c; (1) The loss or addition to the Family through marriage, reconciliation, divorce, permanent separation, death, birth, desertion and/or other continuing circumstances; (2) Commencement, discontinuance or change in the amount of welfare assistance, social security, SSI, private retirement, disability, unemployment benefits; (3) Entry into or discharge from military ser- vice; (4) Unemployment for whatever reasons; ......J (5) Employment or reemployment; (6) Monthly increases or decreases in total Family income in excess of $50.00; monthly decreases in income less than $50.00 may be considered by the Authority's office in extreme hardship cases. 44 ;111) .53 ~ j .11<' (7) Commencement or discontinuance of other sources of income which sUbstantially affect the total income of the Family (to be determined by the Eligibility/occupancy Specialist, or the Assisted Programs Supervisor). Reports of the above defined circumstantial changes are to be made on or before the first rent payment period subse- quent to the occurrence of the change. Upon receipt of such report, an Interim Reexamination of Family income and Total Tenant Payment will be conducted. Failure to report such occurrence of the above defined circumstantial changes will require retroactive charges when necessary, and may be grounds for termination from the section 8 program. In addition, a Family may at any time request a redetermina- tion of its Total Tenant Payment on the basis of changes in Family income or other relevant circumstances. If persons related to the assisted Family move into the unit (with owner's permission) the EHA will continue assistance only if additional income is accounted for in the Family rent calcu- lation, the occupancy standard are maintained including the sleeping room provision, and any resulting increase in rent remains with the FMR for the original size. Interim adjust- ments will be made only as provided in Paragraphs 1 and 2 below: €"""~ ,J 2. An assisted Family who reports a decrease in income (lasting in excess of 30 days) will be given an interim redetermination of income. If upon verification, it is determined that the Total Tenant Payment exceeds 30 percent of the annual income, an appropriate adjustment shall be made. 8 3. In the event the rent is decrease in accordance with this provision, the Family shall be required to report all income increases which occur prior to the rent reexamination and rent will be appropriately adjusted.9 Reports of the above defined circumstantial changes are to be made on or before the first rent payment period subsequent to the 8 Use of Special Reexamination provisions assumes that in the year the contract terminates, the required periodic reexaminations procedures will be started no later than the beginning of the third month prior to the contract termination date and completed prior to the last month of the contract rent. 9 Interim adjustments will be made only if there is a minimum $10.00 increase or decrease in the monthly Total Tenant Payment. Data assembled at the time of the reexamination is to be filed in '~ the folder set up for the Family. 45 1M) -5,/ . ') .,"", ,J 'h, ........,/ - ~, ~- occurrence of the change. Upon receipt of such report, an interim red~termination of Family income and rent will again be c.,onducteci. 4. The EHA will notify the Family of any change in the Fami11' portion of rent payable to the owner and will notify the owner of any change in the Housing Assistance Payment to be effective according to the following: a. Increases in rent are to be made effective the first of th~ second month following that in which the change occurred (retroactively if necessary). b. Decreases in rent are to be made effective the first of the month following that in which the change was reported, provided that the change is reported to the EHA no later than the 20th of the month in which the decrease in income occurred. In cases where the Family fails to report a decrease in income by the 20th of the month, the change will take effect the first of the second month ~fter the change took place. No downward rent adjustments are to be processed until all the facts have been verified. I D. Reexamination ProceduresL 1. Application for Tenani; ~li9ibility and Recertification. The head of household of ea-=h assisted Family is to bt.' r.equired at the time of the reexamination to submit informa- tion for completion of the cortification and recertification of tenant eligibility (HUD-5005B) on a ERA form, and to sign that form. All entries are to be made in ink, indelible pencil, or typed in. Corrections and changes are to be made by lining through the c.\riginal entry and entering the cor- rect data. Such changes are to be dated and initialed by the person recording the changed data, and the reasons and authority for such changes are to be noted in the record. 2. ~rification and Documentatio~ of Reexamination Data~ To assure that the data on which the determinations of eligibility for rent to be paid and the size of dwelling required are true and complete, the information submitted by each tenant is to be verified. Complete and accurate veri- fication records as specified in Sect~.on "IJI (B) are to be maintained in the Family folder. Verification data are to he reviewed and evaluated as they are received for completeness, adequacYl and conclusiveness. Where the information received is not completely adequate in all respects, follow-ups, or new efforts to obtain such inf,:)rmation are to be made and carried thI'ough to conclu- sion. When verification of all necessary items for each 46 Jt/11). ..55' I ') .,.~..tl application are completed, the certification/recertification of tenant eligibility form is to be completed and signed by a designated staff member. This summary is to cover the followinq determinations and the basis for such determina- tions: 3. Summary of Verified Data E. Notice to Family and Owner Followinq Reexamination. within 30 days after the Family has submitted all the required informa- tion, the EFm is to notify the Family and owner of any increase or decrease in the amount of rent payable by the Family ~nd housing assistance payments to the owner. 1. Overcrowded Unit. If the EHA determines that the unit is overcrowded due to an increase in Family size, a certifi- cate shall be issued to the Family in accordance with the terms of the lease or upon mutual rescission of the existing lease and the Family and the EHA shall try to find an ac- ceptable unit as soon as possible. If an acceptable unit is found that is available for occupancy by the Family, and the lease with the first owner can be terminated in accordance with its terms, the contract with the first owner shall be terminated and Housing Assistance Payments shall be made available to the Family for occupancy in the acceptable unit. Housing assistance payments will not be terminated unless the Family rejects without good reason the offer of a unit which the EHA judges acceptable. 2. If the EHA determines that the unit is too large for the Family due to decrease in Family size, provision of the paragraph above apply, except that if the contract rent plus any allowances does not exceed the fair market rent for the .J ~ ~ . ,,1t..l.\ \, ) ..... ~- a. Eligibility of the tenant group as Family or as the residual of a Family b. Size of dwelling required; c. Eligibility of the Family with respect to ~ncome limits for continued participation; d. Extent of medical or other child care expenses; e. Rent which Family is to pay; f. Amount of Housing Assistance Payment; g. Social Security Numbers for all Family members, or certifications for Family members who do not have a social security number. 41 ;111)-5' ~ c g ---.-. . smaller size unit required, the Family may remain in the . dwelH.ng occupied. F. ~ermirU'l.tiop of Paytli;....ts DUe to Family Ineliqibilit:.y. If it is found that the Family is ineligible for continued participa- tion as the result of the portion of rent payable by the Family (contract rent plus any allowances for utilities and/or equip- ment, if any) equaling or exceeding the owner's rent for the dwelling it occupies, the ERA shall notify the Family and the owner of termination of Housing Assistance. Payments to the owner, effective with a 30 day notice to the owner or expiration of the current HAP contract, whichever occurs first (the HAP Contract shall expire upon termination of the lease or expiration of the ERA's ACC with the U.S. Department of HUD, whichever occurs first). 1. This notice shall also state that such termination of eligibility shall not affect the Family's other rights under its lease, nor shall such termination preclude resumption of payments as result of subsequent changes in income or rents or other relevant circumstances during the term of the contract. 2. If the contract terminates at such time that Family is ineligible for payments, the contract shall not be renewed. In addition, if six months has elapsed since the date of the last housing assistance payment, the contract shall be terminated even if the termination date has not yet been reached. G. Instances of Misrepresent~tion of Non-compliance by the Family. 1. If it is found, upon reexamination that at the time of issuance of the Certificate or any subsequent interim or periodic reexamination, the Family made misrepresentations which have resulted in their paying a lower rent than they should, they will be required to pay the difference between the rent they have paid and what they should have paid. Housing assistance payments will be adjusted to reflect this increased rental payment. Misrepresentations by the Family shall also be grounds for termination by the EHA from the Section 8 rental assistance program. 2. If it is found at the time of reexamination, or any other time, that the Family has failed to report changes in income as required after the interim adjustment lowering the rent and such changes would have required them to pay a higher rent, the increase rent is to be made retroactive to the second month after the date on which the change oc- curred. Failure to report changes in income or Family circumstances within 10 days from the date the change took 48 If1I )-\57 -. -. ') ,l'" place shall be grounds for termination by the ERA from the Section 8 rental assistance program. 3. If the Family fails to comply with its responsibilities under the certificate of Family participatiofi, the El~ may determine the Family ineligible for further Housing Assis- tance Payments provided that the Family has been given reasonable notice (with a copy to the owner) and the oppor- tunity to respond. a. The EHA shall notify the Family and owner of such determination. b. Such determination shall be grounds for termina- tion of the lease by the owner. 4. The EHA shall deny eligibility to previous program participants for whom the EHA has processed damage, vacancy and/or unpaid rent claim, or who have violated their certif- icates of Family Participation. This provision does not apply to those participants who did not violated their certificates of Family Participation and who have fully reimbursed the EHA such claims. ':) H. Annual Inspection of Unit. As a condition for continuing to make Housing Assistance Payments, the EHA requires the inspection of each dwelling unit being assisted at least annually to assure that decent, safe and sanitary conditions are being maintained by the owner and that the Qgreed upon services are being furnished. 1. In the case of Families being reexamined annually, this inspection shall be a part of the reexamination procedure. 2. If the EHA determines that the dwelling unit no longer qualifies for the Housing Assistance Payments, the owner shall be so notified and if he refuses to or fails to bring the dwelling up to standard, the Housing Assistance Payments Contract shall be terminated. 3. If the Family is still eligible in accordance with Paragraph E of this section, and the reason the unit failed to meet HQS was not due to tenant damage or abuse above normal wear and tear, and the Family wishes to move to a dwelling where it can continue to be assisted, the EHA shall issue another certificate or process a request for lease approval, as the case may be in accordance with section X(C). ; '-....../ 4. The owner is not responsible for a breach of HQS that is not caused by the owner, but is caused by the family. The ERA may terminate assistance to a family because of HQS breach by the family. 49 ;#I) -52 ~) .:) ..""'^ '0 I. E~ictions/Termin~tion of Tenancy. 1. For leases/tenancies entered into on or after October 1, 1981, the owner shall not terminate tenancy during the term of the HAP contract/lease nor refuse to enter into a new assisted lease with the same Family, except for; a. Serious or repeated violation of the terms of the lease; b. Violation of federal, state or local law which imposes specific requirements on a tenant in connection with the occupancy or use of the dwelling unit and surrounding premises; c. Drug related criminal activity or violent criminal activity; d. other good cause. 2. The following are some examples of "other good cause" for termination of tenancy by the landlord: failure by the tenant Family to accept the offer of a new lease; a tenant Family history of disturbance of neighbors or destruction of property, or of living or housekeeping habits resulting in damage to the unit or property; criminal activity by tenant Family members or other persons under tenant's control; the landlord's desire to utilize the unit for personal or Family use or for a purpose other than use as a residential rental unit; or a business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, desire to rent the unit at a higher rental). This list of examples is intended as a non-exclusive statement of some situations included in "other good cause, but shall in no way be construed as a limitation on the application of "other good cause" to situations not included in the list. 3. The landlord may evict the tenant from the unit only by instituting a court action. The landlord must notify the EHA, in writing, of the commencement of procedures for termination of tenancy"at the same time that landlord gives notice to the tenant under state or local law. The notice to the ERA may be given by furnishing the ERA a copy of the notice to the tenant. 4. The EHA does not play any role in the actual eviction process. The EHA policy, however, allows for: a. Determination of continued Family participation in the seotion 8 program (regardless of whether or not there is a court "authorized" eviction), 50 #II;-6{ , ) "'''''''' ::) ,.'. '~~-', ',-",I b. Tenant appeal process (Exhibit I), if, in fact, tenant is denied continued program participation and c. Determination of continued landlord participation, based upon "findings" by the EHA. If the landlord is guilty of any of the following "findings," the ERA may bar future continued participation: - Discriminatory tenant selection practices - Claiming/collecting monies not due the owner (i.e., rental for vacant unit, non-existent repairs, vacancy loss, etc.) - "Manufacturing" evidence against existing tenant to justify "eviction action" J. Owner Term Notice Owner must give 90 days notice to EHA and family before terminating the lease and HAP Contract because of business or economic reasons ("opt-out"). The EHA must notify the owner that the HAP Contract will terminate due to insufficient funding (lexpiration").The HAP Contract automatically terminates after 180 calendar days after the last housing assistance payment to the owner. K. Absence from Unit Family may be absent from the unit no more than 180 consecutive calendar days for any reason. If the absence is due to illness, tenant is allowed up to the maximum days dependent on a doctor's recommendation. If absence is due to vacation or visits to relatives, the maximum time allowed is two months. L. Family Break Up When a court determines the dispositio~ of property between members of the assisted family in a divorce or separation under a settlement or jUdicial decree, the EHA is bound by the court's determination of which family members continue to receive assistance. If there is no court order, then assistance remains with the adult family members of the original assisted unit. 51 ;111)-60 cc~c/'c' i '') ~' SECTION XIII. TERMINATION OF ASSISTANCE A. Termination Because of Family Action or Inaction. 1. any 'J ~ ~ ~ ~ Denial of assistance for an applicant may include or all of the following: denying listing on the ERA waiting list, denying or withdrawing a certificate or voucher, refusing to enter into a HAP contract or approve a lease refusing to process or provide assistance under portability procedures. 2. Termination of assistance for a participant may include any or all of the following: '. ~ refusing to enter into a HAP contract or approve a lease ~ terminating housing assistance payments under an outstanding HAP contract ~ refusing to process or provide assistance under portability procedures. ", .J B. Grounds for Denial or Termination of Assistance. 1. If the family violates any family obligations under the program. 2. If any member of the family has ever been evicted from public housing 3. If any Housing Authority has ever terminated assistance under the certificat~ or voucher program for any member of the family. 4. If any member of the family commits drug-related criminal activity or violent criminal activity. , " c',' , " , 5. If any member of the family commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. 6. If the family currently owes rent or other amounts to the ERA or to another Housing Authority in connection with section 8 or public housing assistance. .:J 7. If the family has not reimbursed any housing authority for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease. 52 f/'If)" (P I } -"...,.. 8. It the family breaches an agreement with the ERA to pay amounts owed to the EHA or amounts paid to an owner by the EHA. 9. If a family participating in the FSS program fails to comply, without good cause, with t~e family's FSS contract of participation. 10. If the family has engaged in or threatened abusive or violent behavior toward ERA personnel or contractors. C. EHA Discretion to Consider circu~stances. In deciding whether to deny or terminate assistance, the ERA has discretion to consider all of the circumstances in each case, including the seriousness of the case, the extent of participation or culpability of individual family members, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure. .- . '\ ) ,....,/ The ERA may impose, as a condition of continued assistance, a requirement that family members who participated in or were culpable for the action or failure will not reside in the unit. The ERA may permit the other memb~rs of a participant family to continue receiving a~sistance. D. Requirement to 8i9" Consent Forms. The ERA must deny or terminate assistance if any member of the family fails to sign or submit consent forms for obtaining infor!,',ation. E. Restriction on Assistance to Noncitizens. The family must submit required evidence of citizenship or eligible immigration status. ,........., ---y 53 f/YI)- 62- '\", "~ ~ SECTION XIV. FAMILY OBLIGATIONS. A. The family must supply any information that the ERA or HOD determines is necessary in the administration of the program, including submission of required evidence of citizenship or immigration status. The information requested for the use in regularly scheduled reexamination or interim reexamination of income and composition must be supplied. Social security numbers must be disclosed and verified. All information must be true and complete. B. The family is responsible for any violation of HQS caused b~ the family. The family must allow the ERA to inspect the unit. ,<)'~, '-i . jJ c. The family may not commit any serious or repeated violation of the lease. D. The family must notify the EHA and the owner before the family moves out of the unit, or terminates the lease on notice to the owner. E. The family must promptly give the ERA a copy of any owner eviction notice. F. The family must use the assisted unit for residence by the family. The unit must be the family's only residence. The members of the household may engage in legal profit making business, but only if such activities are incidental to the primary use of the unit as a residence for the members of the family. G. The composition of the assisted family residing in the unit must be approved by the EHA. The family must promptly inform the EHA of the birth, adoption or court-awarded custody of a child. The family must request the ERA approval to add any other family member as an occupant of the unit. A foster child or a live-in-aide may reside in the unit with EHA approval. H. The family must not sublease or let the unit. The family must not assign the lease nor transfer the unit. I. The family must promptly notify the ERA if any family member no longer resides in the unit. J. The family must promptly notify the ERA of absence from the unit. K. The family must not own or have any interest in the unit. 54 1#})-/;3 t) L. The members of the family must not commit fraud, bribery or any other corrupt or criminal act in connection with the programs. Members of the family may not engage in drug- related criminal.activityor violent cri~inal activity. M. An assisted family, or members of the family, may not receive section 8 tenant-based assistance while receiving another housing subsidy for another unit or for a different unit under any duplicate federal, state or local housing assistance program. ,:) -~~~'~. \J 55 iM)~~r ~1 '::,,\ i i - Housing Autfiority Reg. Agenda 11/15/95 43-r075673":> 2 of 2 o (j ~ section XV. FAMILY SELF-SVFfICIENCY PROGRAM A. Purpose. The purpose of the program is to provide supportive services which enable section 8 families to achieve economic independence and self-sufficiency. The family and the Housing Authority of the city of Encinitas enter into a contract which outlines resources and services available for the family. The family has special responsibilities under the contract. A special escrow account i~ established with increased rents which would have been paid to the Authority if the family's income is increased through suitable employment.. B. Selection of Participants. ) only section 8 participants may be selected considering the following criteria: 1. Participants who have expressed interest. .2. Fifty percent (50%) of the slots in the program may be targeted to participants with one or more family members currently enrolled or on the waiting list for one or more FSS related service programs such as Job opportunities and Basic Skills Training (JOBS) or JODS Training Partnership Act (JTPA). 3. Fifty percent (50%) of the slots will be based on the date the family expressed interest. 4. FSS families moving to the Housing Authority of the City of Encinitas' jurisdiction (portables) will be selected for the FSS program based on criteria selec'cion. 5. If a family previously participated in the FSS program with either the Housing Authority of the City of Encinitas or another authority and was terminated from the Program, the family may not be selected for participation a second timtO. 6. If the family owes the Housing Authority of the City of Encinitas money in connection with Section 8 assistance, they may be denied participation in the FSS Program. 7. Families shall be selected without regard to race, color, creed, religion, sex, disability, handicap or national origin. C. Terminating FSS and Section 8 Assis~ADQa. ..J 1. committing program fraud, such as misrepresentation of income, assets, and deductions; misrepresentation of family composition; or illegal activity, i~ grounds for termination 56 f/4; ~~ " ') from the section 8 programs and the FSS program. withholdinq' service ~s not an option for,the above families. 2. If the head of the FSS family does not seek and maintain\i employment as specified in the FSS contract of particip~tion or never finds employment during the contract'~ five year term, the family has not met its FSS obligations and will terminated from the FSS program and the section 8 assis- tance. 3. section 8 Informal Hearing Procedures will apply to the families terminated from the Family Self SUfficiency Program. " ~ ...J // -,." " ".......,i 57 /IYI; -~" 1 EXHIBIT I SECTION 8 INFORMAL REVIEW AND HEARING PROCEDURE ) INFORMAL REVIEW FOR APPLICANTS If an applicant is determined to be ineligible on the basis of income, family composition or for any other reason, the applicant shall be notified promptly by letter of the determination including the reasons. The applicant shall be informed in the letter of their right to an informal review, if requested within 10 days from the date of the letter, to make written or oral objections to the EHA determination. The review shall be conducted by any person or persons designated by the EHA, other than the person who made or approved the decision under review or a subordinate of this person. If, after the review, the applicant is still determined to be ineligible, the applicant shall be notified in writing, including a brief statement of the reasons for the final decision. The ERA shall retain for three years a copy of the application, notice to the applicant, and the applicant's responses. I INFORMAL HEARINGS FOR PARTICIPANTS ::J 1. When a hearing is ~equired. The EHA must give a participant family an opportunity for an informal hearing to consider whether the following EHA decisions relating to the individual circumstances of a participant family are in accordance with the law, HUD regulations and ERA policies: a. A determination of the family's annual or adjusted income, and the computation of the housing assistance payment. b. A determination on the appropriate utility allowance. c. A decision to deny or terminate assistance on behalf of the participant because of the family's action or inaction. d. A determination that a certificate Family is residing in a unit with a larger number of bedrooms than appropriate under the EHA standards together with the EHA's denial of the Family's request for an exception from the standards. ~. A determination of the family unit size under the ERA subsidy standards. f. A determination to terminate assistance because the participant family has been absent from the assisted unit for '0 I-58 /114 ). {,7 ~ longer than the maximum period permitted under EHA pOlicy. and HUD rules. ~~/> . '1 ,~ The ERA must give the opportunity for an informal hearing under items c,d,f above before the EHA terminates housing assistance payments for the family.under an outstanding HAP contract. 2. When a hearing is not required. The EHA is not required to provide the family an opportunity for an informal hearing for any of the following: 1. Discretionary administrative determinations by the ERA. 2. General policy issues or class grievances. 3. Establishment of the EHA schedule of utility allowances. 4. An EHA determination not to approve an extension or suspension of a certificate or voucher term. 5. An ERA determination not to approve a unit or lease. 6. An EHA determination that an assisted unit is not in compliance with HQS. (However, the EHA must provide the . opportunity for a hearing on a decision to terminate assistance for a breach of the HQS caused by the family. 7. An EHA determination that the unit is not in accordance with HQS because of the family size. 8. A determination by the EHA to exercise or not to exercise any right or remedy against the owner under a HAP Contract. 3. Procedure. The ERA must notify the family promptly, in writing, that they may ask for an explanation of the basis of the EHA determination, and if they do not agree, the family may request an informal hearing on the decision. The family must submit, in writinQ, a request for an informal hearing within ten (10) working days of receipt of their notification of the termination. The written request is not subject to any formal format, but must include a statement as to why the decision is unfair and r.mat relief is sought by the applicant/participant. The informal hearing shall be conducted by an agency-appointed Hearing Officer. The Hearing Officer will not have made or approved the decision utlder review or be a subordinate of this person. The family must be given the opportunity to 'examine before the hearing any EHA documents thr-t are directly relevant to the hearing. The family must be allowed to copy any such document at the family's expense. If the ERA does not make the document available for examination on request of the family, the EHA may not rely on the document at the hearing. ...t~ '\ ~j I-59 /111)- b ~ . >~ The EHA must be given the opportunity to examine at the ERA or contractor's offices any family documents that are directly relevant to the hearing. They must be provided this opportunity before the hearing. The ERA must be allowed to copy any such documents at their own expense. If the family does not make the document available for examination, the family may not rely on the document at the hearing. The family may, at its own expense, have an attorney or other representative. This is a non-judicial hearing, so no formal procedure need be followed. It is the discretion of the Hearing Officer as to how the hearing is to be conducted. However, it shall be tha respon- sibility of the Officer to insure the adequate information is brought and that the order of the hearing goes accordingly. The Officer will always identify the session (parties resent, date, time and place), and read the initi.al agency determination which prompted the hearing. The Officer is to make pertinent notes and acknowledge material and testimony needed to make a reasonable determination. (The need for a tape recording and transcript of tha proceedings shall be at the discretion of the Hearing Offi- cer). However, a request by the Family for a taping to be done, will be honored. "'~.,.....\ , .-/ The family has the right to present evidence and question all witnesses. Evidence may be considered without regard to admissibility under the rules of evidence applicable to jUdicial proceedings. 4. Decision. The decision~ in writing, shall be issued by the Hearing Officer and shall briefly state the reasons (applicable federal regulations and program guidelines) for the particular determina- tion. Factual determinations relating to the individual circumstances of the family shall be based on a preponderance of the evidence presented at the hearing. A copy of the decision shall be sent to the Family by certified and first class mail, return receipt requested within five (5) working days after the conclusion of the hearing. If the landlord is to have a notice of the decision, it shall not contain the entire determination; but only the final decision "summary." .J' 1-60 ;l1f). bi /J (, """) EXHIBIT II -.,....."" INCOME LIMITS FOR CITY OF ENCINITAS 1995/96 Persons in Household Very Low (50% of Median) 1 $15,900 2 $18,150 3 $20,450 4 $22,700 5 $24,500 6 $26,350 7 $28,150 8 $29,950 9 $31,800 10 $33,600 ',) .,.,'.... ,< \ 'J 1-61 /11'1)-10 ) ...; EXHIBIT III UTILITY ALLOWANCES ,......., '\ ,,"';'1 "~-\ 'J 1-62 ;114)~ 71 , u (; ) " EXHIBIT IV ,,,,.. FAIR MARKET RENTS FY 1996 Effective Oct. 1, 1995 Ii 1/ BEDROOM SIZE FAIR MARKET ~t\EN'1'S - Efficiency $473 illo..--.. - One Bedroom $541 Two Bedroom $677 - Three Bedroom $940 Four Bedroom $1109 t . I J/ ,:) ! ...{.......\ '"J 1-63 /111; f:2- " " " -' ? EXHIBIT V PAYMENTS STANDARDS VOUCHER PROGRAM 1995-1996 Program Year. Effeotive sept. 1995 BEDROOM SIZB PAYMBNT STANDARD Effioienoy $473 One Bedroom $541 Two Bedroom $677 Three Bedroom $940 Four Bedroom $1109 4".) -/ r"""" \ V 1-64 tfI/)-13 , ! ~ ,":V..- ,~ ,.2; ,,;\ 1:\(7, ,,'-"'_~~'I/ '-~,.:~_, {r =~=~. .-' ,-M-:' ..;~-~~ ' , ~,' ~ ')t; lil}fJ,'/i';; ;, -':':1n.;':)f,:1~: 'l'I~..t'I.:. f I J, Jj ..re' ~l f ,:\~ CITY OF ENCINITAS AGENDA REPORT HOUSING AUTHORITY Meeting Date: November 15, 1995 TO: Board of Commissionen VIA: Lauren M. Wasserman Secretary of the Boar , FROM: Community Development Department LA4..- Sandra L. Hoider, Community Development Director ~ r - Lynn Brown, Housing and Grants Coordinator ~- SUBJECT: Consider whether to authorize Executive Diirector to enter into contracts with two members of the A~quisitionlRehabilitation Project development team - (1) the Cuatro Corporation as the Rehabilitation Project Manager, and (2) a Master Appraisers Institute (MAl) appraiser to b~ selected by the Executive Dire(~tor based upon experience and cost. ISSUE: Whether to authorize Executive Director to enter into contracts with two members of the AcquisitionlRehabilitation Project ,development team - (1) the Cuatro Corporation as the Rehabilitation Project Manager, and (2) a MAl appraiser to be selected by the Executive Director \\ based upon experience and cost. BACKGROUND: At the Housing Authority Board workshop on August 29, 1995, the Board authorized staff to proceed with the existing housing acquisition program. ANALYSIS: On September 27, 1995, the Board authorized a contract with Jim Williams for financial consulting. Staff is currently working with seven realtors who are submitting proposed housing complexes. As part of the evaluation of the complexes, a Rehabilitation Project Manager is needed to provide a detailed review and analysis of the construction costs for rehabilitation of the units. This needs to be perfonned prior to the potential acquisition because it will be a factor in purchase considerations. Staffis recommending Cuatro Corporation, a construction development H#3i L consulting firm in San Diego. Cuatro has worked with the City of Ese on dido, National City and ~ City Heights Community Development Corporation on low income housing rehab projects and ..:jl on the Mercado Project and Mission Terrace Apartment new construction projects in San Diego. The service provided to the City of Escondido was very similar to our Scope of Work. The City ofEscondido highly recommended Cuatro. Staff obtatped names of contractors from the BIA Remodeling Referral Network and from the realtors. Most companies were more interested in the rehab contracting than overseeing the project. Cuatro is the only firm who submitted a proposal. Staffwill solicit estimates from the appraisers on the list available in the City. The Executivec" Director will select an appraiser based on their experience and the cost of services. It is unknown how many hours will be required to complete the rehabilitation project management, functions because the number of projects to be acquired at this time is unknown. As the Authority will be considering a property package containing possibly as many as 4-7 complexes, the rehabilitation evaluation could be more costly than if we were considering one or two . cQmplexes. Cuatro Corporation costs $85 per hour for professional staff. Staff estimates a $20,000 cap for the work. FISCAL AND STAFF IMPACTS: ,:) There is $21,610 remaining in the development team budget and $480,326 in the total budget. There will be a $20,000 not-to-exceed clause in the contract with Cuatro. The Executive Director would award the appraisal contract based on soliciting estimates from the appraisers and would select the best rate possible. RECOMMENDA nON: Authorizethe Executive Director to enter into contracts with two members of the AcquisitionlRehabilitation Project development team - (1) the Cuatro Corporation as the Rehabilitation Project Manager, and (2) an Master Appraisers Institute (MAl) appraiser to be selected by the Executive Director. ~J cdlglb/srII1595.ba2 (11107195) 1/113 - Z- A, JI .d'~"", '_J . '-""'. ,.J CUATRO,TRI-EH'MAAC 6196e77~e:iS P.lJ2 '~ ([(.r~q~'-, !!II ~-~ 0...,p ......... ..~ , C'UA'f.JX 0 t (' I_ I' I) H ,\ I. L () "" . , . '1 11'1 ", ,'" 1 1\ 111'1"11> I 'j'-J'I' 11"-( 1770 Fourth AvenI,' San Diego, Cali!or 1. 92101 (619) 687-7380 Offl (619) 687-7383'jiu CA UC. #651"' November 6, 1995 Ms. Lynn Brown Housing and Grants Coordinator City of Ene in it as 50S S. Vulcan Avenue Encinitas) CA 92024 RoE: Acquisition and Rehabilitation Consulting Services Dear Ms. Brown: Per our conversations) I have outlined the following scope of services and hourly fee schedule for your review and consideration. Additionally I have enclosed Cuatro Corporation's Firm Profile that tells you about who Cuatro Corporation is and the rojects we have been involved in. Please read through this information and call me at your earliest convenience. Scope of Services 1. Pre-Construction Services a. Provide site and building inspection and prepare a rehabilitation sea e of work and preliminary cost estimate. b. Review thc source of funding to identifY) if any) the constraints of the funds (i.e.) prevailing wages, certified payrolJ, etc.). c. Develop a bid package on behalf of the City ofEncinitas and m8n&g the bidding process. 2. Construction Management Scrvices a. Prepare and negotiate contract between City ofEncinitas and the Contractor. /1#3-3 , ... . \. ~ b. \ c. d. \ CUATRO~TRI-EH~MAAC (, 6196e773e~ Monitor prosress and quality of work being performed by tbe Contractor a d review for compliance to project specifications. Review Contractor' progress billing requests and compare to actual work completed and permitted per the contract. Close out project by reviewing all lien releases and warranty packages on b half' of the City of Encinitas, Ho",ly Fe~ Scl&~du.llZ . Princip@1 ;>"M. Scott Orrahtii' I Michael J. Davies Roger T. Dinsmore Carlitos de P~ralta 585.00 Administrative Support 550.00 ,:) I hope that this information is helpful and I look forward to speaking with you soon. Sincerely ~ A~~ President f"""'...,.....,\,. r "....,if,./ ;/#3 f p.e3 o