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2017-06-28 HOUSING AUTHORITY ITEM H1 ADMINISTRATIVE PLAN AMENDMENTS AGENDA REPORT Housing Aulhorily MEETING DATE: June 28, 2017 Kathy Noel PREPARED BY: Management Analyst ACTING CITY Roy Sapa'u Nikki Photinos PLANNER: Program Coordinator DEPARTMENT: Development Services CITY MANAGER: Karen P. Brust SUBJECT: Public hearing to consider amendments to the Section 8 Housing Choice Voucher Program Administrative Plan and adoption of Resolution No. EHA 2017-02 approving the amendments. RECOMMENDED ACTION: Staff recommends that the Housing Authority: 1. Adopt Resolution No. EHA 2017-02, a Resolution of the Encinitas Housing Authority to amend the Section 8 Housing Choice Voucher Program Administrative Plan (Attachment <<1„ STRATEGIC PLAN: This agenda item relates to the City's Strategic Plan Community Planning Focus Area Goal #1, which is to pursue a range of diverse housing opportunities balanced throughout the community and the Organizational Effectiveness and Efficiency Focus Area Goal #3, which is to review policies and procedures to ensure a customer-focused government through transparent services and a positive organizational culture. FISCAL CONSIDERATIONS: The fiscal impact associated with this Agenda Report is included in the approved FY 2016-17 and proposed Two-Year FY 2017-18 & FY 2018-19 budgets. A consultant was selected through a competitive bidding process in August 2016, and a contract agreement was executed on January 20, 2017. The initial consultant cost for the comprehensive review and update of the current Section 8 Housing Choice Voucher (HCV) Program Administrative Plan was $4,050. As part of the contract, the consultant will also provide updates to the Plan based on changes in the Department of Housing and Urban Development (HUD) regulations and statutory requirements for an additional $1,215 per year, as needed. To cover the cost of the HCV program, HUD allocates funding on a calendar year basis to allow Public Housing Authorities (PHA) to make Housing Assistance Payments (HAP) on behalf of households. HUD also provides funding to apply to the cost of administering the program. In calendar year 2016, the Encinitas Housing Authority (EHA) was awarded $965,266 in HAP funds and $109,966 in Administrative funds. Any shortfalls in administrative costs are covered by a General Fund subsidy, which was approved by the City Council on June 10, 2015. Last 2017-06-28 Item H1 (Housing Authority) 1 of 193 fiscal year, funding was transferred on a monthly basis. Transfers made in FY 2015-16 totaled $50,293, but only $9,963 was needed; therefore, $40,330 is now in the Administrative Reserve and no additional transfers are anticipated this fiscal year. Going forward, transfers will only occur on an as-needed basis, as opposed to on a monthly basis. Calendar year 2017 HUD allocations have not yet been announced. The City has been receiving funding for calendar year 2017 through the Further Continuing and Security Assistance Appropriations Act, 2017 (Public Law 114-254), enacted on December 12, 2016, also referred to as a continuing resolution. BACKGROUND: The HCV Program is a federal rental assistance program administered by HUD. The annual grant is provided to qualifying housing authorities that have been allocated vouchers from HUD for the purpose of providing a rental housing assistance payment (HAP) on behalf of very low income household participants. The Section 8 HCV participant pays approximately 30 percent of their income toward the rent and the Housing Authority pays the difference to participating landlords. The City has received Section 8 HCV program funds through its Housing Authority since 1995. Housing agencies administering Section 8 programs must adopt a written Administrative Plan that establishes local policies for administration of the program in accordance with HUD requirements. The Administrative Plan and revisions to the Plan must be adopted by the Housing Authority and submitted to HUD. However, formal HUD approval of the Administrative Plan is not required. On June 22, 1994, the EHA Board of Commissioners first adopted its Administrative Plan, and, over the years, the Housing Authority has approved a number of amendments to reflect changes in federal regulations and policy adopted by the Housing Authority. The last round of amendments was approved by the Board on March 9, 2016. The current Administrative Plan is included herein as Attachment "3" for review. Over the years, with each amendment, the Plan has become cumbersome and challenging to navigate. Rather than continue making amendments in a piecemeal fashion, staff recognized the need for a comprehensive update to the Administration Plan. To assist staff in this effort, a consultant was selected through a competitive bidding process. The selected vendor, Quadel Consulting & Training, LLC (Quadel), has provided technical assistance, program support services, and training for more than 35 years to Public Housing Agencies, state housing agencies, and private sector clients. As administrators of Public Housing programs, Quadel has extensive experience with creating, recommending, and commenting on revisions to Administrative and PHA plans. With Quadel's guidance and expertise, the proposed changes to the EHA's Section 8 HCV Program Administrative Plan make it more organized, user-friendly, and easy for both staff and the public to use and understand. Quadel will continue to assist the EHA in subsequent years with periodic updates and revisions to the Plan as HUD regulations and statutory requirements change. ANALYSIS: The draft Administrative Plan is included herein as Attachment "2" for review and consideration. Some of the changes to the Plan include eliminating any unnecessary and confusing wording and cleaning up the formatting throughout, to promote ease of use. The Plan has also been modernized with hyperlinks to HUD regulations for each category. Additionally, the update has removed "procedures" from the Plan. Staff is working with the consultant to create a separate procedures manual, which will be completed by the end of the calendar year 2017. Although the Plan has been entirely restructured, the EHA continues to meet HUD compliance and at the same time has improved efficiency. Some of the more specific changes and additions to the 2017-06-28 Item H1 (Housing Authority) 2 of 193 Plan have been noted in the two charts shown below and on the next page and have been highlighted throughout the proposed Plan for quick reference. A special local preference has been added to the Plan for allocation of one voucher to homelessness in Encinitas. The voucher will be used to assist an individual or family that is homeless in Encinitas. This preference is restricted to those with referrals through the San Diego County Continuum of Care or Coordinated Assessment and Housing Placement (CAHP) system and will include programs such as, but not limited to, Opening Doors and the County of San Diego's homeless initiative, Project One for All.' This addition can be found on page 28, in Section 4.9, of the Plan. All of the items listed below were not included in the original Administrative Plan and have been added since the last revision, to reflect the HUD recommended best management practices and to conform to HUD regulations: Additions Since Last Revisions on March 9, 2016 Item Description Chapter/ Section Language Assistance Plan and Shows how EHA is taking reasonable steps to 3.7 Limited English Proficiency Policy ensure meaningful access to the HCV Program by Limited English Proficiency (LEP) persons Live in Aide Policy Describes EHA policy on live in aides for elderly/ 3.9 disabled persons and defines requirements for approval Updating the Waiting List Policy on when applicant names may be removed 4.6 from the waiting list Guests/Visitors Policy on number of days a guest is permitted to 5.4 remain in rent assisted unit, and describes required documentation Voucher Extensions Allows extensions for persons looking for new 7.2.1 housing when an assisted household has been divided as a result of the violence or abuse covered by VAWA (Violence Against Women Act) Denial of Moves Families denied a move due to insufficient funding 11.3.2 awarded to EHA. When funds become available, the EHA will notify families previously denied to move and will begin processing requests from oldest to newest with preference to families whose request was due to a reasonable accommodation or VAWA Repayment Agreements Repayment policy for participants and owners 12.8 owing money to the EHA Program Integrity Defines prohibited actions and activities and 14 addresses policies on fraud and program abuse 1 Project One for All is an extensive effort by the County of San Diego and its partners to provide intensive wraparound services,including mental health counseling and housing,to homeless individuals with serious mental illness. 2017-06-28 Item H1 (Housing Authority) 3 of 193 In 2016, HUD provided guidance (PIH 2016-05) to PHAs by offering several optional or discretionary policies for streamlining efficiencies. Some of these optional streamlining policies have been incorporated into the updated Administrative Plan. A brief description of each key revision is summarized below: HUD Discretionary Policies for Streamlining: Public & Indian Housing (PIH) Notice 2016-05 Item Current EHA Practice Streamlinin Efficient Chapter/ g y Section Family Third-party verification is required Third-party verification is still 6.2 declaration of for all family assets upon required upon admission but assets under admission and every year has changed to at least every $5,000 thereafter. PHA must take three years thereafter. During additional steps to obtain third the intervening annual re- party verifications, regardless of examinations, a PHA has the the amount of the asset. discretion to accept a family's declaration that it has total net assets equal to or less than $5,000, without needing to obtain third party verifications. Increased Increase in payment standard for Allows higher payment 6.5.2 payment reasonable accommodation standards for providing standard requires HUD approval. reasonable accommodation without prior HUD approval. Quarterly Utility Utility reimbursements, if any, are Allows for utility payments on a 6.5.3 Reimbursement issued on a monthly basis. quarterly, rather than a monthly basis. HQS Inspections are conducted Allows for biennial inspections. 8.2 Inspections annually. Owner Self- Minor deficiencies require second Certain deficiencies allowed 8.8 Certification of inspections. without second inspection. At minor PHA's sole discretion, PHA will deficiencies either complete a re-inspection or allow the owner and participant to submit proof of completed work (i.e. photographs; invoices; etc.). Streamlined All sources of income are verified Verify fixed income sources 11.1.1 annual re- annually, including fixed income initially and then every third examination of sources. year. Apply a cost of living fixed sources of adjustment between income intervening annual re- examinations. Family income Interim re-examination of income Eliminates requirement to 11.2.1, and is conducted every time a new perform interim re-examination 11.2.2 composition: family member is added. of income whenever new regular and family member is added. Re- interim examination of income occurs examination during annual re-certification. 2017-06-28 Item H1 (Housing Authority) 4 of 193 Due to the scope of the proposed changes, the Plan was released for a 14-day public review and comment period from June 2, 2017 to June 16, 2017. The public notice was posted in the local newspaper and is attached herein as Attachment 'A." Although a public review and comment period is not required by HUD, staff determined it would be beneficial to share the changes with stakeholders. As of the preparation of this report, two comments were received from one individual requesting clarification on; 1) the Payment Standards Section 6.5.2, and 2) the Language Assistance Plan and Limited English Proficiency (LEP) Policy Section 3.7 of the Administrative Plan. The public comments and staff's responses can be found in Attachment "5." As a result of the public comments, staff added clarification language to Section 3.7 of the Administrative Plan. Additionally, based on further review, staff has revised Section 4.9 regarding Local Preferences. Revisions were made to further clarify the special local preference, for the allocation of one voucher for homelessness, from the Local Preferences for those applicants on the waiting list. The revisions are shown in Attachment "6." ENVIRONMENTAL CONSIDERATIONS: The action before the EHA Board of Commissioners is to consider and approve amendments to the Section 8 HCV Program Administrative Plan which is exempt from environmental review pursuant to Section 15060 (c) (2) and (c) (3) of the Guidelines of the California Environmental Quality Act (CEQA) in that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is not a project as defined in Section 15378 of the CEQA Guidelines. ATTACHMENTS: Attachment 1: Resolution No. EHA 2017-02 Attachment 2: Proposed Section 8 Housing Choice Voucher Program Administrative Plan Attachment 3: Original Section 8 Housing Choice Voucher Program Administrative Plan Attachment 4: Public Notice Attachment 5: Public Comment and Response Attachment 6: Revisions to Section 4.9 Local Preferences 2017-06-28 Item H1 (Housing Authority) 5 of 193 Attachment 1 Resolution No. EHA 2017-02 2017-06-28 Item H1 (Housing Authority) 6 of 193 ATTACHMENT 1 RESOLUTION NO. EHA 2017-02 A RESOLUTION OF THE ENCINITAS HOUSING AUTHORITY (EHA) ADOPTING AMENDMENTS TO THE SECTION 8 HOUSING CHOICE VOUCHER (HCV) PROGRAM ADMINISTRATIVE PLAN WHEREAS, the EHA Board of Commissioners adopted an Administrative Plan on June 22, 1994, in compliance with the Housing Authority Law of the State of California which incorporates the applicable rules and regulations of the United States Department of Housing and Urban Development promulgated pursuant to Section 8 of the United States Housing Act of 1937 as amended, and; WHEREAS, staff has prepared amendments to the Section 8 HCV Program Administrative Plan to reflect changes in federal regulations and to further clarify and simplify the Administrative Plan, and; WHEREAS, the proposed amendments to the plan were released for a 14-day public review and comment period, beginning on June 2, 2017 and ending on June 16, 2017, and; WHEREAS, the EHA Board of Commissioners conducted a public hearing on June 28, 2017 to consider these amendments, and; WHEREAS, the EHA Board of Commissioners has determined that it is in the best interest of the EHA to adopt the amendments to said plan. NOW, THEREFORE, BE IT RESOLVED by the EHA Board of Commissioners as follows: Section 1. The amendments to the Section 8 HCV Program Administrative Plan are hereby adopted and staff is authorized to implement said amendments in accordance with its terms. Section 2. This resolution shall take effect immediately. Section 3. The action before the EHA Board of Commissioners is to consider and approve amendments to the Section 8 HCV Program Administrative Plan which is exempt from environmental review pursuant to Section 15060 (c) (2) and (c) (3) of the Guidelines of the California Environmental Quality Act (CEQA) in that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is not a project as defined in Section 15378 of the CEQA Guidelines. PASSED AND ADOPTED this 28th day of June 2017, by the following vote, to wit: AYES: NOES: ABSTAI N: ABSENT: Catherine Blakespear, Chairperson ATTEST: Kathy Hollywood, Secretary 2017-06-28 Item H1 (Housing Authority) 7 of 193 Attachment 2 Proposed Section 8 Housing Choice Voucher Program Administrative Plan 2017-06-28 Item H1 (Housing Authority) 8 of 193 The Housing Authority of the City of Encinitas Administrative Plan Approved Date: Effective Date: h _ Submitted to: Housing Authority of the City of Encinitas F - 505 South Vulcan Avenue Encinitas, CA, 92024 Submitted by: Quadel Consulting and Training, LLC 1200 G St. NW Washington DC 20005 161 � „1 HOUSIN6AUTHORIfY 2017-06-28 Item H1 (Housing Authority) 9 of 193 Table of Contents CHAPTER 1- Program Authority and Objectives........................................................................... 10 1.1 Applicable Regulations.............................................................................................................10 1.2 EHA Mission .............................................................................................................................10 1.3 Purpose of the Administrative Plan .........................................................................................10 1.4 Approval of Plan and Use of Administrative Fee Reserves......................................................11 CHAPTER 2 - General Administrative Provisions and Polices ....................................................... 12 2.1 Confidentiality and Privacy Policy............................................................................................12 2.2 Record Retention Policy...........................................................................................................12 CHAPTER 3- General Fair Housing Policies ................................................................................... 13 3.1 Nondiscrimination Policy.........................................................................................................13 3.2 Complying with Civil Rights Laws.............................................................................................13 3.3 Owner Non-discrimination Requirements...............................................................................14 3.4 Family Outreach and Affirmative Marketing...........................................................................15 3.5 Owner Outreach.......................................................................................................................15 3.6 Communication and Written Notification ...............................................................................16 3.7 Language Assistance Plan and Limited English Proficiency Policy...........................................16 3.7.1 LEP Options ................................................................................................................. 17 3.8 Reasonable Accommodation Policy.........................................................................................17 3.8.1 Legal Authority............................................................................................................ 18 3.8.2 Definition of Disability................................................................................................. 18 3.8.3 Examples of Reasonable Accommodations ................................................................ 18 3.9 Live in Aide Policy.....................................................................................................................19 3.10 Physical Impairment Policy....................................................................................................19 3.11 Violence against Women Reauthorization Act Policy (VAWA)..............................................20 CHAPTER 4-Applying to the Program and Waiting List................................................................ 23 4.1 Application Process..................................................................................................................23 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 2 2017-06-28 Item H1 (Housing Authority) 10 of 193 4.2 Opening and Closing the Waiting List......................................................................................24 4.3 Merger and Cross Listing..........................................................................................................25 4.4 Cooperative Waiting List..........................................................................................................25 4.5 Maintaining the Waiting List....................................................................................................25 4.6 Updating the Waiting List ........................................................................................................25 4.7 Change in Circumstances.........................................................................................................26 4.8 Communication and Written Notification ...............................................................................27 4.9 Local Preferences ....................................................................................................................28 4.10 Assistance Targeted by HUD..................................................................................................29 4.11 Continuously Assisted Families..............................................................................................29 4.12 Relocation of Witnesses and Victims of Crime ................................................................30 4.13 Income Targeting Policy.........................................................................................................30 4.14 Waiting List Placement ...........................................................................................................30 4.15 Selection from the Waiting List Notification..........................................................................31 4.16 Removal from the Waiting List ..............................................................................................31 Chapter 5-Initial and Continuing Eligibility................................................................................... 32 5.1 Qualifications for Admission....................................................................................................32 5.1.1 Income Eligibility......................................................................................................... 32 5.1.2 Social Security Number Disclosure.............................................................................. 32 5.1.3 Citizenship Requirements............................................................................................ 33 5.2 Family Definition ......................................................................................................................33 5.2.1 Head of Household...................................................................................................... 34 5.2.2 Joint Custody............................................................................................................... 34 5.2.3 Family Break Up .......................................................................................................... 34 5.2.4 Remaining Family Member......................................................................................... 35 5.3 Student Head of Household.....................................................................................................36 5.4 Guests/Visitors.........................................................................................................................36 5.5 Interviews/Appointments and Information.............................................................................37 5.5.1 Rescheduling the Eligibility Interview ......................................................................... 37 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 3 2017-06-28 Item H1 (Housing Authority) 11 of 193 5.5.2 Eligibility Notification.................................................................................................. 37 5.6 Criminal Background Policy......................................................................................................38 5.6.1 Drug Abuse Treatment Information............................................................................ 38 5.7 Absences from the Unit ...........................................................................................................38 5.7.1 Absent Family Member............................................................................................... 38 5.7.2 Absence of Entire Family............................................................................................. 39 5.7.3 Absent Student............................................................................................................ 39 5.7.4 Absences Due to Placement in Foster Care................................................................. 39 5.7.5 Caretaker for a Child................................................................................................... 40 5.7.6 Absent Head or Spouse Due to Employment..............................................................40 5.7.7 Individuals Absent(Confined)for Medical Reasons....................................................40 CHAPTER 6: Tenant Rent and Housing Assistance Payment Calculation.................................41 6.1 Definition of Income ................................................................................................................41 6.2 Assets .......................................................................................................................................41 6.2.1 Disposed Assets........................................................................................................... 42 6.2.2 Checking and Savings Accounts ..................................................................................42 6.3 Anticipating Income .................................................................................................................42 6.4 Future Changes ........................................................................................................................43 6.5 Total Tenant Rent and HAP......................................................................................................43 6.5.1 Prorated Assistance..................................................................................................... 43 6.5.2 Payment Standards..................................................................................................... 44 6.5.3 Utility Allowances and Utility Reimbursements ......................................................44 6.6 Minimum Rent and Hardship Exemptions...............................................................................45 6.7 Disallowance of Earned Income...............................................................................................45 CHAPTER 7: Request for Tenancy Approval and Leasing..............................................................47 7.1 Voucher Issuance .....................................................................................................................47 7.1.1 Housing Choice Voucher Issuance and Briefing........................................................... 47 7.1.2 Briefing Session ........................................................................................................... 48 7.2 Voucher Term...........................................................................................................................49 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 4 2017-06-28 Item H1 (Housing Authority) 12 of 193 7.2.1 Voucher Extensions..................................................................................................... 49 7.2.2 Voucher Suspension ....................................................................................................49 7.3 Subsidy Standards....................................................................................................................50 7.3.1 Subsidy Standards Chart............................................................................................. 50 7.3.2 Exceptions to Subsidy Standards................................................................................. 51 7.3.3 Unit Size Selected by Family........................................................................................ 51 7.3.4 Under-Housed and Over-Housed Families.................................................................. 51 7.4 Allowable Housing Types .........................................................................................................52 7.5 Request for Tenancy Approval (RFTA) and Disapproval of RTA .............................................52 7.5.1 Request for Tenancy Approval..................................................................................... 52 7.5.1.2 Tenancy Addendum ................................................................................................. 54 7.5.1.3 Dwelling Lease ......................................................................................................... 54 7.5.2 Disapproval of RFTA..................................................................................................... 54 7.6 Information to Owners ............................................................................................................55 7.7 Security Deposit.......................................................................................................................55 7.8 Separate Agreements ..............................................................................................................55 7.9 Initial Rent Burden ...................................................................................................................56 7.10 Owner Disapproval .................................................................................................................56 CHAPTER 8: Housing Quality Standards and Inspections and Rent Reasonableness................. 59 8.1 Initial Inspections.....................................................................................................................59 8.2 Annual and Biennial HQS Inspections......................................................................................59 8.3 Quality Control Inspections......................................................................................................60 8.4 Special Inspections...................................................................................................................60 8.5 Emergency Inspections ............................................................................................................60 8.6 Rent Abatement and Contract Terminations for HQS Violations............................................61 8.7 Scheduling Inspections and Family Attendance ......................................................................62 8.7.1 Missed and Rescheduled Inspections.......................................................................... 62 8.8 Owner Self-Certifications of Repairs........................................................................................62 8.9 Extensions ................................................................................................................................63 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 5 2017-06-28 Item H1 (Housing Authority) 13 of 193 8.10 Owner and Family Responsibilities........................................................................................63 8.10.1 Tenant Responsibilities............................................................................................ 63 8.10.2 Owner Responsibilities............................................................................................ 64 8.12 Rent Reasonableness.............................................................................................................64 8.12.1 Decreases in the Fair Market Rent:........................................................................... 64 8.12.2 Methodology............................................................................................................. 65 CHAPTER 9: Housing Assistance Payment Contract ..................................................................... 66 9.1 HAP Payments..........................................................................................................................66 9.2 Right to Recoup Amounts Paid ................................................................................................66 9.3 Owner Rent Increases..............................................................................................................67 9.4 Unit Ownership Changes..........................................................................................................67 9.5 HAP Contract Terminations .....................................................................................................68 9.6 HAP Termination due to Insufficient Funding .........................................................................69 CHAPTER 10: Verifications .......................................................................................................... 71 10.1 Eligibility and On-going Participation Verifications ..............................................................71 10.2 Methods of Verification.........................................................................................................72 10.2.1 EIV Verification Process............................................................................................. 72 10.2.2 Requirements for Non-EIV Verifications ................................................................... 72 10.2.3 Third Party Written Verifications.............................................................................. 73 10.2.4 Third Party Oral Verifications.................................................................................... 73 10.2.5 Family Self-Certifications........................................................................................... 73 CHAPTER 11: ONGOING PROGRAM OPERATIONS........................................................................ 74 11.1 Annual Re-Certifications ........................................................................................................74 11.1.1 Streamlined Income Determinations ........................................................................ 74 11.2 Interim Reexaminations.........................................................................................................75 11.2.1 Changes to Household Composition ......................................................................... 75 11.2.2 Interim Changes Affecting Income............................................................................ 75 11.2.3 EHA-Initiated Interim Re-certifications..................................................................... 76 11.2.4 Interim Re-certification Effective Dates.................................................................... 76 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 6 2017-06-28 Item H1 (Housing Authority) 14 of 193 11.3 Family Moves..........................................................................................................................76 11.3.1 Required Moves......................................................................................................... 77 11.3.2 Denial of Moves ........................................................................................................ 78 11.3.3 Move Process ............................................................................................................ 78 11.4 Portability...............................................................................................................................79 11.4.1 Outgoing Portability.................................................................................................. 79 11.4.2 Incoming Portables ................................................................................................... 80 CHAPTER 12: Denial of Assistance to Applicants and Termination of Assistance to Participants 81 12.1 Evidence and Considerations.................................................................................................81 12.2 Denial of Assistance ...............................................................................................................81 12.3 Notice of Denial......................................................................................................................83 12.4 Denial of Assistance for Noncitizens......................................................................................83 12.5 Termination Notification.......................................................................................................84 12.6 Removal of a Family Member from the Application .............................................................84 12.7 Reasonable Accommodation Related to Denials or Terminations........................................85 12.8 Repayment Agreements ........................................................................................................85 CHAPTER 13: Informal Reviews and Informal Hearings ............................................................... 86 13.1 Informal Review Policy...........................................................................................................86 13.2 Informal Hearing Policy..........................................................................................................87 13.3 Conducting Informal Hearings...............................................................................................88 13.3.1 Invalid Decisions........................................................................................................ 88 13.3.2 Rights of the Applicant/Participant and EHA............................................................ 88 13.3.3 Review/Hearing Process............................................................................................ 89 13.3.4 Decisions Not Binding to EHA.................................................................................... 90 13.3.5 Hearing Provisions for Restrictions on Assistance to Non-Citizens........................... 90 13.5 USCIS Determination of Ineligibility.......................................................................................90 CHAPTER 14: Program Integrity.................................................................................................... 92 14.1 Family Prohibited Actions......................................................................................................92 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 7 2017-06-28 Item H1 (Housing Authority) 15 of 193 14.2 EHA Prohibited Activities .......................................................................................................92 14.3 Owner Prohibited Activities...................................................................................................93 14.3.1 Owner Remedies and Penalties................................................................................. 93 14.3.2 Corrections to Subsidy Payments.............................................................................. 94 CHAPTER 15: Project Based Vouchers ......................................................................................... 95 15.1 Overview................................................................................................................................95 15.2 Proposal Selection..................................................................................................................95 15.2.1 EHA Request for Proposals Method for Rehabilitated and Newly Constructed Units ............................................................................................................................................... 95 15.2.2 EHA Requests for Proposals for Existing Housing Units............................................ 96 15.2.3 EHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or Local Housing Assistance Program................................................................................... 96 15.3 Notice of Owner Selection.....................................................................................................97 15.4 Agreement to Enter into HAP Contract .................................................................................97 15.5 Site Selection Standards.........................................................................................................97 15.5.1 EHA Owned Units...................................................................................................... 98 15.5.2 Eligible Units/Cap on PBV Units................................................................................ 98 15.6 Uniform Relocation Act........................................................................................................100 15.7 Housing Assistance Payments (HAP) Contracts...................................................................100 15.7.1 Term of the HAP Contract....................................................................................... 100 15.7.2 Additional Units Without Competition.................................................................... 100 15.8 Unit Inspections ...................................................................................................................100 15.8.1 Lead-based Paint..................................................................................................... 101 15.9 Initial Rent and Rent Increases ............................................................................................101 15.9.1 Initial Rent............................................................................................................... 101 15.9.2 Rent Increases......................................................................................................... 101 15.10 Tenant Selection ................................................................................................................101 15.11 Unit Moves/Transfers ........................................................................................................102 15.11.1 Moves Requested by the Tenant........................................................................... 103 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 8 2017-06-28 Item H1 (Housing Authority) 16 of 193 15.11.2 Moves from Excepted Units .................................................................................. 103 15.12 Vacancy Payments .............................................................................................................103 15.13 Reduction in HAP Contract Due to Vacancies....................................................................104 EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 9 2017-06-28 Item H1 (Housing Authority) 17 of 193 CHAPTER 1- Program Authority and Objectives Link: United States Housing Act of 1937 The Housing Authority of the City of Encinitas (EHA) manages the Housing Choice Voucher (HCV) Program and other housing programs in the geographic area covering the city of Encinitas, California. Through EHA's assisted housing programs, eligible families are provided the opportunity to obtain decent, safe sanitary and affordable rental housing in the private market. In order to receive assistance in a particular unit, the family, owner and unit must meet the requirements established by HUD regulations and those specified in this Plan. The HCV program strives to provide these households with housing choices and the opportunity to move outside areas with a concentration of low income households. Administration of EHA's Housing Programs is in compliance with EHA's policies and procedures, the Department of Housing and Urban Development's (HUD) regulations, and all applicable Federal, State and local fair housing laws. 1.1 Applicable Regulations • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 903: Public Housing Agency Plans • 24 CFR Part 982: Section 8 Tenant Based Assistance • 24 CFR Part 983: Project Based Vouchers • 24 CFR Part 985: Section 8 Management Assessment Program • 24 CFR Part 100: Discriminatory Conduct Under the Fair Housing Act 1.2 EHA Mission The Housing Authority of the City of Encinitas' mission is to promote adequate and affordable housing, economic opportunity, and a suitable living environment for Encinitas residents of all income levels 1.3 Purpose of the Administrative Plan The Administrative Plan (Plan) establishes policies for implementation and administration of the Housing Choice Voucher Program administered by the EHA. The Plan covers both admission to and continued participation in the Housing Choice Voucher program. The policies set forth herein shall be interpreted, implemented and acted upon in relation to the laws of the United States and the State of California, and all rules, regulations and policies enacted, enforced or promulgated by the United States Department of Housing and Urban Development, all of which shall take precedence over the Policies and Procedures described in this Administrative Plan and all of which are incorporated herein by reference and all current EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 10 2017-06-28 Item H1 (Housing Authority) 18 of 193 rules, regulations and policies, including, but not limited to, Income Limits, Utility Schedules and Fair Market Rents, shall be in accordance with Federal law. Issues not addressed in this document related to applicants, participants and owners are governed by the Department of Housing and Urban Development Code of Federal Regulations, HUD guidance, or other applicable law. When circumstances arise and are not addressed by provisions in this Plan, they will be reviewed on a case-by-case basis. If a conflict arises between or among the regulations identified in this Plan, the regulations specifically stated for the applicable program will take precedence. 1.4 Approval of Plan and Use of Administrative Fee Reserves Link: PIH Notice 2015-17; 24 CFR 982.152 Only the EHA Board of Commissioners is authorized to approve changes to the Administrative Plan. The Board must approve Expenditures of the administrative fee reserve in excess of $100,000. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 11 2017-06-28 Item H1 (Housing Authority) 19 of 193 CHAPTER 2 - General Administrative Provisions and Polices 2.1 Confidentiality and Privacy Policy Link: 24 CFR 5.212; HUD Form 9886 It is the policy of EHA to guard the privacy of applicants and participants, and ensure the protection of records in accordance with the Privacy Act of 1974. EHA will not disclose any personal information (including, but not limited to information on any disability) contained in its records to any person or agency unless the individual about whom the information is requested gives written consent to such disclosure, or as required by law. This privacy policy does not limit EHA's ability to collect such information as it may need to determine eligibility, compute housing assistance, and does not prohibit EHA from disclosing information to local law enforcement if the participant is suspected of being involved in criminal or legal activity. All applicant and participant information will be kept in a secure location and access will be limited to authorized EHA staff. EHA staff will not discuss personal family information unless there is a business reason to do so. Prior to utilizing HUD's EIV system, EHA will adopt and implement EIV security procedures required by HUD. 2.2 Record Retention Policy Link: 24 CFR 908.101; 24 CFR 35 Subpart B EHA will keep all documents related to a family's eligibility, tenancy, and termination in accordance with HUD requirements and EHA's Records Retention and Disposition policy. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 12 2017-06-28 Item H1 (Housing Authority) 20 of 193 CHAPTER 3- General Fair Housing Policies 3.1 Nondiscrimination Policy Links: Fair Housing Act (42 U.S.C); Section 504 of the Rehabilitation Action of 1973; Joint Statement of HUD and DOJ 5/17/14) and 24 CFR 982.54(d) (6)); 982.301(b) (10); 982.304 EHA provides information regarding Fair Housing and discrimination in housing on its website, in outreach materials, posters at its office, in the family briefing session and program packets, and owner meetings. When needed, EHA will also assist with how to fill out and file a housing discrimination complaint. 3.2 Complying with Civil Rights Laws It is the policy of the EHA to comply with all federal, state and local non-discrimination laws, rules and regulations governing fair housing and equal opportunity in housing and employment now in effect and subsequently enacted, including, but not limited to: • Title VI of the Civil Rights Act of 1964, which forbids discrimination on the basis of race, color, religion, national origin or sex. • Title VIII of the Civil Rights Act of 1968 (as amended by the 1974 HCDA and the Fair Housing Amendments Act of 1988), which extends protection against discrimination based on disability and familial status, and spell out forms of prohibited discrimination • Executive Order 11063 • Section 504 of the Rehabilitation Action of 1973, which describes specific housing rights of persons with disabilities • Age Discrimination Act of 1975 • Title II of the Americans with Disabilities Act, otherwise Section 504 and the Fair Housing Amendments govern (Title II deals with common areas and public space, not living units) • Violence Against Women Reauthorization Act 2013 (VAWA) • Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity, also known as the "Equal Access Rule" • Any applicable State laws or local ordinances that may apply, including those pertaining to Fair Housing or any legislation protecting the individual rights of residents, applicants or staff which may be subsequently enacted EHA's housing programs are open to all eligible individuals regardless of sexual orientation, gender identity or marital status. EHA will not inquire about the sexual orientation or gender identity of an applicant or participant for purposes of determining eligibility or otherwise making such housing available. However, EHA may inquire about a person's sex in order to determine the number of bedrooms a household may be eligible for under the occupancy standards or to accurately complete HUD's 50058. EHA will not discriminate because of race, EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 13 2017-06-28 Item H1 (Housing Authority) 21 of 193 color, marital status, sexual orientation, national or ethnic origin or ancestry, sex, religion, age, familial status, source of income, or disability in the leasing, rental, occupancy, use, or other disposition of housing or related facilities. Upon receipt of a complaint from an applicant or participant alleging a violation of the Equal Access Rule, EHA will determine if a program violation occurred, provide written notice and implement appropriate corrective action(s). EHA may also advise the family to file a Fair Housing complaint if the family feels they have been discriminated against under the Fair Housing Act. Applicants or participant families who believe that they have been subject to unlawful discrimination may notify the EHA either orally or in writing. Notifications made orally will be documented in writing by EHA staff including: complaint description, applicant/participant name, date, and EHA staff taking complaint. EHA will attempt to remedy discrimination complaints made against the EHA. EHA will provide a copy of a discrimination complaint form to the complainant and provide them with information on how to complete and submit the form to HUD's Office of Fair Housing and Equal Opportunity (FHEO). LOS ANGELES FHEO CENTER OFFICE 300 North Los Angeles Street, Suite 4054 Los Angeles, CA 90012 (800) 347-3739 3.3 Owner Non-discrimination Requirements Link: Form HUD 52641; PIH 2014-20 EHA requires owners to comply with all applicable laws and statutes. In agreeing to participate in EHA's housing choice voucher programs, the owner must abide by the Housing Assistance Payments (HAP) contract which prohibits discrimination and requires that the owner: • Not discriminate against any person because of race, color, religion, sex, sexual orientation, gender identity, national origin, age, familial status, or disability in connection with the contract; and, • Cooperate with EHA and HUD in conducting equal opportunity compliance reviews and investigation. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 14 2017-06-28 Item H1 (Housing Authority) 22 of 193 3.4 Family Outreach and Affirmative Marketing Link: 24 CFR Part 903.2 and 24 CFR 903.7 EHA publicizes and disseminates information concerning the availability and nature of housing assistance to income eligible families. As part of the briefing process and on-going education, EHA will provide information to HCV families about the opportunity to rent in a broad range of neighborhoods including: • A listing service of available rental property and owners • A description of portability provisions available in the Housing Choice Voucher program • A map that identifies areas within the City of Encinitas that are areas of low poverty and minority concentrations, and other general information which may include: bus lines; schools; shopping centers, etc. • Other information as required. When EHA's waiting list is open, EHA will publicize the availability and nature of housing assistance through a wide variety of sources such as local and State newspapers, minority media, minority civic clubs, places of worship, service agencies, and broadcast media. Efforts will be made to notify local officials, government agencies, and agencies that specifically address the needs of individuals with disabilities. EHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in EHA's jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. 3.5 Owner Outreach Outreach to property owners is regularly conducted to develop interest in the program and to increase the number of units available in low-poverty areas. On a continuing basis, the EHA welcomes and encourages the participation of owners of decent, safe, and sanitary housing units. EHA encourages program participation by owners of units located outside areas of poverty or minority concentration. EHA provides program information and printed materials to local realtors, agents, apartment associations and any interested landlords. EHA staff will be available to make presentations about the Housing Choice Voucher Program to these groups. EHA periodically evaluates the demographic distribution of assisted families within the jurisdiction where owner outreach should be targeted. The purpose of these activities is to provide more choices and better housing opportunities to families. Voucher holders are informed of the full range of areas within the EHA's jurisdiction where they may lease units and are given a list of owners who are willing to lease units outside areas of poverty or minority concentration. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 15 2017-06-28 Item H1 (Housing Authority) 23 of 193 EHA is committed to providing good customer service that encourages on-going owner participation in the program. 3.6 Communication and Written Notification 24 CFR 982.5 When written notification is required from EHA to an applicant, participant or owner, EHA may deliver such notification via USPS mail, email, text message or other electronic means at EHA's discretion. EHA may request that applicants, participants and owners provide email addresses, and cellular telephone numbers. EHA will require a current mailing address be provided and will send written notification via USPS mail when other contact options (e.g. email/ text) are not available or the means to receive communication by other delivery mechanisms is not available. 3.7 Language Assistance Plan and Limited English Proficiency Policy Link: Federal Register 1/22/07, 24 CFR 1 EHA is committed to providing meaningful access to its programs and services to all eligible persons, including those who have Limited English Proficiency because of their national origin. EHA will take affirmative steps to communicate with people who need services or information in a language other than English. LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this Policy, LEP persons are HCV program applicants and participant families. Based on U.S. Census data and the practices of other organizations within the jurisdiction, EHA has determined that the majority of participants speak either: English and Spanish. The EHA staff communicates in English but has access to Spanish speaking staff from other nearby departments. Given very limited resources EHA will utilize the LEP plan of the City of Encinitas Housing Division. EHA will periodically review the need for an updated LEP plan (no less often than concurrently with the Five Year PHA Plan process), and the Plan will be updated if needed. The review will assess whether there have been any significant changes in the composition or language needs of the LEP population. EHA will analyze the various kinds of contacts it has with the public to assess language needs and decide what reasonable steps should be taken if the costs imposed do not substantially exceed the benefits. If, in the future, EHA determines it is appropriate to update the LEP plan, the following five steps will be taken: (1) identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) reviewing, monitoring and updating the LEP plan as needed. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 16 2017-06-28 Item H1 (Housing Authority) 24 of 193 If an individual is in need of language assistance and the EHA has determined that the individual has Limited English Proficiency and language assistance is needed to provide meaningful access, the EHA will make reasonable efforts to provide free language assistance as set forth in the existing LEP. The current LEP plan is: • Distributed to all EHA staff. • Available at the EHA office located at 505 South Vulcan Avenue, Encinitas, CA 92024. • Posted on the City of Encinitas website. (Encinitas LEP Plan) • Explained in orientation and training sessions for supervisors and other staff who need to communicate with LEP persons. 3.7.1 LEP Options • When LEP persons request, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the EHA: the staff communicate in English. The interpreter may be a family member or friend. • The EHA will utilize a language line for telephone interpreter services. • EHA will inform applicants and participants of language assistance services. • EHA will not provide written translation but will provide written notice in the primary language of the LEP language group of the right to receive oral interpretation of those written materials, free of cost. Translation may also be provided orally. 3.8 Reasonable Accommodation Policy Link: 24 CFR Part 8 This policy applies to applicants and participants. A reasonable accommodation is a change, modification, alteration or adaptation in a policy, procedure, practice, program or facility that is necessary for a qualified individual with a disability to have the opportunity to participate in, and benefit from a program or activity. EHA will ask all applicants and participant families if they require any type of accommodations, in writing, on the intake application, re-certification documents, and notice of adverse action. The notice will include the name and phone number of the EHA contact person for requests for accommodation for persons with disabilities. EHA will encourage the family to make its request in writing using a reasonable accommodation request form. However, EHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted. If the request is made orally, EHA will document the request in writing including: request specifications, family name, date, and EHA staff taking request. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 17 2017-06-28 Item H1 (Housing Authority) 25 of 193 If a person with a disability requests an accommodation to an existing rule, policy, practice, or service in order to fully access and utilize EHA's housing programs and related services, the EHA will verify and evaluate the request. EHA is not required to make changes that would fundamentally alter the program or create an undue financial and administrative burden. 3.8.1 Legal Authority This Policy is in compliance with the statutory requirements listed below: • Section 504 of the Rehabilitation Act of 1973 (Section 504); • Titles II and III of the Americans with Disabilities Act of 1990 (ADA); • The Fair Housing Act of 1968, as amended (Fair Housing Act); • The Architectural Barriers Act of 1968; and • 24 C.F. R. Parts 8 3.8.2 Definition of Disability Person with disabilities is a person who: • Has a disability, as defined in 42 U.S.C. 423; • Is determined, pursuant to HUD regulations, to have a physical, mental, or emotional impairment that: • Is expected to be of long-continued and indefinite duration; • Substantially impedes his or her ability to live independently, and • Is of such a nature that the ability to live independently could be improved by more suitable housing conditions; or • Has a developmental disability as defined in 42 U.S.C. 6001. • Does not exclude persons who have the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome; • For purposes of qualifying for low-income housing, does not include a person whose disability is based solely on any drug or alcohol dependence; and • Means "individual with handicaps", as defined in § 8.3, Definitions of this title, for purposes of reasonable accommodation and program accessibility for persons with disabilities. 3.8.3 Examples of Reasonable Accommodations A reasonable accommodation may include, but is not limited to, the following: • Allowing a larger unit size • Allowing a live-in aide, with the owner's approval • Allowing a service animal, with the owner's approval • Alternative measures instead of termination • Rescheduling appointments and/or hearings • Attendance at a hearing of any other person approved by EHA • Permitting an outside agency or family member to assist in an interview or meeting • Permitting applications and re-certifications to be completed by mail EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 18 2017-06-28 Item H1 (Housing Authority) 26 of 193 3.9 Live in Aide Policy Links: 24 CFR 5.403; 24 CFR 8; 24 CFR 5.609(c)(5); 24 CFR 966.4(d)(3)(1) EHA will approve a live-in aide if needed for families with an elderly member or as a reasonable accommodation to make the program accessible to and usable by a family member with disabilities. Live-in aide means a person who resides with one or more elderly persons or persons with disabilities, and who: • Is determined to be essential to the care and well-being of the persons • Is not obligated for the support of the persons, and • Would not be living in the unit except to provide the necessary supportive services A live-in aide is a member of the household, not the family, and the income of the aide is not considered in income calculations. Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide. However, a relative who serves as a live-in aide is not considered a family member and will not be considered a remaining member of a participant family. A family's request for a live-in aide must be made in writing and is subject to EHA's verification. For continued approval, the family must submit a new, written request, subject to EHA verification at each annual reexamination or as required by EHA. In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is: • Not obligated for the support of the person(s) needing the care, and • Would not be living in the unit except to provide the necessary supportive services. EHA has the discretion not to approve a particular person as a live-in aide, and may withdraw such approval, if the person: • Does not meet EHA's eligibility criteria • Would cause the current unit to become overcrowded according to EHA standards and local codes • Does not meet other applicable EHA criteria as stated in this plan 3.10 Physical Impairment Policy Link: 24 CFR Part 8.6 To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display/ teletype) communication is available at the EHA office. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 19 2017-06-28 Item H1 (Housing Authority) 27 of 193 When visual aids are used in meetings or presentations, one-on-one assistance will be provided upon request. Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant or participant) to receive, interpret and explain housing materials and be present at all meetings. 3.11 Violence against Women Reauthorization Act Policy (VAWA) Links: Violence Against Women Reauthorization Act 2013; 24 CFR 5.2005 (b), (d), (e); 24 CFR 5.2003; 24 CFR 5.2009; 24 CFR 5.2007 (a)(1)(v) This Policy is applicable to all federally subsidized public housing administered by EHA, including the HCV program. EHA will not discriminate against an applicant or participant on the basis of the rights or privileges provided under the VAWA. This policy is gender-neutral, and its protections are available to persons who are victims of domestic violence, dating violence, sexual assault or stalking. Neither VAWA nor this policy implementing it will preempt or supersede any provision of Federal, State or local law that provides greater protection under VAWA for victims of domestic violence, dating violence, sexual assault or stalking (VAWA-protected acts or threatened acts of violence). Per the requirements of the Violence Against Women Reauthorization Act of 2013 (VAWA), and as incorporated into the HAP Contract and Tenancy Addendum, EHA and unit owners/managers shall not consider an incident or incidents of actual or threatened domestic violence, dating violence, stalking or sexual assault as serious or repeated violations of the lease or other "good cause" for termination of the assistance, tenancy, or occupancy rights of a victim of abuse. Criminal activity directly related to abuse, engaged in by a household member, guest or other person under the tenant's control, shall not be cause for denial of admission, termination of assistance, tenancy or occupancy rights if a member of the tenant's immediate family is the victim or threatened victim of that abuse. These statements do not limit the authority or ability of a unit owner/manager to evict, or EHA to terminate assistance to any tenant under program guidelines if either party can demonstrate an "actual and imminent threat" to other tenants or persons employed at or providing services to the property. An assisted family may receive a voucher and move in violation of the lease under EHA's portability and move policies if the family has complied with all other obligations of the voucher program and moved out of the assisted dwelling unit in order to protect the health or safety of an individual who is or has been the victim of domestic violence, dating violence, stalking or EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 20 2017-06-28 Item H1 (Housing Authority) 28 of 193 sexual assault and who reasonably believed he or she was imminently threatened if he or she remained in the assisted dwelling unit. EHA will request in writing that a family that seeks to move to another unit or prevent termination of assistance under a claim of VAWA, they must complete either: HUD- Form 5382 Certification of Domestic Violence, Dating Violence, Stalking or Sexual Assault. The victim shall provide the name of the perpetrator on the form only if the name of the perpetrator is safe to provide and is known to the victim. In lieu of, or in addition to the form, a victim may provide to EHA: • a document that is signed by the applicant, participant, or tenant and an employee, agent, or volunteer of a victim service provider, an attorney, or a medical professional who assisted the victim relating to domestic violence, dating violence, sexual assault, or stalking. The professional must state, under penalty of perjury, that he or she believes that the abuse meets the requirements under VAWA; • a Federal, State, tribal, territorial, or local police or court record; • a record of an administration agency; or • a statement or other evidence provided by the applicant, participant, or tenant at the discretion of EHA or the landlord. The victim of the actual or threatened violence or stalking must complete the HUD Certification of Domestic Violence, Dating Violence, Stalking or Sexual Assault within 14 business days of receiving the written request for the certification from EHA. If the family member has not provided the requested certification by the 14th business day or any extension of the date provided by EHA, none of the protections afforded to victims of domestic violence, dating violence, stalking or sexual assault (collectively "domestic violence") will apply. EHA, at its discretion, may extend the 14-day deadline. All information provided by the victim to an EHA employee or unit owner/manager relating to an incident of domestic violence, including the fact that an individual is a victim of domestic violence, dating violence, stalking or sexual assault must be retained in confidence and neither entered into any shared database nor provided to any related party, except to the extent that the disclosure is: • Requested or consented by the individual in writing; • Required for use in an eviction proceeding or termination of assistance; or, • Otherwise required by applicable law. EHA shall cooperate with organizations and entities that provide shelter or services to victims of domestic violence, dating violence, sexual assault, or stalking. If EHA staff becomes aware that an assisted person is a victim of domestic violence, dating violence, sexual assault, or stalking, EHA will refer the victim to shelter or other service providers as appropriate. This Policy does not create any legal obligation requiring EHA to maintain a relationship with a particular shelter or service provider to victims or to make a referral in any particular case. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 21 2017-06-28 Item H1 (Housing Authority) 29 of 193 Bifurcation of the Lease The EHA will allow the owner to bifurcate a family's lease and terminate the tenancy of a family member if the EHA determines that the family member has committed criminal acts of physical violence against other family members or others. This action will not affect the tenancy or program assistance of the remaining, non-culpable family members. In making its decision, the EHA will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to the EHA by the victim. In the event that EHA bifurcates a lease under VAWA, any remaining tenants who had not already established eligibility for assistance will be provided no less than 90 calendar days from the date of bifurcation of the lease or until expiration of the lease to establish eligibility for a voucher, or find alternative housing. EHA may, on a case-by-case basis, choose not to allow bifurcating the lease. If necessary, EHA will also take steps to ensure that the remaining family members have a safe place to live during the termination process. For example, the EHA may offer the remaining family members a voucher to move if the owner agrees to a mutual rescission of the lease; or it may refer them to a victim service provider or other agency with shelter facilities. Emergency Move EHA will provide an Emergency Move to an assisted person under VAWA in the event that the person has certified to: i) that the person believes there is a threat of imminent harm from further violence if the participant remains within the same dwelling unit that the tenant is currently occupying; or ii) in the case of sexual assault, the sexual assault occurred on the premises during the 90-calendar day period preceding the date of the request for move. In such circumstances, the EHA will prioritize the issuance of a voucher to move either within the jurisdiction or through portability and will expedite all actions necessary. The EHA will follow confidentiality procedures tailored to the particular circumstance. Notification to Applicants and Participants EHA will provide applicants and current participants with Notification of Occupancy Rights under the Violence Against Women Act: • At move-in or issuance of assistance; • At the time the applicant is denied assistance; • With the next annual recertification; • With any notice of termination of assistance. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 22 2017-06-28 Item H1 (Housing Authority) 30 of 193 CHAPTER 4- Applying to the Program and Waiting List 4.1 Application Process When the HCV program waiting list is open, EHA uses a two-step application process. Under the two-step application process, EHA initially will require families to provide only the information needed to determine the family's placement on the waiting list. The family will be required to provide all of the information necessary to establish family eligibility and the amount of rent the family will pay when selected from the waiting list. EHA will announce the reopening of the waiting list at least 10 calendar days prior to the date pre-applications will first be accepted. If the list is only being reopened for a specified time- period or to certain categories of families, this information will be contained in the notice. EHA will advertise through a wide variety of sources such as local and State newspapers, minority media, minority civic clubs, places of worship, service agencies, and broadcast media. An effort will also be made to notify elected officials, government agencies and other agencies that specifically address the needs of individuals with disabilities. The EHA will give public notice by publishing the relevant information in suitable media outlets. Notices will include: the dates, times and locations where families may apply; the method for acceptance of application; the program for which applications will be taken and; a brief description of the program. No one will be denied the right to request or submit a pre-application when the HCV waiting list is open. However, depending upon the composition of the waiting list with regard to family types and preferences and to better serve the needs of the community, EHA may only accept applications from any family claiming preference(s). When the HCVP waiting list is open, EHA will offer all applicants the opportunity to be listed on other EHA Program waiting lists, if open. Accommodations will be made for interested, disabled applicants. In the event that on-line applications are utilized and an applicant needs assistance completing or submitting the on-line application, assistance may be provided over the phone or via other means as identified by EHA. Completed pre-applications must be submitted in the manner specified (e.g. post office box or address; on-line via the internet). EHA reserves the right to accept pre-applications electronically via the internet or other automated system (including via telephone and/or with assistance from an EHA-authorized third-party via telephone) as deemed appropriate. EHA does not charge any fee for any part of the HCV pre-application or application process. Only those pre-applications received by the due date as indicated by a postmark or other appropriate electronic submission verification tool during the time-period specified by EHA will be accepted as eligible pre-applications. The date the pre-application is received is the date it is postmarked or submitted electronically. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 23 2017-06-28 Item H1 (Housing Authority) 31 of 193 All fully complete pre-applications submitted will be placed on a list which will be used to create the waiting list for assistance. Duplicate pre-applications will be removed so that each applicant has only one opportunity to be placed in the random selection process. Applicants who have not completed their pre-applications will not be placed on the list. Applicants who submit pre-application forms after the closing date for submission will not be placed on the list. An applicant is deemed preliminarily ineligible and not placed on EHA waiting list if: • Currently housed in the same program and listed as the head of household or co-head of household. • The pre-application is incomplete or missing required information. At the time families are invited to complete a full application form, information provided will be verified by EHA, based on the criteria described in this Plan. Families that do not meet the income limits, other eligibility criteria, or do not provide the appropriate information will be determined ineligible. 4.2 Opening and Closing the Waiting List Link: 24 CFR 982.206 EHA may at its discretion open and close waiting list. The decision to close the waiting list will be based on: the number of applications on file, the number of anticipated available vouchers and when the estimated waiting period for housing assistance reaches 24 months. EHA will announce the reopening of the waiting list at least 10 business days prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. EHA will give public notice by publishing the relevant information in suitable media outlets. All notices and advertisements announcing the opening of the waiting list will include: • The dates the list will be open; • The means by which applications will be taken (paper; electronic; other); • The availability of Housing Choice Vouchers; • Eligibility guidelines; • Preferences and methodology for the selection of applicants; and • Any limitations which may apply. • Instructions for electronic submission of applications in the event such technology is available. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 24 2017-06-28 Item H1 (Housing Authority) 32 of 193 4.3 Merger and Cross Listing The Housing Authority will merge the EHA tenant-based waiting list with other assisted housing programs including federal or local programs. HUD program requirements still apply to each separate housing program. 4.4 Cooperative Waiting List The EHA, the Housing Authority of the County of San Diego, the San Diego Housing Commission, the cities of Oceanside, Carlsbad, and National City agree to maintain a cooperative waiting list for those applicants who live in the jurisdiction of the other housing agency. Each housing agency will exchange waiting list applications (preserving the original time and date of application for applicants residing in the jurisdiction of the other agency) provided that the Housing agency had an open waiting list during that time period, or provide the earliest date available to the applicant. Upon receipt of this data, each housing agency will place such applicants into their current waiting list using the original time and date of application. Applicants who are receiving rental subsidy assistance by a PHA member of the Cooperative will be removed from the EHA wait list. 4.5 Maintaining the Waiting List The EHA may merge the housing choice voucher waiting list with the waiting list for any other program the EHA operates. The waiting list will contain the following information for each applicant listed: • Name and address of head of household • Number of family members • Social security number (head of household) • Date of application • Other criteria as deemed necessary by EHA or HUD. 4.6 Updating the Waiting List The waiting list will be updated as needed to ensure that all applicant information is current. Failure to respond to EHA notices will result in the applicant being removed from the waiting list without further notice. The family's response must be in writing and may be delivered in person or by mail. Responses should be postmarked or received by the EHA not later than the specified date provided in EHA's letter. If the family fails to respond within the required time period, the family will be removed from the waiting list without further notice. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 25 2017-06-28 Item H1 (Housing Authority) 33 of 193 When a family is removed from the waiting list during the update process for failure to respond, no informal review will be offered. Such failures to act on the part of the applicant prevent EHA from making an eligibility determination; therefore, no informal review is required. If the family is removed from the waiting list for failure to respond, they will not be entitled to reinstatement unless verification of the following is received within 30 calendar days from the response due date: • During the time of any waiting list update or, at the time of notification for an interview, the applicant could not respond. For example, the applicant was incapacitated due to hospitalization or was unavailable due to active participation on Jury Duty; • The applicant provides evidence that a change of address was submitted to EHA prior to the notice being issued by EHA; • As a result of a data entry error, EHA computer system incorrectly recorded the address of the applicant; and, therefore, the applicant was improperly withdrawn from the waiting list for failure to respond to a EHA notice; or • The applicant is a person with a disability who requires an alternative form of communication other than one normally used by EHA, and the applicant informed EHA, in advance, of the proper means of communication, as required by regulations. At the time EHA conducts an opening of the waiting list to establish a new waiting list; no further requests for re-instatement will be accepted or considered from applicants claiming to have been on any prior waiting list. When EHA decides to update the Housing Choice Voucher waiting list, it will notify the applicants on the waiting list requesting updated information. The intent of the notification is also to determine whether the applicant is still interested in the Housing Choice Voucher Program. Notices will be made available in accessible format upon the request of a person with a disability. An extension to reply to the update notification will be considered as a reasonable accommodation if requested by a person with a disability. 4.7 Change in Circumstances Preference Changes in an applicant's circumstances while on the wait list may affect the family's entitlement to a preference. Applicants are required to notify EHA in writing when their circumstances change. When an applicant claims an additional preference, they will be placed on the waiting list in the appropriate order determined by the newly claimed preference. The exception to this is, if at the time the family applied, the waiting list was only open to EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 26 2017-06-28 Item H1 (Housing Authority) 34 of 193 families who claimed that preference. In such case, the applicant must verify that they were eligible for the first preference before they returned to the waiting list with the new preference. Change to the Family Composition Changes to the family composition after an application has been submitted include addition of family members born to, adopted or otherwise granted custody to the family by operation of the law, which may include foster children, live in aides and spouses, provided the additional family member(s) meet all applicable waiting list requirements and remain eligible for the waiting list. EHA will require documentation that the head of household has authorization to include a minor as part of the household. Court approved custody or guardianship is not the only mechanism for establishing that a head of household has authorization to include a minor in the family composition. Changes to the family composition may also be allowed for families in which one or more children less than eighteen years of age live with the designee of the parent or legal custodian, with the parent or custodians' written consent. Documentation can include but is not limited to court documents, pre-need guardian, school records, other state and federal public assistance documentation, or durable powers of attorney. All other additions to the family shall be considered only on a case-by-case basis and must be documented at the time such changes occur. These additions may include immediate family members (sons, daughters, siblings, parents, grandparents, grandchildren) and may be made for humanitarian or extraordinary reasons. 4.8 Communication and Written Notification Link: 24 CFR 982.5 When written notification is required from the EHA to an applicant, participant or owner, the EHA may deliver such notification via USPS mail, email, text message or other electronic means at EHA's discretion. EHA may request that applicants, participants and owners provide email addresses, and cellular telephone numbers. EHA will require a current mailing address be provided and will send written notification via USPS mail when other contact options (e.g. email /text) are not available or the means to receive communication by other delivery mechanisms is not available. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 27 2017-06-28 Item H1 (Housing Authority) 35 of 193 4.9 Local Preferences Link: 24 CFR 982.207 A preference does not guarantee admission into the program. Every applicant must still meet EHA's Selection Criteria before being offered a voucher. EHA has the following HCV preferences: • Special local preference will have a maximum of one voucher available to those who meet the following criteria: Eligible homeless applicants who have been referred by the San Diego County Continuum of Care or Coordinated Assessment and Housing Placement (CAHP) system who either meet the definition of homeless or who are exiting federally-assisted housing programs with no other permanent housing placement options. This preference is restricted to referrals through the CAHP system and is intended to assist applicants who are homeless in Encinitas, or living in a shelter in North County Coastal or Inland (as defined by San Diego Health and Human Services Agency) and can provide documentation of residing in Encinitas in the last six months. This selection preference is superior to the following ranking preferences. For the applicants on the waiting list, the following order of preferences is established. • Local Preference: EHA has established special local preference for an applicant who is a resident of the City of Encinitas; employed in the City of Encinitas; or who has been notified that they have been hired to work in the City of Encinitas. (50 points) • Priorities: applicants with any one or combination of the priorities listed below. (50 points) • Elderly individual or family, • Disabled individual or family, • Families with dependent children where a head of household works and/or attends school/a training program, • Homeless individual or family, • Involuntarily displaced individual or family due to Government action, or o Veteran For the purpose of determining eligibility and applying preference, a resident Household 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. For homeless persons to meet residency test, related to the Priorities list above, applicant must prove that they have resided within the City of Encinitas in the last six months. A Veteran is a head of household or spouse who has discharged from military service under honorable or general conditions (with the exception of dishonorable), or a spouse of a deceased veteran. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 28 2017-06-28 Item H1 (Housing Authority) 36 of 193 To be eligible for the working priority, a head of household must be engaged in gainful employment averaging a minimum of fifteen (15) hours per week or seven hundred eighty (780) hours per year. The use of the preferences by EHA will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant family. When adopting a new preference, EHA will notify all applicants on the current waiting list to determine if any are eligible under the preference (24 CFR §5.655(c)). EHA will specify in a public notice of a waiting list opening that current waiting list applicants may qualify for the preference. The notice will include any other information new applicants and current applicants on the waiting list will need to know about how to successfully apply and establish their preference status, including any partnering agencies with whom the owner may be working to receive referrals or determine preference eligibility. If an applicant makes a false statement in order to qualify for a Local preference, EHA will deny the preference. If the EHA denies a preference, EHA will notify the applicant in writing of the reasons why the preference was denied and offer the applicant an opportunity for an informal meeting review with a supervisor or his/her designee. If the preference denial is upheld as a result of the meeting, or the applicant does not request a meeting, the applicant will be placed on the waiting list without benefit of the preference. Applicants may exercise other rights if they believe they have been discriminated against. 4.10 Assistance Targeted by HUD Link: 24 CFR 982.203; 982.203 (2)(b)(1-5) EHA will admit a family that is not on the waiting list, or without considering the family's waiting list position or preferences in certain circumstances prescribed by HUD. EHA will maintain records showing that the family was admitted with HUD-targeted assistance. The EHA does not currently administer HUD targeted funding vouchers. 4.11 Continuously Assisted Families Link: 24 CFR 982.4; 982.203 EHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program at the time they were issued a voucher by EHA. Families assisted under the U.S. Housing Act (including all families occupying units in properties receiving Section EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 29 2017-06-28 Item H1 (Housing Authority) 37 of 193 8 project-based assistance) are considered continually assisted. All such families are treated in the regulations as "special (non-waiting list) admissions". When continuously assisted families face loss of housing assistance either because the owner of the property in which they live chooses not to renew a subsidy contract or because the property must be vacated for demolition, sale or total rehabilitation, such families may receive vouchers as continuously assisted families (and special non-waiting list admissions). 4.12 Relocation of Witnesses and Victims of Crime Link: http://portal.hud.gov/hudportal/HUD?src=/programdescription/witness Families who are active participants in a Witness Protection Program and who are in need of assistance to move and ensure their continued protection may be referred to EHA by either a Federal or State Law Enforcement Agency. Each referral must include certification by the Law Enforcement Agency that the family is a victim and/or witness of a violent crime and in a life-threatening situation. EHA will take all appropriate steps to maintain the confidentiality of each referral. All referred applicants must meet Housing Choice Voucher eligibility requirements. 4.13 Income Targeting Policy Link: 24 CFR 960.202(b) The EHA will monitor progress in meeting the requirement to have seventy five percent (75%) of new admissions having income at the Extremely Low Income (ELI) level throughout the fiscal year. Extremely-Low Income families are now defined as families whose incomes do not exceed the higher of: Federal Poverty Level or 30 percent of Area Median Income. ELI families will be selected ahead of other eligible families on an as-needed basis to ensure that the income targeting requirement is met. Under limited circumstances, HUD rules allow admission of low- income families. If an applicant on the waiting list is skipped over, they will retain their original sequential number placement and be the first applicant offered an opportunity for assistance after the extremely low-income targeting requirement has been met. 4.14 Waiting List Placement Applicants will be placed on the waiting list based on any preference, and then by the date and time their complete application is received by the EHA. Placement on the waiting list does not indicate that the family is, in fact, eligible for admission. When the family is selected from the waiting list, the EHA will determine eligibility for admission to the program. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 30 2017-06-28 Item H1 (Housing Authority) 38 of 193 If the EHA can determine from the information provided that a family is ineligible, the family will not be placed on the waiting list. When a family is determined to be ineligible, the EHA will send written notification of the ineligibility determination to the applicant. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review and explain the process for doing so. If upon conclusion of the informal review process, the family's preliminary eligibility is restored, the family's original date and time of application will be restored on the waiting list. Applicants, including members of the family, who owe money to EHA or any other housing authority, will not be placed on the waiting list. If an applicant or family requests copy of EHA's selection policies, the EHA will provide copies at .10 per page. 4.15 Selection from the Waiting List Notification EHA will notify the family when it is selected from the waiting list. The notice will inform the family of the date, time, and location of the eligibility appointment, who is required to attend, and the documents that must be provided. If a notification letter is returned to EHA with no forwarding address, or within the specified time the family will be removed from the waiting list without further notice. Such failure to act on the part of the applicant prevents EHA from making an eligibility determination; therefore no informal review will be offered. 4.16 Removal from the Waiting List The EHA will remove applicants from the waiting list if: • The applicant has requested that their name be removed. In such cases, no informal review is required. • The applicant has failed to advise the EHA of his/her continued interest in the housing choice voucher program during the waiting list update. This includes failing to notify the EHA of any changes in family status, address, etc. • The applicant has failed to attend interviews and/or provide documentation in the required timeframes. • EHA determines that the family is not eligible for admission at any time while the family is on the waiting list. If a family is removed from the waiting list because the EHA has determined the family is not eligible for admission, a notice will be sent to the family's address of record. The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal review. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 31 2017-06-28 Item H1 (Housing Authority) 39 of 193 Chapter 5-Initial and Continuing Eligibility Link: 24 CFR 982.4; 982.203 5.1 Qualifications for Admission EHA will admit only applicants who are qualified according to all the following criteria: • Are a family as defined by HUD and EHA. • Are in compliance with EHA's criminal background policy. • Qualify on the basis of citizenship or the eligible immigrant status of family members. Link 24 CFR Part 5, Subpart E • Provide documentation of Social Security numbers for all household members, or certify that they do not have Social Security numbers. Link: 24 CFR Part 5, Subpart B • Have income at or below HUD-specified income limits. Link: 24 CFR Part 5, Subpart F • Consent to EHA's collection and use of family information. 5.1.1 Income Eligibility Links: 24 CFR 982.201(b); 982.4; 248.101 &.173 For admission to the Housing Choice Voucher Program, a family must be income eligible in the area where the family initially leases a unit with housing assistance. A family porting into Encinitas, CA must be eligible in Encinitas, CA. A family porting out of Encinitas, CA must be income eligible in the area where the family leases an assisted unit. To determine if the family is income eligible, the EHA will compare the annual income of the family to the HUD published income limit for the family's size in this jurisdiction. 5.1.2 Social Security Number Disclosure Link: 24 CFR 5.216, 5.218; Notice PIH 2012-10 The applicant and all members of the applicant's household must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN. (These requirements do not apply to noncitizens who do not contend eligible immigration status, though at least one member of the household must be a citizen or have eligible immigration status). If EHA determines that the applicant is otherwise eligible to participate in a program, the applicant may retain its place on the waiting list for the program for up to 90 days but cannot become a participant until it can provide the documentation to verify the SSN of each member of the household. If a child under the age of 6 years was added to the applicant household within the 6-month period prior to the household's date of admission, the applicant may become a participant, so long as the documentation required is provided to the EHA within 90 calendar days from the effective date of the Housing Assistance Payment contract. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 32 2017-06-28 Item H1 (Housing Authority) 40 of 193 The EHA may grant an extension of one additional 90-day period if the EHA determines that, in its discretion, the applicant's failure to comply was due to circumstances that could not reasonably have been foreseen and were outside the control of the applicant. If the applicant family fails to produce the documentation required within the required time period, the EHA must follow the provisions of§ 5.218. 5.1.3 Citizenship Requirements Link: 24 CFR Part 5, Subpart E EHA will verify the citizenship/immigration status of applicants at the time other eligibility factors are determined. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance. Each family member must declare whether the individual is a citizen, national or an eligible noncitizen. Family members who declare citizenship or national status will not be required to provide additional documentation supporting the individual's declaration of citizenship and national status unless the EHA receives information indicating that an individual's declaration may not be accurate, such as a birth certificate. Prior to being admitted, all eligible noncitizens must sign a declaration of their status and a verification consent form and provide their original USCIS documentation. All eligible noncitizens who are 62 years of age or older will be required to sign a declaration under penalty of perjury. They will also be required to show proof of age. Family members who do not claim to be citizens, nationals or eligible noncitizens, or whose status cannot be confirmed, must be identified by the family in writing to EHA. 5.2 Family Definition Link: 24 CFR 5.403 To be eligible for admission, an applicant must qualify as a family. Family as defined by HUD includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status: • A single person, who may be an elderly person, displaced person, or any other single person • A group of persons residing together and such group includes, but is not limited to: • A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family); unborn children and children in the process of being adopted are considered family members for purposes of determining bedroom size, but are not considered family members for determining income limit. • An elderly family; • A disabled family; • A displaced family; and • The remaining member of a participant family. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 33 2017-06-28 Item H1 (Housing Authority) 41 of 193 For categorizing family as defined above, the terms disabled family and elderly family are: • Disabled family means a family whose head (including co-head), spouse or sole member is a person with a disability. • Elderly family means a family whose head (including co-head), spouse, or sole member is a person who is at least 62 years of age. A family may have a spouse or co-head but not both. The co-head is an individual in the household who is equally responsible for the lease with the head of household. A co-head never qualifies as a dependent.The co-head must have legal capacity to enter into a lease. Child (minor) relationship is determined only by: birth, adoption, a court order establishing custody, or a legal order from a qualified social service agency. A family does not include: • A group of unrelated persons living together (friends, etc.) • Aunt, uncle, sister, brother, cousin, friend, etc. • An additional family to the household, i.e. a sister and her children, etc. • A housekeeper or live-in aide • Foster children and/or foster adults Each family must identify the individuals to be included in the family at the time of application, and must notify the EHA if the family's composition changes within 14 calendar days. 5.2.1 Head of Household The family may designate any qualified adult family member as the head of household. The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household. 5.2.2 Joint Custody Dependents that are subject to a joint custody arrangement will be considered a member of the family if they live with the applicant or participant family more than 50 percent of the time. When more than one applicant or participant (regardless of program) is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or re-certification will be able to claim the dependents. If there is a dispute about which family should claim the dependent(s), the EHA will make the determination based on court orders and social service agency orders showing which family has custody 5.2.3 Family Break Up In the case of family break-up, EHA has the discretion to decide which members of an assisted family will continue to receive the housing assistance. If a court determines the disposition of property between members of an applicant or participant family as part of a divorce or separation decree, EHA will abide by the court's determination. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 34 2017-06-28 Item H1 (Housing Authority) 42 of 193 In the absence of a judicial decision or an agreement among the original family members, EHA will determine which family will retain their placement on the waiting list or will continue to receive the housing assistance. In making its determination, EHA will take into consideration the following factors: • The interest of any minor children, including custody arrangements • The interest of any ill, elderly, or disabled family members • The interest of any family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking (VAWA) and provides documentation in accordance with this Administrative Plan If a participant family breaks up into two otherwise eligible families, only one of the new families will continue to receive housing assistance. If an applicant family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original waiting list position. Other family members may submit a new application if the waiting list is open. EHA will not approve a transfer of the voucher from one head of household to another head of household where it constitutes a violation of waiting list and preference policies. 5.2.4 Remaining Family Member A remaining family member is defined by HUD and previously approved by EHA to live in the unit as a household member. Live in aides, foster children and foster adults do not quality as remaining family members. If the head of household dies or leaves the unit for any reason other than EHA termination of assistance, continued housing assistance by remaining household members is permitted if: • The household reports the departure (or death) of the head of household in writing within 14 calendar days of the occurrence, and • A replacement head of household is identified and reported to EHA in writing within 14 calendar days of the occurrence. • The head of household agrees to a written repayment agreement for any rent or charges incurred by the former head of household. • Those under 18 seeking to become the head of household must provide proof of emancipation. • An adult, who becomes the guardian or other caretaker of remaining household member(s) who are minors, may apply to become head of household and must meet EHA's eligibility criteria. EHA may deny housing assistance if an action to terminate the former head of household's housing assistance began prior to the former head of household's departure from the unit. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 35 2017-06-28 Item H1 (Housing Authority) 43 of 193 5.3 Student Head of Household Link: Federal Register/Vol. 81, No. 183/Wednesday, September 21, 2016/ Notices No assistance will be provided under section 8 of the 1937 Act to any individual who: • Is enrolled as a student at an institution of higher education, as defined under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002); • Is under 24 years of age; • Is not a veteran of the United States military; • Is unmarried; • Does not have a dependent child; and • Is not otherwise individually eligible, or has parents who, individually or jointly, are not eligible on the basis of income to receive assistance under section 8 of the 1937 Act. The above restriction does not apply to a person with disabilities as such term is defined in section 3(b)(3)(E) of the 1937 ACT and who was receiving Section 8 assistance on November 20, 2005. 5.4 Guests/Visitors Guests/Visitors are permitted based on the terms in the owner's lease; the owner has provided approval for the guest/visitor; and the guest/visitor is not an unauthorized person living in the unit. A guest can remain in the assisted unit no longer than 14 consecutive days or a total of 30 cumulative calendar days during any 12 — month period or EHA will consider the person(s) unauthorized persons in the unit. A family may request an exception to this policy for valid reasons (e.g. care of a relative recovering from a medical procedure is expected to last 40 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return. The family must notify the EHA in writing of the children(s) names and timeframes the children will be in the household if the participant has children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the unit more than 50 percent of the time. In making the determination if the person is an unauthorized household member, EHA will consider: • Statements from neighbors and/or EHA staff • Vehicle license plate verification • Post Office records • Driver's license verification • Law enforcement reports • Credit reports EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 36 2017-06-28 Item H1 (Housing Authority) 44 of 193 5.5 Interviews/Appointments and Information The family will be mailed a packet of documents to complete and a due date for providing the information. Once the information has been received, the family will be required to participate in an eligibility interview appointment. The family will be sent an appointment notice to their last known address indicating the date, time, place, who must attend and what documents must be presented at the interview. All adult family members are required to attend the interview and sign forms and documents. Exceptions may be made for students attending school out of state for members for whom attendance would be a hardship. The head and spouse/co-head are both required to attend the interview. If the head of household cannot attend the interview, the spouse/co-head may attend to complete the application and certify for the family. The head of household, however, will be required to attend an interview within 14 calendar days to review the information and to certify by signature that all of the information is complete and accurate. The family must provide the information necessary to establish the family's eligibility and to determine the appropriate amount of rent the family will pay. The family must also complete required forms, provide required signatures, and submit required documentation. If the family does not provide the required documentation at the time of the interview, the interview will not take place and may be rescheduled when all the documents are submitted by the family. The family will be given a list of missing documents and the timeframe for returning the document, 14 calendar days. If the documents are returned complete within 14 calendar days the interview will be rescheduled. If the documents are not returned complete, EHA will determine that the applicant is no longer interested in housing assistance and will be removed from the waiting list. Extensions to the timeframe may be allowed based on emergencies and reasonable accommodations. If the required documents and information are not provided within the required time frame (plus any extensions) the family will be sent a notice of denial. An advocate, interpreter, or other assistant may assist the family with the application and the interview process. 5.5.1 Rescheduling the Eligibility Interview If the family is unable to attend a scheduled appointment for good cause, the family must contact the EHA in advance of the interview to schedule a new appointment. If the family fails to attend a second scheduled appointment without EHA approval, EHA will deny assistance based on the family's failure to supply information needed to determine eligibility. Only for documented and verified extenuating circumstances (for example and not limited to: illness, hospitalization, jury duty etc.), the applicant may contact the EHA within 24 after the scheduled appointment and the appointment will rescheduled once. 5.5.2 Eligibility Notification The EHA will notify a family in writing of their eligibility within 14 calendar days of the determination. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 37 2017-06-28 Item H1 (Housing Authority) 45 of 193 If the EHA determines that the family is ineligible, the EHA will send written notification of the ineligibility determination within 14 calendar days of the determination. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review. 5.6 Criminal Background Policy Links: 24 CFR 5.903; 24 CFR 960.204(d); 24 CFR 960.204(a)(4)); 24 CFR 5.905(d) The EHA will perform criminal records checks at application for all adult household members (defined as 18 years of age or older), when a minor turns 18, or when adding an adult member to the household. The EHA will conduct criminal records checks when it has come to the attention of the EHA, either from local law enforcement or by other means that an individual has engaged in the destruction of property, engaged in criminal activity, or has interfered with the right to peaceful enjoyment of the premises of other participants. The EHA may conduct criminal records checks that will include a National Criminal History Check. Local/State checks will be conducted where needed. Such checks will also include sex offender registration information. In order to obtain such information, the head of household and all adult household members must sign consent forms for release of criminal conviction and sex offender registration records on an annual basis. 5.6.1 Drug Abuse Treatment Information Links: 24 CFR 960.205(f) The EHA will obtain information from drug abuse treatment facilities to determine whether any applicant family's household members are currently engaging in illegal drug activity only when the EHA has determined that the family will be denied admission based on a family member's drug-related criminal activity, and the family claims that the culpable family member has successfully completed a supervised drug or alcohol rehabilitation program. The EHA will require the proposed family member sign a consent form for the drug abuse treatment facility to release information. 5.7 Absences from the Unit Link: 24 CFR 982.312 5.7.1 Absent Family Member The EHA will compute all applicable income of every family member who is on the lease, including those who are temporarily absent. Income of persons permanently absent will not be counted. It is the responsibility of the head of household to report changes in family composition and absences of family members. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 38 2017-06-28 Item H1 (Housing Authority) 46 of 193 Generally, an individual who is or is expected to be absent from the assisted unit for 2 consecutive months or 60 days or more in a 12 month period of time is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. The family must request EHA approval for the return of any adult family members that the EHA has determined to be permanently absent. The individual is subject to the eligibility requirements stated in this Administrative Plan. 5.7.2 Absence of Entire Family Notice is required when all family members will be absent from the unit for an extended period of time (greater than 30 calendar days). Families are required to give EHA 30 days' notice before moving out of a unit. Absence means that no family member is residing the unit. In order to determine if the family is absent from the unit, the EHA may: • Conduct a special inspection • Post letters on exterior door • Review school records • Telephone the family at the unit • Interview neighbors • Verify if utilities are in service • Check with the Post Office for forwarding address • Contact the emergency contact The family must supply any information or certification requested by the EHA to verify that the family is living in the unit, or relating to family absence from the unit. If a family is absent from the unit for more than 180 consecutive days the EHA will terminate assistance. 5.7.3 Absent Student When a minor and/or a college students who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the EHA indicating that the student has established a separate household or the family declares that the student has established a separate household. 5.7.4 Absences Due to Placement in Foster Care If a child has been placed in foster care, the EHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 39 2017-06-28 Item H1 (Housing Authority) 47 of 193 If the child(ren) are removed from the home permanently, the voucher bedroom size will be adjusted in accordance with the EHA's occupancy guidelines. 5.7.5 Caretaker for a Child If neither a parent nor a designated guardian remains in a household receiving assistance, the EHA will take the following actions: • If a responsible agency has determined that another adult is to be brought into the unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made. • If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 consecutive days. After the 90 consecutive days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker's role is temporary. In such cases the EHA will extend the caretaker's status as an eligible visitor. • During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify for any deductions from income. • If the caretaker is considered a family member, the caretaker must submit an eligibility application, pass all eligibility criteria, and his/her income will be counted as part of the household. Once eligibility is passed, the lease will be transferred to the caretaker as head of household. 5.7.6 Absent Head or Spouse Due to Employment If an employed head, spouse, or co-head is absent from the unit more than 180 consecutive days due to employment, she/he will continue to be considered a family member. 5.7.7 Individuals Absent(Confined)for Medical Reasons An individual confined to a nursing home or hospital on a permanent basis is not considered a family member. If there is a question about the status of a family member, the EHA will request verification from a responsible medical professional if the member will be gone more than 90 consecutive days (and up to 180 days after approval of the Section 8 Manager or authorized designee) and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 40 2017-06-28 Item H1 (Housing Authority) 48 of 193 CHAPTER 6: Tenant Rent and Housing Assistance Payment Calculation 6.1 Definition of Income Link: 24 CR 5.609(b) EHA uses HUD's definition of Annual Income. Annual income is the total income from all sources, including net income derived from assets received by the household head and spouse (even if temporarily absent) and by each additional household member including all net income from assets for the 12 month period following the effective date of initial determination or re-certification of income, exclusive of income that is temporary, non- recurring or sporadic as defined below, or is specifically excluded from income by other federal statute. 6.2 Assets Link: 24 CFR 5.609(b) and (c), PIH Notice 2016-05 An asset is an item of value that can be converted into cash, and may or may not earn income. Annual income includes income amounts derived from assets to which the family has access. Assets include, but are not limited to checking and savings accounts, investment accounts, equity in real property, personal property held as an investment, whole life insurance policies, and assets disposed of for less than fair market value. When the total value of assets is $5,000 or less, EHA will accept a family's declaration of the amount of assets and the amount of income expected to be received from those assets without requiring additional documentation or verification. All family members 18 years of age and older are required to sign the family's declaration of total assets along with required consent forms that are required pursuant to 24 CFR 5.230. EHA may choose to perform selective quality control verification of the family assets. A family that knowingly submits false information is subject to a civil penalty, plus damages, under the False Claims Act (31 U.S.C. 3729). When the total value of assets is over $5,000, EHA will use the greater of the actual amount of income from assets, or the imputed income from assets based on the Savings National Rate in effect at the time. Whenever a family member is added, EHA will obtain third-party verification of that family member's assets. At the next annual reexamination of income following the addition of that family member, EHA will obtain third-party verification of all family assets if the addition of that family member's assets puts the family above the $5,000 asset threshold. If the addition of that family member's assets does not put the family above the $5,000 asset threshold, then EHA will not obtain third-party verification of all family assets at the next annual reexamination of income following the addition of the family member; however, third-party verification of all family assets is required at least every 3 years. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 41 2017-06-28 Item H1 (Housing Authority) 49 of 193 6.2.1 Disposed Assets The EHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than $5,000.00. Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions. When the two-year period expires, the income assigned to the disposed asset(s) also expires. If the two-year period ends between annual re-certifications, the family may request an interim re-certification to eliminate consideration of the asset(s). Assets placed by the family in non-revocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments. All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order. Families must sign a declaration form at initial certification and each annual re-certification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. 6.2.2 Checking and Savings Accounts In determining the anticipated income from an interest-bearing checking or savings account, the EHA will multiply the value of the account by the current rate of interest paid on the account. 6.3 Anticipating Income When the EHA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), the EHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. The family file will be documented with a clear record of the reason for the decision, and how the EHA anticipated income. Any time current circumstances are not used to project annual income, the decision will be documented in the file. In all such cases the family may present information and documentation to the EHA to show why the historic pattern does not represent the family's anticipated income. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 42 2017-06-28 Item H1 (Housing Authority) 50 of 193 6.4 Future Changes If the EHA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12-month period. The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the EHA will calculate annual income using current circumstances and then require an interim re-certification when the change actually occurs. This requirement will be imposed even if the EHA's policy on re-certifications does not require interim re-certifications for other types of changes. When participant-provided third-party documents are used to anticipate annual income, they will be dated within 60 days of the documentation request. 6.5 Total Tenant Rent and HAP Links: 24 CFR 5.628; 5.630; 5.634 EHA follows HUD regulations for determining the family's portion of rent and the HAP subsidy to the owner. Total Tenant Payment is the higher of: • 30% of adjusted monthly income; or • 10% of gross monthly income; • Not less than the Minimum Rent of$50 Tenant Rent • Tenant rent is calculated by subtracting the utility allowance for participant supplied utilities (if applicable) from the Total Tenant Payment. • Where the utility allowance exceeds the Total Tenant Payment, the tenant will pay$0 rent and may receive a reimbursement to be applied toward utilities. • Where the owner pays for all utilities and provides the stove and refrigerator, Tenant Rent equals Total Tenant Payment. Rent to Owner Rent to owner is the greater of: • The Payment Standard less the Housing Assistance Payment; or • The Gross Rent less the Housing Assistance Payment • Minimum rent 6.5.1 Prorated Assistance HUD regulations prohibit EHA from providing housing assistance to noncitizens with ineligible immigration status. EHA will comply with all requirements of the regulations and EHA policies when determining and calculating prorated assistance. Prorated housing assistance payments are based on the number of eligible family members. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 43 2017-06-28 Item H1 (Housing Authority) 51 of 193 6.5.2 Payment Standards Link: 24 CFR 982.505; 24 CFR 982.503(b),(c),(g) The payment standard is used in the calculation of the housing assistance payment for a family. The payment standard for the family is the lower of: • The unit size shown on the voucher, or • The size of the actual unit selected by the family. The payment standard is set by EHA between 90% and 110% of the HUD published FMR. EHA will review the payment standard at least annually to determine whether an adjustment should be made. As a reasonable accommodation, EHA may establish an exception payment standard of not more than 120% of the published FMR. 6.5.3 Utility Allowances and Utility Reimbursements Link: 24 CFR 982.517; Notice PIH 2016-05 EHA maintains a Utility Allowance Schedule which is used in the housing assistance payment calculation to assist with the cost of utilities not included in the rent. The utility allowance calculation is based on the lower of: • The voucher unit size based on EHA subsidy standards • The size of the actual unit rented by the family • In the case of a reasonable accommodation, EHA will use utility allowance for the unit size actually leased by the family When the utility allowance exceeds the family's Total Tenant Payment, EHA will provide the family a utility reimbursement payment. EHA will review the utility allowance schedule annually and revise it when needed. Revised utility allowances will be applied in a family's rent calculation at the next annual re-certification. The EHA has the option of making utility reimbursement payments not less than once per calendar-year quarter, for reimbursements totaling $45 or less per quarter. In the event a family leaves the program in advance of its next quarterly reimbursement, the EHA will reimburse the family for a prorated share of the applicable reimbursement. EHA may make reimbursement payments retroactively or prospectively. In the event that EHA chooses to make the reimbursement payments retroactively, EHA will allow a family to request a hardship exemption from the quarterly payments if it results in a financial hardship for the family. If a family receives a hardship exemption, then the EHA may either reimburse the family on a monthly basis or it may make prospective payments to the family, on a quarterly basis. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 44 2017-06-28 Item H1 (Housing Authority) 52 of 193 6.6 Minimum Rent and Hardship Exemptions Link: 24 CFR 5.630 EHA has adopted a minimum rent for the program of $50. It is used as determined when applying the formula to calculate Total Tenant Payment as described above. Minimum Rent Hardship Exemption EHA will grant an exemption from application of the minimum monthly rent to any family making a proper request, in writing that it is unable to pay the monthly minimum rent because of financial hardship, which includes: • The family has lost eligibility for, or is awaiting an eligibility determination for a federal, state, or local assistance program, including a family that includes a member who is an alien lawfully admitted for permanent residence under the Immigration and Nationalization Act, who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996; • Family income has decreased because of changed circumstance, including loss of employment; • A death in the family that affects the family circumstances; or • Other circumstances as determined by EHA on a case-by-case basis. If a family requests a hardship exemption, EHA will suspend the minimum rent charge and adjust the HAP payment effective on the first of the month following the change in the family's circumstances. The family must provide documentation of the hardship. EHA will determine if the hardship is temporary or long term. If the hardship is determined to be temporary, the minimum rent will be suspended for a period of ninety (90) days from the date of the family's request. At the end of the 90-day period, the minimum rent will be reinstated retroactively to the date of suspension. EHA will offer to execute a reasonable repayment agreement to cover the minimum rent charges accumulated during the suspension period. If EHA determines that the hardship is long term, the exemption will be applied so long as the hardship continues. Hardship determinations are subject to EHA's informal hearing process. 6.7 Disallowance of Earned Income 24 CFR §§5.617, 960.255; PIH Notice 2016-05 Initial 12-month exclusion: During the 12-month period beginning on the date on which a member of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, EHA will exclude from the annual income of a qualified family any increase in the income of the family member as a result of employment over the baseline income of that family member. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 45 2017-06-28 Item H1 (Housing Authority) 53 of 193 Phase-in of rent increase: Upon the expiration of the 12-month period and for the subsequent 12-month period, EHA will exclude from the annual income of a qualified family at least 50 percent of any increase in income of such family member as a result of employment over the family member's baseline income. Maximum 2-year disallowance: The disallowance of increased income of an individual family member is limited to a lifetime 24-month period. It applies for a maximum of 12 months for disallowance (initial 12 months) and a maximum of 12 months (second 12 months), during the 24-month period starting from the initial exclusion. Families eligible for and participating in the disallowance of earned income prior to May 9, 2016 will continue to be governed by HUD regulations in effect immediately prior to that date. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 46 2017-06-28 Item H1 (Housing Authority) 54 of 193 CHAPTER 7: Request for Tenancy Approval and Leasing After families are issued a voucher, they may search for a unit within the jurisdiction of EHA, or outside of EHA's jurisdiction if they qualify for portability. The family must find an eligible unit under the program rules, with an owner/landlord who is willing to enter into a Housing Assistance Payments (HAP) contract with EHA within the time frame listed on the voucher. 7.1 Voucher Issuance 7.1.1 Housing Choice Voucher Issuance and Briefing All eligible applicants (based on full and complete verification) are required to participate in a briefing before a Voucher is issued. The briefings may be group, individual or online meetings. A Voucher will be issued after the applicant completes the briefing session. Briefing Packet Link: 24 CFR § 982.301(b) ; PIH Notice 2016-09 Each family will receive a briefing packet containing, but not limited to, the following: • The term of the Voucher; • A description of EHA's policy on granting extensions or suspensions of term and how a family can request extensions; • Information on computing the Housing Assistance Payment; • Information on the Payment Standard and EHA's Utility Allowance Schedule; • How EHA determines the maximum rent for an assisted unit; • What the family should consider in deciding whether to lease a unit such as unit condition, reasonableness of rent, cost of tenant-paid utilities, whether the unit is energy efficient, and location of unit to public transportation, employment, schools and shopping; • Where the family may lease a unit using portability and how portability works; • HUD required tenancy addendum; • Request for Tenancy Approval and the process of obtaining an inspection; • EHA's policy on providing information to prospective landlords; • EHA's subsidy standards including any exception to these standards; • HUD brochure on selecting a unit; • Information on Upfront Income Verification (UIV) tools used to verify income; • HUD brochure, Protect Your Family From Lead in the Home; • Fair Housing Brochure and information, (HUD-903) and a Discrimination Complaint Form (HUD-903a); • Notification of Occupancy Rights under the Violence Against Women Act and Certification Form (Form HUD-5380; HUD - 5382) • List of landlords or real estate agents who may be willing to lease a unit or may be able to help the family locate a unit; or information regarding computerized databases listing available units EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 47 2017-06-28 Item H1 (Housing Authority) 55 of 193 • Notice that if the family includes a disabled person, the family may request a current listing of accessible units, known to EHA, that may be available; • Family program obligations; • HUD's EIV use • Grounds under which EHA may terminate the family's assistance; • Informal hearing and review process and how to request a hearing; • Other items as EHA may determine. 7.1.2 Briefing Session The briefing will cover the information in the packet and discuss the following topics: • Family, Owner and EHA Responsibilities under the Lease and Contract • Expiration and Extension of the Voucher • A description of the general location and characteristics of neighborhoods in the City of Encinitas. • Tips on Where to Look for Housing • Sources of information on available units (e.g., newspapers, community bulletin boards) should be obtained. EHA will also provide a list or an on-line link to a database of owners who have indicated a willingness to participate in the Housing Choice Voucher Program. • Housing Quality Standards o HQS, rent reasonableness and procedures for inspections will be addressed. Housing quality standards to be used are described in 24 CFR 982.401. • Encouragement to consider all neighborhoods within the City of Encinitas when searching for a unit. EHA will provide information on portability of the Voucher and its use to move out of areas of high poverty concentration. • Landlord-Tenant Laws and Federal, State and Local Fair Housing Laws • The participants' fair housing rights and what to do if discrimination is encountered will be discussed. In cases where discrimination is suspected, EHA will advise and assist the family to file a discrimination complaint with the Department of Housing and Urban Development. • Assistance to Elderly and Individuals with Disabilities • Additional assistance that is available for persons with disabilities or elderly households will be described. Housing Choice Voucher staff will provide as much assistance as possible and refer participants to social service agencies as needed. • Calculations/Explanation of Total Tenant Payment, HAP, Maximum Subsidy, Utility Allowances, and Utility Reimbursements • The applicable Payment Standard and Utility Allowance will be discussed as well as calculation of Total Tenant Payment, Family Share, and Family Rent to Owner, Housing Assistance Payment, Maximum Subsidy, and Utility Reimbursement. Allowances will also be explained. • Information Provided to Prospective Landlords about Participants • Information regarding Occupancy Rights under the Violence Against Women's Act EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 48 2017-06-28 Item H1 (Housing Authority) 56 of 193 Program participants will be informed how to contact the HCV program to discuss and assist with any program related issues. Participants will be instructed to contact owners directly to request needed maintenance or repairs; however, if the owner fails to respond within a reasonable period of time, the family should contact the EHA Inspections Department to schedule a complaint inspection. 7.2 Voucher Term Link: 24 CFR 982.303(a) The initial voucher term is 60 calendar days. The family must submit a Request for Tenancy Approval that is complete and a proposed lease within the 60-day period unless the EHA grants an extension. 7.2.1 Voucher Extensions Link: 24 CFR 982.303(b) Requests for extensions must be submitted to EHA in writing prior to the expiration of the voucher term. Extensions are permissible at the discretion of the EHA up to a maximum of an additional sixty days. The maximum time limit on the voucher term (including extensions) is 120 days, except when a reasonable accommodation is granted for persons with disabilities or to find new housing when an assisted household has to be divided as a result of the violence or abuse covered by VAWA. EHA is not obligated to grant an extension, but may consider any of the following circumstances in its decision: • Extenuating circumstances such as hospitalization or a family emergency for an extended period of time, which has affected the family's ability to find a unit within the initial sixty-day period. Verification is required. The EHA is satisfied that the family has made a reasonable effort to locate a unit, including seeking assistance of the EHA, throughout the initial sixty-day period. The EHA will promptly decide whether to approve or deny an extension request and will provide the family written notice of its decision. 7.2.2 Voucher Suspension The EHA will suspend the term of the voucher from the date a complete Request for Tenancy Approval and proposed lease is accepted by the EHA until the date the EHA makes a final determination with respect to that Request for Tenancy Approval. If the family chooses to cancel the Request for Tenancy Approval (RTA), the term of the voucher will be reinstated the date the EHA receives notice the RTA is cancelled by the family. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 49 2017-06-28 Item H1 (Housing Authority) 57 of 193 7.3 Subsidy Standards Link: 24 CFR 982.401(d) EHA does not determine who shares a bedroom or sleeping room. The unit size on the voucher remains the same as long as the family composition remains the same, regardless of the actual unit size rented. 7.3.1 Subsidy Standards Chart Link: 24 CFR 982.402 The standards listed below are consistent with HUD requirements and serve as general guidelines when EHA determines the unit size on the family's voucher: Voucher Persons in Household Persons in Household Unit Size Minimum Number Maximum Number 0-BR 1 2 1-BR 1 2 2-BR 2 3 3-BR 3 6 4-BR 4 8 5-BR 5 10 6-BR 6 12 One bedroom is assigned for the head of household (including spouse or significant other, if applicable) and another bedroom is assigned for each additional two persons residing in the household, regardless of gender, age, or relationship. EHA will also consider the following conditions when determining the unit size designated for the family's voucher: • Authorized live-in aides will be allocated a separate bedroom. No additional bedrooms will be provided for the live-in aide's family. • Foster children will be included in determining unit size only if they will be in the unit for at least six (6) consecutive months. • Space may be provided for a child who is away at school, but who lives with the family during school recess. • A household in which the parent shares joint custody of a dependent child will include the child on the lease and will be counted for purposes of establishing occupancy standards for unit size if: • The head of household is legally entitled to physical possession of the child more than 50% of the time; and • The child actually physically resides in the unit with the head of household more than 50% of the time; and EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 50 2017-06-28 Item H1 (Housing Authority) 58 of 193 o If the child is school age, the head of household is listed as the legal guardian on the child's school enrollment documentation, and the address of record is the head of household's address. A total of two additional members per living/sleeping area may be approved at the request of the participant. EHA will only grant increases in voucher size in cases of birth, adoption, court awarded or other legally documented custody. All requests for exceptions to the occupancy standards must be submitted in writing. 7.3.2 Exceptions to Subsidy Standards A participating family may request a subsidy exception at any time; however, if the family is in the first term of the lease, or in a lease other than month-to-month, or is not eligible for move for any other reason, the request may be denied based upon the family's ineligibility to move at the time of the request. 7.3.3 Unit Size Selected by Family The family may select a different size unit than that listed on the voucher; however, the unit must meet housing quality standards, have a reasonable rent, and the rent must be less than 40% of the family's adjusted income at initial leasing. When calculating the Housing Assistance Payment (HAP), EHA will apply the payment standard and utility allowance for the lower of: • The unit size shown on the voucher, or • The size of the actual unit selected by the family. 7.3.4 Under-Housed and Over-Housed Families If a unit does not meet HQS space standards due to an increase in family size or change in family composition, EHA will issue the family a voucher to move to an appropriate sized unit. HQS requirements permit a maximum of two persons per living or sleeping room in the units. Families will not be required to use rooms other than bedrooms for sleeping purposes in the Voucher size determination. Participants may elect to use other areas of the unit as living/sleeping areas in determining the total number of persons eligible to live in the unit as a result of the family's request to add household members. A total of two additional members per living/sleeping area may be approved at the request of the participant. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 51 2017-06-28 Item H1 (Housing Authority) 59 of 193 7.4 Allowable Housing Types Link: 24 CFR 982.601(b)(2) The following types of rental units may be leased in the Housing Choice Voucher program, unless designated otherwise: • Single family detached homes • Duplexes • Multi-plexus • Garden apartments • Condominiums, townhouses • High-rises • Shared Housing • Manufactured homes where the tenant leases the mobile home and the pad • Manufactured homes where the tenant owns the mobile home and leases the pad • Other multi-family rental housing structures The following types of housing are not permitted in the HCV program: • Single dwelling unit or multi-family units with an un-enclosed swimming pool that may be accessed (un-secured) - if the family includes a child/children under the age of 12. • Hotels • Motels • Nursing homes • College or school dormitories • Other types disallowed by HUD regulations • Unit occupied by its owner or a person with any interest in the dwelling unit • Unless its lease was effective prior to June 17, 1998, a family may not lease a property owned by relatives, i.e.: sister, brother, mother, father, spouse, son, daughter, grandmother, grandfather EHA may permit use of any of the following types of special housing if needed as a reasonable accommodation for a person with disabilities: • Independent Group Residences, • Congregate Housing, • Single Room Occupancy Facilities 7.5 Request for Tenancy Approval (RFTA) and Disapproval of RTA Link 24 CFR 982.352(2); 982.305 & 308-309; 982.401; 982.507-508; 982 Subpart M; Form HUD- 52517 7.5.1 Request for Tenancy Approval Before a family leases a unit, EHA must approve the unit selected by the family. The voucher holder and the owner/landlord must submit the following: EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 52 2017-06-28 Item H1 (Housing Authority) 60 of 193 • Complete RFTA, signed by both the family and the owner, including: • Dwelling lease • Proof of ownership of the unit to be leased (e.g. deed of trust, most recent year tax statement, warranty deed and management agreement, if applicable); • The Owner's EIN or social security number; • A W-9 form completed by the owner. • If the property is in a corporation, the names of all parties • Current street mailing address, Post Office Box addresses will not be accepted • Business and home telephone number o Business or home email o For units constructed prior to 1978, owners must either 1) certify that the unit, common areas, and exterior have been found to be free of lead-based paint by a certified inspector; or 2) attach a lead based paint disclosure statement. The RFTA and all associated documents must be submitted in-person or by mail. The family may submit only one RFTA at a time. When the family submits the RFTA the EHA will review the RFTA for completeness. If the RFTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RFTA, the EHA will notify the family and the owner. The owner will be given 14 days to submit an approvable RFTA from the date of disapproval. 7.5.1.1 Proof of Ownership EHA will require all property owners who request to rent their units through the HCV program to provide proof of ownership, the property parcel identification number, and a W-9 form. Acceptable forms of ownership documentation include a deed, property tax records and a HUD settlement statement (for transactions processed within the last 30 days of the date the HAP is to be executed). The owner must provide at least one (1) document establishing ownership. EHA may compare the documentation provided by the property owner with information available with local governmental bodies. In cases where the owner has elected to utilize the services of a property management company or has otherwise designated an agent to act on his/her behalf, EHA may request a copy of the management or agent agreement, a statement from the owner identifying the individual/s authorized to execute HAP Contracts on his/her behalf in addition to proof of ownership documentation. EHA may not enter into a Housing Assistance Payment contract for any property until ownership, and, if applicable, authorization to act on the owner(s) behalf, are clearly established. EHA reserves the right to request additional documentation as necessary. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 53 2017-06-28 Item H1 (Housing Authority) 61 of 193 7.5.1.2 Tenancy Addendum Link: 24 CFR 982.308; HUD Form 52641 The owner must use the HUD Tenancy Addendum or all provisions in the HUD-required Tenancy Addendum must be added to the owner's lease. If there is a conflict between the owner's lease and the Tenancy Addendum, the terms of the Tenancy Addendum will prevail over any other provisions of the lease. 7.5.1.3 Dwelling Lease Link: 24 CFR 982.308(d) When the RFTA and proposed lease are submitted, the EHA will review the terms of the RFTA for consistency with the terms of the proposed lease. If the terms of the RFTA are not consistent with the terms of the proposed lease, the EHA will notify the family and the owner of the discrepancies. The proposed lease must comply with HUD requirements, as well as State and local law. The EHA does not provide a model or standard dwelling lease for owners to use in the HCV program. • Owners that use a standard lease for units rented to unassisted families must use the same lease, plus the HUD prescribed tenancy addendum for HCV assisted families. • EHA will review the owner's lease, any optional charges, compliance with regulations, and any house rules. • Responsibility for utilities, appliances and optional services must correspond to those provided on the RFTA. • The initial lease term must be for one year but may be less if mutually agreeable between the owner and participant. • The owner must be approved and there must be no conflicts of interest (e.g. owner may not be a relative, etc.). 7.5.1.4 New Lease Required • If there are any changes in lease requirements governing tenant or owner responsibilities for utilities or appliances; • If there are any changes in lease provisions governing the term of the lease; • If the family moves to a new unit, even if the unit is in the same building or complex. 7.5.2 Disapproval of RFTA If EHA determines that the Request for Tenancy Approval cannot be approved for any reason the owner and the family will be notified in writing. EHA will instruct the family of the steps that are necessary to approve the RFTA. If an RFTA is not approved and the voucher has not expired, EHA will furnish another RFTA to the family to continue searching for eligible housing. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 54 2017-06-28 Item H1 (Housing Authority) 62 of 193 7.5.2.1 Restriction on Renting to Relatives Housing Choice Voucher recipients may not rent units which are owned by a close relative (defined as the parent, child, grandparent, grandchild, sister, or brother) of any member of the recipient's household. The exception to this rule is if the recipient household member has a disability and, renting from a close relative is determined to be a reasonable accommodation. This policy applies only to new admissions and transfers. The policy does not affect current participants who are leasing units from close relatives until they decide to move or unless the owner wishes to amend the lease or execute a new HAP Contract for the same unit. 7.6 Information to Owners Link: 24 CFR 982.307(x)(112); (b)(1) It is the responsibility of the owner to determine the suitability of prospective families as EHA does not screen for suitability as renters. Owners are encouraged to screen applicants to determine the family's suitability as a renter. Owners may not discriminate on the basis of race, religion, sex, color, national origin, disability, sexual orientation, gender identity, familial status or other protected class as defined by the federal, state, or local laws. If requested by an owner in writing, EHA will provide the following information: • Previous owner name, address and phone number, if known; and, • Current owner name, address and phone number EHA's policy on providing information to owners is included in the briefing packet and will apply uniformly to all families and owners. EHA will make an exception to this policy if the family's whereabouts must be protected due to domestic abuse or witness protection, and the protection requirements are documented. 7.7 Security Deposit Links: 24 CFR 982.313 (a) and (b) The owner may collect a security deposit from the participant. The deposit must be reasonable based on local security deposits charged and those charged by the owner for other assisted and non-assisted units. 7.8 Separate Agreements Links: 24 CFR 982.451(b)(4); 24 CFR 982.510(c) The EHA permits owners and families to execute separate, non-lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease. Any items, appliances, or other services that are not customarily provided to unassisted families as part of the dwelling lease with those families, are not permanently installed in the EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 55 2017-06-28 Item H1 (Housing Authority) 63 of 193 dwelling unit and where the family has the sole option of not utilizing the item, appliance or service, may be included in a separate non-lease agreement between the owner and the family. Side payments for additional rent, or for items, appliances or services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited. Separate non-lease agreements that involve additional items, appliances or other services may be considered amenities offered by the owner and may be taken into consideration when determining the reasonableness of the rent for the property. 7.9 Initial Rent Burden At initial lease, the family's rent cannot be more than 40% of the family's adjusted income. At the family's request, EHA will negotiate with the owner to reduce the rent. If the rent is not lowered to at or below 40% of the adjusted income, the family may not lease the unit. 7.10 Owner Disapproval Links: 24 CFR 982.54d(8); 982.306;982.161(a) EHA may disapprove the owner for any of the following reasons: • The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; • The owner has engaged in any drug-related criminal activity or any violent criminal activity; • The owner has a history or practice of non-compliance with the HQS for units leased under the participant-based programs, or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program; • The owner has a history or practice of failing to terminate tenancy of participants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the participant, any member of the household, a guest or another person under the control of any member of the household that: (i) Threatens the right to peaceful enjoyment of the premises by other participants; (ii)Threatens the health or safety of other participants, of employees of the EHA, or of owner employees or other persons engaged in management of the housing; (iii) Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or (iv) Is drug-related criminal activity or violent criminal activity. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 56 2017-06-28 Item H1 (Housing Authority) 64 of 193 • The owner has a history or practice of renting units that fail to meet state or local housing codes; or • The owner has not paid state or local real estate taxes, fines, or assessment. • When HUD has informed EHA that disapproval is required because: • Owner has been disbarred, suspended, or subject to a limited denial of participation • Federal government has instituted an administrative or judicial action against the owner for violating the Fair Housing Act or other federal equal opportunity requirements and such action is pending; • Court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements. Before imposing any penalty against an owner, EHA will review all relevant factors pertaining to the case, and will consider such factors as the owner's record of compliance and the number of violations. If an owner commits fraud or abuse or is guilty of frequent or serious contract violations, EHA may debar or suspend the owner from future participation in the. EHA may terminate some or all contracts with the owner. The EHA must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: • Any present or former member or officer of the EHA (except a participant commissioner) • Any employee of the EHA, or any contractor, subcontractor or agent of the EHA, who formulates policy or who influences decisions with respect to the programs • Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States HUD may waive the conflict of interest requirements, except for members of Congress, for good cause. The EHA must submit a waiver request to the appropriate HUD Field Office for determination. Any waiver request submitted by the EHA must include the following: • Complete statement of the facts of the case; • Analysis of the specific conflict of interest provision of the HAP contract and justification as to why the provision should be waived; • Analysis of and statement of consistency with state and local laws. The local HUD office, the EHA, or both parties may conduct this analysis. Where appropriate, an opinion by the state's attorney general should be obtained; EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 57 2017-06-28 Item H1 (Housing Authority) 65 of 193 • Opinion by the local HUD office as to whether there would bean appearance of impropriety if the waiver were granted; • Statement regarding alternative existing housing available for lease under the HCV program or other assisted housing if the waiver is denied; • If the case involves a hardship for a particular family, statement of the circumstances and discussion of possible alternatives; • If the case involves a public official or member of the governing body, explanation of his/her duties under state or local law, including reference to any responsibilities involving the HCV program; • If the case involves employment of a family member by the EHA or assistance under the HCV program for an eligible EHA employee, explanation of the responsibilities and duties of the position, including any related to the HCV program; • If the case involves an investment on the part of a member, officer, or employee of the EHA, description of the nature of the investment, including disclosure/divestiture plans. Where the EHA has requested a conflict of interest waiver, the EHA may not execute the HAP contract until HUD has made a decision on the waiver request. In considering whether to request a conflict of interest waiver from HUD, the EHA will consider certain factors such as consistency of the waiver with state and local laws, the existence of alternative housing available to families, the individual circumstances of a particular family, the specific duties of individuals whose positions present a possible conflict of interest, the nature of any financial investment in the property and plans for disclosure/divestiture, and the possible appearance of impropriety. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 58 2017-06-28 Item H1 (Housing Authority) 66 of 193 CHAPTER 8: Housing Quality Standards and Inspections and Rent Reasonableness Links: 24 CFR 982.305; 982.401; 982.405(b); HOTMA §101(a)(1) EHA adheres to Housing Quality Standards (HQS) standards as established in 24 CFR 982.401 to perform all required inspections. Interpretative guidance for HQS acceptability criteria is taken from Form HUD 52580-A dated 9/00, the HUD Housing Inspection Manual and EHA Inspection Policy and Procedure memoranda. EHA may also accept an alternate inspection from EHA- approved entities (e.g. city code) if EHA can reasonably determine from the result of that inspection that the unit would meet Housing Quality Standards. EHA will maintain reports for inspections conducted using an alternative inspection method for at least three years from the date of the latest inspection. 8.1 Initial Inspections EHA will conduct the initial inspection generally within 15 days after receiving a completed RFTA from the family and the unit is ready for inspection. The owner or owner's representative must be present at the initial inspection and any re-inspection. The applicant is permitted but not required to be present. All utilities must be in service at the initial inspection or the inspection will fail. For the re-inspection, the utilities must be turned on. The unit must have an operating oven, a stove or range, and refrigerator, which may be supplied by the owner or family. If the participant is responsible for providing the stove and/or refrigerator, EHA will allow the stove and/or refrigerator to be placed in the unit after the passed inspection. The EHA will only execute the HAP contract following receipt of a signed certification from the family that the appliances are in the unit and working. EHA may conduct a confirmatory inspection to check the appliances. If the unit fails the initial HQS inspection, the owner will be notified of the deficiencies. The owner is required to contact EHA within 14 calendar days of the initial inspection to advise the repairs have been made. If the unit fails the re-inspection, the family must select another unit. EHA may agree to conduct a second re-inspection when requested and there is good cause to grant the request. 8.2 Annual and Biennial HQS Inspections Link: 24 CFR 982.405(a) EHA may choose to inspect units according to HQS either annually or biennially. EHA will perform HQS inspections of units no less often than every 24 months. EHA may select units with a history of HQS inspection passes without deficiency to be inspected on a biennial basis. Biennial inspections are subject to quality control review. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 59 2017-06-28 Item H1 (Housing Authority) 67 of 193 8.3 Quality Control Inspections Link: 24 CFR 982.405(b) EHA will conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the HQS. An adult family member must be present for the inspection. 8.4 Special Inspections The EHA will conduct a special inspection if the owner, family, or another source reports HQS violations in the unit. An adult family member must be present for the inspection. During a special inspection, EHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional HQS deficiencies that are observed and will require the responsible party to make the necessary repairs. If the annual inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled the EHA may elect to conduct a full inspection. 8.5 Emergency Inspections If a participant or government official reports a condition that is life-threatening, EHA will inspect the unit within 24 hours. The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies HQS failures, the EHA will determine if the failure is a life-threatening condition. Items considered life threatening or of an emergency nature include but are not limited to the following: • Any condition that jeopardizes the security of the unit • Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling • Natural or LP gas or fuel oil leaks • Any electrical problem or condition that could result in shock or fire • Absence of a working heating system when outside temperature is below 60 degrees Fahrenheit. • Utilities not in service, including no running hot water • Conditions that present the imminent possibility of injury • Obstacles that prevent safe entrance or exit from the unit • Absence of a functioning toilet in the unit • Inoperable smoke detectors When life-threatening conditions are identified, the EHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of the EHA's notice. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 60 2017-06-28 Item H1 (Housing Authority) 68 of 193 When failures that are not life-threatening are identified, the EHA will send the owner and the family a written notification of the inspection results within 7 business days of the inspection. The written notice will state that the re-inspection will occur within 30 days, without a EHA approved extension. The owner must contact EHA when the unit is ready for re-inspection within the 30 day time requirement. The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life threatening conditions are not corrected within the specified time frame (or any EHA-approved extension), the owner's HAP will be abated in accordance with EHA policy. 8.6 Rent Abatement and Contract Terminations for HQS Violations EHA will inform the owner and family of failed inspection results and the timeframe for correcting deficiencies. If life-threatening deficiencies are not corrected within 24 hours, and non-life threatening deficiencies are not corrected within the specified time frame, generally less than 30 days (or any EHA-approved extension), the owner's HAP will be abated in accordance with EHA policy. EHA will advise the owner, in accordance with the HAP contract, when EHA plans to abate housing assistance (HAP) payments. When an owner fails to correct cited deficiencies within the specified time frame, HAP payments will be abated at the end of the month in which the failed re-inspection occurred, and will continue until such time when: • The owner corrects the deficiencies, in which case the housing assistance payments may be resumed as of that date; or • The HAP contract expires or is terminated. No retroactive HAP payments will be made for the period during which the rent abatement occurred. When the deficiencies are corrected, however, proration of the monthly HAP payment may be provided to the owner based on the date a EHA inspector certified the required work was completed. EHA will terminate HAP contracts which are under abatement at the earlier of: a) the month the family living in the unit has moved, or b) two months after the last HAP payment was made. During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. If the owner is unable to gain access to the unit to make repairs due to the family's lack of cooperation, the owner is encouraged to enforce the lease and advise EHA of the lease enforcement action. In the case of family caused deficiencies, EHA will advise the family that if corrections are not made within the specified time frame (or any EHA-approved extension, if applicable) the EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 61 2017-06-28 Item H1 (Housing Authority) 69 of 193 family's assistance will be terminated in accordance with EHA policy. The HAP contract will be terminated when the family's assistance ends. 8.7 Scheduling Inspections and Family Attendance Link: 24 CFR 982.551(d) The family must allow the EHA to inspect the unit at reasonable times with reasonable notice. The family and owner will be given reasonable notice (at least five calendar days prior) of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 5:00 p.m., Monday through Friday. In the case of a life-threatening emergency, the EHA will give as much notice as possible, depending on the nature of the emergency. 8.7.1 Missed and Rescheduled Inspections An owner is not allowed to cancel an annual, special or quality control inspection. The family may only request to cancel and reschedule the annual inspection for good cause: e.g. unavoidable conflict, which seriously affects the health, safety or welfare of the family. EHA may require the family provide documentation in support of the request. The family may only cancel and reschedule the annual inspection and/or any subsequent re-inspections once. If the family is unable to be present, they must reschedule the appointment so that the inspection is completed within 14 calendar days. EHA will process termination of family program assistance and inform the owner of contract unit termination when the following occurs: • The family cancels, does not allow entry, or fails to have an adult present on two consecutive scheduled inspections. • The family cancels or fails to be present at the first scheduled inspection and fails to reschedule the inspection. • If the family does not allow entry, is not present for the inspection, or fails to have an adult present, the attempted inspection is considered a failed inspection. 8.8 Owner Self-Certifications of Repairs 24 CFR 982.404(a)(3); Notice PIH 2011-29 When a unit has been inspected and fails to meet the Housing Quality Standards, EHA may elect to accept a self-certification signed by the owner and the tenant that the repairs have been completed. Owners and tenants may submit photographs verifying repairs for Annual and Complaint inspections only, in accordance with PIH Notices 2012-15 and 2013-17 or any superseding notice. Photos will be considered on a case-by-case basis. Units where verification of repair by self-certification and/or photographs are used may be subject to additional quality EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 62 2017-06-28 Item H1 (Housing Authority) 70 of 193 control inspections. EHA will not accept self-certifications on initial inspections, life-threatening deficiencies, if an inspection had more than ten deficiencies, or when the agency deems it is in the best interest of the agency. 8.9 Extensions Link: 24 CFR 982.404 EHA will not grant extensions for life-threatening conditions. For conditions that are not life- threatening, the EHA may grant an exception for correcting the failed item(s), if the EHA determines that an extension is appropriate. Extensions will be granted in cases where the EHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner's control. Reasons may include, but are not limited to: • A repair cannot be completed because required parts or services are not available. • A repair cannot be completed because of weather conditions. • A reasonable accommodation is needed because the family includes a person with disabilities. The length of the extension will be determined on a case by case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions. In the case of weather conditions, extensions may be continued until the weather has improved sufficiently to make repairs possible. The necessary repairs must be made within 14 calendar days, once the weather conditions have subsided. 8.10 Owner and Family Responsibilities It is the owner's and tenant's responsibility to maintain the unit within HQS compliance throughout the term of assistance. Failure to maintain HQS could result in HAP abatement, HAP contract termination and/or loss of program participation. 8.10.1 Tenant Responsibilities 24 CFR 982.551(d), 24 CFR 982.404(b) The family is responsible for correcting inspection failures caused by: • Tenant-paid utilities not in service • Failure to provide or maintain tenant-supplied appliances • Smoke detector(s) missing • Blocked window/doors (prevents egress from unit) EHA may terminate the family's assistance if the family: • Fails to correct a violation within the period allowed by EHA (and any extensions); • Fails to allow the owner entry into the unit to complete repairs. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 63 2017-06-28 Item H1 (Housing Authority) 71 of 193 8.10.2 Owner Responsibilities CFR 985.3(f) The owner is responsible for all HQS violations not listed as a family responsibility above. EHA generally conducts no more than two inspections per unit during the biennial inspection process. On occasion, EHA may grant an owner's request for third inspection. Owners are encouraged to inspect their property periodically during the term of the HAP contract to ensure compliance. 8.12 Rent Reasonableness Link: 24 CFR 982.507; 982.305(a); 982.505 9(c)(3) At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent determined by EHA. Rent reasonableness determinations may be completed by EHA at any time and will be completed: • At initial lease up • When an owner requests a rent increase • If the FM R is decreased by 5% or more EHA will determine and document on a case-by-case basis that the approved rent: • Is reasonable in comparison to rent for other comparable, unassisted units in the market, and • Does not exceed rents currently charged by the same owner for an equivalent assisted or unassisted unit in the same building or complex. The EHA will take into consideration: • The location, size, unit type, quality, and age of the unit. • Any amenities, housing services, maintenance and utilities provided by the owner under the lease. 8.12.1 Decreases in the Fair Market Rent: In the event that HUD FMRs' decrease, EHA will allow families that are currently under a HAP contract to continue to use the payment standard in effect for the current lease. However, in the event that the family moves to a new unit or in the event that the owner requests a rent increase, the new or current payment standard will be applied to the voucher. Families under a HAP contract at the time of the decrease in the payment standard, the new decreased payment standard would be applied to those families' subsidy calculations at their second regular reexamination following the decrease in the payment standard amount. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 64 2017-06-28 Item H1 (Housing Authority) 72 of 193 8.12.2 Methodology EHA will either collect or maintain data on market rents in the EHA's jurisdiction for unit rent reasonableness or may utilize an independent vendor to maintain and analyze market survey information. Information sources may include newspapers, Internet, realtors, market surveys, inquiries of owners, owner information listed on the RFTA, and other available sources. The data is maintained by bedroom size and market areas. Market areas may be defined by zip codes, census tract, neighborhood, and identifiable natural or man-made boundaries. The data is updated on an ongoing basis. The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable unassisted units in the same market area. The EHA will notify the owner of the unit's rent reasonableness amount. The owner may submit information about other comparable units in the market area within 10 calendar days of EHA's notification. The EHA will confirm the accuracy of the information provided and consider this additional information when making final rent reasonableness determinations. By signing the HAP contract and accepting each monthly HAP payment, the owner certifies that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. EHA will not consider rent increase requests until after the initial occupancy period and only if the unit is not in failed HQS status. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 65 2017-06-28 Item H1 (Housing Authority) 73 of 193 CHAPTER 9: Housing Assistance Payment Contract Link: Form HUD 52641-a EHA makes every effort to execute the HAP contract with the owner as quickly as possible on or after the unit passes inspection and all required documents have been submitted. If the HAP contract is not executed and/or required documents are not received within 60 days of the HAP effective date, EHA will void the HAP contract. Required documents include: • Executed lease between the owner and the participant • Ownership and tax documents stated in the RFTA section of this Plan 9.1 HAP Payments Link: 24 CFR 982.451(a)(5) Once the HAP Contract is executed, EHA will process housing assistance payments to the owner. The HAP contract is not effective until the unit has passed HQS. EHA is not responsible for any part of the rent prior to the date the unit passes inspection and the HAP contract is fully executed. EHA will make Housing Assistance Payments to the owner in accordance with the HAP Contract, as long as the family continues to occupy the unit and the contract is not in violation. By accepting the monthly HAP payment, the owner certifies that: the family is still in the unit, the owner is in compliance with the contract, the unit is HQS compliant, and that the rent to the owner is not more than the rent charged by the owner for comparable unassisted units. The Housing Assistance Payment to the owner may never exceed the rent charged by the owner, and is the lower of the: • Payment Standard minus the Total Tenant Payment, or • Gross rent minus the Total Tenant Payment. Owner payments will be placed on hold if: • The unit fails HQS • Ownership of the unit has changed • Unit ownership is in question • Any other reason EHA determines that the HAP contract may have been breached 9.2 Right to Recoup Amounts Paid If a contract is terminated after a payment has been made, or it is determined that an owner accepted payments for a unit not occupied in accordance with the terms of the HAP contract, EHA may recoup amounts paid erroneously by withholding any payment owed to that owner, even if the payment owed is for another HCV participant. In limited circumstances, such as EHA error, an owner may have the option to enter into a repayment agreement with EHA to pay amounts owed to EHA. EHA may deny any new RTA for an EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 66 2017-06-28 Item H1 (Housing Authority) 74 of 193 owner who has a balance outstanding to EHA or withhold HAP payments on new contracts until outstanding balances have been satisfied. EHA may also pursue other means of collection for debts owed the PHA. 9.3 Owner Rent Increases 24 CFR 982.308(g)(4); 982.309(a)(3) At all times during the assisted tenancy, the rent to the owner may not exceed the reasonable rent as most recently determined or re-determined by EHA. After the initial term of the lease, the owner may request a rent increase according to the terms in the lease and HAP contract. All rent increases must be submitted in writing to EHA by the owner, along with a copy of the rent increase notice to the participant. The owner must provide 60 days advance notice to the participant and the rent increase must be requested in EHA's approved format. If the rent increase request is received as noted above, EHA will review the rent increase request and determine that the requested amount meets rent reasonableness requirements and that the family agrees to the increase. If approved, the rent adjustment will be effective the first day of month on or after the contract anniversary date or 60 days following receipt of the owner request on the first of that month, whichever is later. The family will be issued a voucher to move and the HAP contract will be terminated if: • The rent is not reasonable and the owner is unwilling to negotiate an approvable rent amount; or • The family elects to move because of the rent increase and provides proper notification to the owner in accordance with the lease terms and to EHA at least 30 days in advance. EHA may, due to HUD funding constraints, limit, suspend and/or request voluntary deferment of rent increases. 9.4 Unit Ownership Changes EHA must receive a written request by the initial owner in order to change the HAP Contract payee and/or the address to which payment is to be sent. In the event prior written consent was not requested nor granted, the HAP contract is terminated. EHA will process a change of ownership provided the following documents are received from the new owner: • Proof of ownership, i.e. copy of escrow statement, deed of trust, or other document showing the transfer of title (see Proof of Ownership in this Plan). • Completed W9 with Social Security or Tax Identification Number (TIN) • In cases where the owner has elected to utilize the services of a property management company or has otherwise designated an agent to act on his/her behalf, EHA may request a copy of the EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 67 2017-06-28 Item H1 (Housing Authority) 75 of 193 management or agent agreement, a statement from the owner identifying the individual/s authorized to execute HAP Contracts on his/her behalf in addition to proof of ownership documentation. • Owners are required to provide a Tax Identification Number (TIN) or a Social Security Number that matches their banking information. EHA will not enter into a contract where the owner is unable to establish a TIN/SSN that matches names or entities identified on ownership documents. • The effective date of the HAP contract assignment; and • Other documents as required When a change in ownership occurs, the new owner legally assumes the current lease and the current HAP contract. At EHA's or the new owner's request a new HAP contract may be executed, however the lease terms remain the same and new HAP term matches the existing lease. EHA is not responsible for funds already disbursed to the former owner. 9.5 HAP Contract Terminations 24 CFR 982.311(b) EHA will terminate a current HAP contract or deny approval of a new HAP contract when: EHA • A family vacates the unit either in violation of the lease or by mutual agreement with the owner before termination of the lease/contact • The lease is terminated by the owner or the family • The owner will not renew the HAP contract or extend the current lease • The sole participant dies • There has been no HAP for 180 calendar days • EHA terminates assistance for the family • HQS space requirements are not met EHA may terminate the HAP contract for any owner breach of contract, including the following: • HAP contract violation including not maintaining HQS • Any fraud or bribery or other corrupt or criminal act in connection with Federal housing programs; • Has a history or practice of failing to terminate tenancy of tenants of assisted units for activity by the tenant, any member of the household, a guest or another person under the control of any member of the household that: (a) threatens the right to peaceful enjoyment of the premises by other residents; (b) threatens the health or safety of other residents, of employees of EHA, or of owner employees or other persons engaged in management of the housing; (c) threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or, (d) commits drug-related criminal activity or violent criminal activity. • Engaging in any drug-related criminal activity or any violent criminal activity; or EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 68 2017-06-28 Item H1 (Housing Authority) 76 of 193 • Any failure to comply with mortgage insurance/loan program regulations, or bribery or other corrupt or criminal act in connection with the program. (Only for projects with mortgages insured or loans made from HUD.) • Seriously delinquent taxes. • Habitual failure to maintain HQS. The nature and extent of circumstances will be considered when such HAP contract terminations are proposed. The HAP contract will terminate on the last day of the month following the month in which EHA provided the owner with notice. No future subsidy payments on behalf of the family will be made by EHA to the owner after the month in which the Contract is terminated. The owner must reimburse EHA for any subsidies paid by EHA for any period after the contract termination date or if it is determined that an owner accepted payments for a unit not occupied in accordance with the terms of the HAP contract. EHA may recoup HAP due to the Authority by withholding any payment owed to that owner, even if the payment owed is for another HCV participant (see Right to Recoup Amounts Paid in this Plan). EHA may deny any new RTA for an owner who has a balance outstanding to EHA or withhold HAP payments on new contracts until outstanding balances have been satisfied. EHA may also pursue other means of collection for debts owed to EHA. If the family continues to occupy the unit after the HAP contract is terminated, the family is responsible for the total amount of rent due to the owner. The owner may terminate the lease at the end of the lease term or at any time for lease violations. The owner must use the termination proceedings as prescribed in the lease and contract; the owner can: • Institute court action, using the grounds for eviction cited in the lease. • Try to obtain a mutual rescission of the lease with the participant. The mutual rescission must be signed by both parties and indicate the reason for the rescission. • Issue proper notice not to renew the Lease Agreement. If the owner has begun eviction and the family continues to reside in the unit, EHA will continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the family. HAP payment will stop the first of the month following the legal eviction or the date the family moves from the unit whichever is earlier. The owner may not terminate tenancy for EHA's failure to pay the housing assistance payment. 9.6 HAP Termination due to Insufficient Funding EHA may terminate the HAP contract if it is determined, in accordance with HUD requirements, that the funding under the consolidated ACC is insufficient to support the continued assistance EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 69 2017-06-28 Item H1 (Housing Authority) 77 of 193 for families in the program. In the event the termination of HAP contracts becomes necessary, EHA shall exempt the following: • Elderly persons, sixty-two (62) years and older • Disabled families • Section 8 Homeownership Program applicants • Families receiving voucher assistance as a result of relocation due to HOPE VI development • Families receiving voucher assistance through special purpose vouchers. EHA reserves the right to determine the methodology of termination of HAP contracts. Such methodology shall be based on income. Families currently paying seventy-five percent (75%) or more of contract rent will have the HAP contracts terminated. If after terminating families paying seventy-five percent (75%) or more of contract rent, there continues to be insufficient funding, the families paying fifty percent (50%) to seventy-four percent (74%) of contract rent will be terminated. If there continues to be insufficient funding, then, families paying twenty- five percent (25%) to forty-nine percent (49%) of contract rent will be terminated. The order of families being terminated in these payment groups shall be conducted on a first in, first out basis. i.e., those families who have participated the longest in the program by lease-up date will be the first HAP contracts terminated. Notice of the HAP contract termination will be provided to the tenant and owner. Families terminated due to lack of sufficient HAP funding leaving in good standing shall be afforded, when available, other housing opportunities. Families removed from the program shall be placed on a list to be reinstated on the program when funding becomes available. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 70 2017-06-28 Item H1 (Housing Authority) 78 of 193 CHAPTER 10: Verifications Links: 24 CFR 982.516, 24 CFR 982.5511 24 CFR 5.2301 24 CFR 5.609(d); Notice PIH 2010-19; Notice PIH 2013-23, HCV GB p5-17, It is the responsibility of the applicant/participant to provide timely and accurate information regarding income and other factors, to the extent that EHA is able to complete verification processes in accordance with HUD regulations. Failure on the part of the applicant/participant to provide necessary information may result in denial of the application or termination of program participation. The family must supply any information that EHA or HUD determines necessary to the administration of the program and must consent to EHA verification of that information. All adult applicants and participants must sign the HUD-9886, Authorization for Release of Information. Adult family members must sign other consent forms as needed to collect information relevant to the family's eligibility and level of assistance. Failure to sign consent forms will result in denial of admission for applicants and program termination for participants. The family will be informed of the denial or termination in accordance with EHA policies, and will be provided information on requesting an informal hearing. 10.1 Eligibility and On-going Participation Verifications At the time of initial eligibility determination and reexamination, applicants and participants will be required to certify to all information they provide to EHA and to sign verification forms permitting the release of information. The following information will be verified to determine eligibility for initial and on-going participation in EHA's HCV programs: • Household composition • Annual Income • Assets and Asset Income • Deductions from Income • Social Security Numbers of all household members Pending disclosure and documentation of social security numbers, EHA will allow the family to retain its place on the waiting list for 90 days. If not all household members have disclosed their SSNs at the next time a voucher becomes available, EHA will offer a voucher to the next eligible applicant family on the waiting list. Citizens and lawfully present noncitizens who state that they have not been assigned an SSN by the SSA will make such declaration in writing and under penalties of perjury to EHA. o If the family provides an unacceptable document, EHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to EHA within 60 days. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 71 2017-06-28 Item H1 (Housing Authority) 79 of 193 o If the family certifies that the required evidence is temporarily unavailable and it needs more time, EHA may provide an extension of up to 30 days to submit evidence of eligible status, if the family has submitted the required declaration of eligible immigration status. To obtain an extension, the family must also certify that prompt and diligent efforts will be undertaken to obtain the evidence. • Applicant Criminal History Information • Citizenship or eligible immigration status • Preferences 10.2 Methods of Verification Notice PIH 2010-19; Notice PIH 2013-23 EHA will rely primarily on Upfront Income Verification (UIV) tools and third party verification to verify income and other eligibility factors. Documentation of all verifications will be placed in the applicant/participant file. EHA follows HUD's hierarchy of verifications attempting the highest level of verification prior to moving on to another verification method. • Up-front Income Verification (UIV) using HUD's Enterprise Income Verification (EIV) syste m • Up-front Income Verification (UIV) using a non-HUD system • Written Third Party Verification provided by applicant or participant • Written Third-party Verification Form • Oral Third-party Verification • Self-Certification 10.2.1 EIV Verification Process 24 CFR 5.233 EHA uses HUD's Enterprise Income Verification (EIV) system to verify participant employment, earned income, unemployment benefits, and social security (SS), and supplement security income (SS) benefits information at annual and interim reexaminations. EHA will also use HUD's EIV system to monitor potential duplicate subsidies, deceased individuals, household member identity, under and non-reported income, and immigration status. When required, EHA will also independently verify EIV information prior to taking adverse action against a family. 10.2.2 Requirements for Non-EIV Verifications • EHA will review documents provided by applicants/current participants and determine whether the documents are sufficient to satisfy HUD verification criteria. Documents EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 72 2017-06-28 Item H1 (Housing Authority) 80 of 193 provided by the family must not be damaged, altered or in any way illegible, and must be dated within 60 days of the request date. 10.2.3 Third Party Written Verifications Third-party verification forms will be sent when third-party verification documents are unavailable or are rejected by EHA and will be sent directly to the third party. EHA may use review of documents in lieu of requesting third-party verification when the market value of an individual asset or an expense is less than $5000 annually. EHA will determine that third-party verification is not available when there is a service charge for verifying an asset or expense. 10.2.4 Third Party Oral Verifications EHA will document the oral verification or the attempt to verify in the family's file. 10.2.5 Family Self-Certifications Notice PIH 2013-03 The documents in the application packet and annual reexamination packet serve as the family's self-certifications. When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to EHA. EHA may require the family to certify that a family member does not receive a particular type of income or benefit. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 73 2017-06-28 Item H1 (Housing Authority) 81 of 193 CHAPTER 11: ONGOING PROGRAM OPERATIONS 11.1 Annual Re-Certifications Links:24 CFR 982.516; 24 CFR 5.612 The EHA will conduct a re-certification of income and family composition annually. Annual re- certifications may be completed by mail, in person or electronically. EHA will provide the participant with all required certification materials to be completed. The participant and all adult family members must complete and submit all the required documents within the specified period of time. If any documents are missing from the file (social security cards, birth certificates, citizen declaration forms, etc.) the participant is required to provide the documents upon request (at annual re-certification, interim certification, or at any time requested by EHA). EHA may follow up by telephone, email and/or require in-person appointments with participants, as needed to request additional information, seek clarification, review reexamination documents, and/or conduct quality control. Participants will be provided up to two opportunities to complete the re-examination requirements within the prescribed timeframes. Persons with disabilities who require assistance completing required documents will be granted a reasonable accommodation to complete documents within prescribed timeframes. If all documents and information are not submitted to EHA within the timeframe, and any allowed extensions, the voucher will be terminated effective on the participant's reexamination effective date for the family's failure to comply with their family obligations. If the family size has changed, EHA will increase or decrease the voucher size as appropriate at the annual re-certification. The current utility allowance schedule will be used to complete the annual re-certification. The annual re-certification will not re-verify eligibility income limits except where the Head of Household is a full-time student. The annual re-certification will be effective on the first of the month. 11.1.1 Streamlined Income Determinations Link: Notice PIH 2016-05 For any family member with a fixed source of income, the EHA may determine that family member's income using a streamlined income determination by applying, for each fixed-income source, the verified cost of living adjustment (COLA) or current rate of interest to the previously verified or adjusted income amount. A family member with a fixed source of income is a family member whose income includes periodic payments at reasonably predictable levels from one or more of the following sources: Social Security, Supplemental Security Income, Supplemental Disability Insurance; federal, state, local, or private pension plans; annuities or other retirement benefit programs, insurance policies, disability or death benefits, or other similar types of periodic receipts; or any other source of income subject to adjustment by a verifiable COLA or current rate of interest. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 74 2017-06-28 Item H1 (Housing Authority) 82 of 193 EHA will use a COLA or current rate of interest specific to the fixed source of income in order to adjust the income amount and will verify the COLA or current interest rate from a public source or through tenant-provided, third party—generated documentation. If no such verification is available, then the EHA will obtain third-party verification of income amounts in order to calculate the change in income for the source. For any family member whose income is determined by a streamlined income determination, the EHA will obtain third-party verification of all income amounts initially and every 3 years thereafter. 11.2 Interim Reexaminations Link: 24 CFR 960.257, 966.4 The family must report changes in income expected to last more than thirty days and/or changes in household composition within 14 calendar days of the change. Families are not required to report cost of living adjustments to recipients of Social Security, TANF, Veteran's Assistance, and SSI. 11.2.1 Changes to Household Composition The family must inform the EHA of an addition of a family member as a result of birth, adoption, or court-awarded custody of a child or the removal of a family member from the household within 14 calendar days. All other additions to participant families will be considered only on a case-by-case basis and must be documented at the time such changes occur. A criminal background check is required for all requests to add adult household members or live-in aides to the household. EHA's prior approval of additions to the household is required. The EHA will not approve the addition of a new family member or household member unless the individual meets the EHA's eligibility criteria and documentation requirements. The EHA will not approve the addition of a foster child or foster adult if it will cause a violation of HQS space standards. The EHA may conduct interim re-certifications to account for any changes in household composition that occur between annual re-certifications. 11.2.2 Interim Changes Affecting Income Interim re-certifications may be scheduled either because the EHA has reason to believe that changes in income may have occurred, or because the family reports a change. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 75 2017-06-28 Item H1 (Housing Authority) 83 of 193 11.2.3 EHA-Initiated Interim Re-certifications The EHA will conduct interim re-certifications in each of the following instances: • An increase in income from zero income. • If at the time of the annual re-certification, participant-provided documents were used on a provisional basis due to the lack of third-party verification, and third-party verification becomes available, the EHA will conduct an interim re-certification. • The EHA may conduct an interim re-certification at any time in order to correct an error in a previous re-certification, or to investigate a participant fraud complaint. The family must provide necessary information within 14 calendar days of the EHA request. 11.2.4 Interim Re-certification Effective Dates If the participant rent is to increase: • The increase generally will be effective on the first of the month following 30 days' notice to the family. • If a family fails to report a change within the required time frames, or fails to provide all required information within the required time frames, the increase will be applied retroactively, to the date it would have been effective had the information been provided on a timely basis. The family will be responsible for any underpaid rent and may be offered a repayment agreement. If the participant rent is to decrease: • The decrease will be effective on the first day of the month following the month in which the change was reported and documentation was received. The family will be notified of the new participant rent and effective date. 11.3 Family Moves 24 CFR 982.1(b)(2) A family may request to move to a new unit if: • The initial term of the lease has expired and proper notice has been given to the landlord and to the EHA. • The lease for the family's unit has been terminated by mutual agreement of the owner and the family, and the EHA has been provided proper documentation of the mutual rescission. • For non-lease violations only: the owner has given the family a notice to vacate, has commenced an action to evict the family, or has obtained a court judgment or other process allowing the owner to evict the family. The family must give the EHA a copy of any owner eviction notice and eviction for lease violation may result in termination from the program. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 76 2017-06-28 Item H1 (Housing Authority) 84 of 193 • The family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking and the move is needed to protect the health or safety of the family or family member (VAWA). This condition applies even when the family has moved out of its unit in violation of the lease, with or without prior notification to the EHA, if the family or family member who is the victim reasonably believed that he or she was imminently threatened by harm from further violence if he or she remained in the unit. • The family is in good standing with the EHA. • The family does not owe the EHA money. Families are not permitted to move in the first term of the lease or while in any subsequent lease term unless the owner and family mutually agree to do so. If the owner refuses a mutual rescission, the family will not be allowed to move unless the EHA otherwise determines VAWA or other health and safety provisions prevail. Families will not be permitted to move more than once in a 12-month period unless required to do so by the EHA to meet HQS or other program objectives, to protect the health or safety, or in the case of an emergency. A participant family who wants to move, must vacate the unit in compliance with the lease (e.g. provide landlord with adequate notice). The family must provide the EHA thirty (30) days written notice and a Request for Tenancy Approval in order to receive a Voucher to lease a new unit. Provided all obligations have been met, the family will be issued a Voucher to lease a new unit. EHA will not unduly deny the issuance of a voucher based on an owner's report of non- compliance that has existed prior to the tenant's request, i.e. The owner reported that the tenant has owed rent for several months, but has not previously notified the EHA nor has taken legal action. EHA may conduct a reexamination and may opt to conduct a criminal background check of the members of the household who are 18 years of age and older prior to approving the issuance of a voucher to move. 11.3.1 Required Moves EHA may require participant families to move from one unit to another unit if: • EHA has terminated the unit for the owner's breach of the HAP contract or unit is in foreclosure; or • EHA determines that the family's current unit does not meet the HQS space standards because of an increase in family size or a change in family composition. • The unit is not in compliance with HQS. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 77 2017-06-28 Item H1 (Housing Authority) 85 of 193 11.3.2 Denial of Moves Notice PIH 2016-09 EHA may deny moves in the following circumstances: • Applicants who are seeking to move under Portability who are not income eligible in the receiving PHA'sjurisdiction. • Participant families that have moved out of their assisted unit in violation of the lease, provided the owner appropriately notifies EHA of the lease violation and provides supporting documentation. EHA will grant an exception to this in the situation where the only reason for the violation of the lease was due to circumstances surrounding being a victim or domestic abuse, dating violence or stalking, and who reasonably believed he or she was imminently threatened if he or she remained in the assisted unit (VAWA). EHA may limit moves at any time due to HUD funding constraints. EHA may deny permission to move when EHA does not have sufficient funding for continued assistance if: (a) the move is initiated by the family, not the owner or EHA; (b) EHA can demonstrate that the move will, in fact, result in higher subsidy costs; and (c) EHA can demonstrate that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs. Families denied a move due to insufficient funding will be notified by the EHA of the reason their move request was denied and that they may notify the EHA if the request to move is due to a request for a reasonable accommodation or for protection due to domestic violence, dating violence or stalking (VAWA). When funds become available, the EHA will notify families previously denied to move due to insufficient funding and will begin to process requests to move in the order received — from oldest to newest —with preference to families whose request to move was due to a reasonable accommodation or VAWA. Families who do not respond to EHA's notification shall have their move requests cancelled. 11.3.3 Move Process If EHA determines a family eligible to move, the family will be issued a voucher to move and provided any other necessary information. If the family and owner agree to extend the move date, the extension must be submitted to EHA in writing, signed by both the family and owner, must include the new effective date of the move, and must be submitted before the original effective date of the move notice. All actions regarding moves (Request for Tenancy Approval, owner approval, initial inspection, initial rent burden, rent reasonableness, voucher term, voucher extensions, etc.) are the same as stated elsewhere in this Plan. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 78 2017-06-28 Item H1 (Housing Authority) 86 of 193 The EHA's policy regarding moves applies to moves within EHA's jurisdiction as well as to moves outside its jurisdiction under portability. 11.4 Portability 24 CFR 982.353(b) Portability allows a family to move from one jurisdiction to another with continued assistance. Voucher holders may move anywhere there is a Housing Agency that administers a tenant- based program. Families are informed of portability requirements in the briefing session and information materials. EHA will always participate in assisting clients who wish to exercise portability. 11.4.1 Outgoing Portability 24 CFR 982.353(c), (d); 982.355(c)(1) Families must notify the EHA when they want to move out of EHA's jurisdiction using the portability feature. When a family notifies EHA that it wants to move under the portability procedures, EHA will contact the receiving Housing Authority. EHA will confirm the following to the receiving HA: • The family is eligible for assistance, (i.e., meets the requirements of EHA); and • A Voucher has been issued to the family. Families that are new admissions to the HCV program must meet the income eligibility requirements both for the EHA and also in the jurisdiction where the family intends to move to ("the Receiving PHA"). Participant families must also meet the income eligibility requirements in the area to which the family plans to move. EHA will not approve extensions to a voucher issued to an applicant or participant family porting out of EHA's jurisdiction except under the following circumstances: • the initial term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA • the family decides to return to EHA's jurisdiction to search for a unit If an applicant does not live in the EHA's jurisdiction at the time that the family's application for assistance was submitted, the family must lease a unit within EHA's jurisdiction for at least 12 months before requesting portability. The EHA will consider exceptions to this policy for purposes of reasonable accommodation or reasons related to VAWA as stated in this Plan. EHA may deny portability to higher cost areas when funding is insufficient to support the move and could result in termination of current program participants. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 79 2017-06-28 Item H1 (Housing Authority) 87 of 193 11.4.2 Incoming Portables The EHA may absorb or administer some or all incoming portable vouchers based on funding available and the best interests of the Agency. If EHA decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, EHA will notify the initial EHA as required by HUD. The EHA may conduct a new reexamination of family income and composition, for any family moving into its jurisdiction under portability. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 80 2017-06-28 Item H1 (Housing Authority) 88 of 193 CHAPTER 12: Denial of Assistance to Applicants and Termination of Assistance to Participants Links: 24 CFR 982.552(a)(2); 24 CFR 982.553(a) 12.1 Evidence and Considerations In deciding whether to deny or terminate assistance because of action or failure to act by members of the family, the EHA will consider all of the circumstances of the case, including the seriousness of the case, when the case occurred, 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 EHA will also consider the requirements contained in this Plan including its criminal background, VAWA and reasonable accommodation policies. As a condition of receiving or keeping assistance, a family may agree to remove the culpable family member from the application or unit. In such instances, the head of household must certify that the family member will not be permitted to visit or to stay as a guest in the HCV unit. 12.2 Denial of Assistance EHA may deny housing assistance to any applicant household: 1. Who does not meet eligibility requirements, including providing valid social security number information for all household members; 2. Who has any household member who refuses to sign or submit consent forms; 3. Wherein the Total Tenant Payment is greater than the Payment Standard; 4. Who has any household member who has been evicted from public housing within the past five years or has outstanding balances to any PHA as recorded in HUD's EIV data syste m; 5. If EHA has ever terminated assistance to any household member under the Housing Choice Voucher Program; and 6. Who has any household member who illegally possesses weapons. EHA may deny or terminate housing assistance to any applicant or participant household who: 1. Violates program obligations, including compliance with HQS. 2. Commits fraud in connection with this program or any other Federal housing assistance program. If the EHA determines that the family committed willful and intentional fraud, EHA may require the family to repay any amount owed in full or the family's assistance may be terminated. 3. Owes money to the EHA or any other Housing Authority in connection with the Housing Choice Voucher Program or the Public Housing Program, if an applicant; or owes money to EHA and breaches a repayment agreement. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 81 2017-06-28 Item H1 (Housing Authority) 89 of 193 EHA may, at its discretion, offer the applicant or participant the opportunity to enter into an agreement to repay the amounts owed to EHA or another Housing Authority. If EHA elects to make such an offer, the agreement shall be on terms prescribed by EHA. EHA may, at any time, deny or terminate assistance for breach of such agreement. (See also Repayment Agreements in this Plan.) 4. Has engaged in or threatened abusive or violent behavior toward EHA personnel; 5. Has $0 in housing assistance payments paid on the family's behalf for 180 calendar days; 6. Is convicted of drug-related criminal activity for the manufacture or production of methamphetamine on the premises of federally assisted housing. The premise is defined as the building or complex in which the dwelling unit is located, including common areas and grounds. 7. Is either currently engaged in or has been convicted of drug-related activity within the past five years. 8. Is either currently engaged in or has been convicted of violent or non-violent criminal activity within the past five years 9. Is subject to a lifetime registration requirement under a State sex-offender registration program in the state where the housing is located and in other states where the household is known to have lived. 10. Has any household member who illegally possesses weapons. 11. The family fails to provide required documentation and/or fails to sign and submit any required consent forms. 12. Any other HUD required reason. In deciding whether to deny or terminate assistance because of action or failure to act by members of the family, the EHA will consider all of the circumstances of the case, including the seriousness of the case, any mitigating circumstances brought to the attention of EHA by the applicant or participant;,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. Per the Violence Against Women Act, the following tenancy protections have been instituted for victims of actual or threatened domestic violence or stalking: • Incidents of actual or threatened domestic violence, dating violence, stalking or sexual assault will not be considered to be "serious or repeated" violations of the lease or other "good cause" to terminate the assistance of victims of abuse. • Criminal activity directly related to abuse, engaged in by a household member, guest or other person under the tenant's control, shall not be cause for termination of assistance if a member of the tenant's immediate family is the victim or threatened victim of that abuse. • If an assisted household member engages in criminal acts of physical violence against family members or others, EHA may terminate assistance to the offending household EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 82 2017-06-28 Item H1 (Housing Authority) 90 of 193 member in order to terminate assistance for any individual who is a tenant or lawful occupant. These actions may be taken without penalizing the victim. • These protections will only be accorded to participants that complete the HUD Certification of Domestic Violence, Dating Violence, Stalking or Sexual Assault or provide other documentation in lieu of the form within specified timeframes. These statements do not limit the authority or ability of EHA to terminate assistance to any tenant under program guidelines if either EHA or the unit owner/manager can demonstrate an "actual and imminent threat" to other tenants or persons employed at or providing services to the property. EHA will deny admission to an applicant family if EHA determines that any household member is currently engaged in, or has engaged in any of the activities within the past five (5) years in accordance with the Criminal Background policy in this Plan. 12.3 Notice of Denial EHA will notify applicant families in writing of any decision to deny assistance. If, based on a criminal record or sex offender registration information an applicant family appears to be ineligible, the EHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 14 calendar days to dispute the accuracy and relevance of the information. If the family does not contact the EHA to dispute the information within that 14 day period, the EHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal hearing process. 12.4 Denial of Assistance for Noncitizens Link: 24 CFR 5.514(d) Denial of assistance based on immigration status is subject to special hearing and notice rules. The EHA will notify applicant families of denial of assistance in accordance with HUD regulations. When EHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 15 days of the determination. The notice will explain the reasons for the denial of assistance and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS), or to request an informal hearing with the EHA. The informal hearing with the EHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice will inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 83 2017-06-28 Item H1 (Housing Authority) 91 of 193 When the EHA receives notification that the USCIS secondary verification failed to confirm eligible immigration status, the EHA will notify the family of the results of the USCIS verification within 14 business days of receiving the results. The family will have 30 calendar days from the date of the notification to request an appeal of the USCIS results, made by the family directly in writing to the USCIS. The family must provide EHA with a copy of the written request for appeal and proof of mailing within 14 business days of mailing the request to the USCIS. The EHA will send written notice to the family of its right to request an informal hearing within 14 business days of receiving notice of the USCIS decision regarding the family's immigration status. 12.5 Termination Notification In any case where the EHA decides to terminate assistance to the family, the EHA will give both the family and the owner a 30-day written termination notice. However, if a family vacates the unit without informing the EHA, 30 days-notice will not be given. In these cases, the notice to terminate will be sent and effective at the time the EHA learns the family has vacated the unit. The notice of termination will state: • Specific reasons for the termination • Effective date of the termination • Family's right to request an informal hearing • Family's responsibility to pay the full rent to the owner if it remains in the assisted unit after the termination effective date • Copy of criminal record (if the criminal record is the basis of the termination). • Protection Rights under the Violence Against Women's Act When a family requests to be terminated from the program they must do so in writing to the EHA. The EHA will then send a confirmation notice to the family and the owner within 14 days of the family's request, but no later than the termination effective date (as requested by the family). 12.6 Removal of a Family Member from the Application Link:24 CFR 982.552(c)(2)(ii) As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit or to stay as a guest in the assisted unit. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 84 2017-06-28 Item H1 (Housing Authority) 92 of 193 After admission to the program, the family must present evidence of the former family member's current address upon EHA request. 12.7 Reasonable Accommodation Related to Denials or Terminations Link: 24 CFR 982.552(2)(iv) EHA's decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation. When applicants with disabilities are denied assistance, the notice of denial must inform them of EHA's informal review process and their right to request a review. In addition, the notice will inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal review process. If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, EHA will determine whether the behavior is related to the disability. If so, upon the family's request, EHA will determine whether alternative measures are appropriate as a reasonable accommodation. EHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed denial of assistance. 12.8 Repayment Agreements If a participant owes money to EHA, EHA may require the participant to enter into a repayment agreement or may require repayment on demand. EHA will enter into a repayment agreement when required by HUD regulations. If the participant does not comply with the repayment agreement, EHA may terminate the participant from the program. However, EHA will consider extenuating circumstances on a case-by-case basis. If EHA determines that the family committed fraud or was grossly irresponsible, EHA may require the family to repay the entire amount in full or have its assistance terminated, since fraud or gross irresponsibility are considered a violation of a family obligation. EHA may, at any time, not enter into a repayment agreement and instead terminate the family's tenancy and pursue alternative collection methods. If the family's assistance is terminated and repayment has not been made, the money will still be considered to be owed and may be reported in HUD's EIV system as a debt owed. EHA may take such action, as necessary, to collect the amounts owed. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 85 2017-06-28 Item H1 (Housing Authority) 93 of 193 CHAPTER 13: Informal Reviews and Informal Hearings EHA provides a copy of the Informal Review and Hearing procedures in the family briefing packet. When possible and allowed by regulation/law, EHA may conduct administrative reviews of informal hearing/review requests and provide alternate resolutions at its discretion before proceeding with the family's request for a review or hearing. 13.1 Informal Review Policy Links: 24 CFR 982.554; An applicant may request an informal review of the EHA's decision to deny the applicant's participation in the Housing Choice Voucher Program. Reviews are provided for applicants who are denied assistance before the effective date of the HAP Contract. The exception is that when an applicant is denied assistance for citizen or eligible immigrant status, the applicant is entitled to an informal hearing. An applicant may request an informal review if the applicant: • Is denied listing on the waiting list or for a preference • Is denied a voucher • Is denied participation in the Program including portability Informal reviews will not be granted to applicants who dispute: • The unit size (number of bedrooms) stated on the voucher. • A determination that a unit does not comply with Housing Quality Standards including space requirements. • A determination that a proposed lease is unacceptable. • A decision to not approve a request for an extension of the term of the voucher. • General policy issues, class grievances, or discretionary administrative determinations. Informal review requests must be made in writing within 14 calendar days from the date of EHA's denial notice. The informal review will be conducted by any person or persons designated by EHA, other than the one who made the decision under review or a subordinate of this person. The applicant will be provided an opportunity to present written or oral objections to the decision of EHA. The review decision will be based only on evidence presented at the review by both parties. Evidence presented after the review will not be considered. Extensions for evidence will not be granted. If the family fails to appear for their informal review, the denial of admission will stand. Notification of the informal review result with be given personally to the family or sent to the last known address. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 86 2017-06-28 Item H1 (Housing Authority) 94 of 193 13.2 Informal Hearing Policy Link: 24 CFR 982.555 Informal hearings may be requested for the following reasons: • Determination of the amount of the total tenant payment or tenant rent • Determination of hardship regarding minimum rent • Decision to terminate assistance • Decision to deny a family move • Appropriate utility allowance used from schedule • Family unit size under EHA subsidy standards • Termination of a family's FSS Contract, withholding supportive services, or proposing forfeiture of the family's escrow account. EHA is not required to provide an informal hearing in the following cases: • Discretionary administrative determinations by EHA, or to consider general policy issues or class grievances • Determination that the unit does not comply with EHA's Housing Quality Standards including space requirements for family size, that the owner failed to maintain the unit in a decent, safe, and sanitary manner in accordance with the Housing Quality Standards (HQS), (including all services, maintenance, and utilities required under the lease). • Decision to exercise any remedy against the owner under an outstanding contract, including the termination of Housing Assistance Payments to the owner • Decision not to approve a family's request for an extension of the term of the Voucher issued to an assisted family which wants to move to another dwelling unit with continued participation • Establishment of EHA schedule of utility allowances for families in the program • Disapproval of unit or lease When the EHA determines that a participant should be terminated from the program, EHA will notify the participant of their proposed termination in writing. The notice will contain: • Reason(s) for and timing of termination, • The date the proposed action will take place • Procedure for requesting a hearing if the participant does not agree with the decision Time limit for requesting a hearing: The participant must submit the written request for an informal hearing within 14 calendar days of the date of the termination notice. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 87 2017-06-28 Item H1 (Housing Authority) 95 of 193 13.3 Conducting Informal Hearings EHA hearings will be conducted by a single hearing officer or a panel. The EHA will appoint a person or panel who has/have been selected in the manner required under the hearings procedure. Hearings may be attended by the following applicable persons: • A EHA representative(s) • Any witnesses for the EHA • The participant • Any witnesses for the participant • The participant's counsel or other representative o If the participant is bringing legal counsel to the informal hearing, the participant must notify EHA at least 48 hours in advance of the hearing. • Any other person approved by the EHA will be as a reasonable accommodation for a person with a disability. 13.3.1 Invalid Decisions When the EHA considers the decision of the hearing officer/panel to be invalid based on HUD regulations and EHA Policy, the Section 8 Manager will send a notice to all parties attending the hearing that the decision is null and void. The notice will set a date and time for a new hearing. 13.3.2 Rights of the Applicant/Participant and EHA The applicant/participant must appear in person at the review/hearing and may be represented by an attorney, or other representative, at his/her own expense. If the family is being represented by an attorney, the family must notify EHA of such 48 hours in advance of the review/hearing. • The applicant/family and EHA have the right to present evidence, both oral and written. • The applicant/family and EHA have the right to question any witnesses, and the right to state his/her case prior to the hearing officer's decision. • The applicant/family has the right to arrange for an interpreter to attend the review/hearing, at his/her own expense. • The applicant/family has the right to seek redress directly through judicial procedures of the court. • EHA has the right to make final submissions. The applicant/family and EHA have the right to review any documents directly relevant to the review/hearing. Review of documents will take place at the EHA office. Copying of any documents will be at the expense of the requesting party at .10 per page. If the applicant/family or EHA does not make the document available for examination on the request of the other party, that document may not be relied on during the review/hearing. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 88 2017-06-28 Item H1 (Housing Authority) 96 of 193 13.3.3 Review/Hearing Process The review/hearing will follow the following guidelines: • The review will be conducted by any person or persons designated by EHA, other than a person who made or approved the decision under review or a subordinate of this person. • All EHA Denial and Termination notices will advise the applicant/family of his/her right to a review/hearing and the process to request a review/hearing. • The applicant/family must request the informal review/hearing in writing within the required time frame (within 14 calendar days of the date of the notice). • The EHA will schedule the hearing within a reasonable timeframe, preferably before the effective termination date. If the hearing cannot be scheduled before the effective termination date, the effective termination date may be extended, based solely on the reason for the delay and at the sole discretion of EHA. • The notification of hearing will contain: • Date and time of the hearing • Location where the hearing will be held • Family's right to bring evidence, witnesses, legal or other representation at the • Right to view any documents or evidence in the possession of EHA and upon which EHA based the proposed action and, at the family's expense, to obtain a copy (at $.10 per page) of such documents prior to the hearing. Requests for such documents or evidence must be received no later than five business days before the hearing date. • Notice to the family that the EHA will request a copy of any documents or evidence the family will use at the hearing be provided to EHA by 12:00 p.m. two business days prior to the scheduled hearing date. • If a family does not appear at a scheduled review/hearing and has not rescheduled the hearing in advance, the hearing officer will assume the family is no longer interested in the program and will uphold the denial/termination. • The applicant/family will be given an opportunity to present written or oral objections to EHA's decision. • EHA will notify the applicant/family of the EHA final decision after the informal review/hearing, including a brief statement of the reasons for the final decision. • The Notice will contain the following information: • Applicant/family name • Applicant/family address • Date • Date and time of review/hearing • Names of everyone in attendance at review/hearing • Final decision • Brief statement of the reason(s) for the final decision • HUD regulation for the denial/termination (if upholding the denial/termination) • Effective date of denial/termination (if applicable) EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 89 2017-06-28 Item H1 (Housing Authority) 97 of 193 • A hearing decision letter will also be sent to the owner, stating whether the termination was upheld or overturned. The notice to the owner will contain the following information: • Family name • Unit address • Effective date of termination or • Effective date of re-instatement • All requests for review, supporting documentation, and a copy of the final decision will be filed in the family's file. 13.3.4 Decisions Not Binding to EHA EHA is not bound by a review/hearing decision on the following matters: • A matter for which EHA is not required to provide an opportunity for an informal review/hearing or otherwise exceeds the authority of the person conducting the review/hearing. • A decision given contrary to HUD regulations, requirements, or otherwise contrary to Federal, State or Local law. In the event that a review/hearing decision is not binding to EHA, the Executive Director or his/her designee will send a notice to all parties attending the review/hearing that the decision is null and void. The notice will set a date and time for a new hearing. 13.3.5 Hearing Provisions for Restrictions on Assistance to Non-Citizens Assistance to the family will not be delayed, denied or terminated on the basis of immigration status at any time prior to the receipt of the decision of the USCIS appeal. Assistance to a family will not be terminated or denied while the EHA hearing is pending; however assistance to an applicant may be delayed pending the EHA hearing. 13.5 USCIS Determination of Ineligibility If a family member claims to be an eligible immigrant, and the USCIS SAVE system and manual search do not verify the claim, EHA will notify the applicant/family within ten calendar days of their right to appeal to the USCIS within thirty calendar days or to request an informal hearing with EHA either in lieu of or subsequent to the USCIS appeal. • If the family appeals to the USCIS, they must give EHA a copy of the appeal and proof of mailing, or EHA may proceed to deny or terminate. The time period to request an appeal may be extended by EHA for good cause. Good cause includes medical emergency, employment emergency, family emergency, etc. The emergency must be documented in writing (doctor's statement, employer statement, independent agency statement, etc.) EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 90 2017-06-28 Item H1 (Housing Authority) 98 of 193 • The request for a hearing must be made within 14 calendar days of receipt of the notice offering the hearing or, if an appeal was made to the USCIS, within 14 calendar days of receipt of that notice. After receipt of a request for an informal hearing, the hearing is conducted as described in this Plan for both applicants and families. If the hearing officer decides that the individual is not eligible, and there are no other eligible family members the EHA will: • Deny the applicant family. • Terminate the family if the family does not qualify for deferral. If there are eligible members in the family, the EHA will offer to prorate assistance or give the family the option to remove the ineligible members. If any family member fails to provide documentation or certification as required by the regulation, that member is treated as ineligible. If all family members fail to provide, the family will be denied or terminated for failure to provide. Families whose assistance is pro-rated (either based on their statement that some members are ineligible or due to failure to verify eligible immigration status for some members after exercising their appeal and hearing rights describes above) are entitled to a hearing based on the right to a hearing regarding determinations of Total Participant Payment. Families denied or terminated for fraud in connection with the non-citizens rule are entitled to a review or hearing in the same way as terminations for any other type of fraud. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 91 2017-06-28 Item H1 (Housing Authority) 99 of 193 CHAPTER 14: Program Integrity Link: 24 CFR 982.552(c)(iv); 24 CFR 985 EHA anticipates that the majority of families, owners and EHA employees intend to and will comply with program requirements and make reasonable efforts to avoid errors. EHA will maintain records in applicant and participant files in accordance with EHA records retention policy; records include applications, eligibility and ineligibility determinations,verifications, HQS inspections, leases, contracts and payment information. Inactive files and records related to immigration status will be maintained and disposed of in accordance with HUD and EHA requirements. All other aspects of monitoring program performance will be performed in accordance with HUD requirements and EHA's policies. In order to ensure adherence to the Housing Quality Standards and to monitor inspection determinations, a qualified staff person or agent of the Authority, who did not conduct the original or re-inspection, will re-inspect a random sample of the approved units. 14.1 Family Prohibited Actions Any of the following will be considered evidence of family program abuse: • Offering bribes or illegal gratuities to the EHA Board of Commissioners, employees, contractors, or other EHA representatives • Offering payments or other incentives to a third party as an inducement for the third party to make false or misleading statements to the EHA on the family's behalf • Use of a false name or the use of falsified, forged, or altered documents • Intentional misreporting of family information or circumstances (e.g., misreporting of income or family composition) • Omitted facts that were obviously known by a family member (e.g., not reporting employment income) • Admission of program abuse by an adult family member • The EHA may determine other actions to be program abuse based upon a preponderance of the evidence. 14.2 EHA Prohibited Activities Any of the following will be considered evidence of program abuse by EHA staff: • Failing to comply with any HCV program requirements for personal gain • Failing to comply with any HCV program requirements as a result of a conflict of interest relationship with any applicant or participant • Seeking or accepting anything of material value from applicants, participants, owners, vendors, contractors, or other persons who provide services or materials to the EHA • Disclosing confidential or proprietary information to outside parties EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 92 2017-06-28 Item H1 (Housing Authority) 100 of 193 • Gaining profit as a result of insider knowledge of EHA activities, policies, or practices • Misappropriating or misusing HCV funds • Destroying, concealing, removing, or inappropriately using any records related to the HCV program • Committing any other corrupt or criminal act in connection with any federal housing program When the EHA determines that program abuse by a family or EHA staff member has occurred and the amount of underpaid rent meets or exceeds the threshold for prosecution under local or state law, the EHA will refer the matter to the appropriate entity for prosecution. When the amount of underpaid rent meets or exceeds the federal threshold, the case will also be referred to the HUD Office of Inspector General (OIG). Other criminal violations related to the HCV program will be referred to the appropriate local, state, or federal entity. 14.3 Owner Prohibited Activities Link: Title 18 U.S.C. Section 1001 An owner participating in the HCV program must not: • Make any false statement to the EHA. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. Any of the following will be considered evidence of owner program abuse: • Charging the family rent above or below the amount specified by the EHA; • Charging a security deposit other than that specified in the family's lease; • Charging the family for services that are provided to unassisted tenants at no extra charge; • Knowingly accepting housing assistance payments for any month(s) after the family has vacated the unit; • Knowingly accepting incorrect or excess housing assistance payments; • Offering bribes or illegal gratuities to the EHA Board of Commissioners, employees, contractors, or other EHA representatives; • Offering payments or other incentives to an HCV family as an inducement for the family to make false or misleading statements to the EHA; or • Residing in the unit with an assisted family. 14.3.1 Owner Remedies and Penalties In the case of owner-caused errors or program abuse, the EHA will take into consideration (1) the seriousness of the offense; (2) the length of time since the violation has occurred; and (3) the effects of a particular remedy on family members who were not involved in the offense. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 93 2017-06-28 Item H1 (Housing Authority) 101 of 193 When the EHA determines that the owner has committed program abuse, the EHA may take any of the following actions: • Terminate the HAP contract. • Bar the owner from future participation in any EHA programs. • Refer the case to state or federal officials including the HUD Office of Inspector General (HUD-OIG for criminal prosecution. • Require the owner to repay excess housing assistance payments. EHA may recover overpaid amounts by withholding housing assistance payments due for subsequent months. If the debt is large, the EHA may allow the owner to pay in installments over a period of time. 14.3.2 Corrections to Subsidy Payments When an incorrect subsidy is identified as a result of an error, program fraud, misrepresentation or abuse, EHA will promptly correct the subsidy under- or overpayment. A subsidy under-or overpayment includes: • An incorrect housing assistance payment to the owner; • An incorrect family share established for the family; and • An incorrect utility reimbursement to a family. Families and owners will be notified of corrective actions and penalties, if any. Increases in the family share will be implemented only after the family has received 30 days advanced notice. Any decreases in family share will become effective the first of the month following the discovery of the error. The family will not be reimbursed when the family caused the underpayment. Neither a family nor an owner is required to repay an overpayment of subsidy if the error or program abuse is caused by EHA staff. When efforts to collect monies owed to the EHA (as described in the Family or Owner Remedies sections of this Plan) are unsuccessful, EHA may also pursue collection through credit bureaus, small claims court, civil law suit, state income tax set-off program or other debt recovery solutions. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 94 2017-06-28 Item H1 (Housing Authority) 102 of 193 CHAPTER 15: Project Based Vouchers Link: 24 CFR 983 Except as noted in this chapter, the Administrative Plan policies stated for the HCV program also apply to the PBV program. 15.1 Overview The EHA may use up to 20 percent of Housing Choice Voucher authorized units for project based assistance. The proposed location of any PBV units must comply with the goals of deconcentrating poverty, expanding housing opportunities, affirmatively furthering fair housing and expanding housing and economic opportunities. EHA uses project-based vouchers to encourage new construction or rehabilitation, promote voucher utilization and increase supportive housing options. The EHA may increase the use of Project Based Vouchers for an additional 10 percent of authorized units for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use (units are located in a census tract with a poverty rate of 20 percent or less). The types of services that EHA will deem eligible to qualify a project to meet HUD's definition of families receiving supportive services include, but are not limited to: • Household Training (e.g.: homemaking, parenting skills, money management); • Job Training (preparation and counseling, job development and placement, follow-up assistance after job placement, completion of FSS "Contract of Family Participation); • Self Sufficiency Services and Resources (appropriate to assist families to achieve economic independence and self-sufficiency); • Remedial Education (education for the completion of Secondary or post-secondary education); and • Substance Abuse Treatment (counseling and treatment for substance abuse). 15.2 Proposal Selection Link: 24 CFR 983.52(a)(b)(c) Prior to issuing a Request for Proposal or selecting a project without following a competition process where the PHA has ownership interest, EHA will submit to the local field office all required information under §8(o)(13)(B) of the 1937 Act. The EHA will select proposals for PBV assistance using either the Request for Proposal method or the Previous Competition method. 15.2.1 EHA Request for Proposals Method for Rehabilitated and Newly Constructed Units The EHA will advertise request for proposals for rehabilitated and newly constructed housing in local newspaper(s) and on the EHA web site. The advertisement will specify the number of EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 95 2017-06-28 Item H1 (Housing Authority) 103 of 193 units the EHA estimates that it will be able to assist and the submission deadline. Incomplete proposals will not be considered. The EHA will rate and rank proposals for rehabilitated and newly constructed housing using the following criteria: • Owner experience and capability to build or rehabilitate housing as identified in the RFP • Extent to which the project furthers the EHA goal of deconcentrating poverty and expanding housing and economic opportunities • The extent to which services for special populations are provided on site or in the immediate area for occupants of the property • Projects with less than 25 percent of the units assisted will be rated higher than projects with 25 percent of the units assisted (excluding "excepted units" defined below). Projects with the lowest percent of assisted units will receive the highest score. 15.2.2 EHA Requests for Proposals for Existing Housing Units The EHA will advertise proposals for existing housing in local newspaper(s) and on the EHA web site. The advertisement will specify the number of units the EHA estimates that it will be able to assist. Owner proposals will be accepted on a first-come first-served basis and will be evaluated using the following criteria: • Experience as an owner in the tenant-based voucher program and owner compliance with the owner's obligations under the tenant-based program • Extent to which the project furthers the EHA goal of deconcentrating poverty and expanding housing and economic opportunities • If applicable, extent to which services for special populations are provided on site or in the immediate area for occupants of the property • Extent to which units are occupied by families that are eligible to participate in the PBV program. 15.2.3 EHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or Local Housing Assistance Program The EHA will accept proposals for PBV assistance from owners that were competitively selected under another federal, state or local housing assistance program, including projects that were competitively awarded Low-Income Housing Tax Credits on an ongoing basis. In addition to, or in place of advertising, the EHA may also directly contact specific owners that have already been selected for Federal, state, or local housing assistance based on a previously held competition, to inform them of available PBV assistance. Proposals will be reviewed on a first-come first-served basis. The EHA will evaluate each proposal on its merits using the following factors: • Extent to which the project furthers the EHA goal of deconcentrating poverty and expanding housing and economic opportunities EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 96 2017-06-28 Item H1 (Housing Authority) 104 of 193 • Extent to which the proposal complements other local activities such as the redevelopment of a public housing site under the HOPE VI program, the HOME program, CDBG activities, other development activities in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community. 15.3 Notice of Owner Selection Link: 24 CFR 983.51(d) EHA will notify the selected owner in writing of the owner's selection for the PBV program pursuant to HUD requirements. EHA will notify in writing all owners that submitted proposals that were not selected and advise such owners of the name of the selected owner. The EHA will make available its rating and ranking sheets and documents that identify the EHA basis for selecting the proposal for one month after publication of the notice. The EHA will not include sensitive owner information, such as financial statements, etc. The EHA will make these documents available for review at the EHA during normal business hours. The cost for reproduction of allowable documents will be $.10 per page. 15.4 Agreement to Enter into HAP Contract Link: 24 CFR 983.152 For rehabilitated or newly constructed units, EHA will enter into an Agreement to Enter into a HAP Contact with the property owner. In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and the EHA agrees that upon timely completion of development the EHA will enter into a HAP Contract with the owner for the contract units. The EHA will enter into the Agreement with the owner after receiving both environmental review approval and notice that subsidy layering requirements have been met and before construction or rehabilitation work is started. Additional owner documents may be required. EHA will specify any additional documentation requirements in the Agreement. For existing housing, the HAP contract will be executed after EHA determines that all units pass HQS. 15.5 Site Selection Standards Link: 24 CFR 983.57(b) EHA will follow HUD regulations regarding site selection requirements for existing housing, newly constructed housing and rehabilitated housing. Before entering into an agreement or HAP contract EHA will determine that the PBV assistance for housing at the selected site is EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 97 2017-06-28 Item H1 (Housing Authority) 105 of 193 consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities. In developing standards to apply in determining whether a proposed PBV development will be selected, EHA will consider the following: •If the poverty rate in the proposed PBV development area is greater than 20%, EHA will consider whether in the past five years there has been an overall decline in the poverty rate; •A census tract in which the proposed PBV development will be located in a HUD- designated Enterprise Zone, Economic Community, or Renewal Community; •A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition; •A census tract in which the proposed PBV development will be located is undergoing significant revitalization; •A census tract where there are meaningful opportunities for educational and economic advancement. •The site meets HQS standards. •Other factors as determined by EHA to meet the needs of the community. 15.5.1 EHA Owned Units Link: 24 CFR 983.51(e), 983.59 EHA may choose to select EHA owned units for PBV assistance without competitive process. Initial rents and annual rent changes for EHA-owned units will be determined by the independent entity based on PBV program requirements. The term of the HAP contract and any HAP contract renewal must be agreed upon by EHA and the independent entity. HQS inspections will be performed by the independent entity. 15.5.2 Eligible Units/Cap on PBV Units Link: 24CFR 983.52, 24 CFR 983.56(a) Project based assistance may be attached to the greater of 25 units or 25 percent of the units in a project. Project is defined as a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of land. Units excluded from this cap include: a. In the 5 years prior to the date the PHA either (i) issued the RFP under which the project was selected or (ii) selected the project without competition, the unit met at least one of the two following conditions: (i) The unit received one of the following forms of HUD assistance: • Public Housing Capital or Operating Funds • Project-Based Rental Assistance • Housing For the Elderly EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 98 2017-06-28 Item H1 (Housing Authority) 106 of 193 • Housing for Persons With Disabilities • The Rent Supplement program • Rental Assistance Program or; (ii) The unit was subject to a rent restriction as a result of one of the following HUD loan or insurance programs: • Section 236 • Section 221(d)(3) or (d)(4) BMIR • Housing For the Elderly • Housing for Persons With Disabilities b. PBV new construction unit must meet the following requirements in order to be a replacement unit and qualify for the project cap exception. • The unit which the PBV new construction unit is replacing must have received one of the forms of HUD assistance or was subject to a rent restriction as a result of one of the HUD loan or insurance programs listed above within 5 years from the date the PHA either: (i) issued the RFP under which the PBV new construction project was selected or (ii) selected the PBV new construction project under a prior competition or without competition. • The newly constructed unit is located on the same site as the unit it is replacing. • One of the primary purposes of the planned development of the PBV new construction project is or was to replace the affordable rental units that previously existed at the site, as evidenced by at least one of the following: • Former residents of the original project are provided with a selection preference. • Prior to the demolition of the original project, the PBV new construction project was specifically identified as replacement housing for that original project as part of a documented plan for the redevelopment of the site. c. In addition to the units listed above, other units are not subject to the program limitation calculation. • RAD exception • HUD—VASH PBV Set-aside vouchers • Additional categories established by HUD by regulation EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 99 2017-06-28 Item H1 (Housing Authority) 107 of 193 15.6 Uniform Relocation Act Link: 24 CFR 983.7, 49 CFR Part 24 If as a result of the PBV selection, there are existing households that are determined to be ineligible for PBV; EHA will require the owner to comply with the Uniform Relocation Act and the implementing HUD regulations of the Act. 15.7 Housing Assistance Payments (HAP) Contracts Link: 24 CFR 152 15.7.1 Term of the HAP Contract The initial HAP Contract term may now be of a period of up to 20 years. The PHA may agree to enter into an extension for an additional term of up to 20 years. A HAP contract extension may not exceed 20 years. The PHA may provide for multiple extensions; however, in no circumstances may such extensions exceed 20 years, cumulatively. 15.7.2 Additional Units Without Competition EHA and the PBV property owner may amend the HAP contract to add additional PBV contract units in projects that already have a HAP contract without having to fulfill the selection requirements for those added PBV units. The additional PBV units, however, are still subject to the PBV program cap and the individual project caps. 15.8 Unit Inspections Link: 24 CFR 983.103 All contract units will be inspected and comply with Housing Quality Standards prior to HAP contract execution. At least biennially during the term of the HAP contract, the EHA will inspect a random sample, consisting of at least 20 percent of the contract units in each building, to determine if the contract units and the premises are maintained in accordance with the HQS. Turnover inspections are not counted toward meeting this inspection requirement. If more than 20 percent of the inspected units in a building fail, the EHA will re-inspect 100 percent of the contract units in the building. In the case of a property assisted with project-based vouchers that is subject to an alternative inspection, the EHA may rely upon inspections conducted at least triennially to demonstrate compliance with the inspection requirement. Inspections for the entire building will occur at the same time. EHA will abate and terminate PBV HAP contracts for non-compliance with HQS in accordance with the policies used in the tenant-based voucher program. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 100 2017-06-28 Item H1 (Housing Authority) 108 of 193 In the case of EHA-owned units, the inspections will be performed by an independent agency designated by EHA and approved by HUD. The independent entity must furnish a copy of each inspection report to EHA and to the HUD field office where the project is located. EHA must take all necessary actions in response to inspection reports from the independent agency, including exercise of contractual remedies for violation of the HAP contract by EHA's-owner. 15.8.1 Lead-based Paint Link: 24 CFR 983.101(c) The lead-based paint requirements for the tenant-based voucher program do not apply to the PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35, subparts A, B, H, and R, apply to the PBV program. 15.9 Initial Rent and Rent Increases Link: 24 CFR 983, Subpart G 15.9.1 Initial Rent The amount of the initial rent to an owner of units receiving PBV assistance is established at the beginning of the HAP Contract term. 15.9.2 Rent Increases An owner's request for a rent increase must be submitted to the EHA 60 days prior to the anniversary date of the HAP contract, and must include the new rent amount the owner is proposing. 15.10 Tenant Selection Link: 24 CFR 983.255 Except where noted in the Administrative Plan, the EHA's tenant selection procedures for its tenant-based programs apply for units assisted under the PBV Program. Except for units which are occupied by eligible tenants upon the commencement of the project based contract term, when a vacancy exists at a PBV site, the EHA will notify the next families on the EHA Wait List. EHA's letter to the applicants will also state that if the applicant is interested in residing in the vacant PBV unit that the applicant will not lose his/her place on the EHA's HCV waiting list (if applicable) until that person has been leased in the PBV unit. An applicant who rejects an offer of a project-based unit or who is rejected by the owner of the housing unit will remain in the same position on the tenant-based assistance list, as if the offer had not been made. If a dwelling unit to which assistance is to be attached under the project-based voucher program is occupied, EHA must determine whether the unit's occupants are eligible for assistance. If a unit is occupied by an eligible family and the unit is selected by EHA, the family must be placed in an EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 101 2017-06-28 Item H1 (Housing Authority) 109 of 193 appropriately size project-based assisted unit in the project without requiring the family to be placed on the EHA's waiting list. In the event that there are an insufficient number of eligible persons on the waiting list, the EHA will place applicants referred by the owner on the waiting list. Eligibility for selection in the Project-based voucher program will be consistent with the EHA's tenant-based and project- based assistance programs. The EHA will provide a selection preference when required by the regulation (e.g., eligible in- place families, qualifying families for "excepted units," mobility impaired persons for accessible units). The EHA will not offer any additional preferences for the PBV program or for particular PBV projects or units. Applicants must meet all of EHA's applicable eligibility requirements. EHA will refer qualified applicants to the owner for all vacancies. If the EHA referrals do not provide the owner with a suitable tenant for the unit within 30 days, the owner may refer an eligible individual or family from the owner's waiting list to the EHA. The owner chooses a tenant for occupancy from the qualified applicants referred by EHA based on their written tenant selection policy. The EHA must approve the owner's tenant selection procedures. When a family is approved by the owner, they will execute a lease with the owner. The owner must notify the EHA in writing (mail or e-mail) within 5 business days of learning about any vacancy or expected vacancy. The EHA will make every reasonable effort to promptly refer families to the owner after receiving a vacancy notice from the owner. 15.11 Unit Moves/Transfers Link: 24 CFR 983.259 The EHA will promptly notify the family and the owner of the family's need to move based on the occupancy of a wrong-size or accessible unit. The EHA will offer the family the following types of continued assistance in the following order, based on the availability of assistance: • PBV assistance in the same building or project; • PBV assistance in another project; and • Tenant-based voucher assistance. When the EHA offers a family another form of assistance that is not a tenant-based voucher, the family will be given 30 days from the date of the offer to accept the offer and move out of the PBV unit. If the family does not move out within this 30-day time frame, the EHA will terminate the housing assistance payments at the expiration of this 30-day period. The EHA may make exceptions to this 30-day period if needed for reasons beyond the family's control such as death, serious illness, or other medical emergency of a family member, or as a reasonable accommodation. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 102 2017-06-28 Item H1 (Housing Authority) 110 of 193 15.11.1 Moves Requested by the Tenant Link: 24 CFR 983.261 PBV vouchers are mobile: after one-year families have the option to leave the PBV unit and receive a tenant-based voucher, if a voucher is available. The EHA will supply the owner with a referral for a new PBV tenant. Families who wish to relocate with continued assistance must inform the owner and the EHA in writing not less than 30 days prior to the date they plan to vacate the unit and in accordance with the lease. The EHA will then place the family on a PBV-HCV Voucher program transfer list according to the date and time of receipt by the EHA of written notification of the family's 30 day notice of intent to vacate. The EHA will issue the next available tenant based voucher to families on the PBV-HCV transfer list before proceeding to its regular HCV waiting list. Families from the regular HCV waiting list who have been notified of an eligibility appointment for a tenant based voucher will not be delayed from receiving their voucher. 15.11.2 Moves from Excepted Units EHA will allow families who initially qualified to live in an excepted unit to remain when circumstances change due to factors beyond the remaining family members' control. In all other cases, when EHA determines that a family no longer meets the criteria for a "qualifying family" in connection with the 25 percent per project cap exception, EHA will provide written notice to the family and owner within 14 business days of making the determination. The family will be given 30 days from the date of the notice to move out of the PBV unit. If the family does not move out within this 30-day time frame, EHA will terminate the housing assistance payments at the expiration of this 30-day period. EHA may make exceptions to this 30-day period if needed for reasons beyond the family's control such as death, serious illness, or other medical emergency of a family member. EHA may refer other eligible families to the excepted units. However, if there are no eligible families on the waiting list and the owner does not refer eligible families to EHA, EHA will amend the HAP contract to reduce the total number of units under contract. 15.12 Vacancy Payments 24 CFR 983.352 The EHA will decide on a case-by-case basis if the EHA will provide vacancy payments to the owner. The HAP Contract with the owner will contain any such agreement, including the amount of the vacancy payment and the period for which the owner will qualify for these payments, which will in no event exceed 60 days. If an assisted family moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the family moves out. However, the owner may not keep the payment if the EHA determines that the vacancy is the owner's fault. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 103 2017-06-28 Item H1 (Housing Authority) 111 of 193 If the EHA determines that the owner is responsible for a vacancy and, as a result, is not entitled to the keep the housing assistance payment, the EHA will notify the landlord of the amount of housing assistance payment that the owner must repay. The EHA will require the owner to repay the amount owed. If an owner's HAP contract calls for vacancy payments to be made, and the owner wishes to receive vacancy payments, the owner must properly notify the EHA. In order for a vacancy payment request to be considered, it must be made within 14 calendar days of the end of the period for which the owner is requesting the vacancy payment. The request must include the required owner certifications and the EHA may require the owner to provide documentation to support the request. If the owner does not provide the information requested by the EHA within 14 calendar days of the EHA's request, no vacancy payments will be made. 15.13 Reduction in HAP Contract Due to Vacancies Link: 24 CFR 983.25 If any contract units have been vacant for 120 days, the EHA will give notice to the owner that the HAP contract will be amended to reduce the number of contract units that have been vacant for this period. The EHA will provide the notice to the owner within 14 business days of the 120th day of the vacancy. The amendment to the HAP contract will be effective the 1st day of the month following the date of the EHA's notice. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 104 2017-06-28 Item H1 (Housing Authority) 112 of 193 Attachment 3 Original Section 8 Housing Choice Voucher Program Administrative Plan 2017-06-28 Item H1 (Housing Authority) 113 of 193 ADMINISTRATIVE PLAN SECTION 8 HOUSING CHOICE VOUCHER 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 Amended by Board: March 25, 1998 Amended by Board: April 28, 1999 Amended by Board: May 22, 2002 Amended by Board: March 26, 2003 Amended by Board: December 17, 2003 Amended by Board: August 25, 2004 Amended by Board: July 19, 2006 Amended by Board: March 9, 2016 2017-06-28 Item H1 (Housing Authority) 114 of 193 "POLICY HANDBOOK" TABLE OF CONTENTS TITLE PAGE SECTION I. ADMINISTRATIVE POLICY 1 SECTION II. GENERAL INFORMATION 2 A. Definition of Terms 1. Agreement for Mutual Recision of Lease 2 2. Allowance for Utilities 2 3. Annual Contributions Contract ("ACC') 2 4. Gross Annual Income 2 5. Adjusted Gross Income 2 6. Applicant 2 7. Asset Income 2 8. Child Care Expenses 2 9. Citizenship and Immigration Status 2 10. Contract 3 11. Contract Rent 3 12. Continuously Assisted Person 3 13. Dependent 3 14. Disabled Individual 3 15. Displaced by Government Action 3 16. Elderly Individual 3 17. Extremely Low Income Household 3 18. Fair Market Rent 3 19. Family 3 20. Full-Time Student 4 21. Gross Rent 5 22. Hard to House Family 5 23. Head of Household 5 24. Homeless Family 5 25. Homeless Individual 5 26. Housing Assistance Payments Contract ("Contract") 5 27. Household 5 28. HUD 5 29. Lease 5 30. Lower-Income Household 5 31. Medical Expenses 5 32. Mutual Recision 5 33. Mutual Recision With Continued Eligibility 5 34. Mutual Recision Without Continued Eligibility 6 35. Net Household Assets 6 36. Owner 6 37. Participant 6 38. Payment Standard 6 39. Portability 6 ii 2017-06-28 Item H1 (Housing Authority) 115 of 193 40. Remaining Member of a Tenant Household 6 41. Resident 6 42. Subsidy Standards 6 43. Suspension 6 44. Tenant Rent 6 45. Total Tenant Payment 7 46. Utility Allowance 7 47. Utility Reimbursement 7 48. Very Low-Income Household 7 49. Veteran 7 50. Violent Criminal Activity 7 51. Voucher Contract 7 52. Voucher 7 53. Voucher Payment 8 54. Working 8 SECTION III. CONDITIONS GOVERNING ELIGIBILITY 9 A. Eligibility for Participation 9 B. Eligibility for Continued Participation 9 SECTION IV. APPLICATIONS AND WAITING LISTS 10 A. Public Notice to Lower-Income Families 10 B. Receipt of Applications 10 C. Establishment of a Waiting List 10 D. Denial of Admission 10 E. Removal from Waiting List 12 F. Notice to Families Determined to be Ineligible 12 G. Notice to Families Determined to be Eligible 12 H. Merger and Cross Listing 12 I. Cooperative Waiting List 12 SECTION V. SELECTION OF FAMILIES FOR ISSUANCE OF 14 VOUCHERS A. Governing Conditions 14 B. Order of Preference in the Selection of Families to be Issued a 14 Voucher C. Time and Date Sequence of Applications 14 SECTION VI. DETERMINATION OF INCOME FOR ELIGIBILITY 15 AND TOTAL TENANT PAYMENT A. Procedure for Determination of Income for Eligibility 15 B. Annual Income Sources and Computation 15 C. Total Tenant Payment 18 2017-06-28 Item H1 (Housing Authority) 116 of 193 SECTION VII. DETERMINATION OF ELIGIBILITY FOR 19 ISSUANCE OF VOUCHERS A. Verification of Eligibility 19 B. Procedure Governing Determination of Eligibility 19 C. Verification and Documentation of Application Data 20 D. Summary of Verification Data 21 SECTION VIII. SUBSIDY STANDARDS FOR ISSUANCE OF 22 VOUCHERS SECTION IX. ISSUANCE OF VOUCHER 23 A. Procedure Governing Issuance of Voucher 23 B. Expiration and Extension of Voucher 25 C. Suspension 25 D. Payment Standard 25 SECTION X. HOLDERS OF VOUCHERS 26 A. Finders Keepers Policy/Where the Household Can Live 26 B. Assistance of Public Housing Authority 26 C. Household Moves 26 D. Portability 27 SECTION A. LEASING OF DWELLING UNITS TO VOUCHER 29 HOLDERS A. Information to Owner 29 B. Request to Encinitas Housing Authority (EHA) for Lease Approval 29 C. Rent Reasonableness 30 D. Decent, Safe, and Sanitary Condition of Unit 30 E. Security Deposits 30 F. Household Move Out 31 G. Household Move out with Continued Tenant Based Assistance 31 H. Approval of Lease 32 I. Amount of Rent Payable by The Household 33 J. Notice to Owner and Household 33 K. Owners Responsibilities and Breach of Contract 34 L. Business in Unit 34 SECTION XII. REEXAMINATION OF HOUSEHOLD ELIGIBILITY 35 AND REDETERMINATION OF INCOME A. Periodic Reexamination of Household Status and Income 35 B. Special Reexaminations 35 C. Interim Redetermination of Annual Income and Adjustment of 35 Rent D. Reexamination Procedures 37 E. Notice to Household and Owner Following Reexamination 38 iv 2017-06-28 Item H1 (Housing Authority) 117 of 193 F. Termination of Payments Due to Household Ineligibility 39 G. Instances of Misrepresentation of Non-compliance by the 39 Household H. Annual Inspection of Unit 40 I. Evictions/Termination of Tenancy 40 J. Owner Term Notice 41 K. Absence From Unit 41 L. Household Break Up 42 SECTION All. SPECIAL PROGRAMS 43 A. Homeownership 43 B. Project Based Vouchers 52 SECTION XIV. TERMINATION OF ASSISTANCE 53 A. Termination Because of Household Action or Inaction 53 B. Grounds for Denial or Termination of Assistance 53 C. Encinitas Housing Authority (EHA) Discretion to Consider 54 Circumstances D. Requirement to Sign Consent Forms 54 E. Restriction on Assistance to Non-Citizens 54 F. Violence Against Women Act (VAWA) 54 SECTION XV. HOUSEHOLD OBLIGATIONS 55 SECTION XVI. DEBTS OWED TO ENCINITAS HOUSING AUTHORITY 56 A. Owner 56 B. Applicant 56 C. Participant 56 SECTION XVII. FAMILY SELF-SUFFICIENCY PROGRAM 57 v 2017-06-28 Item H1 (Housing Authority) 118 of 193 EXHIBITS EXHIBIT TITLE I Section 8 Housing Choice Voucher Program (HCV) Informal Review and Hearing Procedures 11 Section 8 Homeownership Family Obligations vi 2017-06-28 Item H1 (Housing Authority) 119 of 193 ADMINISTRATIVE PLAN SECTION 8 HOUSING CHOICE VOUCHER PROGRAM HOUSING AUTHORITY OF ENCINITAS, CALIFORNIA SECTION I. ADMINISTRATIVE POLICY OF THE HOUSING AUTHORITY OF THE CITY OF ENCINITAS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROGRAMS (HUD). 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 have 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 Housing Authority 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 controversy. Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law. Where no law or HUD authority exists on a particular subject, industry practice may support Public Housing Authority (PHA) policy. An industry practice is a way of doing things that is followed by most housing authorities. A. Administrative Fee Reserves The Encinitas Housing Authority (EHA) Board of Commissioners must approve expenditures of the administrative fee reserve in excess of $100,000. Such expenditures must be used for other housing purposes, as defined by HUD. 1 2017-06-28 Item H1 (Housing Authority) 120 of 193 SECTION II. GENERAL INFORMATION A. Definition Of Terms. 1. Agreement for Mutual Recision of Lease. The legal document accomplishing 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 EHA as an allowance for the cost of utilities (except telephone) and other services paid directly by the Household. Current utility allowances can be found on the City website located at www.encinitasca.gov. 3. Annual Contributions Contract ("ACC'). A written agreement between HUD and the EHA to provide annual contribution to the EHA to cover Housing Assistance Payments (HAP) and other expenses pursuant to the Act. 4. Gross Annual Income. The anticipated total annual income of an eligible household from all sources before deductions for the 12-month period following the date of determination of income, computed in accordance with Section VI. 5. Adjusted Gross Income. The annual gross income less: A. $480.00 for each dependent (see Section II.A.13), and $400.00 for any Elderly Individual or Family B. Medical expenses (see Section I I.A.31) which exceed 3 percent of the annual income, and for any Elderly/Disabled Individual or Family. C. Child care expenses (see Section II.A.8). 6. Applicant. Designates one who has submitted an application for Section 8 HCV assistance. This application does not create an entitlement of any individual to Section 8 HCV assistance. 7. Asset Income. Eligibility/annual income includes the higher of (1) annual income from assets; or (2) if the net Household assets exceed $5,000, passbook rate set by HUD. 8. Child Care Expenses. Amount anticipated to be paid by the Household 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 Household member to be gainfully employed or to further his or her education. The amount deducted shall reflect reasonable charges for child care, and, in the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of income received from such employment. 9. Citizenship and Immigration Status. Citizen means a citizen or national of the United States. Evidence of citizenship or eligible immigration status means the 2 2017-06-28 Item H1 (Housing Authority) 121 of 193 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 Household. 12. Continuously Assisted Person. An applicant is continuously assisted under the 1937 Housing Act if the Household is already receiving assistance under any 1937 Housing Act program when the Household is admitted to the voucher program. 13. Dependent. A member of the household (excluding foster children) other than the Family head or spouse, who is under 18 years of age or is an individual with disabilities , or is a full-time student. 14. Disabled Individual. The EHA defines an individual with disabilities in accordance with the Americans with Disabilities Act as amended pursuant to 28 CFR Part 35 §35.104. 15. Displaced by Government Action. 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: Activity carried on by an agency or U.S. or by any state or local governmental body or agency in connection with code enforcement or a public improvement or development program. 16. Elderly Individual. An individual who has attained age 62. 17. Extremely Low Income Household. A Household whose annual income does not exceed 30 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger Households. 18. Fair Market Rent. The rent, including utilities (except telephone, cable), ranges and refrigerators, and all maintenance, 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 (FMR) shall be established for dwelling units of varying sizes (number of bedrooms). 19. Family. The term "family" includes, but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status: 1. A "family" may be a single person or two or more persons who share residency and whose combined income and resources are used to determine financial eligibility. 2. A "family" includes a household with or without a child or children. 3 2017-06-28 Item H1 (Housing Authority) 122 of 193 3. A "family" may be a group of persons consisting of two or more elderly persons or disabled persons living together, or one or more elderly or disabled persons living with one or more live-in aides. 4. A "family" may be a single person. 5. A single person may be: a. an elderly person; b. a displaced person; c. a disabled person; or d. any other single person, such as the remaining member of an assisted family. 6. Elderly Family. A Family as defined above with a head of household who has attained age 62. 7. Disabled Family. A Family as defined above with a head of household that is a disabled individual. (see Section II.A.14) It may include two or more elderly ordisabledpersons living together or one or more such persons living with any other person who is determined to be essential to their care or well- being. 8. The definition of "Family" does not exclude a person living alone during the temporaryl absence of a Family member who will later live regularly as a part of the Family. 9. A person necessarily residing with a Family by reason of employment by or for 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 included. 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 Section II.A.31). 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. 20. 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. The term, temporarily or temporary as used in this section, is defined as a period of 6 months or less. 4 2017-06-28 Item H1 (Housing Authority) 123 of 193 21. Gross Rent. The total monthly cost of housing an eligible Household, 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 Household's monthly payment to amortize the purchase price of the manufactured home. 22. Hard to House Family. Families who experience difficulty renting appropriate housing. 23. Head of Household. The "head of a Household" is that member actually looked to and held accountable for the Household's needs. 24. Homeless Family. A family which is without housing, or residents of a recognized homeless shelter or transitional housing facility, through no fault of their own. 25. Homeless Individual. An individual who is without housing, or resident of a recognized homeless shelter or transitional housing facility, through no fault of their own. 26. Housing Assistance Payments Contract ("Contract"). A written contract between EHA and an owner on behalf of an eligible Household. 27. Household. Refers to the person/s that reside within a residential unit. The policies herein that affect "households" include applicants and participants. 28. HUD. The United States Department of Housing and Urban Development or its designee. 29. Lease. A written agreement between an owner and an eligible Household for the leasing of an existing housing unit in accordance with the contract, which agreement is in compliance with the provisions of this part. 30. Lower-Income Household. A Household whose annual income is between 50% and 80% of the median income for the area, as determined by HUD with adjustments for smaller and larger households. HUD 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 prevailing levels of construction costs or unusually high or low household incomes. 31. Medical Expenses. Those medical expenses for Elderly/Disabled households 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. 32. Mutual Recision. When the lessor and lessee agree to completely rescind and release each other from further responsibility in accordance with any executed lease. 33. Mutual Recision With Continued Eligibility. A mutual recision where the lessee is reissued their Voucher for the use on another approval unit. 5 2017-06-28 Item H1 (Housing Authority) 124 of 193 34. Mutual Recision Without Continued Eligibility. A mutual recision where the lessee is not reissued their Voucher for use on another approved unit. 35. Net Household Assets. Value of equity in savings, checking, IRA and Keogh accounts, real property, stocks, bonds and other forms of capital investment. The value of necessary items of personal property such as furniture and automobiles shall be excluded. In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income. 36. Owner. Any person or entity, such as a cooperative or HUD, having the legal right to lease or sublease existing housing. 37. Participant. A Household becomes a participant when the EHA executes a contract with an owner for housing assistance payments on behalf of the Household. 38. Payment Standard. The amount of the monthly maximum subsidy payment on behalf of an eligible Household based on unit size. 39. Portability. Renting a dwelling unit with Section 8 HCV tenant based assistance outside the jurisdiction of the initial housing authority. 40. Remaining Member of a Tenant Household. A Person left in an assisted unit who may or may not normally qualify for assistance on their own circumstances (for example, a widow, age 47, that is neither disabled nor elderly). 41. Resident. For the purpose of determining eligibility and applying preference, a resident Household 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 application. For homeless persons to meet residency test, applicant must prove that they normally stay within the City of Encinitas. Examples of acceptable documentation include: letter from a social services agency verifying that the applicant is homeless in Encinitas, or verification from the Encinitas Sheriffs' department. 42. Subsidy Standards. Standards to determine the appropriate number of bedrooms and amount of subsidy for families of different sizes and compositions. 43. Suspension. Stop of the clock on the term of a voucher for the period of time necessary for the EHA to approve/disapprove a request for lease approval. 44. Tenant Rent. (Formerly called Net Family Contribution). The amount payable monthly by the Household as rent to the owner minus any utilities. Where all utilities (except telephone) and other essential housing services are supplied by 6 2017-06-28 Item H1 (Housing Authority) 125 of 193 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 Household renting only a manufactured home space, tenant rent equals the space rental minus the housing assistance payment, as defined in the applicable Section 8 HCV program regulation. 45. Total Tenant Payment. (Formerly called Gross Family Contribution). The portion of rent the Household is obligated to pay toward the contract rent. This amount will be reduced by any allowance for tenant paid utilities and services. 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 Household occupying the unit, an amount equal to the estimate made or approved by EHA or HUD under applicable sections of the regulations (see 24 CFR §§ 880, 881, 882, 883, 884 an 886) of the monthly costs of a reasonable consumption of such utilities and other services for the unit by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary and healthful living environment. 47. Utility Reimbursement. In the voucher program, the amount, if any, by which the utility allowance for the unit, if applicable, exceeds the Total Tenant Payment for the Household occupying the unit. 48. Very Low-Income Household. A lower income Household 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 Households. HUD may establish income limits higher or lower than 50 percent of the median income for the area on the basis of its finding that such variations are necessary because of unusu- ally high or low Household incomes. 49. Veteran. For the purpose of determining eligibility and applying preference, a Veteran is a head of household or spouse who has discharged from military service under honorable or general conditions (with the exception of dishonorable), or a spouse of a deceased veteran. 50. Violent Criminal Activity. Any illegal criminal activity that has as one of its elements the use, attempted use or threatened use of physical force against another person or property of another. 51. Voucher Contract. A written contract between the EHA and owner whereby the EHA makes voucher payments to the owner on behalf of an eligible Household. 52. Voucher. A document issued by the EHA declaring a Household to be eligible for participation in the Voucher Program and stating certain terms and conditions of participation. 7 2017-06-28 Item H1 (Housing Authority) 126 of 193 53. Voucher Payment. Housing assistance payments made to owners on behalf of eligible households. 54. Working. To be eligible for the working priority, a head of household must be engaged in gainful employment averaging a minimum of fifteen (15) hours per week or seven hundred eighty (780) hours per year. Documentation will be required to receive credit for this priority. 8 2017-06-28 Item H1 (Housing Authority) 127 of 193 SECTION III. CONDITIONS GOVERNING ELIGIBILITY A. Eligibility for Participation. To participate in the Section 8 HCV program only those applicants are eligible: 1. Whose Eligibility Income (see Section VI), does not exceed the applicable income limit for participation as established by HUD . Current income limits can be found on the City website located at www.encinitasca.gov. Except with the prior approval of HUD, no Household other than a Very Low-Income Household shall be approved for admission. The applicable income limit for voucher issuance is the income limit for the EHA jurisdiction. The applicable income limit for admission (initial lease up) is the income limit for the location where the Household actually leases the unit. 2. Who do not have an outstanding validated claim for rent and/or damages owed to a Public Housing Authority (PHA) or Owner relative to previous participation in a housing program administered by a PHA. B. Eligibility for Continued Participation. To continue participation in the Section 8 HCV program administered by the EHA, only those occupants are eligible: 1. Who qualify as the remaining member of an assisted Household: a. In the event a participant Household separates, the Voucher for continued participation shall stay with the members of the household who continue to meet an EHA priority and/or stay in the Household's existing residence. An additional voucher can not be expected to be issued to accomodate a separated Household. 2. Whose monthly Total Tenant Payment (see Section II.A.45) is less than the gross rent as paid to the owner for the unit occupied. 3. Who follow the requirements of the program (see Section XV). 9 2017-06-28 Item H1 (Housing Authority) 128 of 193 SECTION IV. APPLICATIONS AND WAITING LISTS A. Public Notice to Lower-Income Families. 1. Upon opening the wait list, this EHA shall make known to the public through publication in a newspaper of general circulation, as well as through minority media and other suitable means, the initial availability 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 households apparently eligible for the issuance of a Voucher. This rule is to hold unless the number of applicants with the maximum preference points on the waiting list for Vouchers is such that there is no reasonable prospect that additional applicants could be issued Vouchers within a time deemed reasonable by staff. In such case, application taking will be temporarily 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 received, and shall be processed as set forth in Section III. 3. The EHA must maintain records of applicants and participants which provide HUD with data on race, gender and ethnicity. C. Establishment of a Waiting List. The EHA shall maintain a waiting list of potentially eligible applicant Households. 1. Each potentially eligible applicant shall be placed on the 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 HCV assistance. D. Denial of Admission. The EHA may refuse to issue a Voucher to an applicant or participant if: 1. The applicant or any member of his/her household has a documented history of destruction and abuse of property. 2. The applicant or any member of his/her household has a history of criminal activity involving crimes of physical violence to persons or property. 3. The applicant or any member of his/her household has engaged in drug- related criminal activity or violent criminal activity as defined in 24 CFR § 982.553, or which could discredit the Housing Assistance Payments (HAP) Program. 10 2017-06-28 Item H1 (Housing Authority) 129 of 193 4. The EHA has reasonable cause to believe that illegal drug use or a pattern of illegal drug use by a household member may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. 5. The EHA has reasonable cause to believe that abuse or a pattern of abuse of alcohol by a household member may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. 6. Any household member has ever been convicted of drug-related criminal activity for the manufacturing or production of methamphetamine on the premises of federally assisted housing. 7. A member of the family engaged in illegal drug-related activity during the past five years that involved: sales, transportation, manufacturing or posession for sale. 8. A member of the family engaged in violent criminal activity during the past five years. Violent criminal activity is any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be likely to cause, serious bodily injury or property damage. 9. 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 HCV, Public Housing Assistance under the 1937 Housing Act or any other program administered by the EHA. 10. As a previous participant in the Section 8 HCV program, or as participant in any EHA program, has not reimbursed the EHA or another PHA for any amounts paid to an owner under a housing assistance contract for rent or other amounts owed by the Household under its lease, or for a vacated unit. 11. Has violated any Family Obligations as a participant in any of the EHA's assisted housing programs. 12. Breaches or has breached a repayment agreement with the EHA. 13. Any family member has committed fraud in connection with any federal housing assistance program. 14. If any member of the household is subject to a lifetime registration requirement under a State Sex Offender Registration program. 15. If the household has engaged in or threatened abusive or violent behavior towards EHA personnel. 11 2017-06-28 Item H1 (Housing Authority) 130 of 193 E. 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 the Voucher program. The EHA updates the waiting list periodically, purging those applicants who do not respond or are no longer interested. F. Notice to Families Determined to be Ineligible If an applicant is determined to be ineligible on the basis of income, Household composition or for any other reason, the applicant shall be notified promptly by letter of the determination and their reasons therefore. 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. This review will be conducted by someone other than the person who made the initial 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. G. Notice to Families Determined to be Eligible When a Voucher is available, the next Household 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) calendar days to schedule an appointment to complete an application, provide required verifications and attend a briefing on the Section 8 HCV program and issuance of a Voucher. In the event the Household 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 Household fails to keep any of its scheduled appointments with good cause, at the discretion of the Section 8 HCV Program Supervisor, the Household members may be given the option to schedule a 2nd appointment as long as it occurs prior to the next issuance of Vouchers. H. Merger and Cross Listing. The Housing Authority will merge the EHA tenant-based waiting list with other assisted housing programs including federal or local programs. HUD program requirements still apply to each separate housing program. I. Cooperative Waiting List. The EHA, the Housing Authority of the County of San Diego, the City of San Diego Housing Commission, the cities of Oceanside and Carlsbad, agree to maintain a cooperative waiting list for those applicants who live in the jurisdiction of the other housing agency. 12 2017-06-28 Item H1 (Housing Authority) 131 of 193 Each housing agency will exchange waiting list applications (preserving the original time and date of application for applicants residing in the jurisdiction of the other agency) provided that the Housing agency had an open waiting list during that time period, or provide the earliest date available to the applicant. Upon receipt of this data, each housing agency will place such applicants into their current waiting list using the orginal time and date of application. 13 2017-06-28 Item H1 (Housing Authority) 132 of 193 SECTION V. SELECTION OF FAMILIES FOR ISSUANCE OF VOUCHERS. A. Governing Conditions. Among eligible applicants, selection for the issuance of Vouchers shall be made without regard to race, color, , religion, sex, disability„ familial status, or national or ethnic origin; and on the basis of the priorities as set forth in Section V.B and V.C. B. Order of Preference in the Selection of Families to be Issued a Voucher. Each of the preferences shall carry a point value, and all applications shall be ranked by the highest number of points being given highest priority in the waiting list. 1. Types of Preferences. (a). Local Preference: resident of or employed in the City of Encinitas. (50 points) (Section II.A.41 and A.54) (b). Priorities: applicants with any one or combination of the priorities listed below. (50 points) • Elderly individual or family, • Disabled individual or family, • Families with dependent children where a head of household works and/or attends school/a training program, • Homeless individual or family, • Involuntarily displaced individual or family due to Government action, or • Veteran. (Section II.A.49) (c). Date/Time: date/time of applicationshall be utilized to sort applicants within the same point category, (d) In order to meet HUD income targeting requirements, the EHA may select persons off the waiting list who are at or below the extremely low income level. 2. Section 8 HCV applicants receiving tenant based HOME subsidies retain the date of original application for the Section 8 HCV waiting List. C. Time and 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 Voucher first (subject to the provisions contained in Section V.13.1 and B.2). 14 2017-06-28 Item H1 (Housing Authority) 133 of 193 SECTION VI. DETERMINATION OF INCOME FOR ELIGIBILITY AND TOTAL TENANT PAYMENT. This section sets forth the policies and procedures for determining Income for Eligibility, and the Total Tenant Payment (Rent) for Eligible Households. 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 reexaminations of Household income, composi- tion and the extent of medical or child care expenses. A. Procedure for Determination of Income for Eligibility. For purposes of determining if a Household is a Very Low-Income Household, its income shall be determined in accordance with Section VI.13.1 and 13.2, except that where a Household has net Household assets in excess of $5,000, its income shall include the actual amount of income, if any, derived from all the net Household assets or 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 Household 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 Computation. Annual income shall include all payments from all sources received or anticipated to be received during the twelve months following initial occupancy or redetermination of Household income2 by (1) the head of the household and spouse, and (2) each additional member 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 determination of the EHA is (or shall be) available to meet the Household's needs. Excluded in the computation of annual income shall be (1) temporary, non-recurring or sporadic income. 1. Income Sources shall include, but 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. (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 allowance for depreciation of capital assets shall 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 EHA shall calculate the dollar amount included in the Household's annual income which is specifically derived from assets. In addition, if assets are greater than $5,000, annual income shall include the greater of the actual income 2 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. 15 2017-06-28 Item H1 (Housing Authority) 134 of 193 derived from all Net Household 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 Section VI.13.2(c)). (f). Public Assistance, such as AFDC, 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 as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling. Child support is considered as income accruing 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 Household 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 institution which are available for or used for subsistence purposes (see Section VI.13.2(d)). Q). Any earned income of household members - age 18 or older. (Exception: earnings in excess of $480 for dependents over age 18 who are full-time students) 2. Temporary, Non-Recurring or Sporadic Income Not Included in the Computation of Annual Income: (a). Casual, sporadic or irregular gifts. (b). Amounts which are specifically for or in reimbursement of the cost of medical expenses. (c). Lump-sum additions to Household assets, such as inheritances, insurance payments (including payments under health and accident insurance and workers compensation), 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. 16 2017-06-28 Item H1 (Housing Authority) 135 of 193 (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 equipment. 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 Household 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. (i). The value of the allotment provided to an eligible household for coupons under the Food Stamp Act of 1977. Q). 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 Programs and National Volunteer Programs to assist Small Business Experience, Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE). (3). Payments to 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 Department of Health and Human Services' Low-Income Energy Assistance Program. (7). Payments received from the Job Training Partnership Act. (8). Income derived from the disposition of funds of the Grand River Bank of Ottawa Indians. 17 2017-06-28 Item H1 (Housing Authority) 136 of 193 (9). The first $2,000 of per capita shares received 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. 3. Disallowance of Earned Income for Persons with Disabilities. The EHA will apply the regulation according to 24 CFR 5.617; 982.201(b)(3). The annual income for qualified families may not be increased as a result of increases in earned income of a family member who is a person with disabilities beginning on the date on which the increase in earned income begins and continuing for a cumulative twelve-month period. After the disabled family member receives twelve cumulative months of the full exclusion, annual income will include a phase-in of half the earned income excluded from annual income. C. Total Tenant Payment. Each eligible Household's Total Tenant Payment shall be either the greater of 30 percent of net income after allowable deductions or 10 percent of gross income, with a minimum rent of$50.00. Allowable Deductions: 1. $480 for each dependent (excluding head of household or spouse). 2. Medical expenses which exceed 3% of the annual income for Elderly/ Disabled Households. 3. $400 household allowance for each elderly or disabled household. 4. Child care expenses: Amounts paid by the Household for the care of minors under 13 years of age or for the care of disabled Household members, but only where such care is necessary to enable a Household 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 must be included in the form. Also, if the Household 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 Household 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 Household by any other government agency, the amount paid for or reimbursed to the Household shall not be counted as a deduction in the calculation of tenant rent. 18 2017-06-28 Item H1 (Housing Authority) 137 of 193 SECTION VII. DETERMINATION OF ELIGIBILITY FOR ISSUANCE OF VOUCHERS. This section sets forth the basic steps which are to be taken in obtaining and verifying information from applicant Households for the purposes of (1) determining whether they meet the conditions of eligibility for participation as set forth in Section III; (2) applying the priority and preference requirements established in Section V; (3) determining the size of dwelling required in accordance with Section VIII; and (4) determining the tenant portion of the rent in accordance with Section VI. A. Verification of Eligibility. 1. Verification of Citizenship/Eligible Immigration Status. The EHA will apply the regulation according to 24 CFR 5.508, 5.510, 5.512, 5.514. To be eligible for assistance, individuals must be U.S. citizens or eligible immigrants. Individuals who are neither may elect not to contend their status. Eligible immigrants must fall into one of the categories specified by the regulations and must have their status verified by the Immigration and Naturalization Service (INS). Each Household member must declare their status once. Assistance cannot be delayed, denied, or terminated while the verification of status is pending except that assistance to the applicants may be delayed while the EHA hearing is pending. 2. Failure to Provide. If an applicant or participant Household member fails to sign the required declarations and consent forms or provide the required documents, they will be listed as an ineligible member. If the entire Household fails to provide and sign as required, the Household's assistance may be denied or terminated. 3. If the EHA determines that a Household member has knowingly permitted another individual who is not eligible for assistance to reside permanently in the Household's unit, the Household's assistance will be terminated for 24 months, unless the ineligible individual has already been considered in prorating the Household's assistance. B. Procedure Governing Determination of Eligibility 1. Before issuance of the Voucher 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 status, size of dwelling and Total Tenant Payment (rent) are full, true, and complete. 2. This Certification of Tenant Eligibility (HUD 50058) constitutes the basic record of each applicant Household and together with all other materials relating to the Household'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 Section IV.F). In such instances, sufficient information to establish the fact is to 19 2017-06-28 Item H1 (Housing Authority) 138 of 193 be attached to the application which is to be maintained for at least three (3) years. 4. All entries on the application of applicant history are to be made in ink, indelible pencil, or typed in. Corrections or changes are to be made by lining through the original entry and entering the correct data. Such changes are to be dated and initialed by the person recording the change and the reason and authority for such changes noted in the record. 5. The applicant is to review and sign the application. C. Verification and Documentation of Application Data 1. Verifications will be required for information submitted by an applicant to assure accuracy in determining eligibility, and priority, preference status, rent to be paid, and size of dwelling required. Verifications must be current (no more than 60 days old for new leases, no more than 120 days old for annual reexaminations). The EHA will provide forms to applicants to assure receipt of required information. 2. Verification Methods: The following methods of verification are acceptable for the tenant file to be properly documented. In order of acceptabilitythey are: a) Third party - Written (provided directly to the EHA by the source and not hand-carried by the family) or oral (direct contact by EHA with a reliable source). b) Review of documents - Documents provided by household (e.g. pay stubs, bank statements, social security award letters, computerized printouts). c) Household certification or notarized statement - Written statement signed by the family certifying that the information provided is complete and correct. • When the preferred verification form is not received in a timely fashion and staff uses the second or third alternative, staff shall record in the tenant file the reason an alternative method was used. • If obtaining a third party verification will impose a financial burden on the participant, the EHA may use the second or third alternative. 3. The EHA should verify and maintain documentation in case files pertaining to: a) Household income (including expenses for self employment income) b) Asset information c) Eligible household deductions d) Family size and status e) Verification of local preferences f) Verification of residency in the City of Encinitas (see Section II.A.41). g) Documentation for status of citizenship/ immigration (see Section II.A.9). h) Criminal history 20 2017-06-28 Item H1 (Housing Authority) 139 of 193 D. Summary of Verification Data 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 such information are to be made and carried through to conclusion. If during the verification process, it becomes evident that for one or more reasons an applicant is ineligible, the investigation is to be discontinued and the applicant promptly notified in writing of their ineligibility and the reasons therefore (see Section IV.F). The EHA 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 informal 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 determinations by the EHA, or to consider general policy issues or class grievances. (b). To review the EHA's determination of the number of bedrooms entered on the Voucher under the EHA's unit size standard. (c). To review the EHA's determination that a unit located by a Voucher holder does not comply with the Housing Quality Standards (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 Voucher holder for an extension of the term of the Voucher. When verification of all necessary items for each application 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 documentation of verification shall be retained for HUD audit or inspection in a file for each application or assisted Household. 21 2017-06-28 Item H1 (Housing Authority) 140 of 193 SECTION VIII. SUBSIDY STANDARDS FOR ISSUANCE OF VOUCHERS. Prior to issuing the Voucher, the appropriate dwelling unit size for the Household will be determined by applying the following criteria: A. One bedroom is assigned for the head of household (including spouse or significant other, if applicable) and another bedroom is assigned for each additional two persons residing in the household, regardless of gender, age, or relationship. B. Every Household member regardless of age is to be counted as a person. A pregnant woman will be counted as two persons. The Household may rent a smaller bedroom size unit provided the unit meets the standards of acceptability, i.e., "...at least one sleeping room or living/sleeping room of appropriate size for each two persons." C. Any live-in aide approved by EHA to reside in the unit is counted in determining unit size. D. A Household unit size for any Household consisting of a single person must be zero or one-bedroom unit unless a live-in aide resides with the Household. E. The EHA must approve composition of the resident Household at admission and must also approve later changes in Household composition. The Household must request EHA approval to add any Household 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. F. A child who is temporarily away from the home because of placement in foster care is considered a member of the household in determining the family's unit size. 22 2017-06-28 Item H1 (Housing Authority) 141 of 193 SECTION IX. ISSUANCE OF VOUCHER. A. Procedure Governing Issuance of Voucher. 1. After a Household has been determined to be eligible and is selected for participation, a Voucher shall be prepared and signed by a designated staff member. The Voucher shall state the number of bedrooms approved for the Household (see Subsidy Standard, Section VIII); and the Total Tenant Payment (see Section VI.C). 2. The Voucher, along with a Voucher holder's packet, shall be presented to the Household at a briefing session which the Household will be required to attend. The staff person conducting the briefing program will explain the program in detail and answer any questions the Voucher holder may have. Each Voucher holder's packet shall include the following: (a) Request for Lease Approval (HUD 52517); (b) The EHA's statement of housing quality standards and the forms for inspection for dwelling units. (c) Information regarding lead based paint, poisoning hazards, symptoms, and precautions; (d) "Fair Housing U.S.A." (HUD-63-EO(6)); (e) Information on the tenant rent, the housing assistance payment, and the payment standard or Fair Market Rent. (f) The EHA's schedule of Allowance for Utilities and Other Services; (g) Housing Discrimination Complaint Form (HUD-903); (h) 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 circumstances in which the EHA is required to provide the opportunity for an informal hearing and how to request a hearing. (i) Information on the term of the voucher and the EHA policy on extensions. Q) Information on what the Household should consider in deciding to lease a unit. (k) Information as to where the Household may lease a unit including portability procedures. (I) A statement about the EHA's policy on providing information about a Household to prospective owners. 23 2017-06-28 Item H1 (Housing Authority) 142 of 193 (m) HUD brochure on selecting a unit. (n) If the Household includes a disabled person, the Household may request current listings of accessible units. (o) A list of the Household's obligations under the Program. (p) A copy of the policy regarding the grounds on which the EHA may terminate assistance. (q) A copy of the Subsidy Standards. (r) A copy of the Lease Addendum (HUD 52647.3 for Vouchers). (s) Such other items as the EHA may determine should be included. 3. The briefing session shall provide a full explanation and time for discussion of the following: (a) A description of how the program works, including portability. (b) Household and owner responsibilities under the lease and contract; (c) How to find a suitable unit; (d) 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 low income families. (e) Applicable housing quality standards and procedures for Household and owner inspections and for their individual certifications of compliance with those standards; (f) Significant aspects of applicable state and local laws; (g) Significant aspects of federal, state and local Fair Housing laws; (h) Applicable Fair Market Rent, determination of Total Tenant Payment, establishment of housing assistance payments; (i) Information regarding applicable regulations pertaining to the portability of the Voucher; Q) That the Household may obtain copies of the Housing Quality Standards, the contract and other pertinent forms on request; and (k) That the EHA will not be responsible for any damage caused by pets. 24 2017-06-28 Item H1 (Housing Authority) 143 of 193 B. Expiration and Extension of Voucher. 1. The Voucher shall expire at the end of 60 days unless within that time the Household submits a Request for Lease Approval. 2. If a voucher expires or is about to expire, a Household may submit a request for an extension to the EHA. As part of the extention request, the household shall document in writing the efforts it has made to find a suitable dwelling unit and the problems it has encountered. If the EHA believes that there is a reasonable possibility that the Household may, with additional advice or assistance, find a suitable unit, the EHA may grant one or two extensions of 30 days not to exceed a total of 60 days. The maximum amount of time a Household may hold a voucher is a total of 120 calendar days from the beginning of the initial term. If a member of the Household is a disabled person, and the Household needs an extension because of the disability, the EHA may grant an additional extension of 60 days as a reasonable accommodation. Expiration of a Voucher shall not preclude the Household from reapplying to the Section 8 HCV waiting list C. Suspension. The timeline for the voucher expiration date may be suspended for the period of time necessary for the EHA to approve/disapprove a request for lease approval. D. Payment Standard. The EHA will review the voucher payment standard as needed to ensure effective utilization of vouchers. The EHA will take into consideration available funding, and the prevailing fair market rents (FMR) in the community for decent, safe and sanitary housing. The EHA may establish the payment standard amount from 90 to 110 percent of the published FM for each unit size. The Board has authorized the Executive Director and/or their designee to approve changes to the payment standard based on the annual HUD determination of the Fair Market Rent. 25 2017-06-28 Item H1 (Housing Authority) 144 of 193 SECTION X. HOLDERS OF VOUCHERS. A. Finders Keepers Policy/Where the Household Can Live. 1. Each holder of a Voucher 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 Voucher may keep the dwelling unit that the holder already occupies, if the unit meets HUD requirements. 3. Holder may select any eligible unit, including a HUD owned unit. However, a Household 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 Household both orally and in writing that the Household has the right to select any eligible dwelling unit and an EHA owned unit is freely selected by the Household without EHA pressure or steering. 4. Ineligible housing units are: • public housing; • those that receive project based Section 8; • board and care homes; • college or other school dormitories; • those located on penal, reformatory, medical, mental or similar institutions; or • those 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 Households who, because of age, disability, or other reasons, are unable to locate approvable units. Assistance will also be provided in finding a unit for any Household which alleges that discrimination is preventing it from locating a suitable unit. C. Household Moves. 1. The EHA may deny eligibility to those participants who have violated their lease under the existing Section 8 HCV program. 2. If an assisted Household wishes to move, in accordance with the lease provisions, the Household must obtain approval from the EHA. The EHA shall issue another voucher or process a Request for Lease Approval, if the recertifi- cation is completed and the Household meets the following criteria: (a). The Household has no unmet financial obligations to the EHA or any other Housing Authority. (b). The Household has not violated its Voucher of Participation in the Section 8 HCV program. 26 2017-06-28 Item H1 (Housing Authority) 145 of 193 (c). The Household 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 Household is in compliance with the terms of the lease. (h). The Household continues to be eligible for housing assistance. (i). Sufficient funds are available under the ACC. 3. A Household shall not be eligible for another Voucher if it was evicted from an assisted unit in accordance with local law and the provisions of the contract, unless the Household has satisfied any liability to the owner and/or the EHA. 4. The EHA may refuse to issue a Voucher to a Household wishing to move to another assisted unit if the EHA has determined that any member of the Household 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 Voucher to a Household 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 Household to receive another Voucher on a conditional basis for the purpose of moving to a new unit with continued assistance, if the Household meets the criteria outlined in Section X.C.2 above. D. Portability. 1. A Household may move to any jurisdiction of a housing authority administering the Section 8 HCV program in the United States after the initial year of admission to the Program. The EHA could allow exceptions on a case by case basis for cause, such as a change of work location, change in family status, or an illness or death in the family that requires a move. 2. The EHA will accept certification from the "initial housing authority" unless there are changes in income or Household composition. The "initial housing authority" determines whether the Household is income eligible in the area where the Household wants to rent. 27 2017-06-28 Item H1 (Housing Authority) 146 of 193 3. If a Household is requesting to move to the jurisdiction of another housing authority which will increase the amount of the housing assistance payment, the EHA will determine whether it has sufficient funding to cover the increase. In the event that there is insufficient funding, then the EHA may deny the request. 28 2017-06-28 Item H1 (Housing Authority) 147 of 193 SECTION A. LEASING OF DWELLING UNITS TO VOUCHER HOLDERS. A. Information to Owner. The EHA will respond to inquiries from owners who have been approached by Voucher holders by explaining major program procedures, including lease provisions, lease approval procedures, 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 Household's behavior or suitability for tenancy and that such screening is the owner's responsibility. Owners are permitted and encouraged to screen households on the basis of their tenancy histories including factors such as: • the payment of rent and utilities; • the care 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; and • compliance with other essential conditions of tenancy. The EHA encourages owners of decent, safe and sanitary rental units to rent to Section 8 HCV participants. The EHA shall take the following actions to encourage participation by owners of units located outside areas of poverty or minority concentration: 1. The EHA shall maintain communication with local property management companies. These resources will be used to make owners aware of the benefits of the Section 8 HCV Rental Assistance Program. 2. In order to expand participation of new owners who are interested in the program or who are unfamiliar with the program, EHA staff shall call the prospective owner to explain the benefits of the Section 8 HCV program and encourage their participation. 3. Housing representatives will attend local agency and community fairs to increase awareness of the program and benefits for owners. B. Request to EHA for Lease Approval. When a Household has found a unit it wants and the owner is willing to lease, the Household shall submit to the EHA a request for lease approval signed by the owner and the Household. In addition, any further agreements between the owner and Section 8 HCV participant must be approved by the EHA. Failure to secure such approval could result in cancellation of the participant from the program. 1. A Household becomes a participant in the existing Section 8 HCV program when the EHA executes a contract with an owner for housing assistance on behalf of the Household. 29 2017-06-28 Item H1 (Housing Authority) 148 of 193 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. Rent Reasonableness The purpose of the Rent Reasonableness Test is to assure that a fair rent is paid for units selected for participation in the Rental Assistance Program and the program does not have the effect of inflating rents in the community. Rent reasonableness determinations are made when units are placed under contract for the first time, before any increase in rent to the owner, and if there is a 5% decrease in the published Fair Market Rent. The EHA will determine whether the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To make this determination, the EHA will consider: • The location, size, unit type, quality, and age of the unit. • Any amenities, housing services, maintenance and utilities provided by the owner under the lease. 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 in writing, Before a contract is executed, the unit must be reinspected to ascertain that the necessary work has been done and the unit is decent, safe and sanitary. 2. A report for every inspection and reinspection under this paragraph shall be prepared and maintained in the files of the EHA. 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 Household. E. Security 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. 30 2017-06-28 Item H1 (Housing Authority) 149 of 193 After deducting the amount, if any, used to reimburse the owners, the owner must refund 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. Household Move Out. If the Household 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 Household moves out. The owner may keep the housing assistance payment for the month when the Household moves out of the unit. If the Household terminates the lease on notice to the owner, the Household must give the EHA a copy of the notice at the same time. If the Household wants to move to a new unit, the Household must notify the EHA and the owner before moving from the old unit. If the Household 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 Household wants to move. G. Household Move out with Continued Tenant Based Assistance. A Household may move to a new unit with continued tenant based assistance 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 Household has no unmet financial obligations to the EHA or any other Housing Authority. • The Household has not violated its Voucher of Participation in the Section 8 HCV program. • The Household has not moved during the past year. If a participant Household moves from an assisted unit with continued tenant based assistance, the term of the assisted lease for the new assisted unit may begin during the month the Household moves out of the first assisted unit. Overlap of the last housing assistance payment, for the month when the Household moves out of the old unit, and the first assistance payment for the new units, is not considered to constitute a duplicate housing subsidy. 31 2017-06-28 Item H1 (Housing Authority) 150 of 193 The EHA may deny permission to move if the EHA does not have sufficient funding for continued assistance. H. Approval of Lease. 1. The EHA shall approve the lease upon determining that the Contract Rent can be approved, that the unit the Household 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 Household's Voucher 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 allowances3 does not exceed the fair market rent for the smaller size unit as stated on the Household's Voucher, or such higher rent can be approved by the EHA or HUD. (3) Household Requests for Transfers to Larger Units. In the event a Household requests a transfer to a larger unit due to a change in Household composition (which the EHA must approve except for newborn, adoption or court awarded custody of a child), the unit into which the Household wishes to transfer will have a minimum number of bedrooms equivalent to the bedroom size specified in the Voucher. 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 retroactive to the beginning of the lease. 3. The EHA 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 3 The Utility and other allowances shall be for the size unit stated on the Voucher. 32 2017-06-28 Item H1 (Housing Authority) 151 of 193 • 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 HCV 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 Household. 1. The EHA shall determine the amount of rent payable by the Household 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 Household. 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. Notice to Owner and Household. 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 Household in writing. 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). Immediately upon the return and execution of the above documents, the EHA 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 inspection form to the Household. 33 2017-06-28 Item H1 (Housing Authority) 152 of 193 3. Files. (a). The EHA shall maintain files on all requests for lease approval together with dwelling inspection reports (see Section XI.J.3(b)) and agency determination notices relating to any unit with deficiencies. (b). All complaints by Households concerning compliance by the owner with the EHA's housing quality standards shall be retained in the EHA's files for three years. K. Owners Responsibilities and Breach of Contract 1. Late Fee to Owner. The EHA 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 EHA 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 EHA or contractor records show the check was issued in a timely manner, the EHA or contractor will reissue 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. 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 corrupt 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. For HQS failures, the EHA will abate HAP payments until the breach is corrected. EHA will terminate HAP payments for other 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 households, provided the use of the unit for business purposes is incidental to the primary use of the unit for residence by the Household. Owner consent is not required. However, the owner may attach "house rules" that restrict or govern business activity in the unit. Business cannot violate related City codes nor HQS. 34 2017-06-28 Item H1 (Housing Authority) 153 of 193 SECTION XII. REEXAMINATION OF HOUSEHOLD ELIGIBILITY AND REDETERMINATION OF INCOME. A. Periodic Reexamination of Household Status and Income. To assure that a Household continues to remain eligible for Housing Assistance Payments and to make appropriate adjustments in the rent paid by the Household, the reexamination of Household income, composition, and extent of exceptional medical and other child care expenses shall be made by the EHA at least annually from the effective date of the lease. After the Household's eligibility status and annual income have been redetermined, such action as necessary may be taken (see Section XII.D for procedures and Section XII.E, F, and G for actions required). Households shall be advised of the applicable portability regulations at the time of recertification. B. Special Reexaminations. If at time of initial occupancy or periodic reexamination, a Household is clearly very low-income, but it is not possible to make a reasonable accurate estimate of anticipated income for the next 12 month period, the following shall apply: 1. A special reexamination shall be scheduled 4 for specified times (either 30, 60 or 90 days) depending upon the staff member's estimate of time for Household's circumstances to stabilize. Controls must be established to assure compliance. (a). If at the time of such special reexamination, it is still not possible to make a reasonably accurate estimate of the Household'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 Household's rate of income, based on the amount expected to be received by the Household from the date of the current determination to the date of the special reexamination, shall be projected for a 12-month period, even though it is known that income in such amount or from such sources will not continue for that period. 3. Families whose past employment has been 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. Interim Redetermination of Annual Income and Adjustment of Rent. No adjustments to Household's Total Tenant Payment are to be effected between dates of periodic reexaminations or pre-scheduled reexaminations (as set forth in Section XII.B above) except as provided below: 4 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. 35 2017-06-28 Item H1 (Housing Authority) 154 of 193 1. In addition to submitting such information as may be required at time of periodic or special reexamination of eligibility and redetermination of Household contribution, Section 8 HCV participants and Voucher holders shall report to the EHA within fourteen calendar (14) days from the effective day the following defined changes in Household circumstances: (a). Changes Affecting Head of Household - Loss of a head of household through death, divorce or other continuing circumstances, or addition of a Household member who in accordance with EHA policy should become a Head of Household. (b). Changes Affecting Head or Spouse or Household Member over the Age of Eighteen. (1) The loss or addition to the Household 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, and/or unemployment benefits; (3) Entry into or discharge from military service; (4) Unemployment for whatever reasons; (5) Employment or reemployment; (6) Monthly increases or decreases in total Household 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. (7) Commencement or discontinuance of other sources of income which substantially affect the total income of the Household (to be determined by EHA staff). Reports of the above defined circumstantial changes are to be made on or before the first rent payment period subsequent to the occurrence of the change. Upon receipt of such report, an Interim Reexamination of Household 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 HCV program. In addition, a Household may at any time request a redetermination of its Total Tenant Payment on the basis of changes in Household Income or other relevant circumstances. If persons related to the assisted Household move into the unit (with owner's permission) the EHA will continue assistance only if additional income is accounted for in the Household rent calculation, the occupancy stan- 36 2017-06-28 Item H1 (Housing Authority) 155 of 193 dards are maintained including the sleeping room provision, and any resulting increase in rent remains with the FMR for the original size. 2. An assisted Household 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.5 3. In the event the rent is decreased in accordance with this provision, the Household shall be required to report all income increases which occur prior to the rent reexamination and rent will be appropriately adjusted.6 Reports of the above defined circumstantial changes are to be made on or before the first rent payment period subsequent to the occurrence of the change. Upon receipt of such report, an interim redetermination of Household income and rent will again be conducted. 4. The EHA will notify the Household of any change in the Household portion of rent payable to the owner and will notify the owner of any change in the Housing Assistance Payment (HAP) to be effective according to the following: (a). Increases in rent are to be made effective the first of the 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 EHA is able to verify the reported change(s). No downward rent adjustments are to be processed until all the facts have been verified. D. Reexamination Procedures. 1. Application for Tenant Eligibility and Recertification. The head of household of each assisted Household is to be required at the time of the reexamination to submit information for completion of the certification and recertification of tenant eligibility (HUD-50058) on a EHA 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 original entry and entering the correct 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. Verification and Documentation of Reexamination Data. To assure that the data on which the determinations of eligibility for rent to be paid and the size of 5 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. 6 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. 37 2017-06-28 Item H1 (Housing Authority) 156 of 193 dwelling required are true and complete, the information submitted by each tenant is to be verified. Complete and accurate verification records as specified in Section VI are to be maintained in the Household folder. Verification data are to be reviewed and evaluated as they are received for completeness, adequacy, and conclusiveness. Where the information received is not completely adequate in all respects, follow-ups, or new efforts to obtain such information are to be made and carried through to conclusion. When verification of all necessary items for each 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 following determinations and the basis for such determinations: 3. Summary of Verified Data (a). Eligibility of the tenant group as Household or as the residual of a Household (b). Size of dwelling required; (c). Eligibility of the Household with respect to income limits for continued participation; (d). Extent of medical or other child care expenses; (e). Rent which Household is to pay; (f). Amount of Housing Assistance Payment; (g). Social Security Numbers for all Household members, or certifications for Household members who do not have a social security number. E. Notice to Household and Owner Following Reexamination. Within 30 days after the Household has submitted all the required information, the EHA is to notify the Household and owner of any increase or decrease in the amount of rent payable by the Household and housing assistance payments to the owner. 1. Overcrowded Unit. If the EHA determines that the unit is overcrowded due to an increase in Household size, a Voucher shall be issued to the Household in accordance with the terms of the lease or upon mutual rescission of the existing lease and the Household and the EHA shall try to find an acceptable unit as soon as possible. If an acceptable unit is found that is available for occupancy by the Household, 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 Household for occupancy in the acceptable unit. Housing assistance payments will not be terminated unless the Household rejects without good reason the offer of a unit which the EHA judges acceptable. 38 2017-06-28 Item H1 (Housing Authority) 157 of 193 2. If the EHA determines that the unit is too large for the Household due to decrease in Household size, provisions of the paragraph above apply, except that if the contract rent plus any allowances does not exceed the fair market rent for the smaller size unit required, the Household may remain in the dwelling occupied. F. Termination of Payments Due to Household Ineligibility. If it is found that the Household is ineligible for continued participation as the result of the portion of rent payable by the Household (contract rent plus any utility allowances ) equaling or exceeding the owner's rent for the dwelling it occupies, the EHA shall notify the Household 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 EHA'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 Household'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 Household 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 Misrepresentation of Non-compliance by the Household. 1. If it is found, upon reexamination that at the time of issuance of the Voucher or any subsequent interim or periodic reexamination, the Household 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. HAPs will be adjusted to reflect this increased rental payment. Misrepresentations by the Household shall also be grounds for termination by the EHA from the Section 8 HCV rental assistance program. 2. If it is found at the time of reexamination, or any other time, that the Household 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 increased rent is to be made retroactive to the second month after the date on which the change occurred. Failure to report changes in income or Household circumstances within 10 days from the date the change took place shall be grounds for termination by the EHA from the Section 8 HCV rental assistance program. 3. If the Household fails to comply with its responsibilities under the Voucher, the EHA may determine the Household ineligible for further HAPs provided that the Household has been given reasonable notice (with a copy to the owner) and the opportunity to respond. 39 2017-06-28 Item H1 (Housing Authority) 158 of 193 (a). The EHA shall notify the Household and owner of such determination. (b). Such determination shall be grounds for termination 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 claims, or who have violated their Family Obligations. This provision does not apply to those participants who did not violate their Family Obligations and/or who have fully reimbursed the EHA such claims. H. Annual Inspection of Unit. As a condition for continuing to make HAPs, 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 agreed 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 HAPs, the owner shall be so notified and if he refuses to or fails to bring the dwelling up to standard, the HAPs Contract shall be terminated. 3. If the Household is still eligible in accordance with Section XII.E, and the reason the unit failed to meet HQS was not due to tenant damage or abuse above normal wear and tear, and the Household wishes to move to a dwelling where it can continue to be assisted, the EHA shall issue another Voucher 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 Household. The EHA may terminate assistance to a Household because of HQS breach by the Household. I. Evictions/Termination 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 Household, 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 Household to accept the offer of a 40 2017-06-28 Item H1 (Housing Authority) 159 of 193 new lease; a tenant Household 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 Household members or other persons under tenant's control; the landlord's desire to utilize the unit for personal or Household 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 EHA may be given by furnishing the EHA 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 Household participation in the Section 8 HCV program,regardless of whether or not there is a court "authorized" eviction, (b). Tenant appeal process (Exhibit 1), 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 EHA 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 Household 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 ("expiration"). The HAP Contract automatically terminates after 180 calendar days after the last housing assistance payment to the owner. K. Absence from Unit Household 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 41 2017-06-28 Item H1 (Housing Authority) 160 of 193 relatives, the maximum time allowed is two months. L. Household Break-Up When a court determines the disposition of property between members of the assisted Household in a divorce or separation under a settlement or judicial decree, the EHA is bound by the court's determination of which Household members continue to receive assistance. If there is no court order, then assistance remains with the adult Household members of the original assisted unit. 42 2017-06-28 Item H1 (Housing Authority) 161 of 193 SECTION All. SPECIAL PROGRAMS A. Homeownership 1. GENERAL PROVISIONS. The Section 8 Homeownership Program of the EHA permits Eligible participants in the Section 8 HCV program, including participants with portable vouchers, the option of purchasing a home with their Section 8 HCV assistance rather than renting. The homeownership option is limited to five percent (5%) of the total Section 8 HCV voucher program administered by the EHA in any fiscal year, provided that disabled families shall not be subject to the 5% limit. Eligible applicants for the Section 8 homeownership program must have completed an initial Section 8 HCV lease term, must not owe the EHA or any other Housing Authority any outstanding debt, and must meet the eligibility criteria set forth herein. Section 8 homeownership assistance may be used to purchase the following type of homes within the City of Encinitas: new or existing single-family, condominium, planned use developments, cooperatives, lofts, live/work units, or manufactured homes. The EHA also will permit portability of Section 8 homeownership assistance to another jurisdiction, provided the receiving jurisdiction operates a Section 8 homeownership program for which the Section 8 homeownership applicant qualifies or authorizes the EHA to administer the homeownership assistance in their jurisdiction. 2. PARTICIPANT ELIGIBILITY REQUIREMENTS. Participation in the Section 8 homeownership program is voluntary. Each Section 8 homeownership participant must meet the general requirements for admission to the Section 8 HCV program as set forth in the EHA's Administrative Plan. Such Section 8 HCV participants also must be "eligible" to participate in the homeownership program. The additional eligibility requirements for participation in the EHA's Section 8 homeownership program include that the participant must: (A) be a first-time homebuyer or have a family member who is a person with disabilities; (B) with the exception of elderly and disabled households, meet a minimum income requirement without counting income from "welfare assistance" sources; (C) with the exception of elderly and disabled households, meet the requisite employment criteria; (D) have completed an initial lease term in the Section 8 HCV program; (E) have fully repaid any outstanding debt owed to the EHA or any other Housing Authority; (F) not defaulted on a mortgage securing debt to purchase a home under the Section 8 homeownership option; and (G) not have any family member who has a present ownership interest in a residence at the commencement of the homeownership assistance. a. First-Time Homebuyer. Each Section 8 HCV participant, except families with a disabled member, must be a first-time homebuyer. A "first-time homebuyer" means that no member of the household has had an ownership interest in any residence during the three years preceding commencement of the homeownership assistance. 43 2017-06-28 Item H1 (Housing Authority) 162 of 193 However, the following exceptions are allowed: 1) a single parent or displaced homemaker who, while married, owned a home with a spouse (or resided in a home owned by a spouse) is considered a "first-time homebuyer"; 2) the right to purchase title to a residence under a lease-purchase agreement shall not be considered an "ownership interest."; and 3) a member of a cooperative (as defined in 24 CFR § 982.4) also qualifies as a "first time homebuyer". b. Minimum Income Requirement. (1) Amount of Income. At the time the participant begins receiving the homeownership assistance, the head of household, spouse, and/or other adult household members who will own the residence, must have a gross annual income at least equal to the Federal minimum hourly wage multiplied by 2000 hours. (2) Exclusion of Welfare Assistance Income. With the exception of elderly and disabled families, the EHA will disregard any "welfare assistance" income in determining whether the participant meets the minimum income requirement. Welfare assistance includes assistance from Temporary Assistance for Needy Families ("TANF"); Supplemental Security Income ("SSI") that is subject to an income eligibility test; food stamps; general assistance; or other welfare assistance specified by HUD. The disregard of welfare assistance income under this section affects the determination of minimum monthly income in determining initial qualification for the homeownership program. It does not affect the determination of income-eligibility for admission to the Section 8 HCV program, calculation of the participant's total tenant payment, or calculation of the amount of homeownership assistance payments. c. Employment History. With the exception of disabled and elderly households, each participant must demonstrate that one or more adult members of the household who will own the home at commencement of the homeownership assistance is employed full-time (an average of 30 hours per week) and has been continuously employed for one year prior to execution of the sales agreement. In order to reasonably accommodate a participant's participation in the program, the EHA will exempt families that include a person with disabilities from this requirement. The EHA's Executive Director may also consider whether, and to what extent, an employment interruption is considered permissible in satisfying the employment requirement. The Executive Director may also consider successive employment during the one-year period and self-employment in a business. 44 2017-06-28 Item H1 (Housing Authority) 163 of 193 d. Completion of Initial Lease Term. Applicants for and new participants in the Section 8 HCV program shall be ineligible for participation in the Section 8 homeownership program until completion of an initial Section 8 HCV lease term and the participant's first annual recertification in the Section 8 HCV program. Nothing in this provision will preclude Section 8 HCV participants that have completed an initial lease term in another jurisdiction from participating in the Section 8 homeownership program. e. Repayment of Any Housing Authority Debts. Participants in the Section 8 HCV program shall be ineligible for participation in the Section 8 homeownership program in the event any debt or portion of a debt remains owed to the EHA or any other Housing Authority. Nothing in this provision will preclude Section 8 HCV participants that have fully repaid such debt(s) from participating in the Section 8 homeownership program. f. Additional Eligibility Factors. (1) Elderly and Disabled Households. Elderly and disabled families are exempt from the employment requirements set forth in Section XIII.A.2.c. above. In the case of an elderly or disabled participant, the EHA will consider income from all sources, including welfare assistance in evaluating whether the household meets theminimum income required to purchase a home through the Section 8 homeownership program. (2) Prior Mortgage Defaults. If a head of household, spouse, or other adult household member who will execute the contract of sale, mortgage and loan documents has previously defaulted on a mortgage obtained through the Section 8 homeownership program, the participant will be ineligible to participate in the homeownership program. 3. PARTICIPATION REQUIREMENTS. Once a participant is determined to be eligible to participate in the program, they must comply with the following additional requirements: (A) complete a homeownership counseling program approved by the EHA prior to commencement of homeownership assistance; (B) within a specified time, locate the home proposed for purchase; (C) submit a sales agreement containing specific components to the EHA for approval; (D) allow the EHA to inspect the proposed homeownership dwelling to ensure that the dwelling meets appropriate housing quality standards; (E) obtain an independent inspection covering major building systems; (F) obtain EHA approval of the proposed mortgage (which must comply with generally accepted mortgage underwriting requirements); and (G) enter into a written agreement with the EHA to comply with all of its obligations under the Section 8 homeownership program. 45 2017-06-28 Item H1 (Housing Authority) 164 of 193 a. Homeownership Counseling Program. A participant's involvement in the homeownership program is conditioned on the participant attending and successfully completing a homeownership counseling program provided or approved by the EHA prior to commencement of homeownership assistance. The homeownership counseling program will cover home maintenance; budgeting and money management; credit counseling; negotiating purchase price; securing mortgage financing; finding a home; fair housing; Real Estate Settlement Procedures Act (RESPA) obligations; predatory lending issues and the advantages of purchasing and locating homes in areas that do not have a high concentration of low-income families. The counseling agency providing the homeownership counseling program shall either be approved by HUD or the program shall be consistent with the homeownership counseling provided under HUD's Housing Counseling program. The EHA may require participants to partake in an EHA-approved homeownership counseling program on a continuing basis. b. Locating and Purchasing a Home. (1) Type of Home. A participant approved for Section 8 homeownership assistance may purchase the following type of homes within the City of Encinitas: a new or existing home, a single-family home, a condominium, a home in a planned use development, a cooperative, a loft or live/work unit, or a manufactured home to be situated on a privately owned lot in a mobile home park. The home must be already existing or under construction at the time the EHA determines the participant eligible for homeownership assistance. In accordance with Federal Regulations regarding portability, participants may purchase a home in another jurisdiction, provided the receiving jurisdiction operates a Section 8 homeownership program for which the Section 8 homeownership applicant qualifies or authorizes the EHA to administer the homeownership assistance in their jurisdiction. In the former case, a participant's involvement in the Section 8 homeownership program will be subject to the Section 8 homeownership program and policies of the receiving jurisdiction. (2) Purchasing a Home. Once a home is located and a sales agreement approved by the EHA is signed by the participant, the participant shall have up to three (3) months, or such other time as is approved by the EHA's Executive Director or set forth in the EHA-approved sales agreement, to purchase the home. (3) Failure to Complete Purchase. If a Section 8 HCV participant is unable to purchase the home within the maximum time permitted by the EHA, the EHA shall continue the 46 2017-06-28 Item H1 (Housing Authority) 165 of 193 participant's involvement in the Section 8 HCV program. The participant may not reapply for the Section 8 homeownership program until they have been determined eligible for the homeownership option. (4) Lease-Purchase Participants may enter into lease-purchase agreements while receiving Section 8 HCV rental assistance. All requirements of the Section 8 HCV program apply to lease-purchase agreements, except that participants are permitted to pay an extra amount out-of-pocket to the owner for purchase related expenses—a "homeownership premium." Any "homeownership premium," defined as an increment of value attributable to the value of the lease-purchase right or agreement, is excluded from the EHA's rent reasonableness determination and subsidy calculation, and must be absorbed by the participant. When a lease-purchase participant is ready to exercise their option, they must notify the EHA and apply for the homeownership option. If determined eligible for homeownership assistance, the participant may be admitted to the homeownership program and must meet all the requirements of these policies. c. Sales Agreement. Prior to execution of the offer to purchase or sales agreement, the participant must provide the financing terms to the EHA for approval. The sales agreement must provide for inspection by the EHA and the independent inspection referred to in Section XIII.A.3.d. and must state that the purchaser is not obligated to purchase unless such inspections are satisfactory to the EHA. The contract also must provide that the purchaser is not obligated to pay for any necessary repairs without approval by the EHA. The sales agreement must provide that the purchaser is not obligated to purchase if the mortgage financing terms are not approved by the EHA pursuant to Section XIII.A.3.e. The sales agreement must also contain a seller certification that the seller is not debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. d. Independent Initial Inspection Conducted. To ensure the home complies with the housing quality standards of the Section 8 program, homeownership assistance payments may not commence until the EHA first inspects the home. An independent inspection of existing homes covering major building systems also must be completed by a professional selected by the participant and approved by the EHA. The EHA will not pay for the independent inspection. The independent inspection report must be provided to the EHA. The EHA may disapprove the unit due to information contained in the report or for failure to meet federal housing quality standards. 47 2017-06-28 Item H1 (Housing Authority) 166 of 193 e. Financing Requirements. The proposed financing terms shall be submitted to and approved by the EHA prior to close of escrow. The EHA shall determine the affordability of the participant's proposed financing. In making such determination, the EHA may take into account other participant expenses, including but not limited to child care, unreimbursed medical expenses, education and training expenses and the like. Certain types of financing, including but not limited to, balloon payment mortgages, unless convertible to a variable rate mortgage, are prohibited and may not be approved by the EHA. Seller-financing mortgages shall be considered by the EHA on a case by case basis. If a mortgage is not FHA- insured, the EHA will require the lender to comply with generally accepted mortgage underwriting standards consistent with those of HUD/ FHA, Ginnie Mae, Fannie Mae, Freddie Mac, California Housing Finance Agency (CHFA), USDA Rural Housing Services, the Federal Home Loan Bank, or other private lending institution. f. Compliance with Family Obligations. A participant must agree in writing to comply with all Family Obligations under the Section 8 HCV program and the EHA's homeownership policies. These obligations include (1) attending ongoing homeownership counseling, if required by the EHA; (2) complying with the mortgage terms; (3) not selling or transferring the home to anyone other than a member of the assisted family who resides in the home while receiving homeownership assistance; (4) not refinancing or adding debt secured by the home without prior approval by the EHA; (5) not having a present ownership interest and/or not acquiring an ownership interest in another residence while receiving homeownership assistance; and (6) supplying all required information to the EHA, including but not limited to annual verification of household income, notice of change in homeownership expenses, notice of move-out, and notice of mortgage default. The EHA's Homeownership Family Obligation policies are set forth in Exhibit II hereto. g. Compliance Lien Upon purchase of a home, the participant must execute documentation as required by HUD and the EHA, consistent with State and local law, securing the EHA's right to recapture the homeownership assistance in accordance with Section XIII.5.c. below. The lien securing the recapture of homeownership subsidy may be subordinated to a refinanced mortgage. 4. AMOUNT OF ASSISTANCE. The amount of the monthly assistance payment will be based on three factors: the voucher payment standard for which the participant is eligible; the monthly homeownership expense; and the participant's household income. The EHA will pay the lower of either the payment standard minus the total family contribution ("TFC") or the participant's monthly homeownership expenses minus the TFC. The Section 8 participant will pay the difference. 48 2017-06-28 Item H1 (Housing Authority) 167 of 193 a. Determining the Payment Standard. The voucher payment standard is the fixed amount the EHA annually establishes as the "fair market" rent for a unit of a particular size located within the EHA jurisdiction. In the homeownership program, the initial payment standard will be the lower of either (1) the payment standard for which the participant is eligible based on family size; or (2) the payment standard which is applicable to the size of the home the participant decides to purchase. The payment standard for subsequent years will be based on the higher of: (1) the payment standard in effect at commencement of the homeownership assistance; or (2) the payment standard in effect at the most recent regular reexamination of the participant's income and size. The initial payment standard, for purposes of this comparison, shall not be adjusted even if there is a subsequent decrease in participant size. b. Determining the Monthly Homeownership Expense. Monthly homeownership expense includes all of the following: principal and interest on the initial mortgage and any mortgage insurance premium (MIP) incurred to finance the purchase and any refinancing of such debt; real estate taxes and public assessments; homeowner's insurance; maintenance expenses per the EHA allowance; costs of major repairs and replacements per the EHA allowance (replacement reserves); utility allowance per the EHA's schedule of utility allowances; principal and interest on mortgage debt incurred to finance major repairs, replacements or improvements for the home including changes needed to make the home accessible; and homeowner association dues, fees or regular charges assessed, if any. Homeownership expenses for a cooperative member may only include EHA approved amounts for the cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; home insurance; the allowances for maintenance expenses, major repairs and replacements and utilities; and principal and interest on debt incurred to finance major repairs, replacements, or improvements, including changes needed to make the home accessible. c. Determining the Total Family Contribution The TFC is that portion of the homeownership expense that the participant must pay. It is generally 30% percent of the participant's adjusted income, plus any gap between the payment standard and the actual housing cost. All participant income (including public assistance) will be counted to determine the participant's adjusted monthly income for purposes of determining the amount of assistance. d. Payment to Lender The EHA will provide the lender with notice of the amount of the housing assistance payment prior to close of escrow and will pay the EHA's contribution towards the participant's homeowner expense directly to the lender, unless 49 2017-06-28 Item H1 (Housing Authority) 168 of 193 otherwise required by the lender. The participant will be responsible to submit their contribution to the lender unless otherwise required by the lender. 5. TERMINATION OF SECTION 8 HOMEOWNERSHIP ASSISTANCE. a. Grounds for Termination of Homeownership Assistance (1) Failure to Comply with Family Obligations Under Section 8 HCV Program or EHA's Homeownership Policies. A participant's homeownership assistance may be terminated if the participant fails to comply with its obligations under the Section 8 HCV program, the EHA homeownership policies, or if the participant defaults on the mortgage. If required, the participant must attend and complete ongoing homeownership counseling classes. The participant must comply with the terms of any mortgage incurred to purchase and/or refinance the home. The participant must provide the EHA with written notice of any sale or transfer of any interest in the home; any plan to move out of the home prior to the move; the participant's household income and homeownership expenses on an annual basis; any notice of mortgage default received by the participant; and any other notices which may be required pursuant to EHA homeownership policies. Except as otherwise provided in this Section, the participant may not convey or transfer the home to any entity or person other than a member of the assisted participant's family while receiving homeownership assistance. (2) Occupancy of Home. Homeownership assistance will only be provided while the participant resides in the home. If the participant moves out of the home, the EHA will not continue homeownership assistance commencing with the month after the participant moves out. (3) Changes in Income Eligibility. A participant's homeownership assistance may be changed in the month following annual recertification of the household income, but participation in the Section 8 Homeownership Program shall continue until such time as the assistance payment amounts to $0 for a period of six (6) consecutive months. (4) Maximum Term of Homeownership Assistance. Notwithstanding the provisions of Section XIII.A.5.a, subparagraphs (1) through (3), except for disabled and elderly families, a participant may receive Section 8 homeownership assistance for no longer than ten (10) years from the date of close of escrow unless the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer, in which case the maximum term is 15 years. Families that qualify as elderly at the commencement of homeownership 50 2017-06-28 Item H1 (Housing Authority) 169 of 193 assistance are not subject to a maximum term limitation. Families that qualify as disabled families at the commencement of homeownership assistance or at any time during the provision of homeownership assistance are not subject to a maximum term limitation. If a disabled participant or elderly participant ceases to qualify as disabled or elderly, the appropriate maximum term becomes applicable from the date homeownership assistance commenced; provided, however, that such participant shall be eligible for at least six additional months of homeownership assistance after the maximum term becomes applicable. The time limit applies to any member of the household who has an ownership interest in the unit during any time that homeownership payments are made, or is a spouse of any member of the household who has an ownership interest. b. Procedure for Termination of Homeownership Assistance. A participant in the Section 8 Homeownership program shall be entitled to the same termination notice and informal hearing procedures as set forth in the Administrative Plan of the EHA for the Section 8 HCV program. c. Recapture of Homeownership Assistance In certain circumstances the homeownership assistance provided to the participant is subject to total or partial recapture upon the sale or refinancing of the home. Sales proceeds that are used by the participant to purchase a new home with Section 8 homeownership assistance are not subject to recapture. Further, a participant may refinance to take advantage of better terms without any recapture penalty, provided that no proceeds are realized ("cash-out"). Only "cash-out" proceeds from refinancing and sales proceeds not used to purchase a new home with Section 8 assistance less those amounts provided for in CFR §982.640 are subject to recapture. Further, the amount of homeownership assistance subject to recapture shall automatically be reduced in annual increments of 10% beginning one year from the purchase date. At the end of 10 years the amount of homeownership assistance subject to recapture will be zero. 6. CONTINUED PARTICIPATION IN SECTION 8 HCV PROGRAM. a. Default on FHA-Insured Mortgage. If the participant defaults on an FHA-insured mortgage, the EHA may permit the participant to move with continued Section 8 HCV rental assistance if the participant demonstrates that they have (a) conveyed title to the home to HUD or its designee, as required by HUD; and (b) moved from the home within the period established or approved by HUD. b. Default on non-FHA-Insured Mortgage. If the participant defaults on a mortgage that is not FHA-insured, the EHA may permit the participant to move with continued Section 8 HCV rental assistance if the participant demonstrates that they have (a) conveyed title to the home to the 51 2017-06-28 Item H1 (Housing Authority) 170 of 193 lender, to the EHA or to its designee, as may be permitted or required by the lender; and (b) moved from the home within the period established or approved by the lender and/or the EHA. The EHA may or may not exercise it's first right of refusal in this instance. 7. EHA ADMINISTRATIVE FEE. For each month that homeownership assistance is paid by the EHA on behalf of the participant, the EHA shall be paid the ongoing administrative fee described in 24 CFR §982.152(b). 8. WAIVER OR MODIFICATION OF HOMEOWNERSHIP POLICIES. The Executive Director of the EHA shall have the discretion to waive or modify any provision of the Section 8 homeownership program or policies not governed by statute or regulation for good cause or to comply with changes in HUD regulations or directives. B. Project Based Vouchers The EHA may issue up to 20 vouchers for Project Based Rental Assistance. Administration of the vouchers will comply with applicable regulations found in 24 CFR 983. 52 2017-06-28 Item H1 (Housing Authority) 171 of 193 SECTION XIV. TERMINATION OF ASSISTANCE A. Termination Because of Household Action or Inaction. 1. Denial of assistance for an applicant may include any or all of the following: • denying listing on the EHA waiting list, • denying or withdrawing a voucher, • refusing to enter into a HAP contract or approve a lease; and • 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 existing HAP contract; and • refusing to process or provide assistance under portability procedures. B. Grounds for Denial or Termination of Assistance. 1. If the Household violates any Household obligations under the program. 2. If any member of the Household has ever been evicted from public housing. 3. If any Housing Authority has ever terminated assistance under the voucher program for any member of the Household. 4. If any member of the Household commits drug-related criminal activity or violent criminal activity. 5. If any member of the Household commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. 6. If the Household currently owes rent or other amounts to the EHA or to another Housing Authority in connection with Section 8 HCV program or public housing assistance. 7. If the Household 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 Household under the lease. 8. If the Household breaches an agreement with the EHA to pay amounts owed to the EHA or amounts paid to an owner by the EHA. 9. If a Household participating in the Family Self-Sufficiency (FSS) program fails to comply, without good cause, with the Household's FSS contract of participation. 10. If the Household has engaged in or threatened abusive or violent behavior toward EHA personnel or contractors. 53 2017-06-28 Item H1 (Housing Authority) 172 of 193 C. EHA Discretion to Consider Circumstances. In deciding whether to deny or terminate assistance, the EHA 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 Household members, and the effects of denial or termination of assistance on other Household members who were not involved in the action or failure. The EHA may impose, as a condition of continued assistance, a requirement that Household members who participated in or were culpable for the action or failure will not reside in the unit. With this condition, the EHA may permit the other members of a participant Household to continue receiving assistance. D. Requirement to Sign Consent Forms. The EHA shall deny or terminate assistance if any member of the Household fails to sign or submit consent forms for obtaining information. E. Restriction on Assistance to Non-citizens. The Household shall submit required evidence of citizenship or eligible immigration status. F. Violence Against Women Act (VAWA) Denial of assistance to an applicant or termination of assistance of a participant for criminal activity is subject to the provisions of the Violence Against Women Act of 2005 as described below: 1. Being a victim of domestic violence, dating violence or stalking is not a basis for denial of assistance or admission to assisted housing if the applicant otherwise qualifies for assistance or admission. 2. Incidents or threats of abuse will not be construed as serious or repeated violations of the lease agreement or other "good cause" for termination of the assistance, tenancy, or occupancy rights of a victim or abuse. 3. The EHA has authority to terminate voucher assistance for certain family members while permitting other members of a participant family to continue receiving assistance (providing the culpable family member will no longer reside in the unit). The EHA's right to exercise this administrative discretion is not dependent on a bifurcated lease or other eviction action by the owner against an individual family member. 4. Certification of Abuse: The EHA will request that the victim of abuse complete the HUD form 50066 — Certification of Domestic Violence, Dating Violence or Stalking. This form must be provided within fourteen (14) business days from the date the EHA requests it. Without the certification, the EHA may terminate assistance. 54 2017-06-28 Item H1 (Housing Authority) 173 of 193 SECTION XV. HOUSEHOLD OBLIGATIONS. A. The Household must supply any information that the EHA or HUD 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 Household is responsible for any violation of HQS caused by the Household. The Household must allow the EHA to inspect the unit. C. The Household may not commit any serious or repeated violation of the lease. D. The Household must notify the EHA and the owner before the Household moves out of the unit, or terminates the lease on notice to the owner. E. The Household must promptly give the EHA a copy of any owner eviction notice. F. The Household must use the assisted unit for residence by the Household. The unit must be the Household'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 Household. G. The composition of the assisted Household residing in the unit must be approved by the EHA. The Household must promptly inform the EHA of the birth, adoption or court- awarded custody of a child. The Household must request the EHA approval to add any other Household 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 Household must not sublease or let the unit. The Household must not assign the lease nor transfer the unit. I. The Household must promptly notify the EHA if any Household member no longer resides in the unit. J. The Household must promptly notify the EHA of absence from the unit. K. The Household must not own or have any interest in the unit. L. The members of the Household must not commit fraud, bribery or any other corrupt or criminal act in connection with the programs. Members of the Household may not engage in drug-related criminal activity or violent criminal activity. M. An assisted Household, or members of the Household, may not receive Section 8 HCV 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. 55 2017-06-28 Item H1 (Housing Authority) 174 of 193 SECTION XVI. DEBTS OWED TO ENCINITAS HOUSING AUTHORITY A. Owner If an owner is indebted to the EHA as a result of an overpayment, the owner will be requested to either pay the amount due in full or be advised that the overpayment will be deducted from future housing assistance payment(s) until the overpayment is paid. If the owner fails to pay the amount owed and there is not a future Housing Assistance Payment to offset the overpayment, the owner will be banned from renting to future Section 8 HCV participants until the debt is resolved. B. Applicant An applicant must pay in full all debts, if any, owed to the EHA or any other Housing Agency before being admitted to the rental assistance program. An exception may be made if the applicant is current on a repayment agreement. C. Participant A participant, including a participant under portability, with repayment agreements in good standing will be allowed to continue making payments under such agreements until the debt is paid in full. Failure to make timely payments will be grounds for termination of benefits. However, if a participant wishes to move or port to another jurisdiction, the balance must be paid in full prior to execution of a new contract. The EHA may approve an exception to this provision if the family demonstrates that they have made timely payments in accordance with the Repayment Agreement and the family may suffer a hardship if they are unable to relocate or exercise portability. 56 2017-06-28 Item H1 (Housing Authority) 175 of 193 SECTION XVII. FAMILY SELF-SUFFICIENCY PROGRAM A. Purpose. The purpose of the Family Self-Sufficiency (FSS) program is to provide supportive services which enable Section 8 HCVfamilies to achieve economic independence and self-sufficiency. To participate in the FSS, the Household and the EHA shall enter into a contract which outlines resources and services available for the Household. The Household has special responsibilities under the FSS contract. A special escrow account is established with increased rents which would have been paid to the EHA if the Household's income is increased through suitable employment. B. Selection of Participants. Only Section 8 HCV participants may be selected considering the following criteria: 1. Participants who have expressed interest. 2. Fifty percent (50%) of the slots in the FSS program may be targeted to participants with one or more Household 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 Jobs Training Partnership Act (JTPA). 3. Fifty percent (50%) of the FSS slots will be based on the date the Household expressed interest. 4. FSS families moving to the EHA's jurisdiction (portables) will be selected for the FSS program based on criteria selection. 5. If a Household previously participated in the FSS program with either the EHA or another authority and was terminated from the FSS Program, the Household may not be selected for participation a second time. 6. If the Household owes the EHA money in connection with Section 8 HCV assistance, they may be denied participation in the FSS Program. 7. Families shall be selected without regard to race, color, creed, religion, sex, disability, or national origin. C. Terminating FSS and Section 8 HCV Assistance. 1. Committing program fraud, such as misrepresentation of income, assets, and deductions; misrepresentation of Household composition; or illegal activity, is grounds for termination from the Section 8 programs and the FSS program. Withholding services is not an option for the above families. 2. If the head of the FSS Household does not seek and maintain employment as specified in the FSS contract of participation or never finds employment during the contract's five year term, the Household has not met its FSS obligations and shall be terminated from the FSS program and the Section 8 HCV assistance. 57 2017-06-28 Item H1 (Housing Authority) 176 of 193 3. Section 8 HCV Informal Hearing Procedures will apply to the families terminated from the Family Self-Sufficiency Program as set forth in Exhibit I hereto. 58 2017-06-28 Item H1 (Housing Authority) 177 of 193 EXHIBIT I SECTION 8 HOUSING CHOICE VOUCHER PROGRAM (HCV) INFORMAL REVIEW AND HEARING PROCEDURES INFORMAL REVIEW FOR APPLICANTS If an applicant is determined to be ineligible for a Section 8 program on the basis of income, Household 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 EHA shall retain for three years a copy of the application, notice to the applicant, and the applicant's responses. INFORMAL HEARINGS FOR PARTICIPANTS A. When a hearing is required. The EHA must give a participant Household an opportunity for an informal hearing to consider whether the following EHA decisions relating to the individual circumstances of a participant Household are in accordance with the law, HUD regulations, and EHA policies: 1. A determination of the Household's annual or adjusted income, and the computation of the housing assistance payment. 2. A determination on the appropriate utility allowance. 3. A decision to deny or terminate assistance on behalf of the participant because of the Household's action or inaction. 4. A determination that a Household 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 Household's request for an exception from the standards. 5. A determination of the Household unit size under the EHA subsidy standards. 6. A determination to terminate assistance because the participant Household has been absent from the assisted unit for longer than the maximum period permitted under EHA policy and HUD rules. The EHA must give the opportunity for an informal hearing under items 3, 4, and 6 above before the EHA terminates housing assistance payments for the Household under an existing HAP contract. 1-59 2017-06-28 Item H1 (Housing Authority) 178 of 193 B. When a hearing is not required. The EHA is not required to provide the Household an opportunity for an informal hearing for any of the following: 1. Discretionary administrative determinations by the EHA. 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 voucher term. 5. An EHA 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 Household.) 7. An EHA determination that the unit is not in accordance with HQS because of the Household size. 8. A determination by the EHA to exercise or not to exercise any right or remedy against the owner under a HAP Contract. C. Procedure. The EHA must notify the Household promptly, in writing, that they may ask for an informal review which would include an explanation of the basis of the EHA's determination, and if they do not agree, the Household may request an informal hearing on the decision. The Household must submit, in writing, 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 what relief is sought by the applicant/participant. The informal hearing shall be conducted by an agency-appointed Hearing Officer. The Hearing Officer shall not have made or approved the decision under review or be a subordinate of the person who made the decision. The Household shall be given the opportunity to examine, before the hearing, any EHA documents that are directly relevant to the hearing. The Household shall be allowed to copy any such document at the Household's expense. If the EHA does not make the document available for examination on request of the Household, the EHA may not rely on the document at the hearing. The EHA shall be given the opportunity to examine at the EHA or contractor's offices any Household documents that are directly relevant to the hearing. The EHA or contractor shall be provided this opportunity before the hearing. The EHA shall be allowed to copy any such documents at their own expense. If the Household does not make the document available for 1-60 2017-06-28 Item H1 (Housing Authority) 179 of 193 examination, the Household may not rely on the document at the hearing. The Household 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 the respon- sibility of the Officer to insure the adequate information is brought and that the order of the hearing proceeds as follows: The Officer shall identify the session (parties present, date, time and place), and read the initial 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 or use of an audio recording and/or a transcript of the proceedings shall be at the discretion of the Hearing Officer. However, a request by the Household for an audio taping to be done, shall be honored. The Household 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. D. Decision. The decision shall be issued in writing by the Hearing Officer and shall briefly state the reasons (applicable federal regulations and program guidelines) for the particular determination. Factual determinations relating to the individual circumstances of the Household shall be based on a preponderance of the evidence presented at the hearing. A copy of the decision shall be sent to the Household by certified and first class mail, return receipt requested, within ten (10) 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." 1-61 2017-06-28 Item H1 (Housing Authority) 180 of 193 EXHIBIT II SECTION 8 HOMEOWNERSHIP FAMILY OBLIGATIONS This form is to be signed by the homebuyer(s) in the presence of the Encinitas Housing Authority's (EHA) staff. The EHA staff will explain any and all clauses which you, the homebuyer(s), may not understand. The following paragraphs describe your responsibilities under the Section 8 Homeownership Program. If you or members of your household do not meet these responsibilities, through your actions or your failure to act, you may be terminated from the Section 8 Homeownership Program. 1. Family Obligations: You must comply with all Family Obligations of the Section 8 HCV program, excepting only the prohibition against owning or having an interest in the unit. Family Obligations §§ 982.551(c), (d), (e), (f), (g) and Q) do not apply to the Section 8 Homeownership Program. 2. Homeownership Counseling: All participant family members (i.e. those signing the purchase offer and loan documents) must satisfactorily complete an EHA provided or approved homeownership counseling program prior to commencement of homeownership assistance. The EHA may require any or all participant family members to attend additional homeownership counseling classes as a condition of continued assistance. 3. Purchase Contract: You must include contract conditions in any Offer to Purchase that give the EHA a reasonable time (a) to inspect the home for compliance with HUD's Housing Quality Standards; (b) to review and approve a professional home inspection report obtained by you from an EHA approved inspector; and (c) approve the terms of your proposed financing. Advise your Realtor of these requirements. 4. Mortgage Obligations: You must comply with the terms of any mortgage incurred in the purchase of the property and must notify the EHA and the EHA's Homeownership Program Counselor within five (5) days of receipt of any late payment or default notice. 5. Occupancy: You must occupy the unit as your principal residence. You may not transfer, sell, or assign any interest in the property without the EHA's prior written consent. You may not rent or lease any part of the premises without the EHA's prior written consent. You must notify the EHA in writing at least 30 days prior to moving out of the house for a period of 30 days or longer or prior to any sale, transfer, assignment, lease or other form of alienation of the assisted property. 6. Maintenance: You must maintain the property in a decent, safe and sanitary manner. You must allow the EHA to inspect the property within one-week of a demand by the EHA to conduct an inspection. You must correct any notice of deficiency issued by the EHA within the time limit specified in the notice. If you fail to adequately maintain the property, the EHA may divert the maintenance and replacement reserves portions of the Homeownership Assistance Payment to an escrow account to be used to pay for reasonable and necessary maintenance expenses. 1-62 2017-06-28 Item H1 (Housing Authority) 181 of 193 7. Annual Reexamination: You must annually provide the EHA with current information regarding participant income and composition in a format required by the EHA. 8. Refinancing: You must notify the EHA in writing of any proposal to refinance the original purchase mortgage or of any proposal to encumber the property with secondary financing and obtain the EHA's written approval of such financing prior to executing any loan documents. 9. Default: In the event of a default on your mortgage obligation, you must cooperate with the EHA and the lender to minimize any loss to the lender in order to maintain your eligibility to continue as a participant in the Section 8 HCV program. 10. Recapture: You must sign and have recorded a lien, in a form required by HUD, securing the EHA's right to recapture a percentage of homeownership assistance provided to you upon your sale or refinancing of the home within a 10 year period after the purchase date. The amount of recapture shall be calculated in accordance with HUD regulations and shall be subject to automatic reduction in 10% increments annually beginning one year from the purchase date. By signing below, I attest that I have read and understood my obligations as a participant in the Section 8 Homeownership Program and I agree to abide by these responsibilities. I understand that the EHA may terminate my homeownership assistance if I violate any of these obligations, but that I may request an informal review of any proposed notice of termination prior to it becoming effective. Participant Date Participant Date 1-63 2017-06-28 Item H1 (Housing Authority) 182 of 193 Attachment 4 Public Notice 2017-06-28 Item H1 (Housing Authority) 183 of 193 REVISED NOTICE DUE TO TIME CHANGE NOTICE OF AVAILABILITY FOR PUBLIC REVIEW CITY OF ENCINITAS Proposed Changes to the Section 8 Housing Choice Voucher Program Administrative Plan The proposed changes to the Section 8 Housing Choice Voucher (HCV) Program Administrative Plan are available for public review from June 2 through June 16, 2017. Housing Authorities that administer a Section 8 program are required to adopt a written Administrative Plan that establishes local policies for administration of the program in accordance with the Department of Housing and Urban Development (HUD) requirements. The Administrative Plan and revisions to the plan must be adopted by the Housing Authority and submitted to HUD. The Encinitas Housing Authority will hold a public hearing on Wednesday, June 28, 2017, at 5:30 p.m.* at City Hall Council Chambers, 505 S. Vulcan Ave., Encinitas, CA, to consider the revisions to the Administrative Plan. All comments received on the proposed Administrative Plan will be provided to the Housing Authority for consideration. The proposed changes to the Administrative Plan are available for review in the Planning Division of the City's Development Services Department, located at City Hall, during regular business hours and on the City's website at www.EncinitasCa.gov. Please provide comments to Nikki Photinos, by e-mail at NPhotinos @EncinitasCa.Gov; or by mail to City of Encinitas, 505 S. Vulcan Ave., Encinitas, CA 92024. You may also provide comments at the public hearing on June 28, 2017 at 5:30 p.m. If you have any questions or wish additional information, please call (760) 943-2247. This notice was originally published on June 2, 2017, with a meeting time of 4:30 p.m. The meeting time has been changed to 5:30 p.m. 2017-06-28 Item H1 (Housing Authority) 184 of 193 Attachment 5 Public Comment and Response 2017-06-28 Item H1 (Housing Authority) 185 of 193 Kathy Noel From: 0mneLonAoOer Sent ThursdoyJune22, 2O77l:53PM To: pmhyo.ijodimoQhxoodi@gmoiioom Cc KothyNoel; NikNPhoMnosJeasicuPmrtar0porter@quodeicon); Nico|ePiono Subject: RE: Public Comment Section 8 Admin Plan and Request for LEP Analysis Attachments: Public Comment Response Ob22l7.pdf Dear Ms. P8[iG8 |j8di-MaghSOOdi, Esq.: The EDCiD)t8S Housing Authority /EHA\ thanks you for your comments regarding the pnOpOG8d amendments to the S8CUOn 8 Housing Choice VOUCh8[ PrOg[8Dl AdrniDiStF8dVe Plan. A r8SpODSe to your COrnOl8DtS is attached; iO the attached your comments are noted followed by staff response. Thanks for your interest in the Administrative Plan of the Housing Choice Voucher Program of the EHA. GiOC8re|y' I}iaoe S. lnogm,,er Principal Planner City of Encinitas 5055. Vulcan Avenue Encinitas, CA92O24 PZ�){LJ����-,l4 FZ6U-6313-28J8 From: Kathy Noel Sent: Thursday, June Z2, ZO17 1:33 PM To: Diane Langager Subject; FVV: Public Comment Section 8 Admin Plan and Request for LEP Analysis From: ParisaIjGdi-Moghsnodi [ l Sent: Friday, June 16, 2U174:16 PM To: Nikki Photinos Subject: Public Comment Section 8 Admin Plan and Request for LEP Analysis Dear Nikki Phohnoa. I am writing to express concerns with the proposed changes to the Section 8 HCVIP Administrative Plan pursuant to the attached Public Comment Notice. ^ The Payment Standard section io vague and misleading, |t fails to notify potential program applicants, program applicants, program participants, and the general public about one's right tu request on Exception Payment Standard beyond 12O% ofthe FK8R. Ensuring that EHA's Exception Payment Standard language is simple to understand and not misleading ensures the above mentioned individuals can understand and request Exception Payment Standards, which can significantly improve the economic health cd low-income families. 2017-06-28 Item H1 (Housing Authority) 186 of 193 z The Exemption Payment Standard information is clearly stated in HUD's HCVP Guidebook and EHA can simply use the language from the Guidebook. Ao written,the Administrative Plan does not state that EHA can request HUD approval\oadopt Exception Payment Standards above 12O% FK4R. Given the high cost of living in Encinitas,the lack of rent control, and the current housing and homelessness crisis low-income San Diego County residents are experiencing, the Exception Payment Standard section should not be vague and misleading, but clear and easy to understand. EHA's Language Access Plan and Limited English Proficiency section does not reference the LEP analysis EHA conducted in determining that no written translation would be provided and no LEP plan written. Given that EHA'o Proposed Plan cites the Federal Register guidance about the LEP analysis, it only makes sense that such on analysis was conducted. The data EHA collected to conduct the analysis (the current total population within EHA'ejurisdiction, the current total population of LEP individuals within EHA's jurisdiction, and the current total population of Spanish speaking LEP individuals within EHA'a/uhodiction) and EHA'a analysis of the data that demonstrated to EHAha ability to avoid having an LEP plan or written translation of vital documents needs to be provided to the general public. The City should provide the data and analysis on the website where the Proposed Plan is located before the end of the Public Comment period ao specified in the Public Comment Notice. Thank you. Sincerely, PaheaUadi'NYaghnuodi. Esq. 2017-06-28 Item H1 (Housing Authority) 187 of 193 Dear Ms. Parisa Ijadi-Maghsoodi, Esq.: The Encinitas Housing Authority thanks you for your comments regarding the proposed amendments to the Section 8 Housing Choice Voucher Program Administrative Plan. Your comments are noted below followed by staff response. Comment 1: The Payment Standard section is vague and misleading. It fails to notify potential program applicants, program applicants, program participants, and the general public about one's right to request an Exception Payment Standard beyond 120% of the FMR. Ensuring that EHA's Exception Payment Standard language is simple to understand and not misleading ensures the above mentioned individuals can understand and request Exception Payment Standards, which can significantly improve the economic health of low-income families. The Exemption Payment Standard information is clearly stated in HUD's HCVP Guidebook and EHA can simply use the language from the Guidebook. As written, the Administrative Plan does not state that EHA can request HUD approval to adopt Exception Payment Standards above 120% FMR. Given the high cost of living in Encinitas, the lack of rent control, and the current housing and homelessness crisis low-income San Diego County residents are experiencing, the Exception Payment Standard section should not be vague and misleading, but clear and easy to understand. Response 1: The Administrative Plan sets forth the policies of the Encinitas Housing Authority (EHA) where discretion is provided under current housing regulations. As stipulated in the Administrative Plan, the EHA establishes its payment standard within the basic range of 90% - 110% of the Fair Market Rent (FMR) set forth for this geographic area annually by the Department of Housing and Urban Development (HUD). Additionally, the EHA may exceed 110% of the FMR payment standard up to 120% for families as a reasonable accommodation. Per HUD regulations, the EHA may request an amount greater than the 120%. The Administrative Plan does not restate this regulation. The EHA policy is to review the FMR annually to establish the payment standards for each bedroom size at a level that permits the EHA to maximize the number of families to be leased under the allocated number of vouchers and approved budget amount provided under the Annual Contribution Contract with HUD. Comment 2: EHA's Language Access Plan and Limited English Proficiency section does not reference the LEP analysis EHA conducted in determining that no written translation would be provided and no LEP plan written. Given that EHA's Proposed Plan cites the Federal Register guidance about the LEP analysis, it only makes sense that such an analysis was conducted. The data EHA collected to conduct the analysis (the current total population within EHA's jurisdiction, the current total population of LEP individuals within EHA's jurisdiction, and the current total population of Spanish speaking LEP individuals within EHA's jurisdiction) and EHA's analysis of the data that demonstrated to EHA its ability to avoid having an LEP plan or written translation of vital documents needs to be provided to the general public. 2017-06-28 Item H1 (Housing Authority) 188 of 193 The City should provide the data and analysis on the website where the Proposed Plan is located before the end of the Public Comment period as specified in the Public Comment Notice. Response 2: The Encinitas Housing Authority Administrative Plan sets forth the policies where regulation permits. The Administrative Plan does not present either the data or analysis prepared to develop the policy. To clarify the EHA Limited English Proficiency Policy, the EHA will revise this section as follows (revisions depicted in strikeout/underline): 3.7 Language Assistance Plan and Limited English Proficiency Policy Link: Federal Register 1/22/07, 24 CFR 1 EHA is committed to providing meaningful access to its programs and services to all eligible persons, including those who have Limited English Proficiency because of their national origin. EHA will take affirmative steps to communicate with people who need services or information in a language other than English. LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this Policy, LEP persons are HCV program applicants and participant families. Based on U.S. Census data and the practices of other organizations within the jurisdiction, EHA has determined that the majority of participants speak either: English and Spanish. The EHA staff communicates in English but has access to Spanish speaking staff from other nearby departments. Given very limited resources EHA will utilize the LEP plan of the City of Encinitas Housing Division. pFeyi e meaRiRgf l °^^°°° EHA will periodically review the need for ane updated LEP -Pplan (no less often than concurrently with the Five Year PHA Plan process), and the a-Plan will be updated ^c if needed_ (RE) Iess EAep +h°r ^°r^, FFeRtly ,.,,+h the v°°r oI°r pFOGess). —The review will assess whether there have been any significant changes in the composition or language needs of the LEP population. EHA will analyze the various kinds of contacts it has with the public to assess language needs and decide what reasonable steps should be taken if the costs imposed do not substantially exceed the benefits. If in the future EHA determines it is appropriate to devela-update the ante; LEP plan, the following five steps will be taken: (1) identifying LEP individuals who need language assistance; (2) identifying language assistance measures; (3) training staff; (4) providing notice to LEP persons; and (5) reviewing, d°yak�p�, monitoring and updating the LEP plan as needed. If an individual is in need of language assistance and the EHA has determined that the individual has Limited English Proficiency and language assistance is needed to provide meaningful access, the EHA will make reasonable efforts to provide free language assistance as set forth in the existing LEP. The current LEP plan is: • Distributed to all EHA staff. • Available at the EHA office located at 505 South Vulcan Avenue, Encinitas, CA 92024. 2017-06-28 Item H1 (Housing Authority) 189 of 193 • Posted on the City of Encinitas website. • Explained in orientation and training sessions for supervisors and other staff who need to communicate with LEP persons. 3.7.1 LEP Options • When LEP persons request, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the EHA: the staff communicate in English. The interpreter may be a family member or friend. • The EHA will utilize a language line for telephone interpreter services. • EHA will inform applicants and participants of language assistance services. • EHA will not provide written translation but will provide written notice in the primary language of the LEP language group of the right to receive oral interpretation of those written materials, free of cost. Translation may also be provided orally. 2017-06-28 Item H1 (Housing Authority) 190 of 193 Attachment 6 Revisions to Section 4.9 Local Preferences 2017-06-28 Item H1 (Housing Authority) 191 of 193 4.9 Local Preferences Link: 24 CFR 982.207 A °e#cQrcQaces-LQ4;;hI0saa t#LQ t;rd er ef applieaRts-9R the waitiRg 104. � Rss+aTpreference does not guarantee admission into the program. Every applicant must still meet EHA's Selection Criteria before being offered a voucher. EHA has the following HCV preferences: • Special local preference will have a minimum of one voucher available to those who meet the following criteria: Eligible homeless applicants who have been referred by the San Diego County Continuum of Care or Coordinated Assessment and Housing Placement (CAHP) system who either meet the definition of homeless or who are exiting federally-assisted housing programs with no other permanent housing placement options. This preference is restricted to referrals through the CAHP system and is intended to assist applicants who are homeless in Encinitas, or living in a shelter in North County Coastal or Inland (as defined by San Diego Health and Human Services Agency) and can provide documentation of residing in Encinitas in the last six months. This selection preference is superior to the following ranking preferences. For the applicants on the waiting list, the following order of preference is established: • Local Preference: EHA has established special local preference-, for twe-an applicant who is a resident of the City of Encinitas; appleeant whe is employed in the City of Encinitas; "for who has been notified that they have been hired to work in the City of Encinitas. (50 points). (2) CGgible homeless annlinants who have boon reforred by the San Diego Gounty Gentinuum of Gare nr Geepiinateri sse-sysvme—At o no-- iL Dlanement (( HP) system y.fhn either moo# the defini#inn of hnmolocc nr y.fhn ore evitng y 681e40R nreferenne? A661nerinr to the fnllewing ranking nreferenrel The HAGSD ,.,ill not 661POFOOF GategeFy have b@@R PP9G@;S;S@d. *NE)t@� SPOGial IGGal PF@f@F@RG@ (2) will have -A maximum of ope to thelse v.fhe meet the • Priorities: applicants with any one or combination of the priorities listed below. (50 points) • Elderly individual or family, • Disabled individual or family, • Families with dependent children where a head of household works and/or attends school/a training program, • Homeless individual or family, • Involuntarily displaced individual or family due to Government action, or o Veteran For the purpose of determining eligibility and applying preference, a resident Household 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. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 28 2017-06-28 Item H1 (Housing Authority) 192 of 193 For homeless persons to meet residency test, related to the Priorities list above, applicant must prove that they have resided within the City of Encinitas in the last six months. Pnr thcrnnseQete e-e +t ,^^' ,n^' ^^ ^re#ee aee aA Veteran is a head of household or spouse who has discharged from military service under honorable or general conditions (with the exception of dishonorable), or a spouse of a deceased veteran. To be eligible for the working priority, a head of household must be engaged in gainful employment averaging a minimum of fifteen (15) hours per week or seven hundred eighty (780) hours per year. The use of the preferences by EHA will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant family. When adopting a new preference, EHA will notify all applicants on the current waiting list to determine if any are eligible under the preference (24 CFR §5.655(c)). EHA will specify in a public notice of a waiting list opening that current waiting list applicants may qualify for the preference. The notice will include any other information new applicants and current applicants on the waiting list will need to know about how to successfully apply and establish their preference status, including any partnering agencies with whom the owner may be working to receive referrals or determine preference eligibility. If an applicant makes a false statement in order to qualify for a Local preference, EHA will deny the preference. If the EHA denies a preference, EHA will notify the applicant in writing of the reasons why the preference was denied and offer the applicant an opportunity for an informal meeting review with a supervisor or his/her designee. If the preference denial is upheld as a result of the meeting, or the applicant does not request a meeting, the applicant will be placed on the waiting list without benefit of the preference. Applicants may exercise other rights if they believe they have been discriminated against. EHA HCV Administrative Plan Draft Dated June 28, 2017 FOR EHA REVIEW ONLY Page 29 2017-06-28 Item H1 (Housing Authority) 193 of 193