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IV.1. Approval of the Amended Admission and Continued Occupancy Plan
City of Hopkins HRA Board Report 2023-06 To: Honorable Chair and Board Members Mike Mornson, City Manager From: Muse Mohamed, Executive Director Date: December 5, 2023 Subject: Approval of the Admission and Continued Occupancy Plan _____________________________________________________________________ RECOMMENDED ACTION MOTION TO: Approve the amended Admission and Continued Occupancy Plan (ACOP) for the Public Housing program. OVERVIEW The United States Department of Housing and Urban Development (HUD) is requiring all Housing Authorities nationwide with a Public Housing program to comply with the rules and regulations under the Housing Opportunity Through Modernization Act (HOTMA) no later than January 1, 2025. The new final rules and regulations from HOTMA will impact the general operation and standard procedures of the public housing program at Dow Towers. Section 102 of the act changes requirements related to income reviews for Public Housing tenants. Section 102 will affect how tenant incomes will be calculated and projected when determining rental rates. Section 103 of the act requires all Housing Authorities to have a contingency plan for households who earn above the maximum income level for more than 24 months. Section 104 sets maximum asset limits and establishes exclusions from net family assets for the Public Housing program. In addition to these changes, the amended ACOP incorporates tenant protection rules and regulations regarding individuals who experience domestic violence, sexual assault, dating violence, stalking and human trafficking. The amended Admission and Continued Occupancy Plan includes newly enacted tenant landlord laws passed by the State of Minnesota legislature in 2023. SUPPORTING INFORMATION • Amended Admission and Continued Occupancy Plan Housing and Redevelopment Authority ADMISSIONS AND CONTINUED OCCUPANCY POLICY (ACOP) Hopkins Housing and Redevelopment Authority Approved by the Housing Authority Board of Commissioners: Submitted to HUD: ADMISSIONS AND CONTINUED OCCUPANCY POLICY FOR THE HOPKINS HOUSING AND REDEVELOPMENT AUTHORITY May 1, 2005 Revision Date February 1, 2006 June 1, 2015 October 1, 2006 March 1, 2016 June 1, 2007 March 1, 2017 September 1, 2008 July 1, 2017 September 1, 2009 July 1, 2018 August 1, 2010 June 1, 2019 June 1, 2011 July 1, 2020 June 1, 2012 May 1, 2021 June 1, 2013 September 1, 2022 July 1, 2014 March 1, 2023 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-1 Introduction ABOUT THE ACOP REFERENCES CITED IN THE ACOP ................................................................................. Intro-i REFERENCES CITED IN THE MODEL ACOP ................................................................. Intro-ii Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION ....................................................................................................................... 1-1 PART I: THE PHA I.A. OVERVIEW .................................................................................................................... 1-1 I.B. ORGANIZATION AND STRUCTURE OF THE PHA ................................................. 1-2 I.C. PHA MISSION ................................................................................................................ 1-3 I.D. THE PHA’S COMMITMENT TO ETHICS AND SERVICE ........................................ 1-4 PART II: THE PUBLIC HOUSING PROGRAM II.A. OVERVIEW AND HISTORY OF THE PROGRAM..................................................... 1-5 II.B. PUBLIC HOUSING PROGRAM BASICS..................................................................... 1-6 II.C. PUBLIC HOUSING PARTNERSHIPS .......................................................................... 1-6 II.D. APPLICABLE REGULATIONS .................................................................................. 1-10 PART III: THE ADMISSIONS AND CONTINUED OCCUPANCY POLICIES III.A. OVERVIEW AND PURPOSE OF THE POLICY ........................................................ 1-11 III.B. CONTENTS OF THE POLICY .................................................................................... 1-11 III.C. UPDATING AND REVISING THE POLICY .............................................................. 1-12 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-2 Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY INTRODUCTION ....................................................................................................................... 2-1 PART I: NONDISCRIMINATION I.A. OVERVIEW .................................................................................................................... 2-3 I.B. NONDISCRIMINATION................................................................................................ 2-4 I.C. DISCRIMINATION COMPLAINTS .............................................................................. 2-5 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES II.A. OVERVIEW .................................................................................................................... 2-9 II.B. DEFINITION OF REASONABLE ACCOMMODATION .......................................... 2-10 II.C. REQUEST FOR AN ACCOMMODATION................................................................. 2-11 II.D. VERIFICATION OF DISABILITY .............................................................................. 2-12 II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION ........................... 2-13 II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS ............................................................................................. 2-14 II.G. PHYSICAL ACCESSIBILITY ..................................................................................... 2-15 II.H. DENIAL OR TERMINATION OF ASSISTANCE ...................................................... 2-16 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) III.A. OVERVIEW .................................................................................................................. 2-17 III.B. ORAL INTERPRETATION .......................................................................................... 2-18 III.C. WRITTEN TRANSLATION......................................................................................... 2-18 III.D. IMPLEMENTATION PLAN ........................................................................................ 2-19 EXHIBITS 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS ................................................................................................. 2-21 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-3 Chapter 3 ELIGIBILITY INTRODUCTION ....................................................................................................................... 3-1 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS I.A. OVERVIEW .................................................................................................................... 3-3 I.B. FAMILY AND HOUSEHOLD ....................................................................................... 3-3 I.C. FAMILY BREAK-UP AND REMAINING MEMBER OF TENANT FAMILY .......... 3-4 I.D. HEAD OF HOUSEHOLD ............................................................................................... 3-5 I.E. SPOUSE, COHEAD, AND OTHER ADULT ................................................................ 3-5 I.F. DEPENDENT .................................................................................................................. 3-6 I.G. FULL-TIME STUDENT ................................................................................................. 3-6 I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY ............. 3-7 I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY ................................... 3-7 I.J. GUESTS .......................................................................................................................... 3-8 I.K. FOSTER CHILDREN AND FOSTER ADULTS ........................................................... 3-9 I.L. ABSENT FAMILY MEMBERS ................................................................................... 3-10 I.M. LIVE-IN AIDE .............................................................................................................. 3-12 PART II: BASIC ELIGIBILITY CRITERIA II.A. INCOME ELIGIBILITY AND TARGETING .............................................................. 3-13 II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS ......................................... 3-15 II.C. SOCIAL SECURITY NUMBERS ................................................................................ 3-17 II.D. FAMILY CONSENT TO RELEASE OF INFORMATION ......................................... 3-18 II.E. EIV SYSTEM SEARCHES ........................................................................................... 3-19 PART III: DENIAL OF ADMISSION III.A. OVERVIEW .................................................................................................................. 3-21 III.B. REQUIRED DENIAL OF ADMISSION ...................................................................... 3-22 III.C. OTHER PERMITTED REASONS FOR DENIAL OF ADMISSION ......................... 3-24 III.D. SCREENING ................................................................................................................. 3-27 III.E. CRITERIA FOR DECIDING TO DENY ADMISSION .............................................. 3-32 III.F. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND HUMAN TRAFFICKING ............................................................. 3-35 III.G. NOTICE OF ELIGIBILITY OR DENIAL .................................................................... 3-37 EXHIBITS 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES ...................................... 3-39 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-4 Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION INTRODUCTION ....................................................................................................................... 4-1 PART I: THE APPLICATION PROCESS I.A. OVERVIEW .................................................................................................................... 4-3 I.B. APPLYING FOR ASSISTANCE .................................................................................... 4-3 I.C. ACCESSIBILITY OF THE APPLICATION PROCESS................................................ 4-4 I.D. PLACEMENT ON THE WAITING LIST ...................................................................... 4-5 PART II: MANAGING THE WAITING LIST II.A. OVERVIEW .................................................................................................................... 4-7 II.B. ORGANIZATION OF THE WAITING LIST ................................................................ 4-7 II.C. OPENING AND CLOSING THE WAITING LIST ....................................................... 4-9 II.D. FAMILY OUTREACH ................................................................................................. 4-10 II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES ..................................... 4-11 II.F. UPDATING THE WAITING LIST .............................................................................. 4-12 PART III: TENANT SELECTION III.A. OVERVIEW .................................................................................................................. 4-15 III.B. SELECTION METHOD ................................................................................................ 4-16 III.C. NOTIFICATION OF SELECTION .............................................................................. 4-21 III.D. THE APPLICATION INTERVIEW ............................................................................. 4-22 III.E. FINAL ELIGIBILITY DETERMINATION ................................................................. 4-24 Chapter 5 OCCUPANCY STANDARDS AND UNIT OFFERS INTRODUCTION ....................................................................................................................... 5-1 PART I: OCCUPANCY STANDARDS I.A. OVERVIEW .................................................................................................................... 5-1 I.B. DETERMINING UNIT SIZE .......................................................................................... 5-2 I.C. EXCEPTIONS TO OCCUPANCY STANDARDS ........................................................ 5-4 PART II: UNIT OFFERS II.A. OVERVIEW .................................................................................................................... 5-5 II.B. NUMBER OF OFFERS ................................................................................................... 5-5 II.C. TIME LIMIT FOR UNIT OFFER ACCEPTANCE OR REFUSAL .............................. 5-6 II.D. REFUSALS OF UNIT OFFERS ..................................................................................... 5-6 II.E. ACCESSIBLE UNITS ..................................................................................................... 5-8 II.F. DESIGNATED HOUSING ............................................................................................. 5-8 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-5 Chapter 6 INCOME AND RENT DETERMINATIONS INTRODUCTION ....................................................................................................................... 6-1 PART I: ANNUAL INCOME I.A. OVERVIEW .................................................................................................................... 6-3 I.B. HOUSEHOLD COMPOSITION AND INCOME .......................................................... 6-4 I.C. ANTICIPATING ANNUAL INCOME ........................................................................... 6-7 I.D. EARNED INCOME......................................................................................................... 6-9 I.E. EARNED INCOME DISALLOWANCE ...................................................................... 6-13 I.F. BUSINESS INCOME .................................................................................................... 6-16 I.G. ASSETS ......................................................................................................................... 6-18 I.H. PERIODIC PAYMENTS .............................................................................................. 6-26 I.I. PAYMENTS IN LIEU OF EARNINGS ....................................................................... 6-28 I.J. WELFARE ASSISTANCE ........................................................................................... 6-29 I.K. PERIODIC AND DETERMINABLE ALLOWANCES ............................................... 6-30 I.L. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME ...................................... 6-31 PART II: ADJUSTED INCOME II.A. INTRODUCTION ......................................................................................................... 6-35 II.B. DEPENDENT DEDUCTION ........................................................................................ 6-36 II.C. ELDERLY OR DISABLED FAMILY DEDUCTION ................................................. 6-36 II.D. MEDICAL EXPENSES DEDUCTION ........................................................................ 6-37 II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION ........................................... 6-39 II.F. CHILD CARE EXPENSE DEDUCTION ..................................................................... 6-42 II.G. PERMISSIVE DEDUCTIONS ...................................................................................... 6-46 PART III: CALCULATING RENT III.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS .................................. 6-47 III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT .................................... 6-50 III.C. UTILITY ALLOWANCES ........................................................................................... 6-55 III.D. PRORATED RENT FOR MIXED FAMILIES ............................................................. 6-58 III.E. FLAT RENTS AND FAMILY CHOICE IN RENTS ................................................... 6-59 EXHIBITS 6-1: ANNUAL INCOME INCLUSIONS ............................................................................. 6-61 6-2: ANNUAL INCOME EXCLUSIONS ............................................................................ 6-63 6-3: TREATMENT OF FAMILY ASSETS ......................................................................... 6-65 6-4: EARNED INCOME DISALLOWANCE ...................................................................... 6-67 6-5: THE EFFECT OF WELFARE BENEFIT REDUCTION ............................................. 6-69 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-6 Chapter 7 VERIFICATION INTRODUCTION ....................................................................................................................... 7-1 PART I: GENERAL VERIFICATION REQUIREMENTS I.A. FAMILY CONSENT TO RELEASE OF INFORMATION ........................................... 7-1 I.B. OVERVIEW OF VERIFICATION REQUIREMENTS ................................................. 7-2 I.C. UP-FRONT INCOME VERIFICATION (UIV) ............................................................. 7-4 I.D. THIRD-PARTY WRITTEN AND ORAL VERIFICATION ......................................... 7-6 I.E. SELF-CERTIFICATION ................................................................................................. 7-9 PART II: VERIFYING FAMILY INFORMATION II.A. VERIFICATION OF LEGAL IDENTITY .................................................................... 7-11 II.B. SOCIAL SECURITY NUMBERS ................................................................................ 7-12 II.C. DOCUMENTATION OF AGE ..................................................................................... 7-13 II.D. FAMILY RELATIONSHIPS ........................................................................................ 7-14 II.E. VERIFICATION OF STUDENT STATUS .................................................................. 7-15 II.F. DOCUMENTATION OF DISABILITY ....................................................................... 7-16 II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS ......................................... 7-17 II.H. VERIFICATION OF PREFERENCE STATUS ........................................................... 7-18 PART III: VERIFYING INCOME AND ASSETS III.A. EARNED INCOME....................................................................................................... 7-19 III.B. BUSINESS AND SELF EMPLOYMENT INCOME ................................................... 7-19 III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS .................... 7-20 III.D. ALIMONY OR CHILD SUPPORT .............................................................................. 7-21 III.E. ASSETS AND INCOME FROM ASSETS ................................................................... 7-22 III.F. NET INCOME FROM RENTAL PROPERTY ............................................................ 7-22 III.G. RETIREMENT ACCOUNTS ....................................................................................... 7-23 III.H. INCOME FROM EXCLUDED SOURCES ................................................................. 7-24 III.I. ZERO ANNUAL INCOME STATUS .......................................................................... 7-24 PART IV: VERIFYING MANDATORY DEDUCTIONS IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS .......... 7-25 IV.B. MEDICAL EXPENSE DEDUCTION .......................................................................... 7-26 IV.C. DISABILITY ASSISTANCE EXPENSES ................................................................... 7-28 IV.D. CHILD CARE EXPENSES ........................................................................................... 7-30 EXHIBITS 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS FOR NONCITIZENS .................................................................................................... 7-33 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-7 Chapter 8 LEASING AND INSPECTIONS INTRODUCTION ....................................................................................................................... 8-1 PART I: LEASING I.A. OVERVIEW .................................................................................................................... 8-1 I.B. LEASE ORIENTATION ................................................................................................. 8-2 I.C. EXECUTION OF LEASE ............................................................................................... 8-3 I.D. MODIFICATIONS TO THE LEASE ............................................................................. 8-4 I.E. SECURITY DEPOSITS .................................................................................................. 8-6 I.F. PAYMENTS UNDER THE LEASE ............................................................................... 8-7 I.G MINIMUM HEATING STANDARDS ......................................................................... 8-10 PART II: INSPECTIONS II.A. OVERVIEW .................................................................................................................. 8-13 II.B. TYPES OF INSPECTIONS ........................................................................................... 8-13 II.C. NOTICE AND SCHEDULING OF INSPECTIONS ................................................... 8-15 II.D. INSPECTION RESULTS .............................................................................................. 8-16 EXHIBITS 8-1: SMOKE-FREE POLICY ............................................................................................... 8-19 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-8 Chapter 9 REEXAMINATIONS INTRODUCTION ....................................................................................................................... 9-1 PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME-BASED RENTS I.A. OVERVIEW .................................................................................................................... 9-3 I.B. STREAMLINED ANNUAL REEXAMINATIONS ....................................................... 9-4 I.C. SCHEDULING ANNUAL REEXAMINATIONS ......................................................... 9-5 I.D. CONDUCTING ANNUAL REEXAMINATIONS ........................................................ 9-6 I.E. EFFECTIVE DATES....................................................................................................... 9-8 PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS II.A. OVERVIEW .................................................................................................................... 9-9 II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION ................ 9-9 II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”) .......... 9-10 PART III: INTERIM REEXAMINATIONS III.A. OVERVIEW .................................................................................................................. 9-13 III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION ................................ 9-13 III.C. CHANGES AFFECTING INCOME OR EXPENSES.................................................. 9-15 III.D. PROCESSING THE INTERIM REEXAMINATION .................................................. 9-17 PART IV: RECALCULATING TENANT RENT IV.A. OVERVIEW .................................................................................................................. 9-19 IV.B. CHANGES IN UTILITY ALLOWANCES .................................................................. 9-19 IV.C. NOTIFICATION OF NEW TENANT RENT ............................................................... 9-19 IV.D. DISCREPANCIES ......................................................................................................... 9-20 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-9 Chapter 10 PETS INTRODUCTION ..................................................................................................................... 10-1 PART I: ASSISTANCE ANIMALS I.A. OVERVIEW .................................................................................................................. 10-3 I.B. APPROVAL OF ASSISTANCE ANIMALS ................................................................ 10-4 I.C. CARE AND HANDLING ............................................................................................. 10-6 PART II: PET POLICIES FOR ALL DEVELOPMENTS II.A. OVERVIEW .................................................................................................................. 10-7 II.B. MANAGEMENT APPROVAL OF PETS .................................................................... 10-7 II.C. STANDARDS FOR PETS ............................................................................................ 10-9 II.D. PET RULES ................................................................................................................. 10-11 PART III: PET DEPOSITS AND FEES IN ELDERLY/DISABLED DEVELOPMENTS III.A. OVERVIEW ................................................................................................................ 10-17 III.B. PET DEPOSITS ........................................................................................................... 10-17 III.C. OTHER CHARGES..................................................................................................... 10-18 PART IV: PET DEPOSITS AND FEES IN GENERAL OCCUPANCY DEVELOPMENTS IV.A. OVERVIEW ................................................................................................................ 10-19 IV.B. PET DEPOSITS ........................................................................................................... 10-19 IV.C. NON-REFUNDABLE NOMINAL PET FEE ............................................................. 10-20 IV.D. OTHER CHARGES..................................................................................................... 10-21 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-10 Chapter 11 COMMUNITY SERVICE INTRODUCTION ..................................................................................................................... 11-1 PART I: COMMUNITY SERVICE REQUIREMENT I.A. OVERVIEW .................................................................................................................. 11-1 I.B. REQUIREMENTS ......................................................................................................... 11-2 I.C. DETERMINATION OF EXEMPTION STATUS AND COMPLIANCE ................... 11-7 I.D. DOCUMENTATION AND VERIFICATION ............................................................ 11-11 I.E. NONCOMPLIANCE ................................................................................................... 11-13 PART II: IMPLEMENTATION OF COMMUNITY SERVICE II.A. OVERVIEW ................................................................................................................ 11-17 EXHIBITS 11-1: COMMUNITY SERVICE AND SELF-SUFFICIENCY POLICY ............................ 11-19 11-2: DEFINITION OF A PERSON WITH A DISABILITY UNDER SOCIAL SECURITY ACTS 216(i)(l) and Section 1416(excerpt) FOR PURPOSES OF EXEMPTION FROM COMMUNITY SERVICE ................................................ 11-25 11-3: PHA DETERMINATION OF EXEMPTION FOR COMMUNITY SERVICE ......... 11-27 11-4 CSSR WORK-OUT AGREEMENT ........................................................................... 11-29 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-11 Chapter 12 TRANSFER POLICY INTRODUCTION ..................................................................................................................... 12-1 PART I: EMERGENCY TRANSFERS I.A. OVERVIEW .................................................................................................................. 12-1 I.B. EMERGENCY TRANSFERS ....................................................................................... 12-2 I.C. EMERGENCY TRANSFER PROCEDURES .............................................................. 12-3 I.D. COSTS OF TRANSFER................................................................................................ 12-3 PART II: PHA REQUIRED TRANSFERS II.A. OVERVIEW .................................................................................................................. 12-5 II.B. TYPES OF PHA REQUIRED TRANSFERS ............................................................... 12-5 II.C. ADVERSE ACTION ..................................................................................................... 12-8 II.D. COST OF TRANSFER .................................................................................................. 12-8 PART III: TRANSFERS REQUESTED BY TENANTS III.A. OVERVIEW .................................................................................................................. 12-9 III.B. TYPES OF RESIDENT REQUESTED TRANSFERS ................................................. 12-9 III.C. ELIGIBILITY FOR TRANSFER ................................................................................ 12-10 III.D. SECURITY DEPOSITS .............................................................................................. 12-11 III.E. COST OF TRANSFER ................................................................................................ 12-11 III.F. HANDLING OF REQUESTS ..................................................................................... 12-12 PART IV: TRANSFER PROCESSING IV.A. OVERVIEW ................................................................................................................ 12-13 IV.B. TRANSFER LIST ........................................................................................................ 12-13 IV.C. TRANSFER OFFER POLICY .................................................................................... 12-14 IV.D. GOOD CAUSE FOR UNIT REFUSAL ...................................................................... 12-14 IV.E. DECONCENTRATION .............................................................................................. 12-15 IV.F. REEXAMINATION POLICIES FOR TRANSFERS ................................................. 12-15 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-12 Chapter 13 LEASE TERMINATIONS INTRODUCTION ..................................................................................................................... 13-1 PART I: TERMINATION BY TENANT I.A. TENANT CHOOSES TO TERMINATE THE LEASE ................................................ 13-3 PART II: TERMINATION BY PHA – MANDATORY II.A. OVERVIEW .................................................................................................................. 13-5 II.B. FAILURE TO PROVIDE CONSENT........................................................................... 13-5 II.C. FAILURE TO DOCUMENT CITIZENSHIP ............................................................... 13-5 II.D. FAILURE TO DISCLOSE AND DOCUMENT SOCIAL SECURITY NUMBERS... 13-6 II.E. FAILURE TO ACCEPT THE PHA’S OFFER OF A LEASE REVISION .................. 13-6 II.F. METHAMPHETAMINE CONVICTION ..................................................................... 13-7 II.G LIFETIME REGISTERED SEX OFFENDERS ........................................................... 13-7 II.H. NONCOMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS .............. 13-7 II.I. DEATH OF A SOLE FAMILY MEMBER .................................................................. 13-7 II.J. OVER_INCOME FAMILIES [24 CFR 960.507; FR Notice 7/26/18; Notice PIH 2019-11; FR Notice 2/14/23] ...................................................................... 13-8 PART III: TERMINATION BY PHA – OTHER AUTHORIZED REASONS III.A. OVERVIEW ................................................................................................................ 13-13 III.B. MANDATORY LEASE PROVISIONS...................................................................... 13-14 III.C. OTHER AUTHORIZED REASONS FOR TERMINATION ..................................... 13-20 III.D. ALTERNATIVES TO TERMINATION OF TENANCY .......................................... 13-22 III.E. CRITERIA FOR DECIDING TO TERMINATE TENANCY ................................... 13-23 III.F. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING ................................ 13-27 PART IV: NOTIFICATION REQUIREMENTS, EVICTION PROCEDURES AND RECORD KEEPING IV.A. OVERVIEW ................................................................................................................ 13-31 IV.B. CONDUCTING CRIMINAL RECORDS CHECKS .................................................. 13-31 IV.C. DISCLOSURE OF CRIMINAL RECORDS TO FAMILY ........................................ 13-32 IV.D. LEASE TERMINATION NOTICE ............................................................................. 13-33 IV.E. EVICTION ................................................................................................................... 13-36 IV.F. NOTIFICATION TO POST OFFICE ......................................................................... 13-36 IV.G. RECORD KEEPING ................................................................................................... 13-36 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-13 Chapter 14 GRIEVANCES AND APPEALS INTRODUCTION ..................................................................................................................... 14-1 PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS I.A. OVERVIEW .................................................................................................................. 14-1 I.B. INFORMAL HEARING PROCESS ............................................................................. 14-2 PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS II.A. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS ............................... 14-7 PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS III.A. REQUIREMENTS ....................................................................................................... 14-11 III.B. DEFINITIONS ............................................................................................................. 14-12 III.C. APPLICABILITY ........................................................................................................ 14-13 III.D. INFORMAL SETTLEMENT OF GRIEVANCE ........................................................ 14-14 III.E. PROCEDURES TO OBTAIN A HEARING .............................................................. 14-15 III.F. SELECTION OF HEARING OFFICER ..................................................................... 14-17 III.G. REMOTE HEARINGS ................................................................................................ 14-18 III.H. PROCEDURES GOVERNING THE HEARING ....................................................... 14-21 III.I. DECISION OF THE HEARING OFFICER................................................................ 14-25 EXHIBITS 14-1: GRIEVANCE PROCEDURE ...................................................................................... 14-29 Chapter 15 PROGRAM INTEGRITY INTRODUCTION ..................................................................................................................... 15-1 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE I.A. PREVENTING ERRORS AND PROGRAM ABUSE ................................................. 15-3 I.B. DETECTING ERRORS AND PROGRAM ABUSE ................................................... 15-4 I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE ........................................... 15-5 PART II: CORRECTIVE MEASURES AND PENALTIES II.A. UNDER- OR OVERPAYMENT ................................................................................... 15-7 II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE .......................................... 15-8 II.C. PHA-CAUSED ERRORS OR PROGRAM ABUSE .................................................. 15-10 II.D. CRIMINAL PROSECUTION ..................................................................................... 15-12 II.E. FRAUD AND PROGRAM ABUSE RECOVERIES .................................................. 15-12 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-14 Chapter 16 PROGRAM ADMINISTRATION INTRODUCTION ..................................................................................................................... 16-1 PART I: SETTING UTILITY ALLOWANCES I.A. OVERVIEW .................................................................................................................. 16-3 I.B UTILITY ALLOWANCES ........................................................................................... 16-3 I.C. SURCHARGES FOR PHA-FURNISHED UTILITIES ................................................ 16-5 I.D. NOTICE REQUIREMENTS ......................................................................................... 16-5 I.E. REASONABLE ACCOMMODATION AND INDIVIDUAL RELIEF ....................... 16-6 PART II: ESTABLISHING FLAT RENTS II.A. OVERVIEW .................................................................................................................. 16-7 II.B. FLAT RENTS ................................................................................................................ 16-7 PART III: FAMILY DEBTS TO THE PHA III.A. OVERVIEW .................................................................................................................. 16-9 III.B. REPAYMENT POLICY .............................................................................................. 16-10 PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS) IV.A. OVERVIEW ................................................................................................................ 16-13 IV.B. PHAS INDICATORS .................................................................................................. 16-13 IV.C. PHAS SCORING ......................................................................................................... 16-15 PART V: RECORD KEEPING V.A. OVERVIEW ................................................................................................................ 16-17 V.B. RECORD RETENTION .............................................................................................. 16-17 V.C. RECORDS MANAGEMENT ..................................................................................... 16-18 PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL VI.A. REPORTING REQUIREMENTS ............................................................................... 16-21 Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-15 PART VII: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, AND CONFIDENTIALITY VII.A. OVERVIEW ................................................................................................................ 16-23 VII.B. DEFINITIONS ............................................................................................................. 16-23 VII.C. NOTIFICATION ......................................................................................................... 16-25 VII.D. DOCUMENTATION .................................................................................................. 16-27 VII.E. CONFIDENTIALITY.................................................................................................. 16-29 EXHIBITS 16-1: SAMPLE NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380 ..................................... 16-31 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382.......................................... 16-37 16-3 EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING ........................................................................................................... 16-39 16-4 EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383 ........................................................................... 16-43 Glossary Table of Contents © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use Page TOC-16 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page Intro-i Introduction ABOUT THE ACOP REFERENCES CITED IN THE ACOP Authority for PHA policies is derived from many sources. Primary among these sources are regulations and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. In the absence of legal requirements or HUD guidance, industry practice may lead to PHA policy. Finally, the public housing lease will affect PHA policy and therefore must be consistent with federal and state laws and regulations. HUD HUD provides the primary source of PHA policy through federal regulations, HUD Notices and handbooks. Compliance with federal regulations, current HUD Notices and HUD handbooks is mandatory. HUD provides nonmandatory guidance to PHAs through HUD published guidebooks. Expired HUD Notices and handbooks also provide guidance for PHA policy. Following HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a “safe harbor.” Content contained on the HUD website can provide further clarification of HUD policies. For example, FAQs on the HUD website can provide direction on the application of federal regulations to a specific pattern. State Law Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law. Industry Practice Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. An industry practice is a way of doing things that is followed by most housing authorities. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page Intro-ii RESOURCES CITED IN THE ACOP The ACOP cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the ACOP may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the ACOP, and a list of references and document locations that are referenced in the ACOP or that may be helpful to you. Public Housing Occupancy Guidebook In June 2020 HUD began issuing a new version of the Public Housing Occupancy Guidebook chapter-by-chapter. Unlike the previous version of the guidebook in which chapters were numbered, the new version includes chapter names, but no numbers. As the new version of the guidebook has not yet been fully released, and since the previous version of the guidebook contains guidance not found in the new version, the policy cites both versions of the guidebook. Therefore, where the Public Housing Occupancy Guidebook is cited in the policy, the citation will make a distinction between the “old” and “new” versions of the guidebook. The “old” version of the guidebook will continue to be cited as PH OCC GB with a chapter/page reference (example: PH OCC GB, p. 5-4). If HUD has also released a new chapter on the same topic with information that either adds new information or updates existing information from the previous guidebook, the new guidebook will be cited as New PH OCC GB with a chapter title and page reference (example: New PH OCC GB, Lease Requirements, p. 11). Abbreviations Throughout the ACOP, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited by the ACOP. Abbreviation Document CFR Code of Federal Regulations HUD-50058 IB HUD-50058 Instruction Booklet PH OCC GB Public Housing Occupancy Guidebook, June 2003 New PH OCC GB Public Housing Occupancy Guidebook, Various dates of release RHIIP FAQs Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions VG Verification Guidance, March 2004 (attachment to PIH Notice 2004-1) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page Intro-iii Resources and Where to Find Them The HUD website is https://www.hud.gov/. Guidebooks, handbooks, and other HUD resources may be found at the HUDClips website: https://www.hud.gov/program_offices/administration/hudclips Following is a list of resources helpful to the PHA or referenced in the ACOP, and the online location of each. Document and Location Code of Federal Regulations http://www.ecfr.gov Enterprise Income Verification (EIV) System PHA Security Procedures https://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF Executive Order 11063 https://www.archives.gov/federal-register/codification/executive-order/11063.html Federal Register https://www.federalregister.gov/ HOTMA Final Rule https://www.federalregister.gov/documents/2023/02/14/2023-01617/housing-opportunity- through-modernization-act-of-2016-implementation-of-sections-102-103-and- 104?utm_campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium= email HUD-50058 Instruction Booklet Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004 https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007 https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf Notice PIH 2010-26, Nondiscrimination and Accessibility Notice http://www.hud.gov/offices/pih/publications/notices/10/pih2010-26.pdf Notice PIH 2017-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF Notice PIH 2018-24, Verification of Social Security Numbers (SSNs) Social Security (SS) and Supplemental Security Income (SSI) Benefits; and Effective Use of the Enterprise Income Verification (EIV) System’s Identity Verification Report https://www.hud.gov/sites/dfiles/PIH/documents/PIH-2018-24_EIV_SSN_Notice_FINAL.pdf © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page Intro-iv Public Housing Occupancy Guidebook, June 2003 https://www.hud.gov/sites/documents/DOC_10760.PDF VAWA Resources https://www.hud.gov/vawa © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page Intro-v © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-1 Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION The PHA receives its operating subsidy for the public housing program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into an Annual Contributions Contract with HUD to administer the public housing program. The PHA must ensure compliance with federal laws, regulations and notices and must establish policies and procedures to clarify federal requirements and to ensure consistency in program operation. This chapter contains information about the PHA and its programs with emphasis on the public housing program. It also contains information about the purpose, intent and use of the plan and guide. There are three parts to this chapter: Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent. Part II: The Public Housing Program. This part contains information about public housing operation, roles and responsibilities, and partnerships. Part III: The Admissions and Continued Occupancy (ACOP). This part discusses the purpose and organization of the plan and its revision requirements. PART I: THE PHA 1-I.A. OVERVIEW This part describes the PHA’s creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-2 1-I.B. ORGANIZATION AND STRUCTURE OF THE PHA Public housing is funded by the federal government and administered by the Hopkins Housing & Redevelopment Authority for the jurisdiction of the City of Hopkins and County of Hennepin, Minnesota. PHAs are governed by a board of officials that are generally called “commissioners.” Although some PHAs may use a different title for their officials, this document will hitherto refer to the “board of commissioners” or the “board” when discussing the board of governing officials. Commissioners are appointed in accordance with state housing law and generally serve in the same capacity as the directors of a corporation. The board of commissioners establishes policies under which the PHA conducts business and ensures that those policies are followed by PHA staff. The board is responsible for preserving and expanding the agency’s resources and assuring the agency’s continued viability and success. Formal actions of the PHA are taken through written resolutions, adopted by the board and entered into the official records of the PHA. The principal staff member of the PHA is the executive director (ED), who is selected and hired by the board. The ED oversees the day-to-day operations of the PHA and is directly responsible for carrying out the policies established by the commissioners. The ED’s duties include hiring, training, and supervising the PHA’s staff, as well as budgeting and financial planning for the agency. Additionally, the ED is charged with ensuring compliance with federal and state laws, and program mandates. In some PHAs, the ED is known by another title, such as chief executive officer or president. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-3 1-I.C. PHA MISSION The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides the basis for strategy development, identification of critical success factors, resource allocation decisions, as well as ensuring client and stakeholder satisfaction. Hopkins HRA Policy The PHA’s mission is to provide safe, decent and sanitary housing conditions for very low-income families and to manage resources efficiently. The PHA is to promote personal, economic and social upward mobility to provide families the opportunity to make the transition from subsidized to non-subsidized housing. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-4 1-I.D. THE PHA’S COMMITMENT TO ETHICS AND SERVICE As a public service agency, the PHA is committed to providing excellent service to all public housing applicants, residents, and the public. In order to provide superior service, the PHA resolves to: • Administer applicable federal and state laws and regulations to achieve high ratings in compliance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide housing that is safe, habitable, functionally adequate, operable, and free of health and safety hazards—in compliance with the National Standards for the Physical Inspection of Real Estate: Inspection Standards (NSPIRE)—for very low- and low-income families. • Achieve a healthy mix of incomes in its public housing developments by attracting and retaining higher income families and by working toward deconcentration of poverty goals. • Encourage self-sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs. • Promote fair housing and the opportunity for very low- and low-income families of all races, ethnicities, national origins, religions, ethnic backgrounds, and with all types of disabilities, to participate in the public housing program and its services. • Create positive public awareness and expand the level of family and community support in accomplishing the PHA’s mission. • Attain and maintain a high level of standards and professionalism in day-to-day management of all program components. • Administer an efficient, high-performing agency through continuous improvement of the PHA’s support systems and commitment to our employees and their development. The PHA will make every effort to keep residents informed of program rules and regulations, and to advise participants of how the program rules affect them. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-5 PART II: THE PUBLIC HOUSING PROGRAM 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM The intent of this section is to provide the public and staff an overview of the history and operation of public housing. The United States Housing Act of 1937 (the “Act”) is responsible for the birth of federal housing program initiatives, known as public housing. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing for low-income residents. There have been many changes to the program since its inception in 1937. The Housing Act of 1965 established the availability of federal assistance, administered through local public agencies, to provide rehabilitation grants for home repairs and rehabilitation. This act also created the federal Department of Housing and Urban Development (HUD). The Housing Act of 1969 created an operating subsidy for the public housing program for the first time. Until that time, public housing was a self-sustaining program. In 1998, the Quality Housing and Work Responsibility Act (QHWRA) – also known as the Public Housing Reform Act or Housing Act of 1998 – was signed into law. Its purpose was to provide more private sector management guidelines to the public housing program and provide residents with greater choices. It also allowed PHAs more remedies to replace or revitalize severely distressed public housing developments. Highlights of the Reform Act include: the establishment of flat rents; the requirement for PHAs to develop five-year and annual plans; income targeting, a requirement that 40% of all new admissions in public housing during any given fiscal year be reserved for extremely low-income families; and resident self-sufficiency incentives. On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. The Final Rule implementing broad changes to income and asset in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over-income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-6 1-II.B. PUBLIC HOUSING PROGRAM BASICS HUD writes and publishes regulations in order to implement public housing laws enacted by Congress. HUD contracts with the PHA to administer programs in accordance with HUD regulations and provides an operating subsidy to the PHA. The PHA must create written policies that are consistent with HUD regulations. Among these policies is the PHA’s Admissions and Continued Occupancy Policy (ACOP). The ACOP must be approved by the board of commissioners of the PHA. The job of the PHA pursuant to HUD regulations is to provide safe, habitable dwelling units, to low-income families at an affordable rent. The PHA screens applicants for public housing and, if they are determined to be eligible for the program, the PHA makes an offer of a housing unit. If the applicant accepts the offer, the PHA and the applicant will enter into a written lease agreement. At this point, the applicant becomes a tenant in the public housing program. In the context of the public housing program, a tenant is defined as the adult person(s) (other than a live-in aide who (1) executed the lease with the PHA as lessee of the dwelling unit, or, if no such person now resides in the unit, (2) who resides in the unit, and who is the remaining head of household of the tenant family residing in the dwelling unit. [24 CFR 966.53]. The Public Housing Occupancy Guidebook refers to tenants as “residents.” The terms “tenant” and “resident” are used interchangeably in this policy. Additionally, this policy uses the term “family” or “families” for residents or applicants, depending on context. Since the PHA owns the public housing development, the PHA is the landlord. The PHA must comply with all of the legal and management responsibilities of a landlord in addition to administering the program in accordance with HUD regulations and PHA policy. 1-II.C. PUBLIC HOUSING PARTNERSHIPS To administer the public housing program, the PHA must enter into an Annual Contributions Contract (ACC) with HUD. The PHA also enters into a contractual relationship with the tenant through the public housing lease. These contracts define and describe the roles and responsibilities of each party. In addition to the ACC, the PHA and family must also comply with federal regulations and other HUD publications and directives. For the program to work and be successful, all parties involved – HUD, the PHA, and the tenant – play an important role. The chart on the following page illustrates key aspects of these relationships. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-7 The Public Housing Relationships © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-8 What does HUD do? Federal law is the source of HUD responsibilities. HUD has the following major responsibilities: • Develop regulations, requirements, handbooks, notices and other guidance to implement housing legislation passed by Congress • Allocate operating subsidies to PHAs • Allocate capital funding to PHAs • Provide technical assistance to PHAs on interpreting and applying program requirements • Monitor PHA compliance with program requirements and PHA performance in program administration. What does the PHA do? The PHA’s responsibilities originate in federal regulations and the ACC. The PHA owns and manages public housing developments, administers the program under contract with HUD and has the following major responsibilities: • Ensure compliance with all non-discrimination, equal opportunity, and fair housing laws, and ensure that the program is accessible to persons with disabilities • Establish local policies and procedures for operating the program • Accept applications from interested applicant families and determine whether they are income eligible for the program • Maintain waiting list and select families for admission • Screen applicant families for suitability as renters • Maintain housing units by making any necessary repairs in a timely manner • Make unit offers to families (minimize vacancies without overcrowding) • Maintain properties to the standard of safe, habitable dwelling units (including assuring compliance with National Standards for the Physical Inspection of Real Estate (NSPIRE)) • Make sure the PHA has adequate financial resources to maintain its housing stock • Perform regular reexaminations of family income and composition in accordance with HUD requirements • Collect rent due from the assisted family and comply with and enforce provisions of the lease • Ensure that families comply with program rules • Provide families with prompt and professional service • Comply with all fair housing and equal opportunity requirements, HUD regulations and requirements, the ACC, HUD-approved applications for funding, the PHA’s ACOP, and other applicable federal, state and local laws. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-9 What does the tenant do? The tenant’s responsibilities are articulated in the public housing lease. The tenant has the following broad responsibilities: • Comply with the terms of the lease and PHA house rules, as applicable • Provide the PHA with complete and accurate information, determined by the PHA to be necessary for administration of the program • Cooperate in attending all appointments scheduled by the PHA • Allow the PHA to inspect the unit at reasonable times and after reasonable notice • Take responsibility for care of the housing unit, including any violations of NSPIRE caused by the family • Not engage in drug-related or violent criminal activity • Notify the PHA before moving or termination of the lease • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit or assign the lease • Promptly notify the PHA of any changes in family composition • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs • Take care of the housing unit and report maintenance problems to the PHA promptly If all parties fulfill their obligations in a professional and timely manner, the program responsibilities will be fulfilled in an effective manner. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-10 1-II.D. APPLICABLE REGULATIONS Applicable regulations include: • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 35: Lead-Based Paint • 24 CFR Part 902: Public Housing Assessment System • 24 CFR Part 903: Public Housing Agency Plans • 24 CFR Part 945: Designated Housing • 24 CFR Part 960: Admission and Occupancy Policies • 24 CFR Part 965: PHA-Owned or Leased Projects – General Provisions • 24 CFR Part 966: Lease and Grievance Procedures © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-11 PART III: THE ADMISSIONS AND CONTINUED OCCUPANCY POLICIES 1-III.A. OVERVIEW AND PURPOSE OF THE POLICY The ACOP is the PHA’s written statement of policies used to carry out the housing program in accordance with federal law and regulations, and HUD requirements. The ACOP is required by HUD, and it must be available for public review [CFR 24 Part 903]. The ACOP also contains policies that support the objectives contained in the PHA’s Agency Plan. All issues related to public housing not addressed in this ACOP are governed by federal regulations, HUD handbooks and guidebooks, notices and applicable state and local laws. The policies in this ACOP have been designed to ensure compliance with the consolidated ACC and all HUD-approved applications for program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to public housing. If such changes conflict with this plan, HUD regulations will have precedence. 1-III.B. CONTENTS OF THE POLICY Unlike the housing choice voucher program, HUD regulations for public housing do not contain a list of what must be included in the ACOP. However, individual regulations contain requirements of inclusion in the PHA’s written policy. At a minimum, the ACOP plan should cover PHA policies on these subjects: • The organization of the waiting list and how families are selected and offered available units, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list (Chapters 4 and 5); • Transfer policies and the circumstances under which a transfer would take precedence over an admission (Chapter 12); • Standards for determining eligibility, suitability for tenancy, and the size and type of the unit needed (Chapters 3 and 5); • Procedures for verifying the information the family has provided (Chapter 7); • The method for achieving deconcentration of poverty and income-mixing of public housing developments (Chapter 4); • Grievance procedures (Chapter 14); • Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 15 and 16); • Interim redeterminations of family income and composition (Chapter 9); • Policies regarding community service requirements (Chapter 11); • Polices and rules about safety and ownership of pets in public housing (Chapter 10). © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 1-12 New Approach to Policy Development HUD has developed an approach to monitoring PHAs that emphasizes the importance of consistency in operation and decision-making. The ACOP supports that goal by clearly setting forth the PHA’s operating policies. A primary focus of HUD’s Rental Integrity Monitoring (RIM) program has been consistency in how PHAs conduct their business and in how HUD monitors PHA activities. Referring to and following the ACOP is essential to maintaining consistency in applying PHA policy. HUD makes a distinction between mandatory policies and non-mandatory policies: • Mandatory policies: those driven by legislation, regulations, current handbooks, current PIH notices, and legal opinions from the Office of General Counsel • Optional, non-binding guidance: includes guidebooks, FAQs, PIH notices that have expired, and recommendations from individual HUD staff. HUD expects PHAs to develop policies and procedures that are consistent with mandatory policies and to make clear the optional policies the PHA has adopted. The ACOP is comprised of mandatory policies and optional PHA policy. HUD’s new direction emphasizes the need for a clearly written and comprehensive ACOP to guide staff in the clear and consistent application of policy. HUD suggestions, recommendations, written issuances, and guidance are consistent with mandatory federal policy. Therefore, using HUD guidance in the preparation of PHA policy, even though it is not mandatory, provides a PHA with a “safe harbor.” If a PHA adopts its own optional policy, it must make its own determination that such policy is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than that suggested by HUD, but PHAs should carefully think through those decisions and be able to articulate how their policy is consistent with federal laws, regulations and mandatory policy. 1-III.C. UPDATING AND REVISING THE POLICY The PHA will revise this ACOP as needed to comply with changes in HUD regulations. The original policy and any changes must be approved by the board of commissioners of the PHA, the pertinent sections included in the Agency Plan, and a copy provided to HUD. PHA Policy The PHA will review and update the ACOP as needed to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-1 Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY INTRODUCTION This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and procedures. The responsibility to further nondiscrimination pertains to all areas of the PHA’s public housing operations. This chapter describes HUD regulations and PHA policies related to these topics in three parts: Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination. Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the public housing program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004. Part III: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the public housing program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-2 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-3 PART I: NONDISCRIMINATION 2-I.A. OVERVIEW Federal laws require PHAs to treat all applicants and tenant families equally, providing the same quality of service, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including: • Title VI of the Civil Rights Act of 1964 • Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988) • Executive Orders 11063 and 13988 • Section 504 of the Rehabilitation Act of 1973 • The Age Discrimination Act of 1975 • Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern) • The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012, and further clarified in Notice PIH 2014-20 • The Violence against Women Act (VAWA) • Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted When more than one civil rights law applies to a situation, the laws will be read and applied together. Hopkins HRA Policy Minnesota state fair housing law protects status with regard to public assistance. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-4 2-I.B. NONDISCRIMINATION Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination against additional classes of people. The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called “protected classes”). Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18. The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [FR Notice 02/03/12; Executive Order 13988]. Hopkins HRA Policy Minnesota state fair housing law protects status with regard to public assistance. The PHA will not use any of these factors to: • Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the public housing program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment • Subject anyone to sexual harassment • Restrict anyone's access to any benefit enjoyed by others in connection with the housing program • Treat a person differently in determining eligibility or other requirements for admission • Steer an applicant or tenant toward or away from a particular area based on any of these factors • Deny anyone access to the same level of services • Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program • Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class • Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-5 Providing Information to Families The PHA must take steps to ensure that families are fully aware of all applicable civil rights laws. As part of the public housing orientation process, the PHA will provide information to public housing applicant families about civil rights requirements. 2-I.C. DISCRIMINATION COMPLIANTS General Housing Discrimination Complaints If an applicant or tenant family believes that any family member has been discriminated against by the PHA, the family should advise the PHA. The PHA should make every reasonable attempt to determine whether the applicant or tenant family’s assertions have merit and take any warranted corrective action. In all cases, the PHA will advise the family that they may file a fair housing complaint if the family feels they have been discriminated against under the Fair Housing Act. Hopkins HRA Policy Applicants or tenant families who believe that they have been subject to unlawful discrimination may notify the PHA either orally or in writing. Within 10 business days of receiving the complaint, the PHA will investigate and attempt to remedy discrimination complaints made against the PHA. The PHA will also advise the family of their right to file a fair housing complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The fair housing poster, posted in conspicuous and accessible locations in PHA lobbies, will reference how to file a complaint with FHEO. The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-6 Complaints under the Equal Access Final Rule [Notice PIH 2014-20] Notice PIH 2014-20 requires an articulated complaint process for allegations of discrimination under the Equal Access Final rule. The Equal Access Final Rule requires that PHAs provide equal access regardless of marital status, gender identity, or sexual orientation. The PHA will be informed on these obligations by the HUD Field Office or FHEO when an Equal Access complaint investigation begins. Hopkins HRA Policy Applicants or tenant families who believe that they have been subject to unlawful discrimination based on marital status, gender identity, or sexual orientation under the Equal Access Rule may notify the PHA either orally or in writing. Within 10 business days of receiving the complaint, the PHA will provide a written notice to those alleged to have violated the rule. The PHA will also send a written notice to the complainant informing them that notice was sent to those alleged to have violated the rule, as well as information on how to complete and submit a housing discrimination complaint form to HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The PHA will attempt to remedy discrimination complaints made against the PHA and will conduct an investigation into all allegations of discrimination. Within 10 business days following the conclusion of the PHA’s investigation, the PHA will provide the complainant and those alleged to have violated the rule with findings and either a proposed corrective action plan or an explanation of why corrective action is not warranted. The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-7 VAWA Complaint Processing [Notice FHEO 2023-01] A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated, file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to, investigate the allegations under the additional authority and procedures described in FHEO 2023-01. Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate the complaint. Hopkins HRA Policy Applicants or tenant families who wish to file a VAWA complaint against the PHA may notify the PHA either orally or in writing. The PHA will advise the family of their right to file a VAWA complaint with HUD’s Office of Fair Housing and Equal Opportunity (FHEO). The PHA will inform the family that not later than one year after an alleged VAWA violation has occurred or terminated, applicants and tenants who believe they have been injured by a VAWA violation or will be injured by such a violation that is about to occur may file a VAWA complaint using FHEO’s online complaint form via mail, email, or telephone. The PHA will attempt to remedy complaints made against the PHA and will conduct an investigation into all allegations of discrimination. The PHA will keep a record of all complaints, investigations, notices, and corrective actions. (See Chapter 16.) © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-8 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-9 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES 2-II.A. OVERVIEW One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program. The PHA must ensure that persons with disabilities have full access to the PHA’s programs and services. This responsibility begins with the first inquiry of an interested family and continues through every programmatic area of the public housing program [24 CFR 8]. The PHA must provide a notice to each tenant that the tenant may, at any time during the tenancy, request reasonable accommodation of a handicap of a household member, including reasonable accommodation so that the tenant can meet lease requirements or other requirements of tenancy [24 CFR 966.7(b)]. Hopkins HRA Policy The PHA will ask all applicants and resident families if they require any type of accommodations, in writing, on the intake application, reexamination documents, and notices of adverse action by the PHA, by including the following language: “If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact the housing authority.” A specific position and phone number will be provided as the contact person for requests for accommodation for persons with disabilities. The PHA will display posters and other housing information and signage in locations throughout the PHA’s office in such a manner as to be easily readable from a wheelchair. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-10 2-II.B. DEFINITION OF REASONABLE ACCOMMODATION A “reasonable accommodation” is a change, exception, or adjustment to a policy, practice or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces. Since policies and services may have a different effect on persons with disabilities than on other persons, treating persons with disabilities exactly the same as others will sometimes deny them an equal opportunity to use and enjoy a dwelling. [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act] Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an "undue financial and administrative burden" for the PHA, or result in a “fundamental alteration” in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider’s operations. Types of Reasonable Accommodations When it is reasonable (see definition above and Section 2-II.E), the PHA shall accommodate the needs of a person with disabilities. Examples include but are not limited to: • Permitting applications and reexaminations to be completed by mail • Providing “large-print” forms • Conducting home visits • Permitting a higher utility allowance for the unit if a person with disabilities requires the use of specialized equipment related to the disability • Modifying or altering a unit or physical system if such a modification or alteration is necessary to provide equal access to a person with a disability • Installing a ramp into a dwelling or building • Installing grab bars in a bathroom • Installing visual fire alarms for hearing impaired persons • Allowing a PHA-approved live-in aide to reside in the unit if that person is determined to be essential to the care of a person with disabilities, is not obligated for the support of the person with disabilities, and would not be otherwise living in the unit. • Providing a designated handicapped-accessible parking space • Allowing an assistance animal • Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff • Displaying posters and other housing information in locations throughout the PHA's office in such a manner as to be easily readable from a wheelchair © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-11 2-II.C. REQUEST FOR AN ACCOMMODATION If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA’s programs and services. If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability. Hopkins HRA Policy The PHA will encourage the family to make its request in writing using a reasonable accommodation request form. However, the PHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-12 2-II.D. VERIFICATION OF DISABILITY The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances. Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family’s access to the PHA’s programs and services. If a person’s disability is obvious or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known, no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation. When verifying a disability, the PHA will follow the verification policies provided in Chapter 7. All information related to a person’s disability will be treated in accordance with the confidentiality policies provided in Chapter 16 (Program Administration). In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability: • Third-party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual’s disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. • The PHA must request only information that is necessary to evaluate the disability-related need for the accommodation. The PHA may not inquire about the nature or extent of any disability. • Medical records will not be accepted or retained in the participant file. • In the event that the PHA does receive confidential information about a person’s specific diagnosis, treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the information, the PHA will note in the file that the disability and other requested information have been verified, the date the verification was received, and the name and address of the knowledgeable professional who sent the information [Notice PIH 2010-26]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-13 2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2010-26] The PHA must approve a request for an accommodation if the following three conditions are met. • The request was made by or on behalf of a person with a disability. • There is a disability-related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA’s operations. Requests for accommodations must be assessed on a case-by-case basis. The determination of undue financial and administrative burden must be made on a case-by-case basis involving various factors, such as the overall size of the PHA’s program with respect to the number of employees, type of facilities and size of budget, type of operation including composition and structure of workforce, the nature and cost of the requested accommodation, and the availability of alternative accommodations that would effectively meet the family’s disability-related needs. Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation. Hopkins HRA Policy After a request for an accommodation is presented, the PHA will respond, in writing, within 10 business days. If the PHA denies a request for an accommodation because there is no relationship, or nexus, found between the disability and the requested accommodation, the notice will inform the family of the right to appeal the PHA’s decision through an informal hearing (if applicable) or the grievance process (see Chapter 14). If the PHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of the PHA’s operations), the PHA will discuss with the family whether an alternative accommodation could effectively address the family’s disability-related needs without a fundamental alteration to the public housing program and without imposing an undue financial and administrative burden. If the PHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, the PHA will notify the family, in writing, of its determination within 10 business days from the date of the most recent discussion or communication with the family. The notice will inform the family of the right to appeal the PHA’s decision through an informal hearing (if applicable) or the grievance process (see Chapter 14). © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-14 2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS HUD regulations require the PHA to take reasonable steps to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6]. At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork. Hopkins HRA Policy To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display / teletype) communication will be available. To meet the needs of persons with vision impairments, large-print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with PHA staff, 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) to receive, interpret and explain housing materials and be present at all meetings. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-15 2-II.G. PHYSICAL ACCESSIBILITY The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following. • Notice PIH 2010-26 • Section 504 of the Rehabilitation Act of 1973 • The Americans with Disabilities Act of 1990 • The Architectural Barriers Act of 1968 • The Fair Housing Act of 1988 The PHA’s policies concerning physical accessibility must be readily available to applicants and resident families. They can be found in three key documents. • This policy, the Admissions and Continued Occupancy Policy, describes the key policies that govern the PHA’s responsibilities with regard to physical accessibility. • Notice PIH 2010-26 summarizes information about pertinent laws and implementing regulations related to nondiscrimination and accessibility in federally-funded housing programs. • The PHA Plan provides information about self-evaluation, needs assessment, and transition plans. The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS). Notice PIH 2010-26 contains specific information on calculating the percentages of units for meeting UFAS requirements. Newly-constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the public housing program. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-16 2-II.H. DENIAL OR TERMINATION OF ASSISTANCE A PHA’s decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 966.7]. When applicants with disabilities are denied assistance, the notice of denial must inform them of their right to request an informal hearing [24 CFR 960.208(a)]. When a family’s lease is terminated, the notice of termination must inform the family of their right to request a hearing in accordance with the PHA’s grievance process [24 CFR 966.4(l)(3)(ii)]. When reviewing reasonable accommodation requests, the PHA must consider whether reasonable accommodation will allow the family to overcome the problem that led to the PHA’s decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation [24 CFR 966.7]. In addition, the PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing process [24 CFR 966.56(h)]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-17 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) 2-III.A. OVERVIEW Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by t he public housing program. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally-assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register. The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP). LEP persons are 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 Admissions and Continued Occupancy Policy, LEP persons are public housing applicants and resident families, and parents and family members of applicants and resident families. In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the public housing program; (2) the frequency with which LEP persons come into contact with the program; (3) the nature and importance of the program, activity, or service provided by the program to people’s lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-18 2-III.B. ORAL INTERPRETATION The PHA will offer competent interpretation services free of charge, upon request, to the LEP person. Hopkins HRA Policy The PHA will utilize a language line for telephone interpreter services. When exercising the option to conduct remote hearings, however, the PHA will coordinate with a remote interpretation service which, when available, uses video conferencing technology rather than voice-only interpretation. Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by the PHA. The PHA, at its discretion, may choose to use the language services even when LEP persons desire to use an interpreter of their choosing. The interpreter may be a family member or friend. If the interpreter chosen by the family is a minor, the PHA will not rely as on the minor to serve as the interpreter. The PHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. “Reasonable steps” may not be reasonable where the costs imposed substantially exceed the benefits. Where feasible and possible, according to its language assistance plan (LAP), the PHA will train and hire bilingual staff to be available to act as interpreters and translators, will pool resources with other PHAs, and will standardize documents. 2-III.C. WRITTEN TRANSLATION Translation is the replacement of a written text from one language into an equivalent written text in another language. Hopkins HRA Policy In order to comply with written-translation obligations, the PHA will take the following steps: The PHA will provide written translations of vital documents, or key portions of vital documents, for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, the PHA may not translate vital written materials, but will provide written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-19 2-III.D. IMPLEMENTATION PLAN After completing the four-factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves. If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA’s public housing program and services. Hopkins HRA Policy If it is determined that the PHA serves very few LEP persons, and the PHA has very limited resources, the PHA will not develop a written LEP plan, but will consider alternative ways to articulate in a reasonable manner a plan for providing meaningful access. Entities having significant contact with LEP persons, such as schools, grassroots and faith-based organizations, community groups, and groups working with new immigrants will be contacted for input into the process. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-20 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-21 EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.201] A person with a disability, as defined under federal civil rights laws, is any person who: • Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or • Has a record of such impairment, or • Is regarded as having such impairment The phrase “physical or mental impairment” includes: • Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or • Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. “Major life activities” includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. “Has a record of such impairment” means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major live activities. “Is regarded as having an impairment” is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 2-22 The definition of a person with disabilities does not include: • Current illegal drug users • People whose alcohol use interferes with the rights of others • Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the public housing program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this definition of disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations. The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the allowance for medical expenses, or the allowance for disability assistance expenses. The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the public housing program, yet an accommodation is needed to provide equal opportunity. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-1 Chapter 3 ELIGIBILITY INTRODUCTION The PHA is responsible for ensuring that every individual and family admitted to the public housing program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family’s assistance. To be eligible for the public housing program: • The applicant family must: − Qualify as a family as defined by HUD and the PHA. − Have income at or below HUD-specified income limits. − Qualify on the basis of citizenship or the eligible immigrant status of family members. − Provide social security number information for household members as required. − Consent to the PHA’s collection and use of family information as provided for in PHA- provided consent forms. − Not currently be receiving a duplicative subsidy. − Meet net asset and property ownership restriction requirements (effective TBD but no later than January 1, 2025). • The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA. This chapter contains three parts: Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members. Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent. Part III: Denial of Admission. This part covers factors related to an applicant’s past or current conduct (e.g., criminal activity) that can cause the PHA to deny admission as well as the asset limitation for public housing (effective TBD but no later than January 1, 2025). © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-2 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-3 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS 3-I.A. OVERVIEW Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the public housing unit. This part provides information that is needed to correctly identify family and household members and explains HUD's eligibility rules. 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 5.105(a)(2), 24 CFR 5.403, FR Notice 02/03/12, Notice PIH 2014-20, and FR Notice 2/14/23] The terms family and household have different meanings in the public housing program. Family 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, disabled person, near-elderly person, or any other single person; an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older (effective TBD but no later than January 1, 2025); or a group of persons residing together. Such group includes, but is not limited to, a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near-elderly family, a disabled family, a displaced family, and the remaining member of a tenant family. The PHA has the discretion to determine if any other group of persons qualifies as a family. Gender Identity means actual or perceived gender characteristics. Sexual orientation means homosexuality, heterosexuality, or bisexuality. Hopkins HRA Policy A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law, but who either can demonstrate that they have lived together previously or certify that each individual’s income and other resources will be available to meet the needs of the family. Each family must identify the individuals to be included in the family at the time of application and must update this information if the family’s composition changes. Household Household is a broader term that includes additional people who, with the PHA’s permission, live in a public housing unit, such as live-in aides, foster children, and foster adults. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-4 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup Except under the following conditions, the PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up: • If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, stalking, and human trafficking see section 16-VII.D of this ACOP.) • If a court determines the disposition of property between members of the assisted family, the PHA is bound by the court’s determination of which family members continue to receive assistance. Hopkins HRA Policy When a family on the waiting list breaks up into two otherwise eligible families, only one of the new families may retain the original application date. Other former family members may submit a new application with a new application date if the waiting list is open. If a family breaks up into two otherwise eligible families while living in public housing, only one of the new families will retain occupancy of the unit. If a court determines the disposition of property between members of an applicant or resident family, the PHA will abide by the court's determination. In the absence of a judicial decision or an agreement among the original family members, the PHA will determine which family will retain their placement on the waiting list or continue in occupancy. In making its determination, the PHA will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including a family member who was forced to leave a public housing unit as a result of such actual or threatened abuse, and provides documentation in accordance with section 16-VII.D of this ACOP; (4) any possible risks to family members as a result of criminal activity, and (5) the recommendations of social service professionals. Remaining Member of a Tenant Family [24 CFR 5.403] The HUD definition of family includes the remaining member of a tenant family, which is a member of a resident family who remains in the unit when other members of the family have left the unit [PH Occ GB, p. 26]. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family. If dependents are the only “remaining members of a tenant family” and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6- I.B, for the policy on “Caretakers for a Child.” © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-5 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)] Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse. Hopkins HRA Policy The family may designate any qualified family member as the head of household. The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household. 3-I.E. SPOUSE, COHEAD, AND OTHER ADULT A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13]. Spouse means the marriage partner of the head of household. Hopkins HRA Policy A marriage partner includes the partner in a "common law" marriage as defined in state law. The term “spouse” does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse. A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead. Hopkins HRA Policy Minors who are emancipated under state law may be designated as a cohead. Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults [HUD-50058 IB, p. 14]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-6 3-I.F. DEPENDENTS AND MINORS [24 CFR 5.603] A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age. A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides. Identifying each dependent in the family is important because each dependent qualifies the family for a deduction from annual income as described in Chapter 6. Joint Custody of Dependents Hopkins HRA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family if they live with the applicant or resident family 50 percent or more of the time. When more than one applicant or assisted family (regardless of program) are claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, an IRS income tax return showing which family has claimed the child for income tax purposes, school records, or other credible documentation. 3-I.G. FULL-TIME STUDENT [24 CFR 5.603] A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to determine if attendance is full-time is defined by the educational institution. Identifying each FTS is important because (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent deduction and (2) the income of such an FTS is treated differently from the income of other family members. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-7 3-I.H. ELDERLY AND NEAR-ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100, 5.403, 945.105, and FR Notice 02/03/12] Elderly Persons An elderly person is a person who is at least 62 years of age. Near-Elderly Persons A near-elderly person is a person who is 50-61 years of age. Elderly Family An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person. Identifying elderly families is important because these families qualify for the elderly family allowance and the medical allowance as described in Chapter 6 and may qualify for a particular type of development as noted in Chapter 4. 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/12] Persons with Disabilities Under the public housing program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter. These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability. As discussed in Chapter 2, the PHA must make all aspects of the public housing program accessible to persons with disabilities and consider requests for reasonable accommodations when a person’s disability limits their full access to the unit, the program, or the PHA’s services. Disabled Family A disabled family is one in which the head, spouse, or cohead is a person with disabilities. Identifying disabled families is important because these families qualify for the disabled family allowance and the medical allowance as described in Chapter 6 and may qualify for a particular type of development as noted in Chapter 4. Even though persons with drug or alcohol dependencies are considered persons with disabilities for the purpose of non-discrimination, this does not prevent the PHA from denying admission or taking action under the lease for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter and in Chapter 13. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-8 3-I.J. GUESTS [24 CFR 5.100] A guest is defined as a person temporarily staying in the unit with the consent of a tenant or other member of the household who has express or implied authority to so consent on behalf of the tenant. The lease must provide that the tenant has the right to exclusive use and occupancy of the leased unit by the members of the household authorized to reside in the unit in accordance with the lease, including reasonable accommodation of their guests [24 CFR 966.4(d)]. The head of household is responsible for the conduct of visitors and guests, inside the unit as well as anywhere on or near PHA premises [24 CFR 966.4(f)]. Hopkins HRA Policy A resident family must notify the PHA when overnight guests will be staying in the unit for more than three days. A guest can remain in the unit no longer than 14 consecutive days or a total of 30 cumulative calendar days for all guests during any 12-month period. A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure expected to last 20 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. 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 public housing unit more than 50 percent of the time, are not subject to the time limitations of guests as described above. Former residents who have been evicted are not permitted as overnight guests. Guests who represent the public housing unit address as their residence address or address of record for receipt of benefits or any other purposes will be considered unauthorized occupants. In addition, guests who remain in the unit beyond the allowable time limit will be considered to be unauthorized occupants, and their presence constitutes a violation of the lease. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-9 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS [24 CFR 5.603] A foster adult is a member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. A foster child is a member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction. Foster children and foster adults that are living with an applicant or resident family are considered household members but not family members. The income of foster children/adults is not counted in family annual income and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603 and HUD-50058 IB, pp. 13-14]. Hopkins HRA Policy A foster child or foster adult may be allowed to reside in the unit if their presence would not overcrowd the unit. Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-10 3-I.L. ABSENT FAMILY MEMBERS Individuals may be temporarily or permanently absent from the unit for a variety of reasons including educational activities, placement in foster care, employment, and illness. Definitions of Temporarily and Permanently Absent Hopkins HRA Policy Generally, an individual who is or is expected to be absent from the public housing unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the public housing unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students Hopkins HRA Policy When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household or the family declares that the student has established a separate household. Absences Due to Placement in Foster Care [24 CFR 5.403] Children temporarily absent from the home as a result of placement in foster care are considered members of the family. Hopkins HRA Policy If a child has been placed in foster care, the PHA 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. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-11 Absent Head, Spouse, or Cohead Hopkins HRA Policy An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member. Individuals Confined for Medical Reasons Hopkins HRA Policy 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 PHA will request verification from a responsible medical professional 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. Return of Permanently Absent Family Members Hopkins HRA Policy The family must request PHA approval for the return of any adult family members that the PHA has determined to be permanently absent. The individual is subject to the eligibility and screening requirements discussed in this chapter. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-12 3-I.M. LIVE-IN AIDE Live-in aide means a person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the person(s), (2) is not obligated for the support of the person(s), and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403]. The PHA must approve a live-in aide if needed as a reasonable accommodation for a person with disabilities in accordance with 24 CFR 8. A live-in aide is considered a household member but not a family member. The income of the live-in aide is not counted in determining the annual income of the family [24 CFR 5.609(c)(5)]. 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 would not be considered a remaining member of a tenant family. Hopkins HRA Policy A family’s request for a live-in aide may be made either orally or in writing. The PHA will verify the need for a live-in aide, if necessary, with a reliable, knowledgeable professional as provided by the family, such as a doctor, social worker, or case worker. For continued approval, the family may be required to submit a new, written request— subject to PHA verification—at each annual reexamination. In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services. The PHA has the discretion not to approve a particular person as a live-in aide, and may withdraw such approval, if [24 CFR 966.4(d)(3)(i)]: The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; The person has a history of drug-related criminal activity or violent criminal activity; or The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. The person has been threatening, abusive or violent to any PHA employee, applicant or resident. The person has been trespassed or is currently trespassed from HRA property. Within 10 business days of receiving a request for a live-in aide, including all required documentation related to the request, the PHA will notify the family of its decision in writing. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-13 PART II: BASIC ELIGIBILITY CRITERIA 3-II.A. INCOME ELIGIBILITY AND TARGETING Income Limits HUD is required by law to establish income limits that determine the income eligibility of applicants for HUD’s assisted housing programs, including the public housing program. The income limits are published annually and are based on HUD estimates of the median incomes for families of different sizes in a particular area or county. Types of Low-Income Families [24 CFR 5.603(b)] Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size. Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size. Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher. Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes. HUD also publishes over-income limits annually, but these are not used at admission. Over- income limits will be discussed in Chapter 13. Using Income Limits for Eligibility [24 CFR 960.201] Income limits are used to determine eligibility at admission. Eligibility is established by comparing a family's annual income with HUD’s published income limits. To be income- eligible, a family must be a low-income family. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-14 Using Income Limits for Targeting [24 CFR 960.202(b)] At least 40 percent of the families admitted from the PHA waiting list to the public housing program during a PHA fiscal year must be extremely low-income families. This is called the “basic targeting requirement.” If admissions of extremely low-income families to the PHA’s housing choice voucher program during a PHA fiscal year exceed the 75 percent minimum targeting requirement for that program, such excess shall be credited against the PHA’s public housing basic targeting requirement for the same fiscal year. The fiscal year credit for housing choice voucher program admissions that exceed the minimum voucher program targeting requirement must not exceed the lower of: • Ten percent of public housing waiting list admissions during the PHA fiscal year • Ten percent of waiting list admission to the PHA’s housing choice voucher program during the PHA fiscal year • The number of qualifying low-income families who commence occupancy during the fiscal year of public housing units located in census tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low-income family means a low-income family other than an extremely low-income family. For discussion of how income targeting is used in tenant selection, see Chapter 4. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-15 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance. All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA’s Limited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English. Declaration [24 CFR 5.508] HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults. U.S. Citizens and Nationals In general, citizens and nationals are required to submit only a signed declaration that claims their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport. Hopkins HRA Policy Family members who declare citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate. Eligible Noncitizens In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person’s age, and the date on which the family began receiving HUD-funded assistance. Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-16 Ineligible Noncitizens Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member’s ineligible status and is not required to report an individual’s unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS). Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family. Mixed Families A family is eligible for admission as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 14 for a discussion of grievance hearing procedures. Ineligible Families [24 CFR 5.514(d), (e), and (f)] A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible [24 CFR 5.512(a)]. Hopkins HRA Policy The PHA will not provide assistance to a family before the verification of at least one family member as a citizen, national, or eligible noncitizen. When a PHA 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 10 business 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 a grievance hearing with the PHA. The grievance hearing with the PHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the grievance hearing process. Grievance hearing procedures are contained in Chapter 14. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-17 Time Frame for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the resident family the PHA must verify status at the first interim or regular reexamination following the person’s occupancy, whichever comes first. If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)]. Each family member is required to submit evidence of eligible status only one time during continuous occupancy. Hopkins HRA Policy The PHA will verify the status of applicants at the time other eligibility factors are determined. 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2018-24] 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. If a child under age six has been added to an applicant family within the six months prior to program admission, an otherwise eligible family may be admitted to the program and must disclose and document the child’s SSN within 90 days of admission. A detailed discussion of acceptable documentation is provided in Chapter 7. Note: These requirements do not apply to noncitizens who do not contend eligible immigration status. In addition, each participant who has not previously disclosed an SSN, has previously disclosed an SSN that HUD or the SSA determined was invalid, or has been issued a new SSN must submit their complete and accurate SSN and the documentation required to verify the SSN at the time of the next interim or annual reexamination or recertification. Participants age 62 or older as of January 31, 2010, whose determination of eligibility was begun before January 31, 2010, are exempt from this requirement and remain exempt even if they move to a new assisted unit. The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-18 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230] HUD requires each adult family member, and the head of household, spouse, or cohead, regardless of age, to sign form HUD-9886, Authorization for the Release of Information Privacy Act Notice, the form HUD-52675, Debts Owed to Public Housing Agencies and Terminations, and other consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The PHA must deny admission to the program if any member of the applicant family fails to sign and submit consent forms which allow the PHA to obtain information that the PHA has determined is necessary in administration of the public housing program [24 CFR 960.259(a) and (b) and 24 CFR 5.232]. However, this does not apply if the applicant or participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)] (effective TBD but no later than January 1, 2025). Hopkins HRA Policy The PHA has established a policy that revocation of consent to access financial records will result in denial of admission. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-19 3-II.E. EIV SYSTEM SEARCHES [Notice PIH 2018-18; EIV FAQs; EIV System Training 9/30/20] Existing Tenant Search Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance. If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move-out from the assisted unit, as applicable. Hopkins HRA Policy The PHA will contact the other PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, including a form HUD-50058 or 50059, as applicable, showing an end of participation. The PHA will only approve assistance contingent upon the move-out from the currently occupied assisted unit. Debts Owed to PHAs and Terminations All adult household members must sign the form HUD-52675, Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module. If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program. Hopkins HRA Policy The PHA will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household. The PHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, the PHA will determine if this information warrants a denial in accordance with the policies in Part III of this chapter. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-20 Income and Income Validation Tool (IVT) Reports For each new admission, the PHA is required to review the EIV Income and IVT Reports to confirm and validate family reported income within 120 days of the IMS/PIC submission date of the new admission. The PHA must print and maintain copies of the EIV Income and IVT reports in the tenant file and resolve any discrepancies with the family within 60 days of the EIV Income or IVT report dates. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-21 PART III: DENIAL OF ADMISSION 3-III.A. OVERVIEW A family that does not meet the eligibility criteria discussed in Parts I and II must be denied admission. In addition, HUD requires or permits the PHA to deny admission based on certain types of current or past behaviors of family members as discussed in this part. The PHA’s authority in this area is limited by the Violence against Women Act (VAWA), which prohibits the denial of admission to an otherwise qualified applicant on the basis or as a direct result of the fact that the applicant is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking [see 24 CFR 5.2005(b)]. While the regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and OGC guidance must also be taken into consideration when determining whether a particular individual’s criminal history merits denial of admission. When considering any denial of admission, PHAs may not use arrest records as the basis for the denial. Further, HUD does not require the adoption of “One Strike” policies and reminds PHAs of their obligation to safeguard the due process rights of applicants and tenants [Notice PIH 2015-19]. HUD’s Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had no intention to discriminate. Where a policy or practice that restricts admission based on criminal history has a disparate impact on a particular race, national origin, or other protected class, that policy or practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate, nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a less discriminatory effect [OGC Memo 4/4/16]. HUD codified this stance on disparate impact and discriminatory effects in a final rule dated March 31, 2023. In doing so, HUD also standardized its long-practiced three-step approach to assessing burdens of proof. PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-22 This part covers the following topics: • Required denial of admission • The asset limitation in public housing (effective TBD but no later than January 1, 2025) • Other permitted reasons for denial of admission • Screening • Criteria for deciding to deny admission • Prohibition against denial of admission to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking • Notice of eligibility or denial 3-III.B. REQUIRED DENIAL OF ADMISSION [24 CFR 960.204] PHAs are required to establish standards that prohibit admission of an applicant to the public housing program if they have engaged in certain criminal activity or if the PHA has reasonable cause to believe that a household member’s current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. Where the statute requires that the PHA prohibit admission for a prescribed period of time after some disqualifying behavior or event, the PHA may choose to continue that prohibition for a longer period of time [24 CFR 960.203(c)(3)(ii)]. HUD requires the PHA to deny assistance in the following cases: • Any member of the household has been evicted from federally assisted housing in the last three years for drug-related criminal activity. HUD permits but does not require the PHA to admit an otherwise-eligible family if the household member has completed a PHA-approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g. the person involved in the criminal activity no longer lives in the household). Hopkins HRA Policy The PHA will admit an otherwise-eligible family who was evicted from federally assisted housing within the past five years for drug-related criminal activity, if the PHA is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by the PHA, or the person who committed the crime is no longer living in the household. • The PHA determines that any household member is currently engaged in the use of illegal drugs. Drug means a controlled substance as defined in section 102 of the Controlled Substances Act [21 U.S.C. 802]. Currently engaged in the illegal use of a drug means a person has engaged in the behavior recently enough to justify a reasonable belief that there is continuing illegal drug use by a household member [24 CFR 960.205(b)(1)]. Hopkins HRA Policy Currently engaged in is defined as any use of illegal drugs during the previous six months. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-23 • The PHA has reasonable cause to believe that any household member's current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. Hopkins HRA Policy In determining reasonable cause, the PHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol. A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity. The PHA will also consider evidence from treatment providers or community-based organizations providing services to household members. • Any household member has ever been convicted of drug-related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing. • Any household member is subject to a lifetime registration requirement under a state lifetime sex offender registration program. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-24 3-III.C. RESTRICTION ON ASSSITANCE BASED ON ASSETS [24 CFR 5.618] (Effective TBD but no later than January 1, 2025) There are two circumstances under which a family is ineligible for the program either initially or upon reexamination based on asset ownership. First, assistance may not be provided to any family if the family’s net assets exceed $100,000 (adjusted annually by HUD). Second, the family has real property that is suitable for occupancy by the family as a residence and the family has: • A present ownership interest in the real property; • A legal right to reside in the real property; and • The effective legal authority to sell (based on state or local laws of the jurisdiction where the property is located) the real property. However, the real property restriction does not apply in the following circumstances: • Any property for which the family is receiving assistance for a manufactured home under 24 CFR 982.620 or under the HCV Homeownership program; • Any property that is jointly owned by a member of the family and at least one non- household member who does not live with the family, if the non-household member resides at the jointly-owned property; • Any family that is offering the property for sale; or • Any person who is a victim of domestic violence, dating violence, sexual assault, or stalking. o When a family asks for an exception because a family member is a victim of domestic violence, dating violence, sexual assault, or stalking, the PHA must comply with all the confidentiality requirements under VAWA. The PHA must accept a self-certification from the family member, and the restrictions on requesting documentation under VAWA apply. A property is considered suitable for occupancy unless the family demonstrates that it: • Does not meet the disability-related needs for all members of the family (e.g., physical accessibility requirements, disability-related need for additional bedrooms, proximity to accessible transportation, etc.); • Is not sufficient for the size of the family; Hopkins HRA Policy The PHA defines not sufficient for the size of the family as being overcrowded based on the PHA’s occupancy standards in Chapter 5. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-25 • Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time between the property and the family’s place of work or school would be a hardship to the family, as determined by the PHA or owner); • Is not safe to reside in because of the physical condition of the property (e.g., property’s physical condition poses a risk to the family’s health and safety and the condition of the property cannot be easily remedied); or • Is not a property that a family may reside in under the State or local laws of the jurisdiction where the property is located. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-26 3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ADMISSION HUD permits but does not require the PHA to deny admission for the reasons discussed in this section. Criminal Activity [24 CFR 960.203(c)] The PHA is responsible for screening family behavior and suitability for tenancy. In doing so, the PHA may consider an applicant’s history of criminal activity involving crimes of physical violence to persons or property and other criminal acts which would adversely affect the health, safety, or welfare of other tenants. Hopkins HRA Policy If any household member is currently engaged in or has engaged in any of the following criminal activities within the past five years, the family will be denied admission. Drug-related criminal activity, defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug [24 CFR 5.100]. Violent criminal activity, defined by HUD as any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage [24 CFR 5.100]. Criminal activity that may threaten the health, safety, or welfare of other tenants [24 CFR 960.203(c)(3)]. Criminal activity that may threaten the health or safety of PHA staff, contractors, subcontractors, or agents. Criminal sexual conduct, including but not limited to sexual assault, incest, open and gross lewdness, or child abuse. Evidence of such criminal activity includes, but is not limited to: Any record of convictions, arrests, or evictions for suspected drug-related or violent criminal activity of household members within the past three years. A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying criminal activity. In making its decision to deny assistance, the PHA will consider the factors discussed in Sections 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a case- by-case basis, decide not to deny assistance. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-27 Previous Behavior [960.203(c) and (d) and PH Occ GB, p. 48] HUD authorizes the PHA to deny admission based on relevant information pertaining to the family’s previous behavior and suitability for tenancy. In the event of the receipt of unfavorable information with respect to an applicant, the PHA must consider the time, nature, and extent of the applicant’s conduct (including the seriousness of the offense). As discussed in Section 3-III.F, the PHA may also need to consider whether the cause of the unfavorable information may be that the applicant is the victim of domestic violence, dating violence, sexual assault, or stalking. Hopkins HRA Policy The PHA will deny admission to an applicant family if the PHA determines that the family: Has a pattern of unsuitable past performance in meeting financial obligations, including rent within the past five years. Has a pattern of disturbance of neighbors, destruction of property, or living or housekeeping habits at prior residences within the past three years which may adversely affect the health, safety, or welfare of other tenants. Misrepresented or does not provide complete information related to eligibility, including income, award of preferences for admission, expenses, family composition or rent. Has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program in the last three years. Owes rent or other amounts to this or any other PHA in connection with Section 8, public housing, or other public housing assistance under the 1937 Act, unless the family repays the full amount of the debt prior to being selected from the waiting list. When denying admission due to family debts as shown in HUD’s EIV system, the PHA will provide the family with a copy of the EIV Debt Owed to PHA and Termination report. If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to the PHA to support the family’s claim. The PHA will consider the information provided by the family prior to issuing a notice of denial. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-28 Has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to deny admission, the PHA will consider the factors discussed in Sections 3-III.F and 3-III.G. Upon consideration of such factors, the PHA may, on a case- by-case basis, decide not to deny admission. The PHA will consider the existence of mitigating factors, such as loss of employment or other financial difficulties, before denying admission to an applicant based on the failure to meet prior financial obligations. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-29 3-III.E. SCREENING Screening for Eligibility PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the public housing program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903]. The PHA may not pass along to the applicant the costs of a criminal records check [24 CFR 960.204(d)]. Hopkins HRA Policy The PHA will perform criminal background checks through local law enforcement for all adult household members. If the results of the criminal background check indicate there may have been past criminal activity, but the results are inconclusive, the PHA will request a fingerprint card and will request information from the National Crime Information Center (NCIC). PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 960.204(a)(4)]. Hopkins HRA Policy The PHA will use the Dru Sjodin National Sex Offender database and other available databases to screen applicants for admission. Additionally, PHAs must ask whether the applicant, or any member of the applicant’s household, is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH 2012-28]. If the PHA proposes to deny admission based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission [24 CFR 5.903(f) and 5.905(d)]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-30 Obtaining Information from Drug Treatment Facilities [24 CFR 960.205] HUD authorizes PHAs to request and obtain information from drug abuse treatment facilities concerning applicants. Specifically, the PHA may require each applicant to submit for all household members who are at least 18 years of age, and for each family head, spouse, or cohead regardless of age, one or more consent forms signed by such household members that requests any drug abuse treatment facility to inform the PHA whether the drug abuse treatment facility has reasonable cause to believe that the household member is currently engaging in illegal drug use. Drug Abuse Treatment Facility means an entity that holds itself out as providing, and provides, diagnosis, treatment, or referral for treatment with respect to the illegal drug use, and is either an identified unit within a general care facility, or an entity other than a general medical care facility. Currently engaging in illegal use of a drug means illegal use of a drug that occurred recently enough to justify a reasonable belief that there is continuing illegal drug use by a household member. Any consent form used for the purpose of obtaining information from a drug abuse treatment facility to determine whether a household member is currently engaging in illegal drug use must expire automatically after the PHA has made a final decision to either approve or deny the admission of such person. Any charges incurred by the PHA for information provided from a drug abuse treatment facility may not be passed on to the applicant or tenant. If the PHA chooses to obtain such information from drug abuse treatment facilities, it must adopt and implement one of the two following policies: Policy A: The PHA must submit a request for information to a drug abuse treatment facility for all families before they are admitted. The request must be submitted for each proposed household member who is at least 18 years of age, and for each family head, spouse, or cohead regardless of age. Policy B: The PHA must submit a request for information only for certain household members, whose criminal record indicates prior arrests or conviction for any criminal activity that may be a sole basis for denial of admission or whose prior tenancy records indicate that the proposed household member engaged in destruction of property or violent activity against another person, or they interfered with the right of peaceful enjoyment of the premises of other residents. If the PHA chooses to obtain such information, it must abide by the HUD requirements for records management and confidentiality as described in 24 CFR 960.205(f). Hopkins HRA Policy The PHA 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 PHA 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. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-31 Screening for Suitability as a Tenant [24 CFR 960.203(c)] The PHA is responsible for the screening and selection of families to occupy public housing units. The PHA may consider all relevant information. Screening is important to public housing communities and program integrity, and to ensure that assisted housing is provided to those families that will adhere to lease obligations. Hopkins HRA Policy The PHA will consider the family’s history with respect to the following factors: Payment of rent and utilities Caring for a unit and premises Respecting the rights of other residents to the peaceful enjoyment of their housing Criminal activity that is a threat to the health, safety, or property of others Behavior of all household members as related to the grounds for denial as detailed in Sections 3-III. B and C Compliance with any other essential conditions of tenancy © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-32 Resources Used to Check Applicant Suitability [PH Occ GB, pp. 47-56] PHAs have a variety of resources available to them for determination of the suitability of applicants. Generally, PHAs should reject applicants who have recent behavior that would warrant lease termination for a public housing resident. Hopkins HRA Policy In order to determine the suitability of applicants the PHA will examine applicant history for the past three years. Such background checks will include: Past Performance in Meeting Financial Obligations, Especially Rent PHA and landlord references for the past five years, gathering information about past performance meeting rental obligations such as rent payment record, late payment record, and whether the PHA/landlord ever began or completed lease termination for non-payment. PHAs and landlords will be asked if they would rent to the applicant family again. If an applicant has no rental payment history the PHA will check court records of eviction actions and other financial judgments, and credit reports. A lack of credit history will not disqualify someone from becoming a public housing resident, but a poor credit rating may. Applicants with no rental payment history will also be asked to provide the PHA with personal references. The references will be requested to complete a verification of the applicant’s ability to pay rent if no other documentation of ability to meet financial obligations is available. The applicant will also be required to complete a checklist documenting their ability to meet financial obligations. If previous landlords do not respond to requests from the PHA, the applicant may provide other documentation that demonstrates their ability to meet financial obligations (e.g. rent receipts, cancelled checks, etc.) © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-33 Disturbances of Neighbors, Destruction of Property or Living or Housekeeping Habits at Prior Residences that May Adversely Affect Health, Safety, or Welfare of Other Tenants, or Cause Damage to the Unit or the Development PHA and landlord references for the past five years, gathering information on whether the applicant kept a unit clean, safe and sanitary; whether they violated health or safety codes; whether any damage was done by the applicant to a current or previous unit or the development, and, if so, how much the repair of the damage cost; whether the applicant’s housekeeping caused insect or rodent infestation; and whether the neighbors complained about the applicant or whether the police were ever called because of disturbances. Police and court records within the past five years will be used to check for any evidence of disturbance of neighbors or destruction of property that might have resulted in arrest or conviction. A record or records of arrest will not be used as the sole basis for the denial or proof that the applicant engaged in disqualifying activity. A personal reference will be requested to complete a verification of the applicant’s ability to care for the unit and avoid disturbing neighbors if no other documentation is available. In these cases, the applicant will also be required to complete a checklist documenting their ability to care for the unit and to avoid disturbing neighbors. Home visits may be used to determine the applicant’s ability to care for the unit. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-34 3-III.F. CRITERIA FOR DECIDING TO DENY ADMISSION Evidence Hopkins HRA Policy The PHA will use the preponderance of the evidence as the standard for making all admission decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Consideration of Circumstances [24 CFR 960.203(c)(3) and (d)] HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny admission based on a family’s past history except in the situations for which denial of admission is mandated (see Section 3-III.B). In the event the PHA receives unfavorable information with respect to an applicant, consideration must be given to the time, nature, and extent of the applicant’s conduct (including the seriousness of the offense). In a manner consistent with its policies, PHAs may give consideration to factors which might indicate a reasonable probability of favorable future conduct. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-35 Hopkins HRA Policy The PHA will consider the following facts and circumstances prior to making its decision: The seriousness of the case, especially with respect to how it would affect other residents’ safety or property The effects that denial of admission may have on other members of the family who were not involved in the action or failure to act The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section 3-III.F) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history and the likelihood of favorable conduct in the future While a record or records of arrest will not be used as the sole basis for denial, an arrest may trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: Any statements made by witnesses or the applicant not included in the police report Whether criminal charges were filed Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property Evidence of the applicant family’s participation in or willingness to participate in social service or other appropriate counseling service programs In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully The PHA will require the applicant to submit evidence of the household member’s current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-36 Removal of a Family Member’s Name from the Application Should the PHA’s screening process reveal that an applicant’s household includes an individual subject to state lifetime registered sex offender registration, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must deny admission to the family [Notice PIH 2012-28]. For other criminal activity, the PHA may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 960.203(c)(3)(i)]. Hopkins HRA Policy As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit or to stay as a guest in the public housing unit. After admission to the program, the family must present evidence of the former family member’s current address upon PHA request. Reasonable Accommodation [PH Occ GB, pp. 58-60] If the family includes a person with disabilities, the PHA’s decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. Hopkins HRA Policy If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of admission, the PHA will determine whether the behavior is related to the disability. If so, upon the family’s request, the PHA will determine whether alternative measures are appropriate as a reasonable accommodation. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed denial of admission. See Chapter 2 for a discussion of reasonable accommodation. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-37 3-III.G. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND HUMAN TRAFFICKING The Violence against Women Act (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying admission to an otherwise qualified applicant on the basis or as a direct result of the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. • Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. Definitions of key terms used in VAWA are provided in section 16-VII of this ACOP, where general VAWA requirements and policies pertaining to notification, documentation, and confidentiality are also located. Notification VAWA requires PHAs to provide applicants who are denied assistance with a VAWA Notice of Occupancy Rights (form HUD-5380) and a domestic violence certification form (HUD-5382) at the time the applicant is denied. Hopkins HRA Policy The PHA acknowledges that a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking may have an unfavorable history (e.g., a poor credit history, poor rental history, a record of previous damage to an apartment, a prior arrest record) due to adverse factors that would warrant denial under the PHA’s policies. While the PHA is not required to identify whether adverse factors that resulted in the applicant’s denial are a result of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the applicant may inform the PHA that their status as a victim is directly related to the grounds for the denial. The PHA will request that the applicant provide enough information to the PHA to allow the PHA to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim. The PHA will include in its notice of denial information about the protection against denial provided by VAWA in accordance with section 16-VII.C of this ACOP, a notice of VAWA rights, and a copy of the form HUD-5382. The PHA will request in writing that an applicant wishing to claim this protection notify the PHA within 14 business days. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-38 Documentation Victim Documentation [24 CFR 5.2007] Hopkins HRA Policy If an applicant claims the protection against denial of admission that VAWA provides to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-VII.D of this ACOP. Perpetrator Documentation Hopkins HRA Policy If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following: A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the public housing unit Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must attest under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-39 3-III.H. NOTICE OF ELIGIBILITY OR DENIAL The PHA will notify an applicant family of its final determination of eligibility in accordance with the policies in Section 4-III.E. If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. Hopkins HRA Policy If, based on a criminal record or sex offender registration information an applicant family appears to be ineligible, the PHA 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 10 business days to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10 day period, the PHA 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. Notice requirements related to denying admission to noncitizens are contained in Section 3-II.B. Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, stalking or human trafficking are contained in Section 3-III.F. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-40 EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.403] The term person with disabilities means a person who has any of the following types of conditions. • Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads: Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months In the case of an individual who has attained the age of 55 and is blind (within the meaning of “blindness” as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time. • Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows: (A) IN GENERAL – The term developmental disability means a severe, chronic disability of an individual that- (i) is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely; (iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) self-care, (II) receptive and expressive language, (III) learning, (IV) mobility, (V) self-direction, (VI) capacity for independent living, (VII) economic self-sufficiency; and (v) reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. (B) INFANTS AND YOUNG CHILDREN – An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life. • Has a physical, mental, or emotional impairment that is expected to be of long-continued and indefinite duration; substantially impedes their ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 3-41 People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition. A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program. For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps. Individual with Handicaps [24 CFR 8.3] Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. As used in this definition, the phrase: (1) Physical or mental impairment includes: (a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. (4) Is regarded as having an impairment means: (a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment (c) Has none of the impairments defined in paragraph (a) of this section but is treated by a recipient as having such an impairment © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-1 Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION INTRODUCTION When a family wishes to reside in public housing, the family must submit an application that provides the PHA with the information needed to determine the family’s eligibility. HUD requires the PHA to place all eligible families that apply for public housing on a waiting list. When a unit becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in its Admissions and Continued Occupancy Policy (ACOP) and its annual plan. The PHA is required to adopt a clear approach to accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow this approach consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA to receive preferential treatment. HUD regulations require that the PHA comply with all equal opportunity requirements and it must affirmatively further fair housing goals in the administration of the program [24 CFR 960.103, PH Occ GB p. 13]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant fair housing requirements, as described in Chapter 2. This chapter describes HUD and PHA policies for accepting applications, managing the waiting list and selecting families from the waiting list. The PHAs policies for assigning unit size and making unit offers are contained in Chapter 5. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s Tenant Selection and Assignment Plan (TSAP). The policies outlined in this chapter are organized into three sections, as follows: Part I: The Application Process. This part provides an overview of the application process and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives. Part II: Managing the Waiting List. This part presents the policies that govern how the PHA’s waiting list is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for public housing. It also discusses the process the PHA will use to keep the waiting list current. Part III: Tenant Selection. This part describes the policies that guide the PHA in selecting families from the waiting list as units become available. It also specifies how in-person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-2 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-3 PART I: THE APPLICATION PROCESS 4-I.A. OVERVIEW This part describes the policies that guide the PHA’s efforts to distribute and accept applications, and to make preliminary determinations of applicant family eligibility that affect placement of the family on the waiting list. This part also describes the PHA’s obligation to ensure the accessibility of the application process. 4-I.B. APPLYING FOR ASSISTANCE Any family that wishes to reside in public housing must apply for admission to the program [24 CFR 1.4(b)(2)(ii), 24 CFR 960.202(a)(2)(iv), and PH Occ GB, p. 68]. HUD permits the PHA to determine the format and content of its applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. However, the PHA must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of the PHA’s application [Notice PIH 2009-36]. Hopkins HRA Policy Depending upon the length of time between the date of application and the availability of housing, the PHA may use a one- or two-step application process. A one-step process will be used when it is expected that a family will be selected from the waiting list within 60 days of the date of application. At application, the family must provide all the information necessary to establish family eligibility and the amount of rent the family will pay. A two-step process will be used when it is expected that a family will not be selected from the waiting list for at least 60 days from the date of application. Under the two-step application process, the PHA initially will require families to provide only the information needed to make an initial assessment of the family’s eligibility, and to determine the family’s placement on the waiting list. The family will be required to provide all the information necessary to establish family eligibility and the amount of rent the family will pay when selected from the waiting list. Families may obtain application forms from the PHA’s office during normal business hours. Families may also request – by mail or email – that an application form be sent to the family via first class mail or via email. Completed applications must be returned to the PHA by mail, via email, by fax, or submitted in person during normal business hours. Applications must be filled out completely in order to be accepted by the PHA for processing. If an application is incomplete, the PHA will notify the family of the additional information required. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-4 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS The PHA must take a variety of steps to ensure that the application process is accessible to those people who might have difficulty complying with the standard PHA application process. Disabled Populations [24 CFR 8; PH Occ GB, p. 68] The PHA must provide reasonable accommodation as needed for persons with disabilities to make the application process fully accessible. The facility where applications are accepted and the application process must be fully accessible, or the PHA must provide an alternate approach that provides equal access to the program. Chapter 2 provides a full discussion of the PHA’s policies related to providing reasonable accommodations for people with disabilities. Limited English Proficiency PHAs are required to take reasonable steps to ensure meaningful access to their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on the PHA’s policies related to ensuring access to people with limited English proficiency (LEP). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-5 4-I.D. PLACEMENT ON THE WAITING LIST The PHA must review each completed application received and make a preliminary assessment of the family’s eligibility. Applicants for whom the waiting list is open must be placed on the waiting list unless the PHA determines the family to be ineligible. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 960.208(a); PH Occ GB, p. 41]. No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list. Ineligible for Placement on the Waiting List Hopkins HRA Policy If the PHA determines 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 PHA will send written notification of the ineligibility determination within 10 business days of receipt of the completed application. The notice will specify the reasons for ineligibility and will inform the family of its right to request an informal hearing and explain the process for doing so (see Chapter 14). Eligible for Placement on the Waiting List Hopkins HRA Policy The PHA will send written notification of the preliminary eligibility determination within 20 business days of receiving a completed application. If applicable, the notice will also indicate the waiting list preference(s) for which the family appears to qualify. Applicants will be placed on the waiting list according to PHA preference(s) and the date and time their complete application is received by the PHA. Applicants are able to see their status online as active or inactive on “Wait List Check”. The PHA will assign families on the waiting list according to the bedroom size for which a family qualifies as established in its occupancy standards (see Chapter 5). 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 PHA will verify any preference(s) claimed and determine eligibility and suitability for admission to the program. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-6 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-7 PART II: MANAGING THE WAITING LIST 4-II.A. OVERVIEW The PHA must have policies regarding the type of waiting list it will utilize as well as how the waiting list will be organized and managed. This includes policies on notifying the public on the opening and closing of the waiting list to new applicants, updating family information, purging the list of families that are no longer interested in or eligible for public housing, and conducting outreach to ensure a sufficient number of applicants. In addition, HUD imposes requirements on how the PHA may structure its waiting list and how families must be treated if they apply for public housing at a PHA that administers more than one assisted housing program. 4-II.B. ORGANIZATION OF THE WAITING LIST The PHA’s public housing waiting list must be organized in such a manner to allow the PHA to accurately identify and select families in the proper order, according to the admissions policies described in this ACOP. Hopkins HRA Policy The waiting list will contain the following information for each applicant listed: Name and social security number of head of household Unit size required (number of family members) Amount and source of annual income Accessibility requirement, if any Date and time of application Household type (family, elderly, disabled) Admission preference, if any Race and ethnicity of the head of household © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-8 HUD requires that public housing applicants must be offered the opportunity to be placed on the waiting list for any tenant-based or project-based voucher or moderate rehabilitation program that the PHA operates if 1) the other programs’ waiting lists are open, and 2) the family is qualified for the other programs [24 CFR 982.205(a)(2)(i)]. HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing programs [24 CFR 982.205(a)(1)]. Hopkins HRA Policy The PHA currently does not administer a Housing Choice Voucher program. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-9 4-II.C. OPENING AND CLOSING THE WAITING LIST Closing the Waiting List The PHA is permitted to close the waiting list, in whole or in part, if it has an adequate pool of families to fully lease units in all its developments. The PHA may close the waiting list completely, or restrict intake by preference, type of project, or by size and type of dwelling unit. [PH Occ GB, p. 31]. Hopkins HRA Policy The PHA will close the waiting list when the estimated waiting period for housing applicants on the list reaches 24 to 36 months for the most current applicants. Where the PHA has particular preferences or other criteria that require a specific category of family, the PHA may elect to continue to accept applications from these applicants while closing the waiting list to others. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-10 Reopening the Waiting List If the waiting list has been closed, it may be reopened at any time. The PHA should publish a notice announcing the opening of the waiting list in local newspapers of general circulation, minority media, and other suitable media outlets. Such notice must comply with HUD fair housing requirements. The PHA should specify who may apply, and where and when applications will be received. Hopkins HRA Policy The PHA 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. The notice will inform applicants of the date, time, method, and place applications can be obtained and submitted, how blank applications may be obtained (e.g., from what addresses, community sites, and websites), all methods by which applications will be accepted (e.g., in person, by fax, mail or email), a point of contact who can answer questions, any limitations on who may apply, and any other information the applicant may need to successfully submit the application. The PHA will describe its prioritization system or whether it uses a lottery and will clearly state that this system will be used to place applicants on the waiting list. To ensure that public notices broadly reach potential applicants in all communities throughout the housing market area, the PHA will distribute public notices to local community-based organizations, such as social service agencies and religious institutions; distribute the notice online through the PHA’s website or social media platforms and other online platforms for local housing news; and make use of any local newspapers of general circulation, minority media, and other suitable means. The PHA will give public notice by publishing the relevant information using the following media outlets: Sun Sailor Housing Link First Call for Help (United Way 211 system for housing) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-11 4-II.D. FAMILY OUTREACH [24 CFR 903.2(d); 24 CFR 903.7(a) and (b)] The PHA should conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waiting list to fill anticipated vacancies and to assure that the PHA is affirmatively furthering fair housing and complying with the Fair Housing Act. Because HUD requires the PHA to admit a specified percentage of extremely low-income families, the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for public housing. PHA outreach efforts must comply with fair housing requirements. This includes: • Analyzing the housing market area and the populations currently being served to identify underserved populations • Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program • Avoiding outreach efforts that prefer or exclude people who are members of a protected class PHA outreach efforts must be designed to inform qualified families about the availability of units under the program. These efforts may include, as needed, any of the following activities: • Submitting press releases to local newspapers, including minority newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low income population • Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities Hopkins HRA Policy The PHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in the PHA’s jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-12 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES Hopkins HRA Policy While the family is on the waiting list, the family must inform the PHA, within 10 business days, of changes in family size or composition, preference status, or contact information, including current residence, mailing address, and phone number. The changes must be submitted in writing. Changes in an applicant's circumstances while on the waiting list may affect the family's qualification for a particular bedroom size or entitlement to a preference. When an applicant reports a change that affects their placement on the waiting list, the waiting list will be updated accordingly. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-13 4-II.F. UPDATING THE WAITING LIST HUD requires the PHA to establish policies that describe the circumstances under which applicants will be removed from the waiting list [24 CFR 960.202(a)(2)(iv)]. Purging the Waiting List The decision to remove an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to the PHA’s request for information or updates because of the family member’s disability, the PHA must, upon the family’s request, reinstate the applicant family to their former position on the waiting list as a reasonable accommodation [24 CFR 8.4(a), 24 CFR 100.204(a), and PH Occ GB, p. 39 and 40]. See Chapter 2 for further information regarding reasonable accommodations. Hopkins HRA Policy The waiting list will be updated as needed to ensure that all applicant information is current and timely. To update the waiting list, the PHA will send an update request via first class mail to each family on the waiting list to determine whether the family continues to be interested in, and to qualify for, the program. In the initial application form and in any update forms, the PHA will ask the family for their phone and email. This update request will be sent to the last address that the PHA has on record for the family as well as any additional contact methods identified by the family. The update request will provide a deadline by which the family must respond and will state that failure to respond will result in the applicant’s name being removed from the waiting list. The family’s response must be in writing and may be delivered in person, by mail, by email, or by fax. Responses should be postmarked or received by the PHA not later than the deadline stated in the PHA letter. If the family fails to respond by the deadline as stated in the PHA letter, the family will be removed from the waiting list without further notice. If the notice is returned by the post office with no forwarding address, the applicant will be removed from the waiting list without further notice. If the notice is returned by the post office with a forwarding address, the notice will be re- sent to the address indicated. The family must respond within the deadline stated in the letter that was re-sent. If the family fails to respond within this time frame, the family will be removed from the waiting list without further notice. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-14 When a family is removed from the waiting list during the update process for failure to respond, the PHA will contact an unresponsive applicant through all means available, which may include mail, phone, or email. The PHA will give that family a reasonable period of time to respond with their interest so as to not inadvertently remove an applicant who remains interested but may have moved, changed their contact information, or otherwise are difficult to reach. No informal hearing will be offered in such cases. Such failures to act on the part of the applicant prevent the PHA from making an eligibility determination; therefore, no informal hearing is required. If a family is removed from the waiting list for failure to respond, the PHA may reinstate the family if the lack of response was due to PHA error, to circumstances beyond the family’s control, as a result of a family member’s disability, or as a direct result of status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including an adverse factor resulting from such abuse. Removal from the Waiting List Hopkins HRA Policy The PHA will remove an applicant from the waiting list upon request by the applicant family. In such cases no informal hearing is required. If the PHA determines that the family is not eligible for admission (see Chapter 3) at any time while the family is on the waiting list the family will be removed from the waiting list. If a family is removed from the waiting list because the PHA has determined the family is not eligible for admission, a notice will be sent to the family’s address of record as well as to any alternate address provided on the initial application. The notice will state the reason(s) the family was removed from the waiting list and will inform the family how to request an informal hearing regarding the PHA’s decision (see Chapter 14) [24 CFR 960.208(a)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-15 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-16 PART III: TENANT SELECTION 4-III.A. OVERVIEW The PHA must establish tenant selection policies for families being admitted to public housing [24 CFR 960.201(a)]. The PHA must not require any specific income or racial quotas for any developments [24 CFR 903.2(d)]. The PHA must not assign persons to a particular section of a community or to a development or building based on race, color, religion, sex, disability, familial status or national origin for purposes of segregating populations [24 CFR 1.4(b)(1)(iii) and 24 CFR 903.2(d)(1)]. The order in which families will be selected from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences that the family qualifies for. The availability of units also may affect the order in which families are selected from the waiting list. The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA’s selection policies [24 CFR 960.206(e)(2)]. The PHA’s policies must be posted any place where the PHA receives applications. The PHA must provide a copy of its tenant selection policies upon request to any applicant or tenant. The PHA may charge the family for providing a copy of its tenant selection policies [24 CFR 960.202(c)(2)]. Hopkins HRA Policy When an applicant or resident family requests a copy of the PHA’s tenant selection policies, the PHA will provide copies to them free of charge. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-17 4-III.B. SELECTION METHOD PHAs must describe the method for selecting applicant families from the waiting list, including the system of admission preferences that the PHA will use. Local Preferences [24 CFR 960.206] PHAs are permitted to establish local preferences and to give priority to serving families that meet those criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits the PHA to establish other local preferences, at its discretion. Any local preferences established must be consistent with the PHA plan and the consolidated plan and must be based on local housing needs and priorities that can be documented by generally accepted data sources [24 CFR 960.206(a)]. Hopkins HRA Policy Local Preferences apply to the Dow Towers One Bedroom Waiting list and will be verified during the application process and are as follows: 1. The applicant is a victim or threatened victim of domestic violence, dating violence, sexual assault, stalking or human trafficking (3 points) 2. The applicant head of household, spouse or cohead is at least 62 years old or disabled, or a family with children. (2 points) 3. The applicant head of household, spouse or cohead is age 50-61. (1 point) 4. The applicant is a resident of, working, or hired to work in Hopkins. (1 point) Each preference will be equal to number points the more preference points an applicant has the higher the applicants place on the waiting list. Domestic Violence Preference (three points): The PHA will offer a preference to families that include victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking who have been referred by a social service agency. The applicant must certify that the abuser will not reside with the applicant unless the PHA gives prior written approval. Applicant, Spouse or Cohead is Disabled Preference: This preference is extended to disabled persons or families with a disabled member who meet the HUD/Social Security definition of “person with disabilities” as defined Exhibit 3-1 of this ACOP. The PHA will require appropriate documentation from a knowledgeable professional. The PHA will not inquire as to the nature or extent of the disability. An award letter or other proof of eligibility for Social Security Disability or Supplemental Security Income will be acceptable. Residency Preference: For families who live, work or have been hired to work in the jurisdiction of the PHA. In order to verify that an applicant is a resident, the PHA will require a minimum of two of the following documents: rent receipts, leases, utility bills, employer or agency records, school records, drivers licenses, voters registration records, credit reports, statement from household with whom the family is residing. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-18 For families who have been hired to work in the jurisdiction of the PHA, a statement from the employer will be required. Working Preference: This preference is available for families whose head and spouse/cohead is employed or to families whose head and spouse/cohead is elderly or disabled. The PHA will require a statement from the employer. Among applicants with the same preference points, date and time of application will be used to determine placement on the waiting list. Income Targeting Requirement [24 CFR 960.202(b)] HUD requires that extremely low-income (ELI) families make up at least 40 percent of the families admitted to public housing during the PHA’s fiscal year. ELI families are those with annual incomes at or below the federal poverty level or 30 percent of the area median income, whichever number is higher [Federal Register notice 6/25/14]. To ensure this requirement is met, the PHA may skip non-ELI families on the waiting list in order to select an ELI family. If a PHA also operates a housing choice voucher (HCV) program, admissions of extremely low- income families to the PHA’s HCV program during a PHA fiscal year that exceed the 75 percent minimum target requirement for the voucher program, shall be credited against the PHA’s basic targeting requirement in the public housing program for the same fiscal year. However, under these circumstances the fiscal year credit to the public housing program must not exceed the lower of: (1) ten percent of public housing waiting list admissions during the PHA fiscal year; (2) ten percent of waiting list admissions to the PHA’s housing choice voucher program during the PHA fiscal year; or (3) the number of qualifying low-income families who commence occupancy during the fiscal year of PHA public housing units located in census tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low-income family means a low- income family other than an extremely low-income family. Hopkins HRA Policy The PHA currently does not administer a Housing Choice Voucher (HCV) program. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-19 Units Designated for Elderly or Disabled Families [24 CFR 945] The PHA may designate projects or portions of a public housing project specifically for elderly or disabled families. The PHA must have a HUD-approved allocation plan before the designation may take place. Among the designated developments, the PHA must also apply any preferences that it has established. If there are not enough elderly families to occupy the units in a designated elderly development, the PHA may allow near-elderly families to occupy the units [24 CFR 945.303(c)(1)]. Near-elderly family means a family whose head, spouse, or cohead is at least 50 years old, but is less than 62 [24 CFR 5.403]. If there are an insufficient number of elderly families and near-elderly families for the units in a development designated for elderly families, the PHA must make available to all other families any unit that is ready for re-rental and has been vacant for more than 60 consecutive days [24 CFR 945.303(c)(2)]. The decision of any disabled family or elderly family not to occupy or accept occupancy in designated housing shall not have an adverse affect on their admission or continued occupancy in public housing or their position on or placement on the waiting list. However, this protection does not apply to any family who refuses to occupy or accept occupancy in designated housing because of the race, color, religion, sex, disability, familial status, or national origin of the occupants of the designated housing or the surrounding area [24 CFR 945.303(d)(1) and (2)]. This protection does apply to an elderly family or disabled family that declines to accept occupancy, respectively, in a designated project for elderly families or for disabled families, and requests occupancy in a general occupancy project or in a mixed population project [24 CFR 945.303(d)(3)]. Hopkins HRA Policy The PHA does not have designated elderly or designated disabled housing at this time. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-20 Deconcentration of Poverty and Income-Mixing [24 CFR 903.1 and 903.2] The PHA's admission policy must be designed to provide for deconcentration of poverty and income-mixing by bringing higher income tenants into lower income projects and lower income tenants into higher income projects. A statement of the PHA’s deconcentration policies must be in included in its annual plan [24 CFR 903.7(b)]. The PHA’s deconcentration policy must comply with its obligation to meet the income targeting requirement [24 CFR 903.2(c)(5)]. Developments subject to the deconcentration requirement are referred to as ‘covered developments’ and include general occupancy (family) public housing developments. The following developments are not subject to deconcentration and income mixing requirements: developments operated by a PHA with fewer than 100 public housing units; mixed population or developments designated specifically for elderly or disabled families; developments operated by a PHA with only one general occupancy development; developments approved for demolition or for conversion to tenant-based public housing; and developments approved for a mixed-finance plan using HOPE VI or public housing funds [24 CFR 903.2(b)]. Hopkins HRA Policy The PHA is not subject to deconcentration since the PHA has only one development. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-21 Order of Selection [24 CFR 960.206(e)] The PHA system of preferences may select families either according to the date and time of application or by a random selection process. Hopkins HRA Policy Families will be selected from the waiting list based on selection preference points for which they qualify. Within each preference category, families will be selected in numerical order based on the numbers that were assigned to each application by lottery at the time applications were placed on the waiting list. When selecting applicants from the waiting list, the PHA will match the characteristics of the available unit (unit size, accessibility features, unit type) to the applicants on the waiting lists. The PHA will offer the unit to the highest-ranking applicant who qualifies for that unit size or type, or that requires the accessibility features. By matching unit and family characteristics, it is possible that families who are lower on the waiting list may receive an offer of housing ahead of families with an earlier date and time of application or higher preference status. Factors such as income targeting will also be considered in accordance with HUD requirements and PHA policy. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-22 4-III.C. NOTIFICATION OF SELECTION When the family has been selected from the waiting list, the PHA must notify the family [24 CFR 960.208]. Hopkins HRA Policy The PHA will notify the family by first class mail when it is selected from the waiting list. The notice will inform the family of the following: Opportunity to schedule an application interview, including any procedures for rescheduling the interview Who is required to attend the interview Documents that must be provided at the interview to document the legal identity of household members, including information about what constitutes acceptable documentation Documents that must be provided at the interview to document eligibility for a preference, if applicable Other documents and information that should be brought to the interview If a notification letter is returned to the PHA with no forwarding address, the family will be removed from the waiting list without further notice. Such failure to act on the part of the applicant prevents the PHA from making an eligibility determination; therefore no informal hearing will be offered. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-23 4-III.D. THE APPLICATION INTERVIEW HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination through a private interview. Being invited to attend an interview does not constitute admission to the program. Assistance cannot be provided to the family until all SSN documentation requirements are met. However, if the PHA determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by the PHA [Notice PIH 2018-24]. Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability [24 CFR 8.4(a) and 24 CFR 100.204(a)]. Hopkins HRA Policy Families selected from the waiting list are required to participate in an eligibility interview. The head of household and the spouse/cohead will be strongly encouraged to attend the interview together. However, either the head of household or the spouse/cohead may attend the interview on behalf of the family. Verification of information pertaining to adult members of the household not present at the interview will not begin until signed release forms are returned to the PHA. The interview will be conducted only if the head of household or spouse/cohead provides appropriate documentation of legal identity (Chapter 7 provides a discussion of proper documentation of legal identity). If the family representative does not provide the required documentation, the appointment may be rescheduled when the proper documents have been obtained. Pending disclosure and documentation of social security numbers, the PHA will allow the family to retain its place on the waiting list for one month. If not all household members have disclosed their SSNs at the next time a unit becomes available, the PHA will offer a unit to the next eligible applicant family on the waiting list. If the family is claiming a waiting list preference, the family must provide documentation to verify their eligibility for a preference (see Chapter 7). If the family is verified as eligible for the preference, the PHA will proceed with the interview. If the PHA determines the family is not eligible for the preference, the interview will not proceed and the family will be placed back on the waiting list according to the date and time of their application. The family must provide the information necessary to establish the family’s eligibility, including suitability, 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 any materials are missing, the PHA will provide the family with a written list of items that must be submitted. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-24 Any required documents or information that the family is unable to provide at the interview must be provided within 10 business days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of Social Security numbers and eligible noncitizen status). If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. 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 (see Chapter 3). An advocate, interpreter, or other assistant may assist the family with the application and the interview process. Interviews will be conducted in English. For limited English proficient (LEP) applicants, the PHA will provide translation services in accordance with the PHA’s LEP plan. If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend a scheduled interview, the PHA will send another notification letter with a new interview appointment time. Applicants who fail to attend two scheduled interviews without PHA approval will have their applications made inactive based on the family’s failure to supply information needed to determine eligibility. The second appointment letter will state that failure to appear for the appointment without a request to reschedule will be interpreted to mean that the family is no longer interested and their application will be made inactive. Such failure to act on the part of the applicant prevents the PHA from making an eligibility determination, therefore the PHA will not offer an informal hearing. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 4-25 4-III.E. FINAL ELIGIBILITY DETERMINATION [24 CFR 960.208] The PHA must verify all information provided by the family (see Chapter 7). Based on verified information related to the eligibility requirements, including PHA suitability standards, the PHA must make a final determination of eligibility (see Chapter 3). When a determination is made that a family is eligible and satisfies all requirements for admission, including tenant selection criteria, the applicant must be notified of the approximate date of occupancy insofar as that date can be reasonably determined [24 CFR 960.208(b)]. Hopkins HRA Policy The PHA will notify a family in writing, email or by phone of their eligibility within 10 business days of the determination and will provide the approximate date of occupancy insofar as that date can be reasonably determined. The PHA must promptly notify any family determined to be ineligible for admission of the basis for such determination, and must provide the applicant upon request, within a reasonable time after the determination is made, with an opportunity for an informal hearing on such determination [24 CFR 960.208(a)]. Hopkins HRA Policy If the PHA determines that the family is ineligible, the PHA will send written notification of the ineligibility determination within 10 business days of the determination. The notice will specify the reasons for ineligibility and will inform the family of its right to request an informal hearing (see Chapter 14). If the PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. See Section 3-III.G for the PHA’s policy regarding such circumstances. The PHA must provide the family a notice of VAWA rights (form HUD-5380) as well as the HUD VAWA self-certification form (form HUD-5382) in accordance with the Violence against Women Act, and as outlined in 16-VII.C, at the time the applicant is provided assistance or at the time the applicant is denied assistance. This notice must be provided in both of the following instances: (1) when a family actually begins receiving assistance (lease execution); or (2) when a family is notified of its ineligibility. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-1 Chapter 5 OCCUPANCY STANDARDS AND UNIT OFFERS INTRODUCTION The PHA must establish policies governing occupancy of dwelling units and offering dwelling units to qualified families. This chapter contains policies for assigning unit size and making unit offers. The PHA’s waiting list and selection policies are contained in Chapter 4. Together, Chapters 4 and 5 of the ACOP comprise the PHA’s Tenant Selection and Assignment Plan (TSAP). Policies in this chapter are organized in two parts. Part I: Occupancy Standards. This part contains the PHA’s standards for determining the appropriate unit size for families of different sizes, compositions, and types. Part II: Unit Offers. This part contains the PHA’s policies for making unit offers, and describes actions to be taken when unit offers are refused. PART I: OCCUPANCY STANDARDS 5-I.A. OVERVIEW Occupancy standards are established by the PHA to ensure that units are occupied by families of the appropriate size. This policy maintains the maximum usefulness of the units, while preserving them from underutilization or from excessive wear and tear due to overcrowding. Part I of this chapter explains the occupancy standards. These standards describe the methodology and factors the PHA will use to determine the size unit for which a family qualifies, and includes the identification of the minimum and maximum number of household members for each unit size. This part also identifies circumstances under which an exception to the occupancy standards may be approved. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-2 5-I.B. DETERMINING UNIT SIZE In selecting a family to occupy a particular unit, the PHA may match characteristics of the family with the type of unit available, for example, number of bedrooms [24 CFR 960.206(c)]. HUD does not specify the number of persons who may live in public housing units of various sizes. PHAs are permitted to develop appropriate occupancy standards as long as the standards do not have the effect of discriminating against families with children [PH Occ GB, p. 62]. Although the PHA does determine the size of unit the family qualifies for under the occupancy standards, the PHA does not determine who shares a bedroom/sleeping room. The PHA’s occupancy standards for determining unit size must be applied in a manner consistent with fair housing requirements. Hopkins HRA Policy The PHA’s one development consists of one-bedroom units only. The family may add foster children to the household as long as it does not overcrowd the unit based on the PHA’s occupancy standards. Live-in aides will not be allocated a separate bedroom, since the PHA’s development consists only of one-bedroom units. The PHA will reference the following standards in determining the appropriate unit bedroom size for a family: BEDROOM SIZE MINIMUM NUMBER OF PERSONS MAXIMUM NUMBER OF PERSONS 1 1 2 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-3 5-I.C. EXCEPTIONS TO OCCUPANCY STANDARDS Types of Exceptions Hopkins HRA Policy The PHA has only ONE BEDROOM units to offer. The PHA cannot offer any larger units as the PHA simply does not have them in the inventory. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-4 PART II: UNIT OFFERS 24 CFR 1.4(b)(2)(ii); 24 CFR 960.208 5-II.A. OVERVIEW The PHA must assign eligible applicants to dwelling units in accordance with a plan that is consistent with civil rights and nondiscrimination laws. In filling an actual or expected vacancy, the PHA must offer the dwelling unit to an applicant in the appropriate offer sequence. The PHA will offer the unit until it is accepted. This section describes the PHA’s policies with regard to the number of unit offers that will be made to applicants selected from the waiting list. This section also describes the PHA’s policies for offering units with accessibility features. Hopkins HRA Policy The PHA will maintain a record of units offered, including location, date and circumstances of each offer, each acceptance or rejection, including the reason for the rejection. 5-II.B. NUMBER OF OFFERS Hopkins HRA Policy The PHA has adopted a “one-offer plan” for offering units to applicants. Under this plan the first qualified applicant in sequence on the waiting list be made one offer of a unit of the appropriate size. Under this plan: • Each applicant gets one offer • Unless the applicant has good cause for refusing the offer, the applicant must accept it or be dropped off the waiting list • The PHA’s record keeping is limited to the offer made, whether it is accepted or refused, and whether the applicant has good cause refusal (and is entitled to another offer). 5-II.C. TIME LIMIT FOR UNIT OFFER ACCEPTANCE OR REFUSAL Hopkins HRA Policy Applicants must accept or refuse a unit offer within two business days of the date of the unit offer. Offers made by telephone will be confirmed by email or letter. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-5 5-II.D. REFUSALS OF UNIT OFFERS Good Cause for Unit Refusal Hopkins HRA Policy Applicants may refuse to accept a unit offer for “good cause.” Good cause includes situations in which an applicant is willing to move but is unable to do so at the time of the unit offer, or the applicant demonstrates that acceptance of the offer would cause undue hardship not related to considerations of the applicant’s race, color, national origin, etc. [PH Occ GB, p. 104]. Examples of good cause for refusal of a unit offer include, but are not limited to, the following: A health professional verifies temporary hospitalization or recovery from illness of the principal household member, other household members (as listed on final application) or live-in aide necessary to the care of the principal household member. The unit is inappropriate for the applicant’s disabilities, or the family does not need the accessible features in the unit offered and does not want to be subject to a 30-day notice to move. In the case of a unit refusal for good cause the applicant will not be removed from the waiting list as described later in this section. The applicant will remain at the top of the waiting list until the family receives an offer for which they do not have good cause to refuse. The PHA will require documentation of good cause for unit refusals. Unit Refusal without Good Cause Hopkins HRA Policy When an applicant rejects the unit offer without good cause, the PHA will remove the applicant’s name from the waiting list and send notice to the family of such removal. The notice will inform the family of their right to request an informal hearing and the process for doing so (see Chapter 14). The applicant may reapply for assistance if the waiting list is open. If the waiting list is not open, the applicant must wait to reapply until the PHA opens the waiting list. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 5-6 5-II.E. ACCESSIBLE UNITS [24 CFR 8.27] PHAs must adopt suitable means to assure that information regarding the availability of accessible units reaches eligible individuals with disabilities, and take reasonable nondiscriminatory steps to maximize the utilization of such units by eligible individuals whose disability requires the accessibility features of a particular unit. When an accessible unit becomes vacant, before offering such units to a non-disabled applicant the PHA must offer such units: • First, to a current resident of another unit of the same development who has a disability that requires the special features of the vacant unit and is occupying a unit not having such features, or if no such occupant exists, then • Second, to an eligible qualified applicant on the waiting list having a disability that requires the special features of the vacant unit. When offering an accessible unit to an applicant not having a disability requiring the accessibility features of the unit, the PHA may require the applicant to agree (and may incorporate this agreement in the lease) to move to a non-accessible unit when available. Hopkins HRA Policy When there are no resident or applicant families requiring the accessible features of the unit, including families who would be over-housed, the PHA will offer the unit to a non- disabled applicant. When offering an accessible unit to a non-disabled applicant, the PHA will require the applicant to agree to move to an available non-accessible unit within 30 days when either a current resident or an applicant needs the features of the unit and there is another unit available for the non-disabled family. This requirement will be a provision of the lease agreement. 5-II.F. DESIGNATED HOUSING When applicable, the PHA’s policies for offering units designated for elderly families only or for disabled families only are described in the PHA’s Designated Housing Plan. Currently the PHA does not have an approved Designated housing plan and Dow Towers is considered a mixed population development. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-1 Chapter 6 INCOME AND RENT DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 960, Subpart C] INTRODUCTION A family’s annual income is used to determine their income eligibility for the public housing program and is also used to calculate the amount of the family’s rent payment. The PHA will use the policies and methods described in this chapter to ensure that only income-eligible families receive assistance and that no family pays more or less rent than is required under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in four parts as follows: Part I: Annual Income. HUD regulations specify the sources of income which are excluded from the family’s annual income. These requirements and PHA policies for calculating annual income are found in Part I. Part II: Assets. HUD regulations specify the types of assets which are excluded from a family’s annual income. These requirements and PHA policies for calculating income from assets are found in Part II. Part III: Adjusted Income. Once annual income has been established, HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to adopt additional permissive deductions. These requirements and PHA policies for calculating adjusted income are found in Part III. Part IV: Calculating Rent. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining family rent payment. Also included here are flat rents and the family’s choice of rent. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-2 PART I: ANNUAL INCOME 6-I.A. OVERVIEW [24 CFR 5.609] Annual income includes: • All amounts, not specifically excluded in 24 CFR 5.609(b); • All amounts received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse; • Unearned income by or on behalf of each dependent who is under 18 years of age; and • Imputed returns of an asset based on the current passbook savings rate, as determined by HUD, when the value of net family assets exceeds $50,000 (which amount HUD will adjust annually) and the actual returns from a given asset cannot be calculated. Effective TBD but no later than January 1, 2025. In addition to this general definition, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of all sources of income that are excluded from annual income. Note, unlike in previous versions of the regulations, the current regulations governing annual income do not list sources of income that are to be included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the scope of what is included. To that end, generally, all income is included unless it is specifically excluded by regulation. Further, 24 CFR 5.603(b)(1) describes HUD regulations for treating specific types of assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows: • Annual Income Full Definition (Exhibit 6-1) • Treatment of Family Assets (Exhibit 6-2) • The Effect of Welfare Benefit Reduction (Exhibit 6-3) Sections 6-I.B and 6-I.C discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-3 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Overview Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition in accordance with HUD regulations and PHA policies in Chapter 9. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations. Summary of Income Included and Excluded by Person Live-in aides Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)]. Foster child or foster adult Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)]. Head, spouse, or cohead Other adult family members All sources of income not specifically excluded by the regulations are included [24 CFR 5.609(a)]. Minors Earned income is excluded [24 CFR 5.609(b)(3)]. All other sources of unearned income, except those specifically excluded by the regulations, are included [24 CFR 5.609(a)]. Full-time students 18 years of age or older (not head, spouse, or cohead) Earned income in excess of the dependent deduction is excluded [24 CFR 5.609(b)(14)]. All other sources of unearned income, except those specifically excluded by the regulations, are included. Temporarily Absent Family Members HUD regulations governing annual income do not specifically address temporarily absent family members. The regulations also do not define “temporarily” or “permanently” absent or specify a timeframe associated with a temporary versus a permanent absence [New PH OCC GB, Income Determinations, p. 12]. Hopkins HRA Policy Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit. Generally, an individual who is or is expected to be absent from the assisted unit for 180 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 180 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-4 Absent Students Hopkins HRA Policy When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to the PHA indicating that the student has established a separate household, or the family declares that the student has established a separate household. Absences Due to Placement in Foster Care Children temporarily absent from the home as a result of placement in foster care are considered members of the family [24 CFR 5.403]. Hopkins HRA Policy If a child has been placed in foster care, the PHA 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. Absent Head, Spouse, or Cohead Hopkins HRA Policy An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member. Individuals Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, PHAs may determine that that person is no longer a member of the assisted household, and the income of that person is not counted [New PH OCC GB, Income Determinations, p. 12]. Hopkins HRA Policy 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 PHA will request verification from a responsible medical professional 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. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-5 Joint Custody of Children Hopkins HRA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family if they live with the applicant or resident family 50 percent or more of the time. When more than one applicant or assisted family (regardless of program) are claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, the PHA will make the determination based on available documents such as court orders, an IRS income tax return showing which family has claimed the child for income tax purposes, school records, or other credible documentation. Caretakers for a Child Hopkins HRA Policy The approval of a caretaker is at the PHA’s discretion and subject to the PHA’s screening criteria. If neither a parent nor a designated guardian remains in a household, the PHA 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 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker’s role is temporary. In such cases the PHA will extend the caretaker’s status as an eligible visitor. At any time that custody or guardianship legally has been awarded to a caretaker, the lease will be transferred to the caretaker, as head of household. During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-6 6-I.C. CALCULATING ANNUAL INCOME The methodology used for calculating annual income differs depending on whether income is being calculated at initial occupancy, interim reexamination, or as part of an annual reexamination. Effective TBD but no later than January 1, 2025. Anticipating Annual Income [24 CFR 5.609(c)(1)] At initial occupancy and for an interim reexamination of family income, the PHA is required to estimate the income of the family for the upcoming 12-month period following the new admission or interim reexamination effective date. Policies related to anticipating annual income are provided below. Hopkins HRA Policy To determine anticipated income for the coming 12-month period, the PHA will generally use current circumstances and will generally review and analyze current data. When feasible, the PHA will use an original or authentic document generated by a third- party source dated within the 60-day period preceding the new admission/interim date or the PHA request date. When anticipating earned income, the PHA will calculate the total gross income for each pay period by adding together gross pay from all paystubs, dividing the total by the number of paystubs to calculate the average pay per pay period, and multiplying the average pay by the number of pay periods in that year. For new income sources of earned income or when a sufficient number of pay stubs are not available to verify earned income, the PHA will calculate gross income based on the information from a written third-party verification form or the best available information. The PHA will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7. In such cases, the PHA will take the estimated number of hours from the offer letter, contract or employment verification (if range of hours provided, take the average) and multiply it by the verified hourly rate to determine the amount per pay period. Then multiply by the total number of pay periods in a full year. For persons who regularly receive bonuses or commissions, the PHA will verify and then average amounts received for the two years preceding admission or reexamination. If only a one-year history is available, the PHA will use the prior year amounts. In either case the family may provide, and the PHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, the PHA will count only the amount estimated by the employer. The file will be documented appropriately. When the PHA cannot readily anticipate income based upon current circumstances (e.g., in the case of temporary, sporadic, or variable employment, seasonal employment, unstable working hours, or suspected fraud), the PHA 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. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-7 Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to the PHA to show why the historic pattern does not represent the family’s anticipated income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income. Known Changes in Income If the PHA verifies an upcoming increase or decrease in income, annual income will be projected by applying each income amount to the appropriate part of the 12-month period. Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the new admissions or interim reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour × 40 hours × 7 weeks) + ($8.25 × 40 hours × 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases the PHA will calculate annual income using current circumstances and then, should the change in income require the PHA to conduct an interim reexamination, conduct an interim reexamination in accordance with PHA policy in Chapter 9. Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2)] The PHA must determine the income of the family for the previous 12-month period and use this amount as the family income for annual reexaminations, except where the PHA uses a streamlined income determination (effective TBD but no later than January 1, 2025). Policies related to conducting annual reexaminations are located in Chapter 9. 6-I.D. EARNED INCOME Wages and Related Compensation [24 CFR 5.609(a)] The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)]. Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in-kind benefits [24 CFR 5.100]. Hopkins HRA Policy The PHA will include in annual income the gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-8 Military Pay All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)]. Earnings of a Minor [24 CFR 5.609(b)(3)] A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included. Earned Income of Full-Time Students [24 CFR 5.609(b)(14)] The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included. A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)]. Full-time status is defined by the educational or vocational institution the student is attending [New PH OCC GB, Lease Requirements, p. 5]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-9 6-I.E. EARNED INCOME DISALLOWANCE [24 CFR 960.255; Streamlining Final Rule (SFR) Federal Register 3/8/16] HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible for and participating on the program as of January 1, 2024, or before; no new families may be added after January 1, 2024. If a family is receiving the EID prior to or on the effective date of the HOTMA final rule, they are entitled to the full amount of the benefit for a full 24-month period. The EID will sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of that date or when the last qualifying family exhausts their exclusion period, whichever is sooner. Calculation of the Disallowance Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member’s current income with their “baseline income.” The family member’s baseline income is their income immediately prior to qualifying for the EID. The family member’s baseline income remains constant throughout the period that they are participating in the EID. Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. Hopkins HRA Policy The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings. Second 12-Month Exclusion During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings. Hopkins HRA Policy During the second 12-month exclusion period, the PHA will exclude 50 percent of any increase in income attributable to new employment or increased earnings. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- month period, an individual remains eligible for EID even if they receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family member’s exclusion period continue past January 1, 2026. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-10 Individual Savings Accounts [24 CFR 960.255(d)] The PHA may, but is not required to, establish a policy to offer a qualified family paying income-based rent an ISA instead of being given the EID. Hopkins HRA Policy The PHA chooses not to establish a system of individual savings accounts (ISAs) for families who qualify for the EID. 6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28)] Annual income includes “net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.” Independent Contractors Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 2.609 (b)(24)]. An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b)]. Business Expenses Net income is “gross income less business expense” [HCV GB, p. 5-19]. Hopkins HRA Policy To determine business expenses that may be deducted from gross income, the PHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-11 Business Expansion HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion. Hopkins HRA Policy Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion. Capital Indebtedness HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness. Hopkins HRA Policy Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means the PHA will allow as a business expense interest, but not principal, paid on capital indebtedness. Negative Business Income If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income. Withdrawal of Cash or Assets from a Business HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family. Hopkins HRA Policy Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of a tenant family provided an up-front loan of $2,000 to help a business get started, the PHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid. Investments do not include the value of labor contributed to the business without compensation. Co-owned Businesses Hopkins HRA Policy If a business is co-owned with someone outside the family, the family must document the share of the business it owns. If the family’s share of the income is lower than its share of ownership, the family must document the reasons for the difference. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-12 6-I.G. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] (Effective TBD but no later than January 1, 2025) The regulations distinguish between two categories of student financial assistance paid to both full-time and part-time students. Title IV HEA Assistance Any assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Examples of assistance under title IV of the HEA include: • Pell Grants • Teach Grants • Federal Work Study Programs • Federal Perkins Loans • Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA) (starting 1/1/24) • Bureau of Indian Affairs/Education student assistance programs o The Higher Education Tribal Grant o The Tribally Controlled Colleges or Universities Grant Program Other Student Financial Assistance Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the Federally mandated income exclusions are excluded [24 CFR 5.609(b)(9)(ii)]. Actual covered costs are defined as the actual costs of: • Tuition, books, and supplies; o Including supplies and equipment to support students with learning disabilities or other disabilities) • Room and board; and • Other fees required and charged to a student by the education institution. For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. Further, to qualify, other student financial assistance must be expressly: • For tuition, book, supplies, room and board, or other fees required and charged to the student by the education institution; • To assist a student with the costs of higher education; or © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-13 • To assist a student who is not the head of household or spouse/cohead with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit. The student financial assistance may be paid directly to the student or to the educational institution on the student’s behalf. However, any student financial assistance paid to the student must be verified by the PHA. The financial assistance must be a grant or scholarship received from: • The Federal government; • A state, tribal, or local government ; • A private foundation registered as a nonprofit; • A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or • An institution of higher education. Student financial assistance, does not include: • Financial support provided to the student in the form of a fee for services performed; • Gifts, including gifts from family or friends; or • Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student. Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet] When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student’s actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-14 Hopkins HRA Policy If a student only receives financial assistance under Title IV of the HEA and does not receive any other student financial assistance, the PHA will exclude the full amount of the assistance received under Title IV from the family’s annual income. The PHA will not calculate actual covered costs in this case. If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The PHA will then subtract the total amount of the student’s financial assistance from the student’s actual covered costs. The PHA will include any amount of financial assistance in excess of the student’s actual covered costs in the family’s annual income. Example 1 • Actual covered costs: $20,000 • Other student financial assistance: $25,000 • Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs) • Included income: $5,000 When a student receives assistance from both Title IV of the HEA and from other sources, the PHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student’s actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs. If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance is excluded from income. Example 2 • Actual covered costs: $25,000 • Title IV HEA assistance: $26,000 • Title IV HEA assistance covers the students entire actual covered costs. • Other Student Financial Assistance: $5,000 • Excluded income: The entire Title IV HEA assistance of $26,000 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-15 • Included income: $5,000 If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, the PHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs. Example 3 • Actual covered costs: $22,000 • Title IV HEA assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance). • Other Student Financial Assistance: $5,000 • $7,000 in remaining actual covered costs - $5,000 in other financial assistance • Excluded income: $20,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance • Included income: $0 Example 4 • Actual covered costs: $18,000 • Title IV HEA Assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance) • Other student Financial Assistance: $5,000 • When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance). • Included income: $2,000 (the amount by which the financial aid exceeds the student’s actual covered costs. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-16 6-I.H. PERIODIC PAYMENTS Periodic payments are forms of income received on a regular basis. HUD regulations specify periodic payments that are not included in annual income. Regulations do not specify which types of periodic payments are included in annual income. Hopkins HRA Policy The PHA will include in annual income the full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts. Payments in lieu of earnings, such as unemployment and disability compensation, and severance pay are also counted as income if they are received in the form of periodic payments. Lump-Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)] Lump-sum receipts for the delayed start of periodic Social Security or Supplemental Security Income (SSI) payments or any deferred disability benefits from the Department of Veterans Affairs that are received in a lump sum or in prospective monthly amounts are to be excluded from annual income. Hopkins HRA Policy The PHA will include in annual income sums received as a result of delays in processing periodic payments other than those specifically excluded by the regulation, such as unemployment or welfare assistance. When a delayed-start payment is received and reported during the period in which the PHA is processing an annual reexamination, the PHA will adjust the tenant rent retroactively for the period the payment was intended to cover. The family may pay in full any amount due or request to enter into a repayment agreement with the PHA. If the delayed-start payment is received outside of the time the PHA is processing an annual reexamination, then the PHA will consider whether the amount meets the threshold to conduct an interim reexamination (effective TBD but no later than January 1, 2025). If so, the PHA will conduct an interim in accordance with PHA policies in Chapter 9. If not, the PHA will consider the amount when processing the family’s next annual recertification. Retirement Accounts [24 CFR 5.609(b)(26)] Income received from any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals are excluded from annual income (effective TBD but no later than January 1, 2025). However, any distribution of periodic payments from such accounts is included in annual income at the time they are received by the family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-17 Social Security Benefits [Notice PIH 2018-24] The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits. The PHA must make a special calculation of annual income when the Social Security Administration (SSA) overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full. The amount and duration of the withholding will vary depending on the amount of the overpayment and the percent of the benefit rate withheld. Regardless of the amount withheld or the length of the withholding period, the PHA must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount. Alimony and Child Support Hopkins HRA Policy The PHA will count all regular payments of alimony or child support awarded as part of a divorce or separation agreement [New PH OCC GB, Income Determinations, p. 16]. The PHA will count court-awarded amounts for alimony and child support unless the family certifies and the PHA verifies that the payments are not being made and the family has made reasonable efforts to collect amounts due, including filing with courts or agencies responsible for enforcing payments [HCV GB, pp. 5-23 and 5-47]. In order to verify that payments are not being made, the PHA will review child support payments over the last three months. If payments are being made regularly, the PHA will use the amount received during the last 12 months (excluding any lump sums received). If payments have been made for a period less than 12 months, the PHA will annualize the average of all payments that have been made. At new admission or interim recertification (effective TBD but no later than January 1, 2025), if any lump sum payments were made in the past 12 months, the PHA will determine the likelihood of the family receiving another similar payment within the next 12 months before deciding whether or not this amount will be included in the calculation of annual income. If the PHA determines and can appropriately verify that the family in all likelihood will not receive a similar payment, then the amount will not be considered when projecting annual income. If the PHA determines that it is likely that the family will receive a similar payment and can appropriately verify it, the amount will be included when projecting annual income. If no payments have been made in the past three months and there are no lump sums, the PHA will not include child support in annual income. Hopkins HRA Policy6-I.I. TEMPORARY, NONRECURRING, OR SPORADIC INCOME [24 CFR 5.609(b)(24)] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-18 Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family, is excluded from annual income. Nonrecurring income that is to be excluded from annual income includes: • Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment. • Direct federal or state payments intended for economic stimulus or recovery. • Amounts directly received by the family as a result of state refundable tax credits or state tax refunds at the time they are received. • Amounts directly received by the family as a result of federal refundable tax credits and federal tax refunds at the time they are received. • Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries). • Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization. • Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings. Hopkins HRA Policy Nonrecurring income is income that is not received periodically and cannot be reliably predicted. To determine if income is truly sporadic or temporary, the PHA will consider whether the family expects to receive income from this source again. If the family does not expect to receive income from the source again, it may be considered temporary or sporadic and may be excluded from income. For example, the income of an individual who works one-time odd jobs would be considered sporadic if future work could not be anticipated and no historic, stable pattern of income existed. If the family expects to receive additional income from the source, even if payments are made on an irregular basis, the PHA will include this income. If the family receives income irregularly, the PHA will estimate income based on the best information available, with consideration to earning ability and work history. Unless otherwise specified in the regulations, the PHA will count as income any regular monetary and nonmonetary contributions from persons not residing with the assisted family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-19 Examples of regular contributions include: (1) regular payment of a family’s bills (e.g., utilities, telephone, rent, credit cards, and car payments), (2) cash or other liquid assets provided to any family member on a regular basis, and (3) “in-kind” contributions such as groceries and clothing provided to a family on a regular basis with the exception of contributions received from a food bank or similar organization. Nonmonetary contributions will be valued at the cost of purchasing the items, as determined by the PHA. For contributions that may vary from month to month), the PHA will include an average amount based upon past history. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-20 6-I.J. WELFARE ASSISTANCE Overview Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments. Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-3. The requirements are summarized below. This rule applies only if a family was a public housing resident at the time the sanction was imposed. Covered Families The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR 5.615(b)] Imputed Income When a welfare agency imposes a sanction that reduces a family’s welfare income because the family commits fraud or fails to comply with the agency’s economic self-sufficiency program or work activities requirement, the PHA must include in annual income “imputed” welfare income. The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction. This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to find employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)]. For special procedures related to grievance hearings based upon the PHA’s denial of a family’s request to lower rent when the family experiences a welfare benefit reduction, see Chapter 14, Grievances and Appeals. Offsets The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-21 6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19)] Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family’s assisted unit are excluded. Authorized payments may include payments to a member of the assisted family through state Medicaid-managed care systems, other state agencies, federal agencies or other authorized entities. The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family’s assisted unit. Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income. Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver's assisted family member would be excluded from income. 6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/23] Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement. While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family’s net family assets (e.g., if the funds are deposited into the family’s savings account or a revocable trust under the control of the family). Income generated on the settlement or judgment amount after it has become a net family asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest-bearing savings account, the interest from that account would be income at the time the interest is received. Furthermore, if a civil rights settlement or judgment increases the family’s net family assets such that they exceed $50,000 (as annually adjusted by an inflationary factor), then income will be imputed on the net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the family’s annual adjusted income by 10 percent or more, then an interim reexamination of income will be required unless the addition to the family’s net family assets occurs within the last three months of the family’s income certification period and the PHA or owner chooses not to conduct the examination (effective TBD but no later than January 1, 2025). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-22 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b)] Other exclusions contained in 24 CFR 5.609(b) that have not been discussed earlier in this chapter include the following: • Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4)]. • Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation [24 CFR 5.609(b)(5)]. • Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6)]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7)]. • Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10)] (effective TBD but no later than January 1, 2025). • Income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10)] (effective TBD but no later than January 1, 2025). • The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)]. • Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17)]. • Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20)]. • Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21)]. • Replacement housing “gap” payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-23 another federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments [24 CFR 5.609(b)(23)] (effective TBD but no later than January 1, 2025) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-24 • Income earned on amounts placed in a family’s Family Self- Sufficiency account [24 CFR 5.609(b)(27)]. • Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (e.g., special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(b)(12)(ii)]. • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i)]. • Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part- time basis, that enhances the quality of life in the development [24 CFR 5.600(b)(12)(iii)]. • Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD (effective TBD but no later than January 1, 2025) or in qualifying federal, state, tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program unless those amounts are excluded under 24 CFR 5.609 (b)(9)(i). Hopkins HRA Policy The PHA defines training program as “a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual’s ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education” [expired Notice PIH 98-2, p. 3]. The PHA defines incremental earnings and benefits as the difference between (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3–4]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-25 In calculating the incremental difference, the PHA will use as the pre-enrollment income the total annualized amount of the family member’s welfare assistance and earnings reported on the family’s most recently completed HUD-50058. End of participation in a training program must be reported in accordance with the PHA’s interim reporting requirements. • Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13)]. • Adoption assistance payments for a child in excess of the amount of the dependent deduction per adopted child [24 CFR 5.609(b)(15)]. • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20)]. • Amounts that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary [24 CFR 5.609(b)(22)]. HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on May 20, 2014. It includes: (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)) (b) Benefits under Section 1780 of the School Lunch Act and Child Nutrition Act of 1966, including WIC (c) Payments to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058) (d) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)) (e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459e) (f) Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)) (g) Payments received under programs funded in whole or in part under the Workforce Investment Act of 1998 (29 U.S.C. 2931) (h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-26 (j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)) (k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010 (l) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408) (m) Benefits under the Indian Veterans Housing Opportunity Act of 2010 (only applies to Native American housing programs) (n) Payments received from programs funded under Title V of the Older Americans Act of 1985 (42 U.S.C. 3056(f)) (o) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.) (p) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean service veterans born with spinal bifida (q) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721) (r) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858q) (s) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 32(j)) (t) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433) (u) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, the exception found in § 237 of Public Law 109–249 applies and requires that the amount of financial assistance in excess of tuition shall be considered income in accordance with the provisions codified at 24 CFR 5.609(b)(9), except for those persons with disabilities as defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109–249) (v) Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)) (w) Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-27 assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602) (x) Any amounts in an "individual development account" as provided by the Assets for Independence Act, as amended in 2002 (y) Payments made from the proceeds of Indian tribal trust cases as described in Notice PIH 2013–30, "Exclusion from Income of Payments under Recent Tribal Trust Settlements" (25 U.S.C. 117b(a)) (z) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations (aa) Distributions from an ABLE account, and actual or imputed interest on the ABLE account balance [See also Notice PIH 2019-09] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-28 PART II: ASSETS 6-II.A. OVERVIEW The regulation at 24 CFR 5.603(b)(3) provides a list of items that are excluded from the calculation of net family assets. The current regulations do not list types of assets that are included in annual income. Instead, HUD relies on the definition of items excluded from assets to provide the scope of what is included. Exhibit 6-2 provides the regulatory definition of net family assets. Optional policies for family self-certification of assets are found in Chapter 7. Policies related to the limitation may be found in Chapter 3 for program applicants and Chapter 13 for program participants (effective TBD but no later than January 1, 2025). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-29 6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)] PHAs must include the value of any business or family assets disposed of by an applicant or participant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application or reexamination, as applicable, in excess of the consideration received for the asset. Minimum Threshold HUD does not specify a minimum threshold for counting assets disposed of for less than fair market value. A PHA may establish a policy to ignore small amounts such as charitable contributions [New PH OCC GB, Income Determinations, p. 24]. Hopkins HRA Policy The PHA 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 $2,000. Separation or Divorce The regulation specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. Hopkins HRA Policy All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order. Foreclosure or Bankruptcy Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. Family Declaration Hopkins HRA Policy Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. The PHA may verify the value of the assets disposed of if other information available to the PHA does not appear to agree with the information reported by the family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-30 6-II.C. ASSET INCLUSIONS AND EXCLUSIONS Checking and Savings Accounts Hopkins HRA Policy The PHA will include in net family assets amounts in savings and checking accounts. In determining the value of checking or savings accounts, the PHA will use the current balance. In determining the anticipated income from an interest-bearing checking or savings account when net family assets exceed $50,000 (effective TBD but no later than January 1, 2025) and the rate of return is known, the PHA will multiply the current balance of the account by the current rate of interest paid on the account. If a checking account does not bear interest, the anticipated income from the account is zero. ABLE Accounts [24 CFR 5.609(b)(10); Notice PIH 2019-09] An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary’s eligibility and continued occupancy under certain federal means- tested programs. The PHA must exclude the entire value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account are also not considered income. However, all wage income received, regardless of which account the money is paid to, is included as income. Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds [24 CFR 5.603(b)(1)] Hopkins HRA Policy The PHA will include the value of stocks, bonds, savings certificates, money market funds, and other investment accounts in net family assets. The PHA will include interest or dividends earned by investment accounts as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash. In determining the market value of an investment account, the PHA will use the value of the account on the most recent investment report. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-31 Necessary Personal Property [24 CFR 5.603(b)(3)(i)] The value of necessary items of personal property is excluded from the calculation of net family assets. Necessary items of personal property include a car used for commuting or medical devices. The combined value of all non-necessary items of personal property is only included in annual income when the combined total value exceeds $50,000 (adjusted annually by HUD). Items of personal property not counted as “necessary items” must have a combined total value of $50,000 or less (adjusted annually) for the PHA to exclude the property value from the family’s assets (effective no later than January 1, 2025) Lump-Sum Receipts [24 CFR 5.609(b)(24(viii)] The regulations exclude income from lump-sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income. In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income. Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination. In the case where the lump sum addition to assets would lead to imputed income, which is unearned income, that increases the family’s annual adjusted income by 10 percent or more, then the addition of the lump sum to the family’s assets will trigger an immediate interim reexamination of income. This reexamination of income must take place as soon as the lump sum is added to the family’s net family assets unless the addition takes place in the last three months of family’s income certification period and the PHA chooses not to conduct the examination (effective TBD but no later than January 1, 2025). Hopkins HRA Policy Payments that are received in a single lump sum, such as inheritances, capital gains, lottery winnings, insurance settlements, and proceeds from the sale of property, are generally considered assets, not income. However, such lump-sum receipts are counted as assets only if they are retained by a family in a form recognizable as an asset (e.g., deposited in a savings or checking account) [RHIIP FAQs]. (For a discussion of lump- sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-32 Jointly Owned Assets [New PH OCC GB, Income Determinations, p. 45] HUD regulations do not address jointly owned assets. However, HUD guidance is to include assets which, although owned by more than one person, allow unrestricted access by the applicant or participant. Hopkins HRA Policy If an asset is owned by more than one person and any family member has unrestricted access to the asset, the PHA will count the full value of the asset. A family member has unrestricted access to an asset when they can legally dispose of the asset without the consent of any of the other owners. If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, the PHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, the PHA will prorate the asset evenly among all owners. Trusts [24 CFR 5.609(b)(2) and 5.603(b)(4)] A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries). The following types of trust distributions are excluded from annual income: • Distributions of the principal or corpus of the trust; and • Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor (effective TBD but no later than January 1, 2025). The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable. When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Irrevocable trusts not under the control of any member of the family or household are not assets. The value of the trust is not included in net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4)]. However, the PHA must count any distributions of income from an irrevocable trust or a trust not under the control of the family (e.g., distributions of earned interest) as income to the family. However, this does not apply to excluded distributions. A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account. Revocable trusts under the control of the family or household are considered assets and must be included in net family assets. Distributions from revocable trusts are not used to calculate annual income. Instead, the PHA must count all actual returns (e.g., interest earned) from the trust as income or, if the trust has no actual returns and the total value of the combined net family assets exceeds $50,000 (as © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-33 that amount is updated for inflation), as imputed returns, as applicable (effective TBD but no later than January 1, 2025). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-34 Life Insurance [FR Notice 2/14/23] The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family’s assets [HCV GB 5-25]. The cash value is the surrender value. While the cash value of an insurance policy is considered an asset, the face value of any policy is not. If such a policy earns dividends or interest that the family could elect to receive, the amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. Asset Exclusions [24 CFR 5.603(b)] The following are excluded from the calculations of net family assets: • The value of any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals [24 CFR 5.603(b)(3)(iii)] (effective TBD but no later than January 1, 2025). • The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located [24 CFR 5.603(b)(3)(iv)] (effective TBD but no later than January 1, 2025). o Real property as used in this part has the same meaning as that provided under the law of the state in which the property is located [24 CFR 5.100]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability [24 CFR 5.603(b)(3)(v)] (effective TBD but no later than January 1, 2025); • The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 [24 CFR 5.603(b)(3)(vi)] (effective TBD but no later than January 1, 2025); • The value of any qualified tuition program under Section 529 of such Code [24 CFR 5.603(b)(3)(vi)]; • The value of any “baby bond” account created, authorized, or funded by federal, state, or local government [24 CFR 5.603(b)(3)(vi)] (effective TBD but no later than January 1, 2025); • Interests in Indian trust land [24 CFR 5.603(b)(3)(vii)]; • Equity in a manufactured home where the family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(viii)]; • Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(ix)]; • Family Self-Sufficiency accounts [24 CFR 5.603(b)(3)(x)]; and • Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family [24 CFR 5.603(b)(3)(xi)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-35 6-II.E. DETERMINING INCOME FROM ASSETS Net Family Assets Net family assets are defined as the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. 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 such as settlement costs and transfer taxes [New PH OCC GB, Income Determinations, p. 24]. Income from Assets Income from assets must be included on the Form HUD-50058 regardless of the amount of income. The PHA may determine the net assets of a family based on a self-certification by the family that the net family assets do not exceed $50,000 (adjusted annually by HUD), without taking additional steps to verify the accuracy of the declaration [24 CFR 5.618(b)] (effective TBD but no later than January 1, 2025). Policies related to verification of assets are found in Chapter 7 of this policy. The PHA may not calculate or include any imputed income from assets when net family assets total $50,000 or less [24 CFR 5.609(b)(1)] (effective TBD but no later than January 1, 2025). The actual income from assets must be included on the Form HUD-50058. When net family assets exceed $50,000 (adjusted annually by HUD), the PHA may not rely on self-certification (effective TBD but no later than January 1, 2025). If actual returns can be calculated, the PHA must include actual income from the asset on the Form HUD- 50058 (for example, a savings account or CD where the rate of return is known). If actual returns cannot be calculated, the PHA must calculate imputed returns using the HUD- determined passbook rate (for example, real property or a non-necessary item of personal property such as a recreational boat. If the PHA can compute actual income from some but not all assets, the PHA must compute actual returns where possible and use the HUD- determined passbook rate for assets where actual income cannot be calculated [24 CFR 5.609(a)(2)] (effective TBD but no later than January 1, 2025). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-36 PART III: ADJUSTED INCOME 6-III.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to deduct other permissive deductions in accordance with Hopkins HRA Policy. The resulting amount is the family’s adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611 Adjusted income means annual income (as determined under § 5.609) of the members of the family residing or intending to reside in the dwelling unit, after making the following deductions: (a) Mandatory deductions (1) $480 for each dependent (adjusted annually by HUD, rounded to the next lowest multiple of $25) (effective no later than January 1, 2025); (2) $400 for any elderly family or disabled family. $525 for any elderly family or disabled family (adjusted annually by HUD, rounded to the next lowest multiple of $25) (effective TBD but no later than January 1, 2025); (3) The sum of the following, to the extent the sum exceeds three percent (ten percent effective TBD but no later than January 1, 2025) of annual income: (i) Unreimbursed health and medical care expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed; and (4) Any reasonable child care expenses necessary to enable a member of the family to be employed, seek work, or to further their education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. Calculating Expenses Hopkins HRA Policy Generally, for new admissions and at interim reexams (effective TBD but no later than January 1, 2025), the PHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., child care during school and non-school periods and cyclical medical expenses), the PHA will estimate costs based on historic data and known future costs. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-37 If a family has an accumulated debt for medical or disability assistance expenses, the PHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. The PHA may require the family to provide documentation of payments made in the preceding year. When calculating health and medical care expenses for a new admission or at an interim reexam (effective TBD but no later than January 1, 2025), the PHA will include those expenses anticipated to be incurred during the 12 months following the new admission/interim reexam which are not covered by an outside source such as insurance. The allowance is not intended to give a family an allowance equal to last year’s expenses, but to anticipate regular ongoing and anticipated expenses during the coming year. Since these expenses are anticipated, the PH Occupancy Guidebook states “it is likely that actual expenses will not match what was anticipated. Typically, this would not be considered an underpayment as long as at the time of the annual reexamination, the expenses were calculated based on the appropriate verification” [New PH OCC GB, Income Determinations, p. 30]. For annual reexaminations, the PHA will use information for the previous 12-month period. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-38 6-III.B. DEPENDENT DEDUCTION An allowance of $480 is deducted from annual income for each dependent (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25, effective TBD but no later than January 1, 2025) [24 CFR 5.611(a)(1)]. Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)]. 6-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of $400 is taken for any elderly or disabled family ($525 which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25,(effective TBD but no later than January 1, 2025) [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-39 6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i)] Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed ten percent of annual income. This deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted. Definition of Medical Expenses HUD regulations define health and medical care expenses at 24 CFR 5.603(b) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed.” PHAs may consult IRS Publication 502 for guidance on medical expenses. PHAs are to have policies in their ACOP explaining what will be accepted as allowable medical expenses. PHAs must make exceptions to their policies on allowable medical expenses as a reasonable accommodation for a client with disabilities. [New PH OCC GB, Income Determinations, p. 31]. Hopkins HRA Policy In addition to the items outlined in the definition of health and medical care expenses in the regulations, the most current IRS Publication 502, Medical and Dental Expenses, will be used as a reference to determine the costs that qualify as health and medical care expenses. Summary of Allowable Medical Expenses from IRS Publication 502 Services of medical professionals Surgery and medical procedures that are necessary, legal, noncosmetic Services of medical facilities Hospitalization, long-term care, and in- home nursing services Prescription medicines and insulin, but not nonprescription medicines even if recommended by a doctor Improvements to housing directly related to medical needs (e.g., ramps for a wheelchair, handrails) Substance abuse treatment programs Psychiatric treatment Ambulance services and some costs of transportation related to medical expenses The cost and care of necessary equipment related to a medical condition (e.g., eyeglasses/lenses, hearing aids, crutches, and artificial teeth) Cost and continuing care of necessary service animals Medical insurance premiums or the cost of a health maintenance organization (HMO) © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-40 Note: This chart provides a summary of eligible medical expenses only. Detailed information is provided in IRS Publication 502. Health and medical care expenses are considered only to the extent they are not reimbursed by insurance or some other source. Families That Qualify for Both Medical and Disability Assistance Expenses Hopkins HRA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, the PHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-41 6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Unreimbursed reasonable expenses for attendant care and auxiliary apparatus for each member of the family who is a person with disabilities may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work. Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)]. The disability expense deduction is capped by the amount of “earned income received by family members who are 18 years of age or older and who are able to work” because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied. Hopkins HRA Policy The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family’s request, the PHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work. When the PHA determines that the disability assistance expenses enable more than one family member to work, the disability assistance expenses will be capped by the sum of the family members’ incomes [New PH OCC GB, Income Determination, p. 28]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-42 Eligible Disability Expenses Examples of auxiliary apparatus are provided in the PH Occupancy Guidebook as follows: “Auxiliary apparatus are items such as for example, wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read or type or special equipment to assist a person who is deaf or hard of hearing” [New PH OCC GB, Income Determination, p. 28], but only if these items are directly related to permitting the disabled person or other family member to work. HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30]. Eligible Auxiliary Apparatus Hopkins HRA Policy Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself) is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included. Eligible Attendant Care The family determines the type of attendant care that is appropriate for the person with disabilities. Hopkins HRA Policy Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in-home or center-based care services, interpreters for persons with hearing impairments, and readers for persons with visual disabilities. Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible. If the care attendant also provides other services to the family, the PHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-43 Payments to Family Members No disability expenses may be deducted for payments to a member of a tenant family [23 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the tenant family may be deducted if they are not reimbursed by an outside source. Necessary and Reasonable Expenses The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source. Hopkins HRA Policy The PHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, the PHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and the PHA will consider, the family’s justification for costs that exceed typical costs in the area. Families That Qualify for Both Medical and Disability Assistance Expenses Hopkins HRA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, the PHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-44 6-III.F. CHILD CARE EXPENSE DEDUCTION HUD defines child care expenses at 24 CFR 5.603(b) as “amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.” Child care expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household [VG, p. 26]. However, child care expenses for foster children that are living in the assisted family’s household are included when determining the family’s child care expenses. Qualifying for the Deduction Determining Who Is Enabled to Pursue an Eligible Activity Hopkins HRA Policy The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a child care deduction (seeking work, pursuing an education, or being gainfully employed). In evaluating the family’s request, the PHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work Hopkins HRA Policy If the child care expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member’s efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member’s job search efforts are not commensurate with the child care expense being allowed by the PHA. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-45 Furthering Education Hopkins HRA Policy If the child care expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the child care claimed. Being Gainfully Employed Hopkins HRA Policy If the child care expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member’s employment during the time that child care is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-46 Earned Income Limit on Child Care Expense Deduction When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for child care – although the care must still be necessary and reasonable. However, when child care enables a family member to work, the deduction is capped by “the amount of employment income that is included in annual income” [24 CFR 5.603(b)]. The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied. When the person who is enabled to work is a person who receives the earned income disallowance (EID) or a full-time student whose earned income above $480 is excluded, child care costs related to enabling a family member to work may not exceed the portion of the person’s earned income that actually is included in annual income. For example, if a family member who qualifies for the EID makes $15,000 but because of the EID only $5,000 is included in annual income, child care expenses are limited to $5,000. The PHA must not limit the deduction to the least expensive type of child care. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV GB, p. 5-30]. Hopkins HRA Policy When the child care expense being claimed is to enable a family member to work, only one family member’s income will be considered for a given period of time. When more than one family member works during a given period, the PHA generally will limit allowable child care expenses to the earned income of the lowest-paid member. The family may provide information that supports a request to designate another family member as the person enabled to work. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-47 Eligible Child Care Expenses The type of care to be provided is determined by the tenant family. The PHA may not refuse to give a family the child care expense deduction because there is an adult family member in the household that may be available to provide child care [VG, p. 26]. Allowable Child Care Activities Hopkins HRA Policy For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of child care. The costs of general housekeeping and personal services are not eligible. Likewise, child care expenses paid to a family member who lives in the family’s unit are not eligible; however, payments for child care to relatives who do not live in the unit are eligible. If a child care provider also renders other services to a family or child care is used to enable a family member to conduct activities that are not eligible for consideration, the PHA will prorate the costs and allow only that portion of the expenses that is attributable to child care for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the child care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Necessary and Reasonable Costs Child care expenses will be considered necessary if: (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further their education, and (2) the family certifies, and the child care provider verifies, that the expenses are not paid or reimbursed by any other source. Hopkins HRA Policy Child care expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For child care that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class. To establish the reasonableness of child care costs, the PHA will use the schedule of child care costs from a qualified local entity that either subsidizes child care costs or licenses child care providers. Families may present, and the PHA will consider, justification for costs that exceed typical costs in the area. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-48 6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] (Effective TBD but no later than January 1, 2025). Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); PH and HCV Program List of Discretionary Policies to Implement HOTMA] The regulations provide for two types of hardship exemption categories for families that qualify for unreimbursed health and medical care expenses and/or disability assistance expenses. Phased-In Relief The first category is applicable to all families who received a deduction for unreimbursed health and medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most recent income review prior to January 1, 2024. These families will begin receiving a 24- month phased-in relief at their next annual or interim reexamination, whichever occurs first. For these families, the threshold amount is phased in as follows: • The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual income for the first 12 months. • At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their expenses that exceed 7.5 percent of annual income for another 12 months. • At the conclusion of 24 months, the standard threshold amount of 10 percent would be used. Prior to the end of the 24-month period, the family may request a hardship exemption under the second category as described below. If the family is found eligible under the second category, the hardship exemption under the first category ends, and the family’s hardship is administered in accordance with the requirements listed below. Once a family requests general relief, the family may no longer receive phased-in relief. General Relief The second category is for families that can demonstrate: • Their health and medical and/or disability assistance expenses increased (other than the transition to the higher threshold); or • The family’s financial hardship is a result of a change in circumstances (as defined in PHA policy) that would not otherwise trigger an interim reexamination. The family may request a hardship exemption under the second category regardless of whether the family previously received the health and medical and/or disability assistance deductions or are currently or were previously receiving relief under the phased-in relief category above. HUD requires that PHAs develop policies defining what constitutes a hardship for purposes of this exemption. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-49 The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. Hopkins HRA Policy To qualify for a hardship exemption, a family must submit a request in writing. The request must show that the family’s health and medical and/or disability assistance expenses have increased (other than the transition to the higher threshold) and that the family’s financial hardship is a result of a change in circumstances. The PHA defines a change in circumstances as a decrease in income or increase in other expenses that has resulted in the family’s financial hardship but does not, on its own, trigger an interim reexam in accordance with PHA policies. The family must provide third-party verification of the hardship with the request. If third- party verification is not available, the PHA will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. Hopkins HRA Policy The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination. If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request a grievance hearing. If the family qualifies for an exemption, the PHA will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances. If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-50 The family’s hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion, extend the relief for one or more additional 90-day periods while the family’s hardship condition continues. PHAs are not limited to a maximum number of 90-day extensions. Hopkins HRA Policy The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The PHA will extend relief for an additional 90-days if the family demonstrates to the PHA’s satisfaction that the family continues to qualify for the hardship exemption. The PHA will require updated verification based on the family’s current circumstances. Additional extension may be granted on a case-by-case basis provided the family continues to request extensions prior to the end each hardship exemption period. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption. Child Care Expenses [24 CFR 5.611(d); PH and HCV Program List of Discretionary Policies to Implement HOTMA](Effective TBD but no later than January 1, 2025) A family whose eligibility for the child care expense deduction is ending may request a financial hardship exemption to continue receiving the deduction. If the family demonstrates to the PHA’s satisfaction that the family is unable to pay their rent because of the loss of the child care expense deduction, and that the child care expense is still necessary even though the family member is no longer employed or furthering their education, the PHA must recalculate the family’s adjusted income and continue the child care deduction. The PHA must develop a policy to define what constitutes a hardship, which includes the family’s inability to pay rent. The PHA must obtain third-party verification of the hardship or must document in the file the reason third-party verification was not available. PHAs must attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. Hopkins HRA Policy For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. The PHA defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the child care expense and such loss would impact the family’s ability to pay their rent. The family must also demonstrate that the child care expense is still necessary even though the family member is no longer employed or furthering their education. The PHA will consider qualification under this criterion on a case-by case basis (for example, if the family member who was employed has left their job in order to provide uncompensated care to an elderly friend or family member who is severally ill and lives across town). The family must provide third-party verification of the hardship with the request. If third- party verification is not available, the PHA will document the file with the reason and will attempt to obtain third-party verification prior to the end of the 90-day hardship exemption period. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-51 The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family’s rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. Hopkins HRA Policy The PHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 10 business days of the determination. If the PHA denies the hardship exemption request, the PHA notice will also state that if the family does not agree with the PHA determination, the family may request a grievance hearing. If the family qualifies for an exemption, the PHA will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances. If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days. The PHA may, at its discretion, extend the hardship exemptions for additional 90-day periods based on family circumstances. PHAs are not limited to a maximum number of 90-day extensions. Hopkins HRA Policy The family may request an extension either orally or in writing prior to the end of the hardship exemption period. The PHA will extend relief for an additional 90 days if the family demonstrates to the PHA’s satisfaction that the family continues to qualify for the hardship exemption. The PHA will require updated verification based on the family’s current circumstances. Additional extension(s) may be granted on a case-by-case basis provided the family continues to request extensions prior to the end of each hardship exemption period. At any time, the PHA may terminate the hardship exemption if the PHA determines that the family no longer qualifies for the exemption. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-52 6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(i)] The PHA may adopt additional permissive deductions from annual income if they establish a policy in the ACOP. Permissive deductions are additional, optional deductions that may be applied to annual income. As with mandatory deductions, permissive deductions must be based on need or family circumstance and deductions must be designed to encourage self-sufficiency or other economic purpose. If the PHA offers permissive deductions, they must be granted to all families that qualify for them and should complement existing income exclusions and deductions [PH Occ GB, p. 128]. If the PHA chooses to adopt permissive deductions, the PHA is not eligible for an increase in Capital Fund and Operating Fund formula grants based on the application of those deductions. The PHA must establish a written policy for such deductions. The Form HUD-50058 Instruction Booklet states that the maximum allowable amount for total permissive deductions is less than $90,000 per year. Hopkins HRA Policy The PHA has opted not to use permissive deductions. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-53 PART IV: CALCULATING RENT 6-IV.A. OVERVIEW OF INCOME-BASED RENT CALCULATIONS The first step in calculating income-based rent is to determine each family’s total tenant payment (TTP). Then, if the family is occupying a unit that has tenant-paid utilities, the utility allowance is subtracted from the TTP. The result of this calculation, if a positive number, is the tenant rent. If the TTP is less than the utility allowance, the result of this calculation is a negative number, and is called the utility reimbursement, which may be paid to the family or directly to the utility company by the PHA. TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for a tenant family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided by 12) • The welfare rent (in as-paid states only) • A minimum rent between $0 and $50 that is established by the PHA • The alternative non-public housing rent, as determined in accordance with 24 CFR 960.102 The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-IV.B. Welfare Rent [24 CFR 5.628] Hopkins HRA Policy Welfare rent does not apply in this locality. Minimum Rent [24 CFR 5.630] Hopkins HRA Policy The minimum rent for this locality is $50. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-54 Optional Changes to Income-Based Rents [24 CFR 960.253(c)(2) and PH Occ GB, pp. 131-134] PHAs have been given very broad flexibility to establish their own, unique rent calculation systems as long as the rent produced is not higher than that calculated using the TTP and mandatory deductions. At the discretion of the PHA, rent policies may structure a system that uses combinations of permissive deductions, escrow accounts, income-based rents, and the required flat and minimum rents. The PHA’s minimum rent and rent choice policies still apply to affected families. Utility allowances are applied to PHA designed income-based rents in the same manner as they are applied to the regulatory income-based rents. The choices are limited only by the requirement that the method used not produce a TTP or tenant rent greater than the TTP or tenant rent produced under the regulatory formula. Hopkins HRA Policy The PHA chooses not to adopt optional changes to income-based rents. Ceiling Rents [24 CFR 960.253 (c)(2) and (d)] Ceiling rents are used to cap income-based rents. They are part of the income-based formula. If the calculated TTP exceeds the ceiling rent for the unit, the ceiling rent is used to calculate tenant rent (ceiling rent/TTP minus utility allowance). Increases in income do not affect the family since the rent is capped. The use of ceiling rents fosters upward mobility and income mixing. Because of the mandatory use of flat rents, the primary function of ceiling rents now is to assist families who cannot switch back to flat rent between annual reexaminations and would otherwise be paying an income-based tenant rent that is higher than the flat rent. Ceiling rents must be set to the level required for flat rents (which will require the addition of the utility allowance to the flat rent for properties with tenant-paid utilities) [PH Occ GB, p. 135]. Hopkins HRA Policy The PHA chooses not to use ceiling rents. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-55 Utility Reimbursement [24 CFR 960.253(c)(4)] Utility reimbursement occurs when any applicable utility allowance for tenant-paid utilities exceeds the TTP. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider. Hopkins HRA Policy The PHA pays for all utilities; therefore, there is no utility allowance or utility reimbursement payment. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-56 6-IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] Overview If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship. The financial hardship exemption applies only to families required to pay the minimum rent. If a family’s TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the TTP is the highest of the remaining components of the family’s calculated TTP. HUD-Defined Financial Hardship Financial hardship includes the following situations: (1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996. Hopkins HRA Policy A hardship will be considered to exist only if the loss of eligibility has an impact on the family’s ability to pay the minimum rent. For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent. Hopkins HRA Policy For a family to qualify under this provision, the cause of the potential eviction must be the family’s failure to pay rent. (3) Family income has decreased because of changed family circumstances, including the loss of employment. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-57 (4) A death has occurred in the family. Hopkins HRA Policy In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral-related expenses or the loss of the family member’s income). (5) The family has experienced other circumstances determined by the PHA. Hopkins HRA Policy The PHA has not established any additional hardship criteria. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-58 Implementation of Hardship Exemption Determination of Hardship When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family’s request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term. Hopkins HRA Policy The PHA defines temporary hardship as a hardship expected to last 90 days or less. Long term hardship is defined as a hardship expected to last more than 90 days. The PHA may not evict the family for nonpayment of minimum rent during the 90-day period beginning the month following the family’s request for a hardship exemption. When the minimum rent is suspended, the TTP reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption. Example: Impact of Minimum Rent Exemption Assume the PHA has established a minimum rent of $50. TTP – No Hardship TTP – With Hardship $30 $15 N/A $50 30% of monthly adjusted income 10% of monthly gross income Welfare rent Minimum rent $30 $15 N/A $50 30% of monthly adjusted income 10% of monthly gross income Welfare rent Minimum rent Minimum rent applies. TTP = $50 Hardship exemption granted. TTP = $30 Hopkins HRA Policy To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family’s ability to pay the minimum rent. The PHA will make the determination of hardship within 30 calendar days. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-59 No Financial Hardship If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended. For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship exemption, see Chapter 14, Grievances and Appeals. Hopkins HRA Policy The PHA will require the family to repay the suspended amount within 30 calendar days of the PHA’s notice that a hardship exemption has not been granted. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family’s request for a hardship exemption. At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. For procedures pertaining to grievance hearing requests based upon the PHA’s denial of a hardship exemption, see Chapter 14, Grievances and Appeals. Hopkins HRA Policy The PHA will enter into a repayment agreement in accordance with the PHA's repayment agreement policy (see Chapter 16). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-60 Long-Term Hardship If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family’s request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. Hopkins HRA Policy The hardship period ends when any of the following circumstances apply: (1) At an interim or annual reexamination, the family’s calculated TTP is greater than the minimum rent. (2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support. (3) For hardship conditions based upon hardship-related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-61 6-IV.C. PRORATED RENT FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. Except for non-public housing over income families, the PHA must prorate the assistance provided to a mixed family. The PHA will first determine TTP as if all family members were eligible and then prorate the rent based upon the number of family members that actually are eligible. To do this, the PHA must: (1) Subtract the TTP from the flat rent applicable to the unit. The result is the maximum subsidy for which the family could qualify if all members were eligible. (2) Divide the family maximum subsidy by the number of persons in the family to determine the maximum subsidy per each family member who is eligible (member maximum subsidy). (3) Multiply the member maximum subsidy by the number of eligible family members. (4) Subtract the subsidy calculated in the last step from the flat rent. This is the prorated TTP. (5) Subtract the utility allowance for the unit from the prorated TTP. This is the prorated rent for the mixed family. Hopkins HRA Policy Revised public housing flat rents will be applied to a mixed family’s rent calculation at the first annual reexamination after the revision is adopted. (6) When the mixed family’s TTP is greater than the applicable flat rent, use the TTP as the prorated TTP. The prorated TTP minus the utility allowance is the prorated rent for the mixed family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-62 6-IV.D. FLAT RENTS AND FAMILY CHOICE IN RENTS [24 CFR 960.253] Flat Rents [24 CFR 960.253(b)] The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient. Changes in family income, expenses, or composition will not affect the flat rent amount because it is outside the income-based formula. Policies related to the reexamination of families paying flat rent are contained in Chapter 9, and policies related to the establishment and review of flat rents are contained in Chapter 16. Family Choice in Rents [24 CFR 960.253(a) and (e)] With the exception of non-public housing over income families, once each year, the PHA must offer families the choice between a flat rent and an income-based rent. The family may not be offered this choice more than once a year. The PHA must document that flat rents were offered to families under the methods used to determine flat rents for the PHA. Hopkins HRA Policy The annual PHA offer to a family of the choice between flat and income-based rent will be conducted upon admission and upon each subsequent annual reexamination. The PHA will require families to submit their choice of flat or income-based rent in writing and will maintain such requests in the tenant file as part of the admission or annual reexamination process. The PHA must provide sufficient information for families to make an informed choice. This information must include the PHA’s policy on switching from flat rent to income-based rent due to financial hardship and the dollar amount of the rent under each option. However, if the family chose the flat rent for the previous year the PHA is required to provide an income-based rent amount only in the year that a reexamination of income is conducted or if the family specifically requests it and submits updated income information. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-63 Switching from Flat Rent to Income-Based Rent Due to Hardship [24 CFR 960.253(f)] With the exception of non-public housing over-income families, a family can opt to switch from flat rent to income-based rent at any time if they are unable to pay the flat rent due to financial hardship. If the PHA determines that a financial hardship exists, the PHA must immediately allow the family to switch from flat rent to the income-based rent. Hopkins HRA Policy Upon determination by the PHA that a financial hardship exists, the PHA will allow a family to switch from flat rent to income-based rent effective the first of the month following the family’s request. Reasons for financial hardship include: • The family has experienced a decrease in income because of changed circumstances, including loss or reduction of employment, death in the family, or reduction in or loss of earnings or other assistance • The family has experienced an increase in expenses, because of changed circumstances, for medical costs, child care, transportation, education, or similar items • Such other situations determined by the PHA to be appropriate Hopkins HRA Policy The PHA considers payment of flat rent to be a financial hardship whenever the switch to income-based rent would be lower than the flat rent [PH Occ GB, p. 137]. Flat Rents and Earned Income Disallowance [A&O FAQs] Because the EID is a function of income-based rents, a family paying flat rent cannot qualify for the EID even if a family member experiences an event that would qualify the family for the EID. If the family later chooses to pay income-based rent, they would only qualify for the EID if a new qualifying event occurred. Under the EID original calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent as long as the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member’s exclusion period expire while the family is paying flat rent. Under the EID revised calculation method, a family currently paying flat rent that previously qualified for the EID while paying income-based rent and is currently within their exclusion period would have the exclusion period continue while paying flat rent regardless whether the employment that is the subject of the exclusion continues. A family paying flat rent could therefore see a family member’s exclusion period expire while the family is paying flat rent. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-64 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-65 EXHIBIT 6-1: ANNUAL INCOME FULL DEFINITION 24 CFR 5.609 (a) Annual income includes, with respect to the family: (1) All amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and (2) When the value of net family assets exceeds $50,000 (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD. (b) Annual income does not include the following: (1) Any imputed return on an asset when net family assets total $50,000 or less (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and no actual income from the net family assets can be determined. (2) The following types of trust distributions: (i) For an irrevocable trust or a revocable trust outside the control of the family or household excluded from the definition of net family assets under § 5.603(b): (A) Distributions of the principal or corpus of the trust; and (B) Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor. (ii) For a revocable trust under the control of the family or household, any distributions from the trust; except that any actual income earned by the trust, regardless of whether it is distributed, shall be considered income to the family at the time it is received by the trust. (3) Earned income of children under the 18 years of age. (4) Payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments. (5) Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers’ compensation. (6) Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member. (7) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled. (8) Income of a live-in aide, foster child, or foster adult as defined in §§ 5.403 and 5.603, respectively. (9) (i) Any assistance that section 479B of the Higher Education Act of 1965, as amended (20 U.S.C. 1087uu), requires be excluded from a family’s income; and (ii) Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-66 board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. (A) Student financial assistance, for purposes of this paragraph (9)(ii), means a grant or scholarship received from— (1) The Federal government; (2) A State, Tribe, or local government; (3) A private foundation registered as a nonprofit under 26 U.S.C. 501(c)(3); (4) A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or (5) An institution of higher education. (B) Student financial assistance, for purposes of this paragraph (9)(ii), does not include— (1) Any assistance that is excluded pursuant to paragraph (b)(9)(i) of this section; (2) Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded pursuant to paragraph (b)(9)(i) of this section); ( 3) Gifts, including gifts from family or friends; or (4) Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under this paragraph or paragraph (b)(9)(i), exceeds the actual covered costs of the student. The actual covered costs of the student are the actual costs of tuition, books and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, or other fees required and charged to a student by the education institution, and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. This calculation is described further in paragraph (b)(9)(ii)(e) of this section. (C) Student financial assistance, for purposes of this paragraph (b)(9)(ii) must be: (1) Expressly for tuition, books, room and board, or other fees required and charged to a student by the education institution; (2) Expressly to assist a student with the costs of higher education; or (3) Expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit. (D) Student financial assistance, for purposes of this paragraph (b)(9)(ii), may be paid directly to the student or to the educational institution on the student’s behalf. Student financial assistance paid to the student must be verified by the responsible entity as student financial assistance consistent with this paragraph (b)(9)(ii). (E) When the student is also receiving assistance excluded under paragraph (b)(9)(i) of this section, the amount of student financial assistance under this paragraph (b)(9)(ii) is determined as follows: (1) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is equal to or exceeds the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, none of the assistance described in this paragraph (b)(9)(ii) of this section is considered student financial assistance excluded from income under this paragraph (b)(9)(ii)(E). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-67 (2) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is less than the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, the amount of assistance described in paragraph (b)(9)(ii) of this section that is considered student financial assistance excluded under this paragraph is the lower of: (i) the total amount of student financial assistance received under this paragraph (b)(9)(ii) of this section, or (ii) the amount by which the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section exceeds the assistance excluded under paragraph (b)(9)(i) of this section. (10) Income and distributions from any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under section 529 of such Code; and income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by Federal, State, or local government. (11) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. (12) (i) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (ii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (e.g., special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program; (iii) Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. (iv) Incremental earnings and benefits resulting to any family member from participation in training programs funded by HUD or in qualifying Federal, State, Tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employment training program unless those amounts are excluded under paragraph (b)(9)(i) of this section. (13) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. (14) Earned income of dependent fulltime students in excess of the amount of the deduction for a dependent in § 5.611. (15) Adoption assistance payments for a child in excess of the amount of the deduction for a dependent in § 5.611. (16) Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-68 (17) Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance. (18) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit. (19) Payments made by or authorized by a State Medicaid agency (including through a managed care entity) or other State or Federal agency to a family to enable a family member who has a disability to reside in the family’s assisted unit. Authorized payments may include payments to a member of the assisted family through the State Medicaid agency (including through a managed care entity) or other State or Federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family’s assisted unit. (20) Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car). (21) Payments received by Tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other Federal law. (22) Amounts that HUD is required by Federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in paragraph (b) of this section apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. (23) Replacement housing “gap” payments made in accordance with 49 CFR part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another Federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments. (24) Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income under this paragraph, even if the source, date, or amount of the income varies. Nonrecurring income includes: (i) Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment. (ii) Direct Federal or State payments intended for economic stimulus or recovery. (iii) Amounts directly received by the family as a result of State refundable tax credits or State tax refunds at the time they are received. (iv) Amounts directly received by the family as a result of Federal refundable tax credits and Federal tax refunds at the time they are received. (v) Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries). (vi) Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-69 (vii) Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings. (25) Civil rights settlements or judgments, including settlements or judgments for back pay. (26) Income received from any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; except that any distribution of periodic payments from such accounts shall be income at the time they are received by the family. (27) Income earned on amounts placed in a family’s Family Self Sufficiency Account. (28) Gross income a family member receives through self-employment or operation of a business; except that the following shall be considered income to a family member: (i) Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations; and (ii) Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-70 EXHIBIT 6-2: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net family assets is the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. (2) In determining net family assets, PHAs must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. (3) Excluded from the calculation of net family assets are: (i) The value of necessary items of personal property; (ii) The combined value of all nonnecessary items of personal property if the combined total value does not exceed $50,000 (which amount will be adjusted by HUD in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers); (iii) The value of any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals; (iv) The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located; (v) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability; (vi) The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986, the value of any qualified tuition program under section 529 of such Code, the value of any Achieving a Better Life Experience (ABLE) account authorized under Section 529A of such Code, and the value of any “baby bond” account created, authorized, or funded by Federal, State, or local government. (vii) Interests in Indian trust land; (viii) Equity in a manufactured home where the family receives assistance under 24 CFR part 982; (ix) Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982; (x) Family Self-Sufficiency Accounts; and (xi) Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family. (4) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the trust fund is not a family asset and the value of the trust is not included in the calculation of net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-71 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-72 EXHIBIT 6-3: THE EFFECT OF WELFARE BENEFIT REDUCTION 24 CFR 5.615 Public housing program and Section 8 tenant-based assistance program: How welfare benefit reduction affects family income. (a) Applicability. This section applies to covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant-based assistance (part 982 of this title). (b) Definitions. The following definitions apply for purposes of this section: Covered families. Families who receive welfare assistance or other public assistance benefits (“welfare benefits”) from a State or other public agency (“welfare agency”) under a program for which Federal, State, or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance. Economic self-sufficiency program. See definition at Sec. 5.603. Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent. Specified welfare benefit reduction. (1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) “Specified welfare benefit reduction” does not include a reduction or termination of welfare benefits by the welfare agency: (i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self- sufficiency or work activities requirements; or (iii) because a family member has not complied with other welfare agency requirements. (c) Imputed welfare income. (1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the PHA by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609. (2) At the request of the PHA, the welfare agency will inform the PHA in writing of the amount and term of any specified welfare benefit reduction for a family member, and the reason for such reduction, and will also inform the PHA of any subsequent changes in the term or amount of such specified welfare benefit reduction. The PHA will use this information to determine the amount of imputed welfare income for a family. (3) A family's annual income includes imputed welfare income in family annual income, as determined at the PHA's interim or regular reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the PHA by the welfare agency). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 6-73 (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed (5) The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of PHA decision. (1) Public housing. If a public housing tenant claims that the PHA has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the tenant written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. The PHA notice shall also state that if the tenant does not agree with the PHA determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the PHA determination. The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55(e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the PHA determination. (2) Section 8 participant. A participant in the Section 8 tenant-based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the PHA determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the family written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the PHA determination, the family may request an informal hearing on the determination under the PHA hearing procedure. (e) PHA relation with welfare agency. (1) The PHA must ask welfare agencies to inform the PHA of any specified welfare benefits reduction for a family member, the reason for such reduction, the term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the PHA written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction. (2) The PHA is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency, and specified in the notice by the welfare agency to the PHA. However, the PHA is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The PHA shall be entitled to rely on the welfare agency notice to the PHA of the welfare agency's determination of a specified welfare benefits reduction. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-1 Chapter 7 VERIFICATION [24 CFR 960.259, 24 CFR 5.230, Notice PIH 2018-18] INTRODUCTION The PHA must verify all information that is used to establish the family’s eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family. The PHA will follow the verification guidance provided by HUD in Notice PIH 2018-18 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies. Part I describes the general verification process. Part II provides more detailed requirements related to family information. Part III provides information on income and assets, and Part IV covers mandatory deductions. Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies established by the PHA. PART I: GENERAL VERIFICATION REQUIREMENTS 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 960.259, 24 CFR 5.230] Consent Forms The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 960.259(a)(1)]. All adult family members must sign consent forms as needed to collect information relevant to the family’s eligibility and level of assistance. While PHAs must use form HUD-9886, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information. Form HUD-9886 [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5) All adult applicants and tenants must sign form HUD-9886, Authorization for Release of Information. All adult family members (and the head and spouse/cohead regardless of age) are required to sign the Form HUD-9886 at admission. For residents, prior to January 1, 2024, residents signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886 be signed only once. On or after January 1, 2024, current residents must sign and submit a new Form HUD-9886 at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886 will not be submitted to the PHA except under the following circumstances: © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-2 • When any person 18 years or older becomes a member of the family; • When a current member of the family turns 18; or • As required by HUD or the PHA in administrative instructions. The purpose of form HUD-9886 is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant’s or resident’s eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)]. The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent (effective TBD but no later than January 1, 2025). Penalties for Failing to Consent [24 CFR 5.232] If any family member who is required to sign a consent form fails to do so, the PHA must deny admission to applicants and terminate the lease of tenants. The family may request a hearing in accordance with the PHA's grievance procedures. However, this does not apply if the applicant, resident, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial or termination of assistance or admission [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family’s executed consent forms (effective TBD but no later than January 1, 2025). Hopkins HRA Policy The PHA has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with PHA policy. Within 10 business days of an applicant or resident’s written notice to the PHA revoking their consent, the PHA will notify their local HUD office. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-3 7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS HUD’s Verification Hierarchy [Notice PIH 2018-18] HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general, HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification. In order of priority, the forms of verification that the PHA will use are: • Up-front Income Verification (UIV) using HUD’s Enterprise Income Verification (EIV) system • Up-front Income Verification (UIV) using a non-HUD system • Written Third Party Verification (may be provided by applicant or resident) • Written Third-party Verification Form • Oral Third-party Verification • Self-Certification Each of the verification methods is discussed in subsequent sections below. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-4 File Documentation The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family’s file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this ACOP. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached. Hopkins HRA Policy The PHA will document, in the family file, the following: Reported family annual income Value of assets Expenses related to deductions from annual income Other factors influencing the adjusted income or income-based rent determination When the PHA is unable to obtain third-party verification, the PHA will document in the family file the reason that third-party verification was not available [24 CFR 960.259(c)(1); Notice PIH 2018-18]. 7-I.C. UP-FRONT INCOME VERIFICATION (UIV) Upfront Income Verification Using HUD’s Enterprise Income Verification (EIV) System (Mandatory) PHAs must use HUD’s EIV system in its entirety as a third-party source to verify tenant employment and income information during annual and streamlined reexaminations of family composition and income in accordance with 24 CFR 5.236 and administrative guidance issued by HUD. The PHA may, but is not required to, use EIV as a third-party source during interim reexaminations. HUD’s EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families. The following policies apply to the use of HUD’s EIV system. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-5 EIV Income and IVT Reports The data shown on income and income validation tool (IVT) reports is updated quarterly. Data may be between three and six months old at the time reports are generated. Hopkins HRA Policy The PHA will obtain income and IVT reports for annual reexaminations on a monthly basis. Reports will be generated as part of the regular reexamination process. Income and IVT reports will be compared to family-provided information as part of the annual reexamination process. Income and IVT reports will be used in interim reexaminations only as necessary to verify earned income, and to verify and calculate unemployment benefits, Social Security and/or SSI benefits. EIV will also be used to verify that families claiming zero income are not receiving income from any of these sources. Income and IVT reports will be retained in resident files with the applicable annual or interim reexamination documents for the duration of the tenancy. When the PHA determines through EIV reports and third-party verification that a family has concealed or under-reported income, corrective action will be taken pursuant to the policies in Chapter 15, Program Integrity. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-6 EIV Identity Verification The EIV system verifies resident identities against Social Security Administration (SSA) records. These records are compared to Public and Indian Housing Information Center (PIC) data for a match on social security number, name, and date of birth. PHAs are required to use EIV’s Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2018-18]. When identity verification for a resident fails, a message will be displayed within the EIV system and no income information will be displayed. Hopkins HRA Policy The PHA will identify residents whose identity verification has failed by reviewing EIV’s Identity Verification Report on a monthly basis. The PHA will attempt to resolve PIC/SSA discrepancies by obtaining appropriate documentation from the tenant. When the PHA determines that discrepancies exist as a result of PHA errors, such as spelling errors or incorrect birth dates, it will correct the errors promptly. Upfront Income Verification Using Non-HUD Systems (Optional) In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. Hopkins HRA Policy The PHA will inform all applicants and residents of its use of the following UIV resources during the admission and reexamination process: HUD’s EIV system © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-7 7-I.D. THIRD-PARTY WRITTEN AND ORAL VERIFICATION HUD’s current verification hierarchy defines two types of written third-party verification. The more preferable form, “written third-party verification,” consists of an original document generated by a third-party source, which may be received directly from a third-party source or provided to the PHA by the family. If written third-party verification is not available, the PHA must attempt to obtain a “written third-party verification form.” This is a standardized form used to collect information from a third party. Written Third-Party Verification [Notice PIH 2018-18] Written third-party verification documents must be original and authentic and may be supplied by the family or received from a third-party source. Examples of acceptable tenant-provided documents include, but are not limited to pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining annual income from wages. The PHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. Hopkins HRA Policy Third-party documents provided by the family must be dated within 60 days of the PHA request date. If the PHA determines that third-party documents provided by the family are not acceptable, the PHA will explain the reason to the family and request additional documentation. As verification of earned income, the PHA will require the family to provide the two most current, consecutive pay stubs. At the PHA’s discretion, if additional paystubs are needed due to the family’s circumstances (e.g., sporadic income, fluctuating schedule, etc.), the PHA may request additional paystubs or a payroll record. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-8 Written Third-Party Verification Form When upfront verification is not available and the family is unable to provide written third-party documents, the PHA must request a written third-party verification form. HUD’s position is that this traditional third-party verification method presents administrative burdens and risks which may be reduced through the use of family-provided third-party documents. PHAs may mail, fax, or email third-party written verification form requests to third-party sources. Hopkins HRA Policy The PHA will send third-party verification forms directly to the third party. Third-party verification forms will be sent when third-party verification documents are unavailable or are rejected by the PHA. Oral Third-Party Verification [Notice PIH 2018-18] For third-party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person. Oral third-party verification is mandatory if neither form of written third-party verification is available. Third-party oral verification may be used when requests for written third-party verification forms have not been returned within a reasonable time—e.g., 10 business days. PHAs should document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed. Hopkins HRA Policy In collecting third-party oral verification, PHA staff will record in the family’s file the name and title of the person contacted, the date and time of the conversation (or attempt), the telephone number used, and the facts provided. When any source responds verbally to the initial written request for verification the PHA will accept the verbal response as oral verification but will also request that the source complete and return any verification forms that were provided. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-9 When Third-Party Verification is Not Required [Notice PIH 2018-18] Third-party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third-party verification of income, assets, or expenses when these items would have a minimal impact on the family’s total tenant payment. Hopkins HRA Policy If the family cannot provide original documents, the PHA will pay the service charge required to obtain third-party verification, unless it is not cost effective in which case a self-certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family. The cost of postage and envelopes to obtain third-party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18]. Primary Documents Third-party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth. 7-I.E. SELF-CERTIFICATION When HUD requires third-party verification, self-certification, or “tenant declaration,” is used as a last resort when the PHA is unable to obtain third-party verification. Self-certification, however, is an acceptable form of verification when: • A source of income is fully excluded • Net family assets total $50,000 or less and the PHA has adopted a policy to accept self certification • The family declares that they do not have any present ownership in any real property • The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 9) When the PHA was required to obtain third-party verification but instead relies on a tenant declaration for verification of income, assets, or expenses, the family’s file must be documented to explain why third-party verification was not available. Hopkins HRA Policy When information cannot be verified by a third party or by review of documents, family members will be required to submit self-certifications attesting to the accuracy of the information they have provided to the PHA. The PHA may require a family to certify that a family member does not receive a particular type of income or benefit. The self-certification must be made in a format acceptable to the PHA and must be signed by the family member whose information or status is being verified. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-10 7-I.F. USE OF OTHER PROGRAMS’ INCOME DETERMINATIONS 24 CFI.609(c)(3)] (Effective TBD but no later than January 1, 2025) The PHA may, but is not required to, determine the family’s annual income based on income determinations made within the previous 12-month period for purposes of the following means- tested forms of federal public assistance: • Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.); • Medicaid (42 U.S.C. 1396 et seq.); • Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.); • Earned Income Tax Credit (EITC) (26 U.S.C. 32); • Low-Income Housing Credit (LIHTC) program (26 U.S.C. 42); • Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786); • Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); • Other programs administered by the Secretary; • Other means-tested forms of federal public assistance for which HUD has established a memorandum of understanding; and • Other federal benefit determinations made in other forms of means-tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register. Hopkins HRA Policy The PHA will not use other programs’ determinations of income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-11 PART II: VERIFYING FAMILY INFORMATION 7-II.A. VERIFICATION OF LEGAL IDENTITY Hopkins HRA Policy The PHA will require families to furnish verification of legal identity for each household member. Verification of Legal Identity for Adults Verification of Legal Identity for Children Certificate of birth, naturalization papers Church issued baptismal certificate Current, valid driver’s license or Department of Motor Vehicle identification card U.S. military discharge (DD 214) Current U.S. passport Current government employer identification card with picture Certificate of birth Adoption papers Custody agreement Health and Human Services ID Certified school records If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required. If none of these documents can be provided and at the PHA’s discretion, a third party who knows the person may attest to the person’s identity. The certification must be provided in a format acceptable to the PHA and be signed by the family member whose information or status is being verified. Legal identity will be verified for all applicants at the time of eligibility determination and in cases where the PHA has reason to doubt the identity of a person representing themselves to be a tenant or a member of a tenant family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-12 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and Notice PIH 2018-24] The family must provide documentation of a valid social security number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. Exemptions also include, existing residents who were at least 62 years of age as of January 31, 2010, and had not previously disclosed an SSN. The PHA must accept the following documentation as acceptable evidence of the social security number: • An original SSN card issued by the Social Security Administration (SSA) • An original SSA-issued document, which contains the name and SSN of the individual • An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual The PHA may only reject documentation of an SSN provided by an applicant or resident if the document is not an original document, if the original document has been altered, mutilated, is illegible, or if the document appears to be forged. Hopkins HRA Policy The PHA will explain to the applicant or resident the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to the PHA within 90 days. If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of program admission, an otherwise eligible family may be admitted and must provide documentation of the child’s SSN within 90 days. A 90-day extension will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of the resident’s control. Hopkins HRA Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the applicant’s control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. When a resident requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the resident must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-13 When a resident requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the resident must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90- day extension will be granted if the PHA determines that the resident’s failure to comply was due to unforeseen circumstances and was outside of the resident’s control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household. Hopkins HRA Policy The PHA will grant one additional 90-day extension if needed for reasons beyond the resident’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Social security numbers must be verified only once during continuously assisted occupancy. Hopkins HRA Policy The PHA will verify each disclosed SSN by: Obtaining documentation from applicants and residents that is acceptable as evidence of social security numbers Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder Once the individual’s verification status is classified as “verified,” the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual’s SSN. Hopkins HRA Policy Once an individual’s status is classified as “verified” in HUD’s EIV system, the PHA will not remove and destroy copies of documentation accepted as evidence of social security numbers. 7-II.C. DOCUMENTATION OF AGE A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable. Hopkins HRA Policy If an official record of birth or evidence of social security retirement benefits cannot be provided, the PHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self-certification. Age must be verified only once during continuously assisted occupancy. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-14 7-II.D. FAMILY RELATIONSHIPS Applicants and tenants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter. Hopkins HRA Policy Family relationships are verified only to the extent necessary to determine a family’s eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships. Marriage Hopkins HRA Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a marital relationship, the PHA will require the family to document the marriage with a marriage certificate or other documentation to verify that the couple is married. In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns). Separation or Divorce Hopkins HRA Policy Certification by the head of household is normally sufficient verification. If the PHA has reasonable doubts about a divorce or separation, the PHA will require the family to provide documentation of the divorce or separation with a certified copy of a divorce decree, signed by a court officer; a copy of a court-ordered maintenance or other court record; or other documentation that shows a couple is divorced or separated. If no court document is available, documentation from a community-based agency will be accepted. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-15 Absence of Adult Member Hopkins HRA Policy If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill), if the PHA so requests. Foster Children and Foster Adults Hopkins HRA Policy Third-party verification from the state or local government agency responsible for the placement of the individual with the family is required. 7-II.E. VERIFICATION OF STUDENT STATUS Hopkins HRA Policy The PHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if: The family claims full-time student status for an adult other than the head, spouse, or cohead, or The family claims a child care deduction to enable a family member to further their education. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-16 7-II.F. DOCUMENTATION OF DISABILITY The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person’s disability [24 CFR 100.202(c)]. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a resident’s medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services’ Web site at www.os.dhhs.gov. The PHA may make the following inquiries, provided it makes them of all applicants, whether or not they are persons with disabilities [VG, p. 24]: • Inquiry into an applicant’s ability to meet the requirements of ownership or tenancy • Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability • Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability • Inquiry about whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance • Inquiry about whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance Family Members Receiving SSA Disability Benefits Verification of receipt of disability benefits from the Social Security Administration (SSA) is sufficient for verification of disability for the purpose of qualification for waiting list preferences or certain income disallowances and deductions [VG, p. 23]. Hopkins HRA Policy For family members claiming disability who receive disability payments from the SSA, the PHA will attempt to obtain information about disability benefits through HUD’s Enterprise Income Verification (EIV) system. If documentation is not available through HUD’s EIV system, the PHA will request a current (dated within the last 60 days) SSA benefit verification letter from each family member claiming disability status. If a family member is unable to provide the document, the PHA will ask the family to obtain a benefit verification letter either by calling SSA at 1-800-772-1213 or by requesting one from www.ssa.gov. Once the family receives the benefit verification letter, they will be required to provide the letter to the PHA. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-17 Family Members Not Receiving SSA Disability Benefits Receipt of veteran’s disability benefits, worker’s compensation, or other non-SSA benefits based on the individual’s claimed disability are not sufficient verification that the individual meets HUD’s definition of disability in 24 CFR 5.403, necessary to qualify for waiting list preferences or certain income disallowances and deductions. Hopkins HRA Policy For family members claiming disability who do not receive SSI or other disability payments from the SSA, a knowledgeable professional must provide third-party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition. 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.508] Overview Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. See the Eligibility chapter for detailed discussion of eligibility requirements. This chapter (7) discusses HUD and PHA verification requirements related to citizenship status. The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously-assisted occupancy [24 CFR 5.508(g)(5)] U.S. Citizens and Nationals HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors. The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation. Hopkins HRA Policy Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless the PHA receives information indicating that an individual’s declaration may not be accurate. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-18 Eligible Immigrants Documents Required All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals. The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD-funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide. PHA Verification [HCV GB, pp 5-3 and 5-7] For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this ACOP. No further verification of eligible immigration status is required. For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the U.S. Citizenship and Immigration Services (USCIS ). The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.H. VERIFICATION OF PREFERENCE STATUS The PHA must verify any preferences claimed by an applicant that determined their placement on the waiting list. Hopkins HRA Policy The PHA offers a preference for working families, described in Section 4-III.B. The PHA may verify that the family qualifies for the working family preference based on the family’s submission of the working member’s most recent paycheck stub indicating that the working member works at least 20 hours per week. The paycheck stub must have been issued to the working member within the last thirty days. The PHA may also seek third party verification from the employer of the head, spouse, cohead or sole member of a family requesting a preference as a working family. The PHA also offers a preference for victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking as described in Section 4-III.B. To verify that applicants qualify for the preference, the PHA will follow documentation requirements outlined in Section 16-VII.D. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-19 PART III: VERIFYING INCOME AND ASSETS Chapter 6 of this ACOP describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter. 7-III.A. EARNED INCOME Tips Hopkins HRA Policy Unless tip income is included in a family member’s W-2 by the employer, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the prior year and tips anticipated to be received in the coming year. Wages Hopkins HRA Policy For wages other than tips, the family must provide originals of the two most current, consecutive pay stubs. 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME Hopkins HRA Policy Business owners and self-employed persons will be required to provide: An audited financial statement for the previous fiscal year if an audit was conducted. If an audit was not conducted, a statement of income and expenses must be submitted and the business owner or self-employed person must certify to its accuracy. All schedules completed for filing federal and local taxes in the preceding year. If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules. For self-employed individuals who claim they do not to file tax returns, The PHA will obtain a completed copy of IRS Form 4506-T to verify that no return has been filed. For those employed in “gig employment” (i.e., those in formal agreements with on- demand companies such as Uber, Lyft, or DoorDash), the PHA will provide a format for the individual to declare their income and expenses. The PHA will also review the printed statement of monthly income from the applicable app for all hours worked and pay received as well as the Schedule C of the individual’s tax return and the corresponding IRS Form 1099 or 1099k. The PHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self-employed person will be required to submit the information requested and to certify to its accuracy © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-20 at all future reexaminations. At any reexamination the PHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements. If a family member has been self-employed less than three (3) months, the PHA will accept the family member's certified estimate of income and schedule an interim reexamination in three (3) months. If the family member has been self-employed for three (3) to twelve (12) months the PHA will require the family to provide documentation of income and expenses for this period and use that information to project income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-21 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 9. Social Security/SSI Benefits[Notice PIH 2018-24] Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ for applicants and participants. For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to provide a copy of their current SS and/or SSI benefit letter (dated within the last 60 calendar days) for each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the applicant request a benefit verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the applicant, make a photocopy of the document for the file, and return the original to the family. For participants, the PHA must obtain information through the HUD EIV system and confirm with the participants that the current listed benefit amount is correct. • If the participant agrees with the amount reported in EIV, the PHA must use the EIV- reported gross benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV-reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the participant disputes the amount. • If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in EIV, the PHA must request a current SSA benefit verification letter (dated within the last 60 calendar days) from each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the participant request a benefit verification letter from SSA’s website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the participant, make a photocopy of the document for the file, and return the original to the family. • Photocopies of social security checks or bank statements are not acceptable forms of verification for SS/SSI benefits. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-22 7-III.D. ALIMONY OR CHILD SUPPORT Hopkins HRA Policy The methods the PHA will use to verify alimony and child support payments differ depending on whether the family declares that it receives regular payments. If the family declares that it receives regular payments, verification will be obtained in the following order of priority: Copies of the receipts and/or payment stubs for the 12 months prior to PHA request Third-party verification form from the state or local child support enforcement agency Third-party verification form from the person paying the support Family's self-certification of amount received If the family declares that it receives irregular or no payments, in addition to the verification process listed above, the family must provide evidence that it has taken all reasonable efforts to collect amounts due. This may include: A statement from any agency responsible for enforcing payment that shows the family has requested enforcement and is cooperating with all enforcement efforts If the family has made independent efforts at collection, a written statement from the attorney or other collection entity that has assisted the family in these efforts Note: Families are not required to undertake independent enforcement action. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-23 7-III.E. ASSETS AND INCOME FROM ASSETS Net Family Assets Equal to or Less than $50,000 [24 CFR 5.603] (Effective TBD but no later than January 1, 2025) At admission and reexam, for families with net assets totaling $50,000 or less (adjusted annually), the PHA may accept the family’s self-certification that the family’s assets do not exceed $50,000 without taking any additional steps to verify the accuracy of the declaration. The declaration must include the amount of income the family expects to receive from assets which must be included in the family’s income. For PHAs that choose to accept self-certification, the PHA is required to obtain third-party verification of all assets, regardless of the amount, at least once every three years. When net family assets have a total value over $50,000, the PHA may not rely on the family’s self-certification. Hopkins HRA Policy For families with net assets totaling $50,000 or less, the PHA will accept the family’s self-certification of the value of family assets and anticipated asset income. The family’s declaration must show each asset and the amount of income expected from that asset. All family members 18 years of age and older must sign the family’s declaration. The PHA reserves the right to require additional verification in situations where the accuracy of the declaration is in question. Any income the family expects to receive from assets will be included in the family’s annual income. The family will be required to provide third-party verification of net family assets every three years. Self-Certification of Real Property Ownership [24 CFR 5.618(b)(2)] The PHA must determine whether a family has present ownership in real property that is suitable for occupancy for purposes of determining whether the family is compliant with the asset limitation described in Chapters 3 and 13. At admission and reexam, the PHA may accept a self- certification from the family that the family does not have any present ownership in any real property that is suitable for occupancy. If the family declares they have present ownership in real property, the PHA must obtain third-party verification. Hopkins HRA Policy Both at admission and reexam, the PHA will accept self-certification from the family that the family does not have any present ownership in any real property. The certification will state that the family does not have any present ownership interest in any real property and must be signed by all family members 18 years of age and older. The PHA reserves the right to require additional verification in situations where the accuracy of the declaration is in question. If the family declares they have a present ownership in real property, the PHA will obtain third-party verification of the following factors: whether the family has the legal right to reside in the property; whether the family has effective legal authority to sell the property; and whether the property is suitable for occupancy by the family as a residence. However, in cases where a family member is a victim of domestic violence, dating violence, sexual, or stalking, the PHA will comply with confidentiality requirements under 24 CFR 5.2007 and will accept a self-certification. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-24 7-III.F. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE The family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. HUD permits PHAs to accept a self-certification from a family as verification of assets disposed of for less than fair market value [HCV GB, p. 5-28]. The PHA needs to verify only those certifications that warrant documentation [HCV GB, p. 5-28]. Hopkins HRA Policy The PHA will accept a self-certification from a family as verification of assets disposed of for less than fair market value. The PHA will verify the value of assets disposed of only if: The PHA does not already have a reasonable estimation of its value from previously collected information, or The amount reported by the family in the certification appears obviously in error. Example 1: An elderly resident reported a $10,000 certificate of deposit at the last annual reexamination and the PHA verified this amount. Now the person reports that she has given this $10,000 to her son. The PHA has a reasonable estimate of the value of the asset; therefore, reverification of the value of the asset is not necessary. Example 2: A family member has disposed of its 1/4 share of real property located in a desirable area and has valued her share at approximately $5,000. Based upon market conditions, this declaration does not seem realistic. Therefore, the PHA will verify the value of this asset. 7-III.F. NET INCOME FROM RENTAL PROPERTY Hopkins HRA Policy The family must provide: A current executed lease for the property that shows the rental amount or certification from the current tenant A self-certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with Schedule E (Rental Income). If schedule E was not prepared, the PHA will require the family members involved in the rental of property to provide a self-certification of income and expenses for the previous year and may request documentation to support the statement including: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-25 7-III.G. RETIREMENT ACCOUNTS Hopkins HRA Policy The PHA will accept an original document from the entity holding the account dated no earlier than 12 months before that reflects any distributions of the account balance, any lump sums taken and any regular payments. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-26 7-III.H. INCOME FROM EXCLUDED SOURCES A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded. For fully excluded income, the PHA is not required to follow the verification hierarchy, document why third-party verification is not available, or report the income on the 50058. Fully excluded income is defined as income that is entirely excluded from the annual income determination (for example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2013-04]. PHAs may accept a family’s signed application or reexamination form as self-certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification. For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058. Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student). Hopkins HRA Policy The PHA will accept the family’s self-certification as verification of fully excluded income. The PHA may request additional documentation if necessary to document the income source. The PHA will verify the source and amount of partially excluded income as described in Part 1 of this chapter. 7-III.I. ZERO ANNUAL INCOME STATUS HUD regulations do not address zero income families. However, the Public Housing Occupancy Guidebook states “a common practice is for PHAs to pursue verification of income that reflects the family’s lifestyle” [New PH OCC GB, Income Determinations, p. 39]. Hopkins HRA Policy The PHA will check UIV sources and/or may request information from third-party sources to verify that certain forms of income such as unemployment benefits, TANF, SS, SSI, earned income, child support, etc. are not being received by families claiming to have zero annual income. The PHA will also require that each family member who claims zero income status complete a zero-income form. If any sources of income are identified on the form, the PHA will verify the income in accordance with the policies in this chapter prior to including the income in the family’s annual income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-27 7-III.J. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] (Effective TBD but no later than January 1, 2025) The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. Any assistance to students under section 479B of the Higher Education Act of 1965 (Tile IV of the HEA) must be excluded from the family’s annual income [24 CFR 5.609(b)(9)(i)]. Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the federally mandated income exclusions are excluded [24 CFR 5.609(b)(9)(ii)]. Hopkins HRA Policy The PHA will request written third-party verification of both the source and the amount of student financial assistance. Family-provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student. In addition, unless the student’s only source of assistance is assistance under Title IV of the HEA, the PHA will request written verification of the cost of the student’s tuition, books, supplies, room and board, and other required fees and charges to the student from the educational institution. If the PHA is unable to obtain third-party written verification of the requested information, the PHA will pursue other forms of verification following the verification hierarchy in section 7-I.B. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-28 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-29 PART IV: VERIFYING MANDATORY DEDUCTIONS 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required. Dependent Deduction See Chapter 6 for a full discussion of this deduction. The PHA will verify that: • Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse or cohead of the family and is not a foster child • Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide, and is a person with a disability or a full time student Elderly/Disabled Family Deduction See the Eligibility chapter for a definition of elderly and disabled families and Chapter 6 for a discussion of the deduction. The PHA will verify that the head, spouse, or cohead is 62 years of age or older or a person with disabilities. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-30 7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION Policies related to medical expenses are found in Chapter 6. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed health and medical care expenses. The PHA may not request documentation beyond what is sufficient to determine anticipated health and medical care costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23]. Amount of Expense Hopkins HRA Policy Medical expenses will be verified through: Written third-party documents provided by the family, such as pharmacy printouts or receipts. When income is projected at new admission or interim, the PHA will make a best effort to determine what expenses from the past are likely to continue to occur in the future. The PHA will also accept evidence of monthly payments or total payments that will be due for medical expenses during the upcoming 12 months. Written third-party verification forms if the family is unable to provide acceptable documentation. When income is projected at new admission or interim, if third-party or document review is not possible, written family certification as to costs anticipated to be incurred during the upcoming 12 months. Before placing bills and documentation in the tenant file, the PHA will redact all personally identifiable information. If the PHA receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, the PHA will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to disposed of, the PHA will note in the individual’s file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-31 In addition, the PHA must verify that: • The household is eligible for the deduction. • The costs to be deducted are qualified health and medical care expenses. • The expenses are not paid for or reimbursed by any other source. • Costs incurred in past years are counted only once. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-32 Eligible Household The health and medical care expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62 or a person with disabilities. The PHA will verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter, and as described in Chapter 7 (7-IV.A) of this plan. Qualified Expenses To be eligible for the health and medical care expense deduction, the costs must qualify as medical expenses. See Chapter 6 for the PHA’s policy on what counts as a medical expense. Unreimbursed Expenses To be eligible for the health and medical care expense deduction, the costs must not be reimbursed by another source. Hopkins HRA Policy The family will be required to certify that the medical expenses are not paid or reimbursed to the family from any source. If expenses are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source. Expenses Incurred in Past Years Hopkins HRA Policy At new admission and interim reexam, when anticipated costs are related to ongoing payment of medical bills incurred in past years, the PHA will verify: The anticipated repayment schedule The amounts paid in the past, and Whether the amounts to be repaid have been deducted from the family’s annual income in past years © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-33 7-IV.C. DISABILITY ASSISTANCE EXPENSES Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed auxiliary apparatus or attendance care costs. The PHA may not request documentation beyond what is sufficient to determine anticipated reasonable attendant care and auxiliary apparatus costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23]. Amount of Expense Attendant Care Hopkins HRA Policy Expenses for attendant care will be verified through: Written third-party documents provided by the family, such as receipts or cancelled checks. Third-party verification form signed by the provider, if family-provided documents are not available. When income is projected at new admission or interim, if third-party verification is not possible, written family certification as to costs anticipated to be incurred for the upcoming 12 months. Before placing bills and documentation in the tenant file, the PHA will redact all personally identifiable information. If the PHA receives documentation from a verification source that contains the individual’s specific diagnosis, information regarding the individual’s treatment, and/or information regarding the nature or severity of the person’s disability, the PHA will immediately dispose of this confidential information; this information will never be maintained in the individual’s file. If the information needs to be disposed of, the PHA will note in the individual’s file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant’s or resident’s medical records in the file [Notice PIH 2010-26]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-34 Auxiliary Apparatus Hopkins HRA Policy Expenses for auxiliary apparatus will be verified through: Written third-party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months. Third-party verification form signed by the provider, if family-provided documents are not available. If third-party or document review is not possible, written family certification of estimated apparatus costs for the upcoming 12 months. In addition, the PHA must verify that: • The family member for whom the expense is incurred is a person with disabilities (as described in 7-II.F above). • The expense permits a family member, or members, to work (as described in Chapter 6.). • The expense is not reimbursed from another source (as described in Chapter 6.). Family Member is a Person with Disabilities To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.F.). Family Member(s) Permitted to Work The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work. Hopkins HRA Policy The PHA will request third-party verification from a rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family. If third-party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance), to work. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-35 Unreimbursed Expenses To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source. Hopkins HRA Policy The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-36 7-IV.D. CHILD CARE EXPENSES Policies related to child care expenses are found in Chapter 6. The amount of the deduction will be verified following the standard verification procedures described in Part I. In addition, the PHA must verify that: • The child is eligible for care (12 or younger). • The costs claimed are not reimbursed. • The costs enable a family member to work, actively seek work, or further their education. • The costs are for an allowable type of child care. • The costs are reasonable. Eligible Child To be eligible for the child care deduction, the costs must be incurred for the care of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.). Unreimbursed Expense To be eligible for the child care deduction, the costs must not be reimbursed by another source. Hopkins HRA Policy The family and the care provider will be required to certify that the child care expenses are not paid by or reimbursed to the family from any source. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-37 Pursuing an Eligible Activity The PHA must verify that the family member(s) that the family has identified as being enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those activities. Hopkins HRA Policy Information to be Gathered The PHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work Whenever possible the PHA will use documentation from a state or local agency that monitors work-related requirements (e.g., welfare or unemployment). In such cases the PHA will request family-provided verification from the agency of the member’s job seeking efforts to date and require the family to submit to the PHA any reports provided to the other agency. In the event third-party verification is not available, the PHA will provide the family with a form on which the family member must record job search efforts. The PHA will review this information at each subsequent reexamination for which this deduction is claimed. Furthering Education The PHA will request third-party documentation to verify that the person permitted to further their education by the child care is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family. Gainful Employment The PHA will seek third-party verification of the work schedule of the person who is permitted to work by the child care. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified. The documentation may be provided by the family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-38 Allowable Type of Child Care The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6. Hopkins HRA Policy The PHA will verify that the type of child care selected by the family is allowable, as described in Chapter 6. The PHA will verify that the fees paid to the child care provider cover only child care costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible family members). The PHA will verify that the child care provider is not an assisted family member. Verification will be made through the head of household’s declaration of family members who are expected to reside in the unit. Reasonableness of Expenses Only reasonable child care costs can be deducted. Hopkins HRA Policy The actual costs the family incurs will be compared with the PHA’s established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable. If the family presents a justification for costs that exceed typical costs in the area, the PHA will request additional documentation, as required, to support a determination that the higher cost is appropriate. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-39 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10) • All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA. • Except for persons 62 or older, all noncitizens must sign a verification consent form • Additional documents are required based upon the person's status. Elderly Noncitizens • A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old-age benefits. All other Noncitizens • Noncitizens that claim eligible immigration status also must present the applicable USCIS document. Acceptable USCIS documents are listed below. • Form I-551 Alien Registration Receipt Card (for permanent resident aliens) • Form I-94 Arrival-Departure Record annotated with one of the following: • “Admitted as a Refugee Pursuant to Section 207” • “Section 208” or “Asylum” • “Section 243(h)” or “Deportation stayed by Attorney General” • “Paroled Pursuant to Section 221 (d)(5) of the USCIS” • Form I-94 Arrival-Departure Record with no annotation accompanied by: • A final court decision granting asylum (but only if no appeal is taken); • A letter from a USCIS asylum officer granting asylum (if application is filed on or after 10/1/90) or from a USCIS district director granting asylum (application filed before 10/1/90); • A court decision granting withholding of deportation; or • A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/1/90). • Form I-688 Temporary Resident Card annotated “Section 245A” or Section 210”. Form I-688B Employment Authorization Card annotated “Provision of Law 274a. 12(11)” or “Provision of Law 274a.12”. • A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant’s entitlement to the document has been verified; or • Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 7-40 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-1 Chapter 8 LEASING AND INSPECTIONS [24 CFR 5, Subpart G; 24 CFR 966, Subpart A] INTRODUCTION Public housing leases are the contractual basis of the legal relationship between the PHA and the tenant. All units must be occupied pursuant to a dwelling lease agreement that complies with HUD regulations. HUD regulations require the PHA to inspect each dwelling unit prior to move-in, at move-out, and annually during the period of occupancy. In addition, the PHA may conduct additional inspections in accordance with PHA policy. This chapter is divided into two parts as follows: Part I: Leasing. This part describes pre-leasing activities and the PHA’s policies pertaining to lease execution, lease modification, and payments under the lease. Part II: Inspections. This part describes the PHA’s policies for inspecting dwelling units and notifying families of HUD REAC NSPIRE inspections. PART I: LEASING 8-I.A. OVERVIEW An eligible family may occupy a public housing dwelling unit under the terms of a lease. The lease must meet all regulatory requirements and must also comply with applicable state and local laws and codes. The term of the lease must be for a period of 12 months. The lease must be renewed automatically for another 12-month term, except that the PHA may not renew the lease if the family has violated the community service requirement and if the family is determined to be over income for 24 consecutive months [24 CFR 966.4(a)(2)]. PHAs must adopt smoke-free policies, which HUD required to be implemented no later than July 30, 2018. The policy is attached as Exhibit 8-1. Part I of this chapter contains regulatory information on leasing, where applicable, as well as the PHA’s leasing policies. For policies on lease requirements for families whose incomes have exceeded the over-income limit for 24 consecutive months, see 13-III.C., Over-Income Families. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-2 8-I.B. LEASE ORIENTATION Hopkins HRA Policy After unit acceptance but prior to occupancy, a PHA representative will conduct a lease orientation with the family. The head of household or spouse is required to attend. Orientation Agenda Hopkins HRA Policy When families attend the lease orientation, they will be provided with: A copy of the lease A copy of the PHA’s grievance procedure A copy of the house rules A copy of the PHA’s schedule of maintenance charges A copy of “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse A copy of “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12 A copy of the form HUD-5380, VAWA Notice of Occupancy Rights A copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking A copy of the PHA’s smoke free policy A notice that includes the procedures for requesting relief and the PHA’s criteria for granting requests for relief for excess utility surcharges The HUD pamphlet on lead-based paint entitled, “Protect Your Family from Lead in Your Home.” Topics to be discussed and explained to all families include: Applicable deposits and all other charges Review and explanation of lease provisions Unit maintenance requests and work orders The PHA’s interim reporting requirements Review and explanation of occupancy forms Community service requirements Family choice of rent VAWA protections Smoke-free policies © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-3 8-I.C. EXECUTION OF LEASE The lease must be executed by the tenant and the PHA, except for automatic renewals of a lease [24 CFR 966.4(a)(3)]. A lease is executed at the time of admission for all new residents. A new lease is also executed at the time of transfer from one PHA unit to another. The lease must state the composition of the household as approved by the PHA (family members and any PHA-approved live-in aide) [24 CFR 966.4(a)(1)(v)]. See Section 8-I.D. for policies regarding changes in family composition during the lease term. Hopkins HRA Policy The head of household, spouse or cohead, and all other adult members of the household will be required to sign the public housing lease prior to admission. An appointment will be scheduled for the parties to execute the lease. The head of household will be provided a copy of the executed lease and the PHA will retain a copy in the resident’s file. Files for households that include a live-in aide will contain file documentation signed by the live-in aide, that the live-in aide is not a party to the lease and is not entitled to PHA assistance. The live-in aide is only approved to live in the unit while serving as the care attendant for the family member who requires the care. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-4 8-I.D. MODIFICATIONS TO THE LEASE The lease may be modified at any time by written agreement of the tenant and the PHA [24 CFR 966.4(a)(3)]. Modifications to the Lease Form The PHA may modify its lease from time to time. However, the PHA must give residents at least thirty (30) days advance notice of the proposed changes and an opportunity to comment on the changes. The PHA must also consider any comments before formally adopting a new lease [24 CFR 966.3]. After proposed changes have been incorporated into the lease and approved by the Board, each family must be notified at least 60 days in advance of the effective date of the new lease or lease revision. A resident's refusal to accept permissible and reasonable lease modifications that are made in accordance with HUD requirements, or are required by HUD, is grounds for termination of tenancy [24 CFR 966.4(l)(2)(iii)(E)]. Hopkins HRA Policy The family will have 30 days to accept the revised lease. If the family does not accept the offer of the revised lease within that 30-day timeframe, the family’s tenancy will be terminated for other good cause in accordance with the policies in Chapter 13. Schedules of special charges and rules and regulations are subject to modification or revision. Because these schedules are incorporated into the lease by reference, residents and resident organizations must be provided at least thirty days written notice of the reason(s) for any proposed modifications or revisions, and must be given an opportunity to present written comments. The notice must be delivered directly or mailed to each tenant; or posted in at least three conspicuous places within each structure or building in which the affected dwelling units are located, as well as in a conspicuous place at the project office, if any, or if none, a similar central business location within the project. Comments must be taken into consideration before any proposed modifications or revisions become effective [24 CFR 966.5]. After the proposed revisions become effective they must be publicly posted in a conspicuous manner in the project office and must be furnished to applicants and tenants on request [24 CFR 966.5]. Hopkins HRA Policy When the PHA proposes to modify or revise schedules of special charges or rules and regulations, the PHA will post a copy of the notice in the central office and will mail a copy of the notice to each resident family. Documentation of proper notice will be included in each resident file. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-5 Other Modifications Hopkins HRA Policy The lease will be amended to reflect all changes in family composition. If, for any reason, any member of the household ceases to reside in the unit, the lease will be amended by drawing a line through the person's name. The head of household and PHA will be required to initial and date the change. If a new household member is approved by the PHA to reside in the unit, the person’s name and birth date will be added to the lease. The head of household and PHA will be required to initial and date the change. If the new member of the household is an adult, they will also be required to sign and date the lease. Policies governing when and how changes in family composition must be reported are contained in Chapter 9, Reexaminations. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-6 8-I.E. SECURITY DEPOSITS [24 CFR 966.4(b)(5)] At the option of the PHA, the lease may require security deposits. The amount of the security deposit cannot exceed one month’s rent or a reasonable fixed amount as determined by the PHA. The PHA may allow for gradual accumulation of the security deposit by the family, or the family may be required to pay the security deposit in full prior to occupancy. Subject to applicable laws, interest earned on security deposits may be refunded to the tenant after vacating the unit or used for tenant services or activities. Hopkins HRA Policy Residents must pay a security deposit to the PHA at the time of admission. The amount of the security deposit will $150 paid at the time of move-in and must be paid in full prior to occupancy. The PHA will hold the security deposit for the period the family occupies the unit. The PHA will not use the security deposit for rent or other charges while the resident is living in the unit. Within 21 days of move-out, the PHA will refund to the resident the amount of the security deposit (including interest earned on the security deposit), less any amount needed to pay the cost of unpaid rent, damages listed on the move-out inspection report that exceed normal wear and tear, and other charges due under the lease. The PHA will provide the resident with a written list of any charges against the security deposit within 10 business days of the move-out inspection. If the resident disagrees with the amount charged, the PHA will provide a meeting to discuss the charges. If the resident transfers to another unit, the PHA will transfer the security deposit to the new unit. The tenant will be billed for any maintenance or other charges due for the “old” unit. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-7 8-I.F. PAYMENTS UNDER THE LEASE Rent Payments [24 CFR 966.4(b)(1)] Families must pay the amount of the monthly tenant rent determined by the PHA in accordance with HUD regulations and other requirements. The amount of the tenant rent is subject to change in accordance with HUD requirements. The lease must specify the initial amount of the tenant rent at the beginning of the initial lease term, and the PHA must give written notice stating any change in the amount of tenant rent and when the change is effective. Hopkins HRA Policy The tenant rent is due and payable at the PHA-designated location on the first of every month. If the first falls on a weekend or holiday, the rent is due and payable on the first business day thereafter. If a family’s tenant rent changes, the PHA will notify the family of the new amount and the effective date by sending a "Notice of Rent Adjustment" which will become an attachment to the lease. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-8 Late Fees and Nonpayment [24 CFR 966.4(b)(3); Notice PIH 2021-29] At the option of the PHA, the lease may provide for payment of penalties when the family is late in paying tenant rent [24 CFR 966.4(b)(3)]. The lease must provide that late payment fees are not due and collectible until two weeks after the PHA gives written notice of the charges. The written notice is considered an adverse action and must meet the requirements governing a notice of adverse action [24 CFR 966.4(b)(4)]. The notice of proposed adverse action must identify the specific grounds for the action and inform the family of their right for a hearing under the PHA grievance procedures. The PHA must not take the proposed action until the time for the tenant to request a grievance hearing has expired, or (if a hearing was requested within the required timeframe,) the grievance process has been completed [24 CFR 966.4(e)(8)]. Hopkins HRA Policy If the family fails to pay their rent by the fifth day of the month, and the PHA has not agreed to accept payment at a later date, a 30-day Notice to Vacate (during nationwide emergency orders) or a 14-day Notice to Vacate (upon expiration of nationwide emergency orders) will be issued to the resident for failure to pay rent, demanding payment in full or the surrender of the premises. In addition, if the resident fails to make payment by the end of office hours on the fifth day of the month, a late fee of 8 percent of monthly rent, but not to exceed $50, will be charged. Notices of late fees will be in accordance with requirements regarding notices of adverse action. Charges are due and payable 14 calendar days after billing. If the family requests a grievance hearing within the required timeframe, the PHA may not take action for nonpayment of the fee until the conclusion of the grievance process. If the resident can document financial hardship, the late fee may be waived on a case-by-case basis. When a check is returned for insufficient funds or is written on a closed account, the rent will be considered unpaid and a returned check fee of $25.00 will be charged to the family. The fee will be due and payable 14 days after billing. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-9 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-10 Maintenance and Damage Charges If the PHA charges the tenant for maintenance and repair beyond normal wear and tear, the lease must state the basis for the determination of such charges [24 CFR 966.4(b)(2)]. Schedules of special charges for services and repairs which are required to be incorporated in the lease by reference must be publicly posted in a conspicuous manner in the development office and must be furnished to applicants and tenants on request [24 CFR 966.5]. The lease must provide that charges for maintenance and repair beyond normal wear and tear are not due and collectible until two weeks after the PHA gives written notice of the charges. The written notice is considered an adverse action and must meet the requirements governing a notice of adverse action [24 CFR 966.4(b)(4)]. The notice of proposed adverse action must identify the specific grounds for the action and inform the family of their right for a hearing under the PHA grievance procedures. The PHA must not take the proposed action until the time for the tenant to request a grievance hearing has expired, or (if a hearing was requested within the required timeframe,) the grievance process has been completed [24 CFR 966.4(e)(8)]. Hopkins HRA Policy When applicable, families will be charged for maintenance and/or damages according to the PHA’s current schedule. Work that is not covered in the schedule will be charged based on the actual cost of labor and materials to make needed repairs (including overtime, if applicable). Notices of maintenance and damage charges will be mailed monthly and will be in accordance with requirements regarding notices of adverse actions. Charges are due and payable 14 calendar days after billing. If the family requests a grievance hearing within the required timeframe, the PHA may not take action for nonpayment of the charges until the conclusion of the grievance process. Nonpayment of maintenance and damage charges is a violation of the lease and is grounds for eviction. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-11 PART II: INSPECTIONS 8-II.A. OVERVIEW The PHA is obligated to maintain safe and habitable dwelling units and to make necessary repairs to dwelling units [24 CFR 966.4(e)]. The National Standards for the Inspection Physical Inspection of Real Estate (NSPIRE) are the standard under which HUD housing units, including those under the public housing program, are inspected. NSPIRE ensures that residents of public housing live in safe, habitable dwellings, and the items and components located inside, outside, and within the units are functionally adequate, operable, and free of health and safety hazards [24 CFR 5.703(a)]. Further, units must comply with state and local code requirements (such as fire, mechanical, plumbing, carbon monoxide, property maintenance, and residential code) [24 CFR 5.703(f)] as well as with all requirements related to the evaluation and control of lead-based paint hazards [24 CFR 5.703(e)(2)]. Under NSPIRE, public housing units are subject to three types of inspections: annual self- inspections, NSPIRE Inspections (which are used to assess and score the PHA under the Public Housing Assessment System (PHAS)), and NSPIRE Plus Inspections (which are triggered by poor property conditions). HUD regulations also require the PHA to inspect each public housing unit prior to move-in and at move-out. The PHA may require additional inspections, in accordance with PHA policy. This part contains the PHA’s policies governing inspections by the PHA and HUD, notification of unit entry, and inspection repair timelines. This section discusses inspections conducted by the PHA (including annual self-inspections) and inspections conducted by HUD REAC. 8-II.B. PHA-CONDUCTED INSPECTIONS The PHA is obligated to maintain dwelling units and the project in safe and habitable condition and to make necessary repairs to dwelling units [24 CFR 966.4(e)]. Types of PHA-Conducted Inspections Move-In Inspections [24 CFR 966.4(i)] The lease must require the PHA and the family to inspect the dwelling unit prior to occupancy in order to determine the condition of the unit and equipment in the unit. A copy of the initial inspection, signed by the PHA and the tenant, must be provided to the tenant and retained in the resident file. Hopkins HRA Policy At the commencement of a residential tenancy, or within 14 days of a residential tenant occupying a unit, Hopkins HRA will notify the tenant of their option to request an initial inspection of the residential unit for the purposes of identifying existing deficiencies in the rental unit to avoid deductions for the security deposit of the tenant at a future date. If the tenant requests an inspection, the landlord and tenant shall schedule the inspection at a mutually acceptable date and time. Any adult family member may attend the initial inspection and sign the inspection form for the head of household. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-12 Move-Out Inspections [24 CFR 966.4(i)] The PHA must inspect the unit at the time the resident vacates the unit and must allow the resident to participate in the inspection if they wish, unless the tenant vacates without notice to the PHA. The PHA must provide to the tenant a statement of any charges to be made for maintenance and damage beyond normal wear and tear. The difference between the condition of the unit at move-in and move-out establishes the basis for any charges against the security deposit so long as the work needed exceeds that for normal wear and tear. Hopkins HRA Policy Within a reasonable time after notification of either the Hopkins HRA or the tenant's intention to terminate the tenancy, or before the end of the lease term, the Hopkins HRA shall notify the tenant in writing of the tenant's option to request a move-out inspection and of the tenant's right to be present at the inspection. At a reasonable time, but no earlier than five days before the termination or the end of the lease date, or day the tenant plans to vacate the unit, the Hopkins HRA, or an agent of the Hopkins HRA, shall, upon the request of the tenant, make a move-out inspection of the premises. The purpose of the move-out inspection shall be to allow the tenant an opportunity to remedy identified deficiencies, in a manner consistent with the rights and obligations of the parties under the rental agreement, in order to avoid deductions from the security deposit. If a tenant chooses not to request a move-out inspection, the duties of the Hopkins HRA under this subdivision are discharged. If an inspection is requested, the parties shall attempt to schedule the inspection at a mutually acceptable date and time. When applicable, the PHA will provide the tenant with a statement of charges to be made for maintenance and damage beyond normal wear and tear, within 10 business days of conducting the move- out inspection. Self-Inspections [24 CFR 5.707] Annually all PHAs are required to self-inspect their properties, including all units, to ensure units are maintained in accordance with NSPIRE standards in 24 CFR 5.703. As part of the self- inspection process, PHAs must ensure that deficiencies previously cited and repaired as a result of an NSPIRE inspection have not subsequently failed. The PHA must maintain the results of self-inspections for three years and must provide the results to HUD upon request. Quality Control Inspections The purpose of quality control inspections is to assure that all defects were identified in the original inspection, and that repairs were completed and within an acceptable time frame. Hopkins HRA Policy Supervisory quality control inspections will be conducted in accordance with the PHA’s maintenance plan. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-13 Special Inspections Hopkins HRA Policy PHA staff may conduct a special inspection for any of the following reasons: Housekeeping Unit condition Suspected lease violation Preventive maintenance Routine maintenance There is reasonable cause to believe an emergency exists Other Inspections Hopkins HRA Policy Building exteriors, grounds, common areas and systems will be inspected according to the PHA’s maintenance plan. Notice of Entry Non-emergency Entries [24 CFR 966.4(j)(1)] The PHA may enter the unit, with reasonable advance notification to perform routine inspections and maintenance, make improvements and repairs, or to show the unit for re-leasing. A written statement specifying the purpose of the PHA entry delivered to the dwelling unit at least two days before such entry is considered reasonable advance notification. Hopkins HRA Policy The PHA will notify the resident in writing at least 48 hours prior to any non-emergency inspection. For regular annual self-inspections, the family will receive at least two weeks written notice of the inspection to allow the family to prepare the unit for the inspection. Entry for repairs requested by the family will not require prior notice. Resident-requested repairs presume permission for the PHA to enter the unit. Except for emergencies, management will not enter the dwelling unit to perform inspections where a pet resides unless accompanied for the entire duration of the inspection by the pet owner or responsible person designated by the pet owner in accordance with the pet policies in Section 10-II.D. Emergency Entries [24 CFR 966.4(j)(2)] The PHA may enter the dwelling unit at any time without advance notice when there is reasonable cause to believe that an emergency exists. If no adult household member is present at the time of an emergency entry, the PHA must leave a written statement showing the date, time and purpose of the entry prior to leaving the dwelling unit. Scheduling of PHA-Conducted Inspections © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-14 Hopkins HRA Policy Inspections will be conducted during business hours. If a family needs to reschedule an inspection, they must notify the PHA at least 24 hours prior to the scheduled inspection. The PHA will reschedule the inspection no more than once unless the resident has a verifiable good cause to delay the inspection. The PHA may request verification of such cause. Attendance at Inspections Residents are required to be present for move-in inspections [24 CFR 966.4(i)]. There is no such requirement for other types of inspections. Hopkins HRA Policy While the resident is required to be present for move-in inspections, the resident is not required to be present for other types of inspections. The resident may attend the inspection if they wish. If no one is at home, the inspector will enter the unit, conduct the inspection and leave a copy o f the inspection report in the unit. Repairs Correction timeframes differ depending on whether repairs are considered emergency or non- emergency repairs. Emergency Repairs [24 CFR 966.4(h)] If the unit is damaged to the extent that conditions are created which are hazardous to the life, health, or safety of the occupants, the tenant must immediately notify the PHA of the damage, and the PHA must make repairs within a reasonable time frame. Under NSPIRE, the PHA must correct all Life-Threatening and Severe deficiencies within 24 hours. If the damage was caused by a household member or guest, the PHA must charge the family for the reasonable cost of repairs. The PHA may also take lease enforcement action against the family. If the PHA cannot make repairs quickly, the PHA must offer the family standard alternative accommodations. If the PHA can neither repair the defect within a reasonable time frame nor offer alternative housing, rent shall be abated in proportion to the seriousness of the damage and loss in value as a dwelling. Rent shall not be abated if the damage was caused by a household member or guest, or if the resident rejects the alternative accommodations. Non-emergency Repairs Hopkins HRA Policy The PHA will correct deficiencies resulting in a non-emergency work order identified during a PHA-conducted inspection within 15 business days of the inspection date. If the PHA is unable to make repairs within that period due to circumstances beyond the PHA’s control (e.g., required parts or services are not available, weather conditions, etc.) the PHA will notify the family of an estimated date of completion. The family must allow the PHA access to the unit to make repairs. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-15 Except for emergencies, management will not enter the dwelling unit to perform repairs where a pet resides unless accompanied for the entire duration of the repair by the pet owner or responsible person designated by the pet owner in accordance with the pet policies in Section 10-II.D. Resident-Caused Damages Hopkins HRA Policy Damages to the unit beyond wear and tear will be billed to the tenant in accordance with the policies in 8-I.F., Maintenance and Damage Charges. Repeated or excessive damages to the unit beyond normal wear and tear will be considered a serious or repeated violation of the lease. Housekeeping Hopkins HRA Policy Residents whose housekeeping habits pose a non-emergency health or safety risk, encourage insect or rodent infestation, or cause damage to the unit are in violation of the lease. In these instances, the PHA will provide proper notice of a lease violation. A reinspection will be conducted within 30 days to confirm that the resident has complied with the requirement to abate the problem. Failure to abate the problem or allow for a reinspection is considered a violation of the lease and may result in termination of tenancy in accordance with Chapter 13. Notices of lease violation will also be issued to residents who purposely disengage the unit’s smoke detector and/or carbon monoxide alarm. Only one warning will be given. A second incidence will result in lease termination. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-16 8-II.C. NSPIRE INSPECTIONS [24 CFR 5.705(c); Notice PIH 2023-16] During an NSPIRE inspection, REAC inspectors will inspect areas and associated items or components that are listed in the regulations as affirmative requirements and those included within the NSPIRE standards. For most properties, the frequency of NSPIRE inspections is determined by the date of the prior inspection and the score received. Notice to Residents [Notice PIH 2023-16] The PHA must provide notice to all residents as described in 24 CFR 5.711(h) and the lease. Hopkins HRA Policy The PHA will provide all residents with at least seven days’ notice of an NSPIRE inspection. Notice will be provided through multiple communication methods, including by posted notice on each resident’s door and through email where applicable. All materials, notices, and communications to families regarding the inspection will be clearly communicated and provided in a manner that is effective for persons with hearing, visual, and other communication-related disabilities consistent with Section 504 of the Rehabilitation Act (Section 504) and HUD’s Section 504 regulation, and Titles II or III of the Americans with Disabilities Act (ADA) and implementing regulations. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-17 24-Hour Corrections [24 CFR 5.711(c); Notice PIH 2023-16] At the conclusion of the NSPIRE inspection, or at the end of the day on multi-day inspections, HUD provides the PHA with a list of Life-Threatening and Severe deficiencies. The PHA must correct all Life-Threatening and Severe deficiencies within 24 hours, with certification of correction submitted to HUD within two business days of receipt of notification of the deficiency. If permanent repair will take longer than the allowable time in the relevant standard for the deficiency, the PHA must provide HUD with a timeframe for completing permanent repairs and submit evidence that the repair is in progress. Any extension to the allowable time for rectifying the deficiency is allowed only upon HUD approval for good cause. Hopkins HRA Policy The PHA will correct all Life-Threatening and Severe deficiencies within 24 hours. Correcting the deficiency means the PHA will resolve or sufficiently address the deficiency in a manner that it no longer poses a severe health or safety risk to residents or the hazard is blocked until permanent repairs can be completed. A correction could include controlling or blocking access to the hazard by performing a temporary relocation of the resident while repairs are made. While the PHA will complete all repairs expeditiously, if a permanent repair is not possible within 24 hours, the PHA will correct the deficiency by performing an interim repair to remove the health and safety hazard. If the correction is temporary or professional services or materials are unavailable within 24 hours, the PHA will provide a target date for permanent correction. Such interim repairs will be fully completed within a reasonable timeframe approved by HUD. The family must allow the PHA access to the unit to make repairs. Non-emergency Repairs Under NSPIRE, the PHA must correct Moderate deficiencies within 30 days and Low deficiencies within 60 days, or as otherwise provided in the NSPIRE standards. Repairs should be permanent fixes, unless otherwise approved by HUD in writing. HUD may also prescribe timelines in Corrective Action Plans as defined in 24 CFR 902.3 or Corrective Action Agreements as described in 24 CFR 902.105. Hopkins HRA Policy If the PHA is unable to make repairs within the periods identified in the NSPIRE standards due to circumstances beyond the PHA’s control (e.g., required parts or services are not available, weather conditions, etc.), the PHA will provide HUD with a timeframe for completing permanent repairs and obtain HUD approval. The PHA will also notify the family of an estimated date of completion. The family must allow the PHA access to the unit to make repairs. Except for emergencies, management will not enter the dwelling unit to perform repairs where a pet resides unless accompanied or restrained for the entire duration of the repair by the pet owner or responsible person designated by the pet owner in accordance with the pet policies in Section 10-II.D. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-18 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-19 EXHIBIT 8-1: SMOKE-FREE POLICY In accordance with HUD regulations, the Housing Authority has adopted these smoke-free policies. The policies are effective as of Board approval date. Due to the increased risk of fire, increased maintenance costs, and the known health effects of secondhand smoke, smoking is prohibited in all living units and interior areas, including but not limited to hallways, rental and administrative offices, community centers, day care centers, laundry centers, and similar structures. Smoking is also prohibited in outdoor areas within 25 feet from public housing and administrative office buildings. This policy applies to all employees, residents, household members, guests, and service persons. Residents are responsible for ensuring that household members and guests comply with this rule. The term “smoking” means any inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, or other prohibited tobacco product in any manner or any form. Prohibited tobacco products include water pipes or hookahs. Violation of the smoke-free policy constitutes a violation of the terms of the public housing lease. Consequences of lease violations include termination of tenancy. PHA POLICIES Designated Smoking Areas (DSA) The PHA has established a designated smoking area at the southwest side of Dow Towers. Residents using the designated smoking area must extinguish all smoking materials and dispose of them safely in receptacles provided for that purpose. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-20 Electronic Nicotine Delivery Systems (ENDS) Electronic nicotine delivery systems (ENDS) include e-cigarettes, nicotine inhalers, and vaping devices. Use of ENDS is not permitted in public housing units, common areas, or in outdoor areas within 25 feet from housing and administrative buildings. Effective The smoke-free policy is effective for all residents, household members, employees, guests, and service persons. Residents must execute a smoke-free lease addendum as part of the annual lease renewal process. Enforcement The PHA must enforce smoke-free policies when a resident violates this policy. When enforcing the lease, the PHA will provide due process and allow residents to exercise their right to an informal settlement and formal hearing. The PHA will not evict a resident for a single incident of smoking in violation of this policy. As such, the PHA will implement a graduated enforcement framework that includes escalating warnings. Prior to pursuing eviction for violation of smoke- free policies, the PHA will take specific, progressive monitoring and enforcement actions, while at the same time educating tenants and providing smoking cessation information. The lease will identify the actions that constitute a policy violation, quantify the number of documented, verified violations that warrant enforcement action, state any disciplinary actions that will be taken for persistent non-responsiveness or repeated noncompliance, and state how many instances of noncompliance will constitute a violation. Tenancy termination and eviction will be pursued only as a last resort. The PHA may terminate tenancy at any time for violations of the lease and failure to otherwise fulfill household obligations if resident behavior disturbs other residents’ peaceful enjoyment and is not conducive to maintaining the property in a decent, safe, and sanitary condition. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-21 Violation of the smoke-free policy may rise to the level of other good cause for termination of tenancy. Reasonable Accommodation While addiction to nicotine or smoking is not a disability, the PHA will provide reasonable accommodation to persons with disabilities who smoke that are in compliance with the requirements of this smoke-free policy. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 8-22 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-1 Chapter 9 REEXAMINATIONS [24 CFR 960.257, 960.259, 966.4] INTRODUCTION With the exception of non-public housing over income families, the PHA is required to reexamine each family’s income and composition periodically, and to adjust the family’s rent accordingly. PHAs must adopt policies for conducting annual and interim reexaminations that are consistent with regulatory requirements and must conduct reexaminations in accordance with such policies [24 CFR 960.257(c)]. The frequency with which the PHA must reexamine the income and composition of a family depends on whether the family pays income-based rent or flat rent. HUD requires the PHA to offer all families the choice of paying income-based rent or flat rent at least annually. The PHA’s policies for offering families a choice of rents are located in Chapter 6. This chapter discusses both annual and interim reexaminations. Part I: Annual Reexaminations for Families Paying Income Based Rents. This part discusses the requirements for annual reexamination of income and family composition. Full reexaminations are conducted at least once a year for families paying income-based rents. Part II: Reexaminations for Families Paying Flat Rents. This part contains the PHA’s policies for conducting full reexaminations of family income and composition for families paying flat rents. These full reexaminations are conducted at least once every three years. This part also contains the PHA’s policies for conducting annual updates of family composition for flat rent families. Part III: Interim Reexaminations. This part includes HUD requirements and PHA policies related to when a family may and must report changes that occur between annual reexaminations. Part IV: Recalculating Tenant Rent. After gathering and verifying required information for an annual or interim reexamination, the PHA must recalculate the tenant rent. While the basic policies that govern these calculations are provided in Chapter 6, this part describes the policies that affect these calculations during a reexamination. Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this ACOP, apply to annual and interim reexaminations. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-2 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-3 PART I: ANNUAL REEXAMINATIONS FOR FAMILIES PAYING INCOME-BASED RENTS [24 CFR 960.257] 9-I.A. OVERVIEW For those families who choose to pay income-based rent, the PHA must conduct a reexamination of income and family composition at least annually [24 CFR 960.257(a)(1)]. With the exception of over-income families, who must have their income reviewed at 12 and 24 months, for flat rent families, the PHA must conduct a reexamination of family composition at least annually and must conduct a reexamination of family income at least once every three years [24 CFR 960.257(a)(2)]. For any non-public housing over income families, the PHA may not conduct an annual reexamination of family income. Policies related to the reexamination process for families paying flat rent are located in Part II of this chapter. For all residents of public housing, whether those residents are paying income-based or flat rents, the PHA must conduct an annual review of community service requirement compliance. This annual reexamination is also a good time to have residents sign consent forms for criminal background checks in case the criminal history of a resident is needed at some point for the purposes of lease enforcement or eviction. The PHA is required to obtain all the information necessary to conduct reexaminations. How that information will be collected is left to the discretion of the PHA. Families are required to provide current and accurate information on income, assets, allowances and deductions, family composition and community service compliance as part of the reexamination process [24 CFR 960.259]. Unlike when performing an interim reexamination or at intake, at annual reexamination, the PHA must determine the income of the family for the previous 12-month period, except where the PHA uses a streamlined income determination (effective TBD but no later than January 1, 2025). This part contains the PHA’s policies for conducting annual reexaminations. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-4 9-I.B. STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 960.257] HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third-party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third-party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third-party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non-fixed sources. Two streamlining options are available, depending upon the percentage of the family’s income that is received from fixed sources. If at least 90 percent of the family’s income is from fixed sources, the PHA may streamline the verification of fixed income but is not required to verify non-fixed income amounts. If the family receives less than 90 percent of its income from fixed sources, the PHA may streamline the verification of fixed income and must verify non-fixed income annually. Hopkins HRA Policy The PHA will streamline the annual reexamination process by applying the verified COLA or interest rate to fixed-income sources. The PHA will document in the file how the determination that a source of income was fixed was made. If a family member with a fixed source of income is added, the PHA will use third-party verification of all income amounts for that family member. If verification of the COLA or rate of interest is not available, the PHA will obtain third- party verification of income amounts. Third-party verification of fixed sources of income will be obtained during the intake process and at least once every three years thereafter. If at least 90 percent of the family’s income is from fixed sources, the PHA may streamline the verification of fixed income but is not required to verify non-fixed income amounts. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-5 9-I.C. SCHEDULING ANNUAL REEXAMINATIONS The PHA must establish a policy to ensure that the annual reexamination for each family paying an income-based rent is completed within a 12-month period [24 CFR 960.257(a)(1)]. Hopkins HRA Policy The PHA will schedule annual reexaminations to be effective April 1. The PHA will begin the annual reexamination process approximately 120 days in advance of the scheduled effective date. If the family transfers to a new unit, the anniversary date will not be changed. The PHA may also schedule an annual reexamination for completion prior to the anniversary date for administrative purposes. Notification of and Participation in the Annual Reexamination Process The PHA is required to obtain information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who were not provided the opportunity to provide contact information at the time of admission the option to complete Form HUD-92006 at this time. The PHA should provide the family with the opportunity to update, change, or remove information from the HUD-92006 at the time of the annual reexamination [Notice PIH 2009-36]. Hopkins HRA Policy Families generally are required to participate in an annual reexamination interview, which must be attended by the head of household, spouse, or cohead. If participation in an in-person interview poses a hardship because of a family member’s disability, the family should contact the PHA to request a reasonable accommodation (See Chapter 2). Notification of annual reexamination interviews will be delivered by staff to each unit and will contain the date, time, and location of the interview. In addition, it will inform the family of the information and documentation that must be brought to the interview. If the family is unable to attend a scheduled interview, the family should contact the PHA in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend the scheduled interview the PHA will send a second notification with a new interview appointment time. If a family fails to attend two scheduled interviews without PHA approval, the family will be in violation of their lease and may be terminated in accordance with the policies in Chapter 13. An advocate, interpreter, or other assistant may assist the family in the interview process. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-6 9-I.D. CONDUCTING ANNUAL REEXAMINATIONS The terms of the public housing lease require the family to furnish information regarding income and family composition as may be necessary for the redetermination of rent, eligibility, and the appropriateness of the housing unit [24 CFR 966.4(c)(2)]. Hopkins HRA Policy Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment (this requirement to be eliminated by HOTMA effective TBD but no later than January 1, 2025). The required information will include a PHA-designated reexamination form an Authorization for the Release of Information/Privacy Act Notice as well as supporting documentation related to the family’s income, expenses, and family composition. Any required documents or information that the family is unable to provide at the time of the interview or any stated deadline must be provided within 10 business days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the family does not provide the required documents or information within the required time frame (plus any extensions), the family will be in violation of their lease and may be terminated in accordance with the policies in Chapter 13. The information provided by the family generally must be verified in accordance with the policies in Chapter 7. Unless the family reports a change, or the agency has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to be re-verified on an annual basis. These include: • Legal identity • Age • Social security numbers • A person’s disability status • Citizenship or immigration status © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-7 Calculating Annual Income at Annual Reexamination [24 CFR 5.609(c)(2)] (Effective TBD but no later than January 1, 2025) The PHA must determine the income of the family for the previous 12-month period and use this amount as the family income for annual reexaminations, except where the PHA uses a streamlined income determination as indicated in section 9-I.B. of this policy. In determining the income of the family for the previous 12-month period, the PHA must take into consideration any redetermination of income during the previous 12-month period resulting from an interim reexamination of family income. The PHA must make adjustments to reflect current income if there was a change in income during the previous 12-month period that was not accounted for in a redetermination of income. Criminal Background Checks Information obtained through criminal background checks may be used for lease enforcement and eviction [24 CFR 5.903(e)(1)(ii)]. Criminal background checks of residents will be conducted in accordance with the policy in Section 13-IV.B. Hopkins HRA Policy Each household member aged 18 and over will not be required to execute a consent form for a criminal background check as part of the annual reexamination process. Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state [Notice PIH 2012-28]. Hopkins HRA Policy At the annual reexamination, the PHA will not ask whether the tenant, or any member of the tenant’s household, is subject to a lifetime sex offender registration requirement in any state. If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter 13.) Compliance with Community Service For families who include nonexempt individuals, the PHA must determine compliance with community service requirements once each 12 months [24 CFR 960.257(a)(3)]. See Chapter 11 for the PHA’s policies governing compliance with the community service requirement. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-8 9-I.E. EFFECTIVE DATES As part of the annual reexamination process, the PHA must make appropriate adjustments in the rent after consultation with the family and upon verification of the information [24 CFR 960.257(a)(1)]. Hopkins HRA Policy In general, an increase in the tenant rent that results from an annual reexamination will take effect on the family’s anniversary date, and the family will be notified at least 30 days in advance. If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period. If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA, but will always allow for the 30-day notice period. If the family causes a delay in processing the annual reexamination, increases in the tenant rent will be applied retroactively, to the scheduled effective date of the annual reexamination. The family will be responsible for any underpaid rent and may be offered a repayment agreement in accordance with the policies in Chapter 16. In general, a decrease in the tenant rent that results from an annual reexamination will take effect on the family’s anniversary date. If the PHA chooses to schedule an annual reexamination for completion prior to the family’s anniversary date for administrative purposes, the effective date will be determined by the PHA. If the family causes a delay in processing the annual reexamination, decreases in the tenant rent will be applied prospectively, from the first day of the month following completion of the reexamination processing. Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by the PHA by the date specified, and this delay prevents the PHA from completing the reexamination as scheduled. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-9 PART II: REEXAMINATIONS FOR FAMILIES PAYING FLAT RENTS [24 CFR 960.253(f)] 9-II.A. OVERVIEW HUD requires that the PHA offer all families the choice of paying income-based rent or flat rent at least annually. The PHA’s policies for offering families a choice of rents are located in Chapter 6. For families who choose flat rents, the PHA must conduct a reexamination of family composition at least annually and must conduct a reexamination of family income at least once every three years [24 CFR 960.253(f)]. The PHA is only required to provide the amount of income-based rent the family might pay in those years that the PHA conducts a full reexamination of income and family composition, or upon request of the family after the family submits updated income information [24 CFR 960.253(e)(2)]. However, these regulations are not applicable to over-income families. Once an over-income determination is made, the PHA must conduct an income reexamination at 12 and 24 months, as applicable, to determine if the family remains over-income [Notice PIH 2023-03]. As it does for families that pay income-based rent, the PHA must also review compliance with the community service requirement for families with nonexempt individuals. This part contains the PHA’s policies for conducting reexaminations of families who choose to pay flat rents. 9-II.B. FULL REEXAMINATION OF FAMILY INCOME AND COMPOSITION Frequency of Reexamination Hopkins HRA Policy For families paying flat rents, the PHA will conduct a full reexamination of family income and composition annually. However, for flat rent families who become over-income, this policy will not apply. The PHA will instead review family income at 12 and 24 months following the initial over- income determination as needed to verify the family remains over-income. The family will continue to be given a choice between income-based and flat rent at each annual reexamination during the over-income grace period. If the family is subsequently determined to no longer be over-income: If the determination is the result of an annual reexamination, the family will be given a choice between income-based or flat rent at reexam. If the family selects flat rent, the PHA will resume reexamination of family income and composition annually. If determination is as a result of an interim reexamination, the PHA will conduct an annual reexamination for the family at their next scheduled annual date. If the family selects flat rent, the PHA will resume reexamination of family income and composition annually. Families will only be given the choice between income- based and flat rent at annual reexamination. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-10 9-II.C. REEXAMINATION OF FAMILY COMPOSITION (“ANNUAL UPDATE”) As noted above, if full reexaminations are conducted every three years for families paying flat rents, in the years between full reexaminations, regulations require the PHA to conduct a reexamination of family composition (“annual update”) [24 CFR 960.257(a)(2)]. Over-income families who select the flat rent are not subject to annual update as their income must be reviewed at 12 and 24 months as applicable. The annual update process is similar to the annual reexamination process, except that the PHA does not collect information about the family’s income and expenses, and the family’s rent is not recalculated following an annual update. Scheduling The PHA must establish a policy to ensure that the reexamination of family composition for families choosing to pay the flat rent is completed at least annually [24 CFR 960.257(a)(2)]. Hopkins HRA Policy For families paying flat rents, a full examination of family composition and income will be conducted annually. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-11 PART III: INTERIM REEXAMINATIONS [24 CFR 960.257(b); 24 CFR 966.4] 9-III.A. OVERVIEW Family circumstances may change during the period between annual reexaminations. HUD and PHA policies define the types of information about changes in family circumstances that must be reported, and under what circumstances the PHA must process interim reexaminations to reflect those changes. When an interim reexamination is conducted, only those factors that have changed are verified and adjusted [HCV GB, p. 12-10]. In addition to specifying what information the family must report, HUD regulations permit the family to request an interim determination if other aspects of the family’s income or composition change. The PHA must complete the interim reexamination within a reasonable time after the family’s request. (revised per HOTMA, effective date TBD but no later than January 1, 2025). 9-III.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION The PHA must adopt policies prescribing when and under what conditions the family must report changes in family composition [24 CFR 960.257(b)(5)]. However, due to provisions of the public housing lease, the PHA has limited discretion in this area. Changes in family or household composition may make it appropriate to consider transferring the family to comply with occupancy standards. Policies related to such transfers are located in Chapter 12. Hopkins HRA Policy All families, those paying income-based rent as well as flat rent, must report all changes in family and household composition that occur between annual reexaminations. The PHA will conduct interim reexaminations to account for any changes in household composition that occur between annual reexaminations. New Family Members Not Requiring Approval The addition of a family member as a result of birth, adoption, or court-awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR 966.4(a)(1)(v)]. Hopkins HRA Policy The family must inform the PHA of the birth, adoption, or court-awarded custody of a child within 10 business days. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-12 New Family and Household Members Requiring Approval With the exception of children who join the family as a result of birth, adoption, or court- awarded custody, a family must request PHA approval to add a new family member [24 CFR 966.4(a)(1)(v)] or other household member (live-in aide or foster child) [24 CFR 966.4(d)(3)]. The PHA may adopt reasonable policies concerning residence by a foster child or a live-in aide and defining the circumstances in which PHA consent will be given or denied. Under such policies, the factors considered by the PHA may include [24 CFR 966.4(d)(3)(i)]: • Whether the addition of a new occupant may necessitate a transfer of the family to another unit, and whether such units are available. • The PHA’s obligation to make reasonable accommodation for persons with disabilities. Hopkins HRA Policy Families must request PHA approval to add a new family member, live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 14 consecutive days or a total of 30 cumulative calendar days during any 12-month period and therefore no longer qualifies as a “guest.” Requests must be made in writing and approved by the PHA prior to the individual moving into the unit. The PHA will approve the addition only if the family can demonstrate that there are medical needs or other extenuating circumstances, including reasonable accommodation, that should be considered by the PHA. Exceptions will be made on a case-by-case basis. The PHA will not approve the addition of a new family or household member unless the individual meets the PHA’s eligibility criteria (see Chapter 3) and documentation requirements (See Chapter 7, Part II). If the PHA determines that an individual does not meet the PHA’s eligibility criteria or documentation requirements, the PHA will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial. The PHA will make its determination within 10 business days of receiving all information required to verify the individual’s eligibility. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-13 Departure of a Family or Household Member The family must promptly notify to the PHA if any household member no longer lives in the unit. The PHA must process an interim for all decreases in adjusted income when a family member permanently moves out of the unit. Hopkins HRA Policy If a household member ceases to reside in the unit, the family must inform the PHA within 10 business days. This requirement also applies to family members who had been considered temporarily absent, who are now permanently absent. The PHA will process an interim if the family’s adjusted income will decrease as a result of a family member permanently moving out of the unit. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-14 9-III.C. CHANGES AFFECTING INCOME OR EXPENSES Interim reexaminations for changes in income or expenses may be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. The PHA must estimate the income of the family for the upcoming 12-month period to determine family income for an interim reexamination [24 CFR 5.609(c)(1)]. Policies for projecting income are found in Chapter 6. A family may request an interim reexamination of family income or composition because of any changes since the last determination. The PHA must conduct any interim reexamination within a reasonable period of time after the family request or when the PHA becomes aware of an increase in family adjusted income as detailed below (effective TBD but no later than January 1, 2025). What qualifies as a “reasonable time” may vary based on the amount of time it takes to verify information, but generally should not be longer than 30 days after changes in income are reported [24 CFR 960.257(b)]. Hopkins HRA Policy (to expire upon implementation of HOTMA, effective TBD but no later than January 1, 2025) The PHA will conduct interim reexaminations in each of the following instances: For families receiving the Earned Income Disallowance (EID), the PHA will conduct an interim reexamination to adjust the exclusion with any changes in income, and at the conclusion of the 24-month eligibility period (eligibility for EID expires as of January 1, 2024). If the family has reported zero income, the PHA will conduct an interim reexamination every 3 months as long as the family continues to report that they have no income. If at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12 months (e.g. seasonal or cyclic income), the PHA will schedule an interim reexamination to coincide with the end of the period for which it is feasible to project income. If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to the lack of third-party verification, and third-party verification becomes available, the PHA will conduct an interim reexamination. The PHA may conduct an interim reexamination at any time in order to correct an error in a previous reexamination, or to investigate a tenant fraud complaint. Interim Decreases [24 CFR 960.257(b)(2)] (Effective TBD but no later than January 1, 2025) The PHA may decline to conduct an interim reexamination of family income if the PHA estimates the family’s adjusted income will decrease by an amount that is less than 10 percent of the family’s adjusted income or a lower threshold established by the PHA. Hopkins HRA Policy The PHA will conduct an interim any time the family’s adjusted income has decreased by an amount that is 10 percent or more of the family’s adjusted income. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-15 When determining the 10 percent threshold, the PHA will round calculated percentages up or down to the next nearest unit as applicable (e.g., a calculated decrease of 9.5 percent will be rounded to 10 percent). © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-16 Interim Increases [24 CFR 960.257(b)(3); PH Program List of Discretionary Policies to Implement HOTMA] (Effective TBD but no later than January 1, 2025) The PHA must conduct an interim reexamination of family income when the PHA becomes aware that the family's adjusted income has changed by an amount that the PHA estimates will result in an increase of 10 percent or more in adjusted income. However, the PHA may not consider earned income in estimating whether adjusted income has increased unless the family previously received an interim decrease during the same certification period. The PHA may choose not to include earned income increases in determining whether the 10 percent threshold is met for increases when the family previously had an interim performed for a decrease in adjusted income (whether for earned income, unearned income, or a combination of the two) since the last reexamination. In other words, if the family has had an interim decrease since their last annual, the PHA has discretion whether or not to consider increases in earned income if the 10 percent threshold is met. If the family did not have an interim decrease since their last annual, the PHA has no discretion and must not consider increases in earned income, regardless of the amount of the increase. Hopkins HRA Policy The PHA will not consider increases in earned income when a family reports an increase between annual reexaminations, regardless of the amount of the increase, and regardless of whether there was a previous decrease since the family’s last annual reexamination. The PHA will process an interim for any other increases that meet the 10 percent threshold. The PHA may choose not to conduct an interim reexamination if a family reports an increase in income within three months of their next annual reexamination effective date [24 CFR 960.257(b)(3)(ii)]. Hopkins HRA Policy The PHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-17 Family-Initiated Interim Reexaminations The PHA must adopt policies prescribing when and under what conditions the family must report changes in family income or expenses [24 CFR 960.257(c)]. In addition, HUD regulations require that the family be permitted to obtain an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 960.257(b)]. Reporting The PHA must adopt policies consistent with HUD regulations prescribing when and under what conditions the family must report a change in family income or composition [24 CFR 960.257(b)(5)]. Hopkins HRA Policy The family will be required to report all changes in income (regardless of the amount) within 10 business days of the date the change takes effect. The family may notify the PHA of changes either orally or in writing. If the family provides oral notice, the PHA may also require the family to submit the changes in writing (which includes email). Within 10 business days of the family reporting the change, the PHA will determine whether the change will require an interim reexamination be processed. If the family- reported change would not result in an interim reexamination, the PHA will note the information in the tenant file but will not conduct an interim reexamination. If the PHA will process an interim reexamination, generally, the family will not be required to attend an interview. However, if the PHA determines that an interview is warranted, the family may be required to attend. Based on the type of change reported, the PHA will determine the documentation the family will be required to submit. The family must submit any required information or documents within 10 business days of receiving a request from the PHA. This time frame may be extended for good cause with PHA approval. The PHA will accept required documentation by mail, email, fax, or in person. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-18 Effective Dates [24 CFR 960.257(b)(6)] If the family reports a change in family income or composition timely: For rent increases, the PHA must provide the family with 30 days advance notice. The rent increase is effective the first of the month after the end of that 30-day notice period. Rent decreases are effective on the first month after the change. If the family failed to report a change in family income or composition timely: For rent increases, the PHA must implement any resulting rent increases retroactively to the first of the month following the date of the change. For rent decreases, the PHA must implement the change no later than the first rent period following completion of the interim reexamination or may apply the rent decrease retroactively, except that a decrease may not be applied prior to the later of the first of the month following: • The date of the change leading to the interim reexamination; or • The effective date of the family's most recent previous interim or annual reexamination (or initial examination if that was the family’s last examination). Hopkins HRA Policy When the family fails to report a change in income or family composition timely, and the change would lead to a rent decrease, the PHA will apply the decrease the first of the month following completion of the interim reexamination. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-19 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 9-20 PART IV: RECALCULATING TENANT RENT 9-IV.A. OVERVIEW For those families paying income-based rent, the PHA must recalculate the rent amount based on the income information received during the reexamination process and notify the family of the changes [24 CFR 966.4, 960.257]. While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 9-IV.B. NOTIFICATION OF NEW TENANT RENT The public housing lease requires the PHA to give the tenant written notice stating any change in the amount of tenant rent, and when the change is effective [24 CFR 966.4(b)(1)(ii)]. When the PHA redetermines the amount of rent (Total Tenant Payment or Tenant Rent) payable by the tenant, not including determination of the PHA’s schedule of Utility Allowances for families in the PHA’s Public Housing Program, or determines that the tenant must transfer to another unit based on family composition, the PHA must notify the tenant that the tenant may ask for an explanation stating the specific grounds of the PHA determination, and that if the tenant does not agree with the determination, the tenant shall have the right to request a hearing under the PHA’s grievance procedure [24 CFR 966.4(c)(4)]. Hopkins HRA Policy The notice to the family will include the Total Tenant Payment. 9-IV.D. DISCREPANCIES During an annual or interim reexamination, the PHA may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, the PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment of rent are discovered, corrections will be made in accordance with the policies in Chapter 15. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-1 Chapter 10 PETS [24 CFR 5, Subpart C; 24 CFR 960, Subpart G] INTRODUCTION This chapter explains the PHA's policies on the keeping of pets and describes any criteria or standards pertaining to the policies. The rules adopted are reasonably related to the legitimate interest of the PHA to provide a decent, safe and sanitary living environment for all tenants, and to protect and preserve the physical condition of the property, as well as the financial interest of the PHA. The chapter is organized as follows: Part I: Assistance Animals. This part explains the difference between assistance animals,, including service and support animals, and pets, and contains policies related to the designation of an assistance animal as well as their care and handling. Part II: Pet policies. This part includes pet policies. . © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-2 © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-3 PART I: ASSISTANCE ANIMALS [Section 504; Fair Housing Act (42 U.S.C.); 24 CFR 5.303; 24 CFR 960.705; Notice FHEO 2020-01] 10-I.A. OVERVIEW This part discusses situations under which permission for an assistance animal, including service and support animals, may be denied, and also establishes standards for the care of assistance animals. Notice FHEO 2020-01 was published January 28, 2020. The notice provides guidance to help PHAs and other housing providers distinguish between a person with a non-obvious disability who has a legitimate need for an assistance animal and a person without a disability who simply wants to have a pet or avoid the costs and limitations imposed by the PHA’s pet policies. FHEO 2020-01 makes clear that the notice is guidance and a tool for PHAs and other housing providers to use at their discretion and provides a set of best practices for addressing requests for assistance animals. The guidance in FHEO 2020-01 should be read together with HUD’s regulations prohibiting discrimination under the Fair Housing Act (FHA) and the HUD/Department of Justice (DOJ) Joint Statement on Reasonable Accommodation under the Fair Housing Act. Housing providers may also be subject to the Americans with Disabilities Act (ADA) and should therefore refer also to DOJ’s regulations implementing Titles II and III of the ADA at 28 CFR Parts 35 and 36, in addition to DOJ’s other guidance on assistance animals. There are two types of assistance animals: (1) service animals, and (2) other animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for individuals with disabilities (i.e., support animals). Assistance animals, including service and support animals, are not pets and thus are not subject to the PHA’s pet policies described in Parts II through IV of this chapter [24 CFR 5.303; 960.705; Notice FHEO 2020-01]. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-4 10-I.B. APPROVAL OF ASSISTANCE ANIMALS [Notice FHEO 2020-01] Service Animals Notice FHEO 2020-01 states that PHAs should initially follow the Department of Justice (DOJ) analysis to assessing whether an animal is a service animal under the Americans with Disabilities Act (ADA). Under the ADA, a service animal means any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. Other species of animals, whether wild or domestic, trained or untrained, are not service animals for the purposes of this definition. The work or tasks performed by a service animal must be directly related to the individual’s disability. As a best practice, housing providers may use the following questions to help them determine if an animal is a service animal under the ADA: • Is the animal a dog? If not, the animal is not a service animal but may be another type of assistance animal for which an accommodation is needed (support animal). • Is it readily apparent that the dog is trained to do work or perform tasks for the benefit of the individual with a disability? If yes, further inquiries are inappropriate because the animal is a service animal. If not, it is advisable that the PHA limit its inquiries to the following two questions: (1) Is the animal required because of the disability? and (2) What work or task has the animal been trained to perform? If the answer to question (1) is “yes” and work or a task is identified in response to question (2), grant the requested accommodation if otherwise reasonable. If the answer to either question is “no,” the animal does not qualify as a service animal but may be a support animal. A service animal must be permitted in all areas of the facility where members of the public are allowed. Support Animals (Assistance Animals other than Service Animals) If the animal does not qualify as a service animal, the PHA must next determine whether the animal would qualify as a support animal (other type of assistance animal). If the individual has indeed requested a reasonable accommodation to get or keep an animal in connection with a physical or mental impairment or disability, the PHA may use the following questions to help them assess whether to grant the accommodation in accordance with the policies outlined in Chapter 2 (the PHA is not required to grant a reasonable accommodation that has not been requested): • Does the person have an observable disability or does the PHA already have information giving them reason to believe that the person has a disability? If not, has the person requesting the accommodation provided information that reasonably supports that the person seeking the accommodation has a disability? © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-5 • If the person has an observable disability, the PHA already has information giving them reason to believe the person has a disability, or the person has provided information supporting that they have a disability, then has the person provided information that reasonably supports that the animal does work, performs tasks, provides assistance, and/or provides therapeutic emotional support with respect to the individual’s disability? • If yes, is the animal commonly kept in households? An animal commonly kept in households would be a dog, cat, small bird, rabbit, hamster, gerbil, other rodent, fish, turtle, or other small, domesticated animal that is traditionally kept in the home for pleasure rather than for commercial purposes. For purposes of this assessment, reptiles (other than turtles), barnyard animals, monkeys, kangaroos, and other non-domesticated animals are not considered common household animals. If the individual is requesting to keep a unique animal not commonly kept in households, then the requestor has the substantial burden of demonstrating a disability-related therapeutic need for the specific animal or the specific type of animal. Such individuals are encouraged to submit documentation from a health care professional. General Considerations A person with a disability is not automatically entitled to have an assistance animal. Reasonable accommodation requires that there is a relationship between the person’s disability and their need for the animal [PH Occ GB, p. 179]. Before denying a reasonable accommodation request due to lack of information confirming an individual’s disability or disability-related need for an animal, the PHA is encouraged to engage in a good-faith dialog with the requestor called the “interactive process” [FHEO 2020-01]. A PHA may not refuse to allow a person with a disability to have an assistance animal merely because the animal does not have formal training. Some, but not all, animals that assist persons with disabilities are professionally trained. Other assistance animals are trained by the owners themselves and, in some cases, no special training is required. The question is whether or not the animal performs the assistance or provides the benefit needed by the person with the disability [PH Occ GB, p. 178]. A PHA’s refusal to permit persons with a disability to use and live with an assistance animal that is needed to assist them, would violate Section 504 of the Rehabilitation Act and the Fair Housing Act unless [PH Occ GB, p. 179]: • There is reliable objective evidence that the animal poses a direct threat to the health or safety of others that cannot be reduced or eliminated by a reasonable accommodation • There is reliable objective evidence that the animal would cause substantial physical damage to the property of others The Fair Housing Act does not require a dwelling to be made available to an individual whose tenancy would constitute a direct threat to the health or safety of other individuals or would result in substantial physical damage to the property of others. A PHA may therefore refuse a reasonable accommodation for an assistance animal if the specific animal poses a direct threat that cannot be eliminated or reduced to an acceptable level through the actions the individual takes to maintain or control the animal (e.g., keeping the animal in a security enclosure). © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-6 While most requests for reasonable accommodations involve one animal, requests sometimes involve more than one animal (for example, a person has a disability-related need for both animals or two people living together each have a disability-related need for a separate assistance animal). The decision-making process in Notice FHEO 2020-01 should be used in accordance with the reasonable accommodation policies in Chapter 2 for all requests for exceptions or modifications to the PHA’s rules, policies, practices, and procedures so that persons with disabilities can have assistance animals in the housing where they reside. PHAs have the authority to regulate service animals and assistance animals under applicable federal, state, and local law [24 CFR 5.303(b)(3); 960.705(b)(3)]. Hopkins HRA Policy For an animal to be excluded from the pet policy and be considered a service animal, it must be a trained dog, and there must be a person with disabilities in the household who requires the dog’s services. For an animal to be excluded from the pet policy and be considered a support animal, there must be a person with disabilities in the household, there must be a disability- related need for the animal, and the family must request and the PHA approve a reasonable accommodation in accordance with the criteria outlined in Notice FHEO 2020-01 and the policies contained in Chapter 2. All animals must be registered in accordance with state or local law. Residents must provide proof of registration at the time of PHA registration and annually, in conjunction with the resident’s annual reexamination. 10-I.C. CARE AND HANDLING HUD regulations do not affect any authority a PHA may have to regulate assistance animals, including service animals, under federal, state, and local law [24 CFR 5.303; 24 CFR 960.705]. Hopkins HRA Policy Residents are responsible for feeding, maintaining, providing veterinary care, and controlling their assistance animals. A resident may do this on their own or with the assistance of family, friends, volunteers, or service providers. Residents must care for assistance animals in a manner that complies with state and local laws, including anti-cruelty laws. Residents must ensure that assistance animals do not pose a direct threat to the health or safety of others, or cause substantial physical damage to the development, dwelling unit, or property of other residents. When a resident’s care or handling of an assistance animal violates these policies, the PHA will consider whether the violation could be reduced or eliminated by a reasonable accommodation. If the PHA determines that no such accommodation can be made, the PHA may withdraw the approval of a particular assistance animal. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-7 PART II: PET POLICIES [24 CFR 5, Subpart C; 24 CFR 960, Subpart G] 10-II.A. OVERVIEW The purpose of a pet policy is to establish clear guidelines for ownership of pets and to ensure that no applicant or resident is discriminated against regarding admission or continued occupancy because of ownership of pets. It also establishes reasonable rules governing the keeping of common household pets. This part contains pet policies that apply to all developments. 10-II.B. MANAGEMENT APPROVAL OF PETS Registration of Pets PHAs may require registration of the pet with the PHA [24 CFR 960.707(b)(5)]. Hopkins HRA Policy Pets must be registered with the PHA before they are brought onto the premises. Registration includes documentation signed by a licensed veterinarian or state/local authority that the pet has received all inoculations required by state or local law, and that the pet has no communicable disease(s) and is pest-free. This registration must be renewed annually and will be coordinated with the annual reexamination date. Pets will not be approved to reside in a unit until completion of the registration requirements. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-8 Refusal to Register Pets Hopkins HRA Policy The PHA will refuse to register a pet if: The pet is not a common household pet as defined in Section 10-II.C. below Keeping the pet would violate any pet restrictions listed in this policy The pet owner fails to provide complete pet registration information, or fails to update the registration annually The applicant has previously been charged with animal cruelty under state or local law; or has been evicted, had to relinquish a pet or been prohibited from future pet ownership due to pet rule violations or a court order The PHA reasonably determines that the pet owner is unable to keep the pet in compliance with the pet rules and other lease obligations. The pet's temperament and behavior may be considered as a factor in determining the pet owner's ability to comply with provisions of the lease. If the PHA refuses to register a pet, a written notification will be sent to the pet owner within 10 business days of the PHA’s decision. The notice will state the reason for refusing to register the pet and will inform the family of their right to appeal the decision in accordance with the PHA’s grievance procedures. Pet Agreement Hopkins HRA Policy Residents who have been approved to have a pet must enter into a pet agreement with the PHA, or the approval of the pet will be withdrawn. The pet agreement is the resident’s certification that they have received a copy of the PHA’s pet policy and applicable house rules, that they have read the policies and/or rules, understand them, and agree to comply with them. The resident further certifies by signing the pet agreement that they understand that noncompliance with the PHA’s pet policy and applicable house rules may result in the withdrawal of PHA approval of the pet or termination of tenancy. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-9 10-II.C. STANDARDS FOR PETS [24 CFR 5.318; 960.707(b)] PHAs may establish reasonable requirements related to pet ownership including, but not limited to: • Limitations on the number of animals in a unit, based on unit size • Prohibitions on types of animals that the PHA classifies as dangerous, provided that such classifications are consistent with applicable state and local law • Prohibitions on individual animals, based on certain factors, including the size and weight of the animal • Requiring pet owners to have their pets spayed or neutered Cat declawing is not a requirement or condition of pet ownership in public housing and HUD encourages PHAs to refrain from engaging in this practice [New PH OCC GB, Pet Ownership, p. 9]. PHAs may not require pet owners to have any pet’s vocal cords removed. PHAs may not require pet owners to obtain or carry liability insurance. Definition of “Common Household Pet” There is no regulatory definition of common household pet for public housing programs, although the regulations for pet ownership in both elderly/disabled and general occupancy developments use the term. The regulations for pet ownership in elderly/disabled developments expressly authorize PHAs to define the term [24 CFR 5.306(2)]. Hopkins HRA Policy Common household pet means a domesticated animal, such as a dog, cat, bird, or fish that is traditionally recognized as a companion animal and is kept in the home for pleasure rather than commercial purposes. The following animals are not considered common household pets: Reptiles (with the exception of geckos) Snakes Rodents Insects Arachnids Wild animals or feral animals Pot-bellied pigs Animals used for commercial breeding © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-10 Pet Restrictions Hopkins HRA Policy The following animals are not permitted as pets: Any animal whose adult weight will exceed 25 pounds Dogs of the pit bull, rottweiler, chow, Doberman, German Shepherd, or boxer breeds Ferrets or other animals whose natural protective mechanisms pose a risk to small children of serious bites or lacerations Any animal not permitted under state or local law or code Number of Pets Hopkins HRA Policy Residents may own a maximum of one pet. In the case of fish, residents may keep no more than can be maintained in a safe and healthy manner in a tank holding up to 10 gallons. Such a tank or aquarium will be counted as one pet. Other Requirements Hopkins HRA Policy Dogs and cats must be spayed or neutered at the time of registration or, in the case of underage animals, within 30 days of the pet reaching 6 months of age. Exceptions may be made upon veterinary certification that subjecting this particular pet to the procedure would be temporarily or permanently medically unsafe or unnecessary. Pets must be licensed in accordance with state or local law. Residents must provide proof of licensing at the time of registration and annually, in conjunction with the resident’s annual reexamination. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-11 10-II.D. PET RULES Pet owners must maintain pets responsibly, in accordance with PHA policies, and in compliance with applicable state and local public health, animal control, and animal cruelty laws and regulations [24 CFR 5.315; 24 CFR 960.707(a)]. Pet Area Restrictions Hopkins HRA Policy Pets must be maintained within the resident's unit. When outside of the unit (within the building or on the grounds) dogs and cats must be kept on a leash or carried. They must be under the control of the resident or other responsible individual at all times. Pets other than cats must be kept in a cage or carrier when outside of the unit. Pets are not permitted in common areas including lobbies, community rooms and laundry areas except for those common areas which are entrances to and exits from the building. Designated Pet/No-Pet Areas [24 CFR 5.318(g), PH Occ GB, p. 182] PHAs may designate buildings, floors of buildings, or sections of buildings as no-pet areas where pets generally may not be permitted. Pet rules may also designate buildings, floors of building, or sections of building for residency by pet-owning tenants. PHAs may direct initial tenant moves as may be necessary to establish pet and no-pet areas. The PHA may not refuse to admit, or delay admission of, an applicant on the grounds that the applicant’s admission would violate a pet or no-pet area. The PHA may adjust the pet and no-pet areas or may direct such additional moves as may be necessary to accommodate such applicants for tenancy or to meet the changing needs of the existing tenants. PHAs may not designate an entire development as a no-pet area, since regulations permit residents to own pets. Hopkins HRA Policy With the exception of common areas as described in the previous policy, the PHA has not designated any floor, or sections of the buildings as no-pet areas. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-12 Cleanliness Hopkins HRA Policy The pet owner shall be responsible for the removal of waste by placing it in a sealed plastic bag and disposing of it properly. The pet owner shall take adequate precautions to eliminate any pet odors within or around the unit and to maintain the unit in a sanitary condition at all times. Litter box requirements: Pet owners must promptly dispose of waste from litter boxes and must maintain litter boxes in a sanitary manner. Litter shall not be disposed of by being flushed through a toilet. Litter boxes shall be kept inside the resident's dwelling unit. Used litter shall be sealed and deposited in the trash container at the rear of the property or hand-carried to the maintenance office during business hours. Alterations to Unit Hopkins HRA Policy Pet owners shall not alter their unit, premises or common areas to create an enclosure for any animal. Installation of pet doors is prohibited. Noise Hopkins HRA Policy Pet owners must agree to control the noise of pets so that such noise does not constitute a nuisance to other residents or interrupt their peaceful enjoyment of their housing unit or premises. This includes, but is not limited to loud or continuous barking, howling, whining, biting, scratching, chirping, or other such activities. Pet Care Hopkins HRA Policy Each pet owner shall be responsible for adequate care, nutrition, exercise and medical attention for their pet. Each pet owner shall be responsible for appropriately training and caring for their pet to ensure that the pet is not a nuisance or danger to other residents and does not damage PHA property. No animals may be tethered or chained inside or outside the dwelling unit at any time. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-13 Responsible Parties Hopkins HRA Policy The pet owner will be required to designate one responsible party for the care of the pet if the health or safety of the pet is threatened by the death or incapacity of the pet owner, or by other factors that render the pet owner unable to care for the pet. A resident who cares for another resident's pet must notify the PHA and sign a statement that they agree to abide by all the pet rules. Inspections and Repairs Hopkins HRA Policy Except for emergencies, management will not enter the dwelling unit for performance of repairs or inspections where a pet resides unless accompanied for the entire duration of the inspection or repair by the pet owner or responsible person designated by the pet owner. The pet must be held under physical restraint by the pet owner or responsible person until management has completed its tasks. Any delays or interruptions suffered by management in the inspection, maintenance, and upkeep of the premises due to the presence of a pet may be cause for lease termination. Pets Temporarily on the Premises Hopkins HRA Policy Pets that are not owned by a tenant are not allowed on the premises. Residents are prohibited from feeding or harboring stray animals. This rule does not apply to visiting pet programs sponsored by a humane society or other non-profit organizations and approved by the PHA. Pet Rule Violations Hopkins HRA Policy All complaints of cruelty and all dog bites will be referred to animal control or an applicable agency for investigation and enforcement. If a determination is made on objective facts supported by written statements, that a resident/pet owner has violated the pet rules, written notice will be served. The notice will contain a brief statement of the factual basis for the determination and the pet rule(s) that were violated. The notice will also state: That the pet owner has 10 business days from the effective date of the service of notice to correct the violation or make written request for a meeting to discuss the violation That the pet owner is entitled to be accompanied by another person of their choice at the meeting That the pet owner's failure to correct the violation, request a meeting, or appear at a requested meeting may result in initiation of procedures to remove the pet, or to terminate the pet owner's tenancy © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-14 Notice for Pet Removal Hopkins HRA Policy If the pet owner and the PHA are unable to resolve the violation at the meeting or the pet owner fails to correct the violation in the time period allotted by the PHA, the PHA may serve notice to remove the pet. The notice will contain: A brief statement of the factual basis for the PHA's determination of the pet rule that has been violated The requirement that the resident /pet owner must remove the pet within 30 calendar days of the notice A statement that failure to remove the pet may result in the initiation of termination of tenancy procedures Pet Removal Hopkins HRA Policy If the death or incapacity of the pet owner threatens the health or safety of the pet, or other factors occur that render the owner unable to care for the pet, the situation will be reported to the responsible party designated by the pet owner. If the responsible party is unwilling or unable to care for the pet, or if the PHA after reasonable efforts cannot contact the responsible party, the PHA may contact the appropriate state or local agency and request the removal of the pet. Termination of Tenancy Hopkins HRA Policy The PHA may initiate procedures for termination of tenancy based on a pet rule violation if: The pet owner has failed to remove the pet or correct a pet rule violation within the time period specified The pet rule violation is sufficient to begin procedures to terminate tenancy under terms of the lease © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-15 Emergencies Hopkins HRA Policy The PHA will take all necessary steps to ensure that pets that become vicious, display symptoms of severe illness, or demonstrate behavior that constitutes an immediate threat to the health or safety of others, are immediately removed from the premises by referring the situation to the appropriate state or local entity authorized to remove such animals. If it is necessary for the PHA to place the pet in a shelter facility, the cost will be the responsibility of the pet owner. If the pet is removed as a result of any aggressive act on the part of the pet, the pet will not be allowed back on the premises. 10-II.E. PET DEPOSITS A PHA may require a refundable pet deposit to cover additional costs attributable to the pet and not otherwise covered [24 CFR 960.707(b)(1)]. A PHA that requires a resident to pay a pet deposit must place the deposit in an account of the type required under applicable State or local law for pet deposits, or if there are no such requirements, for rental security deposits, if applicable. The PHA must comply with such laws as to retention of the deposit, interest, and return of the deposit to the resident, and any other applicable requirements [24 CFR 960.707(d)]. Payment of Deposit Hopkins HRA Policy Pet owners are required to pay a pet deposit of $300 in addition to any other required deposits. The deposit must be paid in full before the pet is brought on the premises. The pet deposit is not part of rent payable by the resident. Refund of Deposit Hopkins HRA Policy The PHA will refund the pet deposit to the resident, less the costs of any damages caused by the pet to the dwelling unit, within 21 days of move-out or removal of the pet from the unit. The resident will be billed for any amount that exceeds the pet deposit. The PHA will provide the resident with a written list of any charges against the pet deposit within 10 business days of the move-out inspection. If the resident disagrees with the amount charged to the pet deposit, the PHA will provide a meeting to discuss the charges. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-16 10-II.F. NON-REFUNDABLE NOMINAL PET FEE PHAs may require payment of a non-refundable nominal pet fee to cover the reasonable operating costs to the development relating to the presence of pets [24 CFR 960.707(b)(1)]. Hopkins HRA Policy The PHA does not require pet owners to pay a non-refundable nominal pet fee. 10-II.G. OTHER CHARGES Pet-Related Damages During Occupancy Hopkins HRA Policy All reasonable expenses incurred by the PHA as a result of damages directly attributable to the presence of the pet in the project will be the responsibility of the resident, including: The cost of repairs and replacements to the resident's dwelling unit Fumigation of the dwelling unit Repairs to common areas of the project The expense of flea elimination shall also be the responsibility of the resident. If the resident is in occupancy when such costs occur, the resident shall be billed for such costs in accordance with the policies in Section 8-I.F, Maintenance and Damage Charges. Pet deposits will not be applied to the costs of pet-related damages during occupancy. Charges for pet-related damage are not part of rent payable by the resident. Pet Waste Removal Charge The regulations do not address the PHA’s ability to impose charges for house pet rule violations. However, charges for violation of PHA pet rules may be treated like charges for other violations of the lease and PHA tenancy rules. Hopkins HRA Policy A separate pet waste removal charge of $10.00 per occurrence will be assessed against pet owners who fail to remove pet waste in accordance with this policy. Such charges will be due and payable 14 calendar days after billing. Charges for pet waste removal are not part of rent payable by the resident. © Copyright 2022 Nan McKay & Associates ACOP 9/1/22 Unlimited copies may be made for internal use Page 10-17 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-1 Chapter 11 COMMUNITY SERVICE INTRODUCTION This chapter explains HUD regulations requiring PHAs to implement a community service program for all nonexempt adults living in public housing. This chapter describes HUD regulations and PHA policies related to these topics in two parts: Part I: Community Service Requirements. This part describes who is subject to the community service requirement, who is exempt, and HUD’s definition of economic self- sufficiency. Part II: PHA Implementation of Community Service. This part provides PHA policy regarding PHA implementation and program design. PART I: COMMUNITY SERVICE REQUIREMENT 11-I.A. OVERVIEW HUD regulations pertaining to the community service requirement are contained in 24 CFR 960 Subpart F (960.600 through 960.609). PHAs and residents must comply with the community service requirement, effective with PHA fiscal years that commenced on or after October 1, 2000. Per 903.7(l)(1)(iii), the PHA Plan must contain a statement of how the PHA will comply with the community service requirement, including any cooperative agreement that the PHA has entered into or plans to enter into. Community service is the performance of voluntary work or duties that are a public benefit, and that serve to improve the quality of life, enhance resident self-sufficiency, or increase resident self-responsibility in the community. Community service is not employment and may not include political activities [24 CFR 960.601(b)]. In administering community service requirements, the PHA must comply with all nondiscrimination and equal opportunity requirements [24 CFR 960.605(c)(5)]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-2 11-I.B. REQUIREMENTS Each adult resident of the PHA, who is not exempt, must [24 CFR 960.603(a)]: • Contribute 8 hours per month of community service; or • Participate in an economic self-sufficiency program (as defined in the regulations) for 8 hours per month; or • Perform 8 hours per month of combined activities (community service and economic self- sufficiency programs). • The required community service or self-sufficiency activity may be completed 8 hours each month or may be aggregated across a year. Any blocking of hours is acceptable as long as 96 hours is completed by each annual certification of compliance [Notice PIH 2015-12]. Definitions Exempt Individual [24 CFR 960.601(b), Notice PIH 2015-12] An exempt individual is an adult who: • Is age 62 years or older • Is blind or disabled (as defined under section 216[i][l] or 1614 of the Social Security Act), and who certifies that because of this disability s/he is unable to comply with the service provisions • Is a primary caretaker of such an individual • Is engaged in work activities Hopkins HRA Policy The PHA will consider 30 hours per week as the minimum number of hours needed to qualify for a work activity exemption. • Is able to meet requirements of being exempted under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare-to-work program − This exemption applies to anyone whose characteristics or family situation meet the welfare agency exemption criteria and can be verified. • Is a member of a family receiving assistance, benefits, or services under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare-to-work program and the supplemental nutrition assistance program (SNAP), and has not been found by the state or other administering entity to be in noncompliance with such program. • Is a member of a non-public housing over-income family. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-3 Community Service [24 CFR 960.601(b), Notice PIH 2015-12] Community service is the performance of voluntary work or duties that are a public benefit, and that serve to improve the quality of life, enhance resident self-sufficiency, or increase resident self responsibility in the community. Community service is not employment and may not include political activities. Eligible community service activities include, but are not limited to, work at: • Local public or nonprofit institutions such as schools, head start programs, before or after school programs, child care centers, hospitals, clinics, hospices, nursing homes, recreation centers, senior centers, adult day care programs, homeless shelters, feeding programs, food banks (distributing either donated or commodity foods), or clothes closets (distributing donated clothing) • Nonprofit organizations serving PHA residents or their children such as: Boy or Girl Scouts, Boys or Girls Club, 4-H clubs, Police Assistance League (PAL), organized children’s recreation, mentoring or education programs, Big Brothers or Big Sisters, garden centers, community clean-up programs, beautification programs • Programs funded under the Older Americans Act, such as Green Thumb, Service Corps of Retired Executives, senior meals programs, senior centers, Meals on Wheels • Public or nonprofit organizations dedicated to seniors, youth, children, residents, citizens, special-needs populations or with missions to enhance the environment, historic resources, cultural identities, neighborhoods, or performing arts • PHA housing to improve grounds or provide gardens (so long as such work does not alter the PHA’s insurance coverage); or work through resident organizations to help other residents with problems, including serving on the Resident Advisory Board • Care for the children of other residents so parent may volunteer PHAs may form their own policy in regards to accepting community services at profit-motivated entities, acceptance of volunteer work performed at homes or offices of general private citizens, and court-ordered or probation-based work. Hopkins HRA Policy Community services at profit-motivated entities, volunteer work performed at homes or offices of general private citizens, and court-ordered or probation-based work will not be considered eligible community service activities. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-4 Economic Self-Sufficiency Program [24 CFR 5.603(b), Notice PIH 2015-12] For purposes of satisfying the community service requirement, an economic self-sufficiency program is defined by HUD as any program designed to encourage, assist, train, or facilitate economic independence of assisted families or to provide work for such families. Eligible self-sufficiency activities include, but are not limited to: • Job readiness or job training • Training programs through local one-stop career centers, workforce investment boards (local entities administered through the U.S. Department of Labor), or other training providers • Employment counseling, work placement, or basic skills training • Education, including higher education (junior college or college), GED classes, or reading, financial, or computer literacy classes • Apprenticeships (formal or informal) • English proficiency or English as a second language classes • Budgeting and credit counseling • Any other program necessary to ready a participant to work (such as substance abuse or mental health counseling) © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-5 Work Activities [42 U.S.C. 607(d)] As it relates to an exemption from the community service requirement, work activities means: • Unsubsidized employment • Subsidized private sector employment • Subsidized public sector employment • Work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available • On-the-job training • Job search and job readiness assistance • Community service programs • Vocational educational training (not to exceed 12 months with respect to any individual) • Job skills training directly related to employment • Education directly related to employment, in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency • Satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-6 Notification Requirements [24 CFR 960.605(c)(2), Notice PIH 2015-12, Notice PIH 2016- 06] The PHA must give each family a written description of the community service requirement, the process for claiming status as an exempt person, and the process for PHA verification of exempt status. The PHA must also notify the family of its determination identifying the family members who are subject to the service requirement, and the family members who are exempt. In addition, the family must sign a certification, such as Attachment A of Notice PIH 2015-12, that they have received and read the policy and understand that if they are not exempt, failure to comply with the requirement will result in nonrenewal of their lease. The family must also sign a certification at annual reexamination, such as Attachment B of Notice PIH 2015-12, certifying that they understand the requirement. Hopkins HRA Policy The PHA will provide the family with a copy of the Community Service Policy found in Exhibit 11-1 of this chapter, at lease-up, lease renewal, when a family member is determined to be subject to the community service requirement during the lease term, and at any time upon the family’s request. The policy will notify the family that self- certification forms are subject to review by the PHA. On an annual basis, at the time of lease renewal, the PHA will notify the family in writing of the family members who are subject to the community service requirement and the family members who are exempt. If the family includes nonexempt individuals the notice will include a list of agencies in the community that provide volunteer and/or training opportunities, as well as a documentation form on which they may record the activities they perform, and the number of hours contributed. The form will also have a place for a signature by an appropriate official, who will certify to the activities and hours completed. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-7 11-I.C. DETERMINATION OF EXEMPTION STATUS AND COMPLIANCE [24 CFR 960.605(c)(3)] The PHA must review and verify family compliance with service requirements annually at least thirty days before the end of the twelve month lease term. The policy for documentation and verification of compliance with service requirements may be found at Section 11-I.D., Documentation and Verification. Hopkins HRA Policy Where the lease term does not coincide with the effective date of the annual reexamination, the PHA will change the effective date of the annual reexamination to coincide with the lease term. In making this change, the PHA will ensure that the annual reexamination is conducted within 12 months of the last annual reexamination. Annual Determination Determination of Exemption Status An exempt individual is excused from the community service requirement [24 CFR 960.603(a)]. Hopkins HRA Policy At least 60 days prior to lease renewal, the PHA will review and verify the exemption status of all adult family members. This verification will only be done on an annual basis unless the family reports a change or the PHA has reason to believe that an individual’s exemption status has changed. For individuals who are exempt because they are 62 years of age and older, verification of exemption status will be done only at the initial examination. Upon completion of the verification process, the PHA will notify the family of its determination in accordance with the policy in Section 11-I.B., Notification Requirements. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-8 Determination of Compliance The PHA must review resident family compliance with service requirements annually at least 30 days before the end of the twelve-month lease term [24 CFR 960.605(c)(3)]. As part of this review, the PHA must verify that any family member that is not exempt from the community service requirement has met their service obligation. Hopkins HRA Policy Approximately 60 days prior to the end of the lease term, the PHA will provide written notice requiring the family to submit documentation that all subject family members have complied with the service requirement. The family will have 10 business days to submit the PHA required documentation form(s). If the family fails to submit the required documentation within the required timeframe, or PHA approved extension, the subject family members will be considered noncompliant with community service requirements, and notices of noncompliance will be issued pursuant to the policies in Section 11-I.E., Noncompliance. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-9 Change in Status between Annual Determinations Hopkins HRA Policy Exempt to Nonexempt Status If an exempt individual becomes nonexempt during the 12-month lease term, it is the family’s responsibility to report this change to the PHA within 10 business days. Within 10 business days of a family reporting such a change, or the PHA determining such a change is necessary, the PHA will provide written notice of the effective date of the requirement, a list of agencies in the community that provide volunteer and/or training opportunities, as well as a documentation form on which the family member may record the activities performed and number of hours contributed. The effective date of the community service requirement will be the first of the month following 30-day notice. Determination of Initial Compliance When an adult family member becomes subject to community service, they must perform 8 hours of community service for the months they are subject to the requirement before the end of the lease term (anniversary date). Example 1: Alberto Jones turns 18 on 5/10/15 and is not exempt from the community service requirement. His community service requirement begins on 6/1/15, and his initial compliance is reviewed before the end of the lease term (anniversary date), which is 11/30/15. Alberto must perform 6 months of community service in his initial compliance period, before the end of the lease term (anniversary date). Example 2: Lisa Dewhurst leaves her job on 9/20/14 and is not exempt from the community service requirement. Her community service requirement begins on 10/1/14, and her initial compliance is reviewed before the end of the lease term (anniversary date), which is 6/30/15. Ms. Dewhurst must perform 9 months of community service in her initial compliance period, before the end of the lease term (anniversary date). © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-10 Nonexempt to Exempt Status If a nonexempt person becomes exempt during the twelve-month lease term, it is the family’s responsibility to report this change to the PHA within 10 business days. Any claim of exemption will be verified by the PHA in accordance with the policy at 11-I.D., Documentation and Verification of Exemption Status. Within 10 business days of a family reporting such a change, or the PHA determining such a change is necessary, the PHA will provide the family written notice that the family member is no longer subject to the community service requirement, if the PHA is able to verify the exemption. The exemption will be effective immediately. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-11 11-I.D. DOCUMENTATION AND VERIFICATION [24 CFR 960.605(c)(4), 960.607, Notice PIH 2016-08] The PHA must retain reasonable documentation of service requirement performance or exemption in participant files. Documentation and Verification of Exemption Status Hopkins HRA Policy All family members who claim they are exempt from the community service requirement will be required to sign the community service exemption certification form found in Exhibit 11-3. The PHA will provide a completed copy to the family and will keep a copy in the tenant file. The PHA will verify that an individual is exempt from the community service requirement by following the verification hierarchy and documentation requirements in Chapter 7. The PHA makes the final determination whether or not to grant an exemption from the community service requirement. If a resident does not agree with the PHA’s determination, s/he can dispute the decision through the PHA’s grievance procedures (see Chapter 14). Documentation and Verification of Compliance At each regularly scheduled reexamination, each nonexempt family member presents a signed standardized certification form developed by the PHA of community service and self-sufficiency activities performed over the last 12 months [Notice PIH 2015-12]. If qualifying community service activities are administered by an organization other than the PHA, a family member who is required to fulfill a service requirement must provide documentation required by the PHA. The PHA may require a self-certification or certification from a third party [24 CFR 960.607]. If the PHA accepts self-certification of compliance with the community service requirement, it must provide a form which includes a statement that the client performed the required hours, contact information for the community service provider, a description of activities performed, and dates of service. If the PHA accepts self-certification, it must validate a sample of certifications through third- party documentation. The PHA must notify families that self-certification forms are available and that a sample of self-certifications will be validated. HUD strongly encourages PHAs to investigate community service compliance when there are questions of accuracy. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-12 Hopkins HRA Policy Each individual who is subject to the community service requirement will be required to record their community service or self-sufficiency activities and the number of hours contributed on the required form. The certification form will also include places for signatures and phone numbers of supervisors, instructors, and counselors certifying to the number of hours contributed. Families will be required to submit the documentation to the PHA, upon request by the PHA, at least annually. If the PHA has reasonable cause to believe that the certification provided by the family is false or fraudulent, the PHA has the right to require additional third-party verification. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-13 11-I.E. NONCOMPLIANCE Noncompliant Residents The lease specifies that it is renewed automatically for all purposes, unless the family fails to comply with the community service requirement and families determined to be over-income for 24 consecutive months. Violation of the service requirement is grounds for nonrenewal of the lease at the end of the twelve month lease term, but not for termination of tenancy during the course of the twelve month lease term [24 CFR 960.603(b)]. PHAs may not evict a family due to CSSR noncompliance. However, if PHA finds a tenant is noncompliant with CSSR, the PHA must provide written notification to the tenant of the noncompliance which must include: • A brief description of the finding of non-compliance with CSSR. • A statement that the PHA will not renew the lease at the end of the current 12-month lease term unless the tenant enters into a written work-out agreement with the PHA or the family provides written assurance that is satisfactory to the PHA explaining that the tenant or other noncompliant resident no longer resides in the unit. Such written work-out agreement must include the means through which a noncompliant family member will comply with the CSSR requirement [24 CFR 960.607(c), Notice PIH 2015-12]. The notice must also state that the tenant may request a grievance hearing on the PHA’s determination, in accordance with the PHA’s grievance procedures, and that the tenant may exercise any available judicial remedy to seek timely redress for the PHA’s nonrenewal of the lease because of the PHA’s determination. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-14 Hopkins HRA Policy The notice of noncompliance will be sent at least 45 days prior to the end of the lease term. The family will have 10 business days from the date of the notice of noncompliance to enter into a written work-out agreement to cure the noncompliance over the 12-month term of the new lease, provide documentation that the noncompliant resident no longer resides in the unit, or to request a grievance hearing. If the family reports that a noncompliant family member is no longer residing in the unit, the family must provide documentation that the family member has actually vacated the unit before the PHA will agree to continued occupancy of the family. Documentation must consist of a certification signed by the head of household as well as evidence of the current address of the family member that previously resided with them. If the family does not request a grievance hearing, or does not take either corrective action required by the notice of noncompliance within the required 10 business day timeframe, the PHA will terminate tenancy in accordance with the policies in Section 13-IV.D. Continued Noncompliance and Enforcement Documentation [24 CFR 960.607(b)] Should a family member refuse to sign a written work-out agreement, or fail to comply with the terms of the work-out agreement, PHAs are required to initiate termination of tenancy proceedings at the end of the current 12-month lease (see 24 CFR 966.53(c)) for failure to comply with lease requirements. When initiating termination of tenancy proceedings, the PHA will provide the following procedural safeguards: • Adequate notice to the tenant of the grounds for terminating the tenancy and for non-renewal of the lease; • Right of the tenant to be represented by counsel; • Opportunity for the tenant to refute the evidence presented by the PHA, including the right to confront and cross-examine witnesses and present any affirmative legal or equitable defense which the tenant may have; and, • A decision on the merits. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-15 Hopkins HRA Policy Notices of continued noncompliance will be sent at least 30 days prior to the end of the lease term and will also serve as the family’s termination notice. The notice will meet the requirements for termination notices described in Section 13-IV.D, Form, Delivery, and Content of the Notice. The family will have 10 business days from the date of the notice of non-compliance to provide documentation that the noncompliant resident no longer resides in the unit, or to request a grievance hearing. If the family reports that a noncompliant family member is no longer residing in the unit, the family must provide documentation that the family member has actually vacated the unit before the PHA will agree to continued occupancy of the family. Documentation must consist of a certification signed by the head of household as well as evidence of the current address of the noncompliant family member that previously resided with them. If the family does not request a grievance hearing, or provide such documentation within the required 10 business day timeframe, the family’s lease and tenancy will automatically terminate at the end of the current lease term without further notice. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-16 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-17 PART II: IMPLEMENTATION OF COMMUNITY SERVICE 11-II.A. OVERVIEW Each PHA must develop a policy for administration of the community service and economic self- sufficiency requirements for public housing. It is in the PHA’s best interests to develop a viable, effective community service program, to provide residents the opportunity to engage in the community and to develop competencies. PHA Implementation of Community Service The PHA may not substitute any community service or self-sufficiency activities performed by residents for work ordinarily performed by PHA employees, or replace a job at any location where residents perform activities to satisfy the service requirement [24 CFR 960.609]. Hopkins HRA Policy The PHA will notify its insurance company if residents will be performing community service at the PHA. In addition, the PHA will ensure that the conditions under which the work is to be performed are not hazardous. If a disabled resident certifies that they are able to perform community service, the PHA will ensure that requests for reasonable accommodation are handled in accordance with the policies in Chapter 2. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-18 PHA Program Design The PHA may administer qualifying community service or economic self-sufficiency activities directly, or may make community service activities available through a contractor, or through partnerships with qualified organizations, including resident organizations, and community agencies or institutions [24 CFR 960.605(b)]. Hopkins HRA Policy The PHA will attempt to provide the broadest choice possible to residents as they choose community service activities. The PHA’s goal is to design a service program that gives residents viable opportunities to become involved in the community and to gain competencies and skills. The PHA will work with resident organizations and community organizations to design, implement, assess and recalibrate its community service program. The PHA will make every effort to identify volunteer opportunities throughout the community, especially those in proximity to public housing developments. To the greatest extent possible, the PHA will provide names and contacts at agencies that can provide opportunities for residents, including persons with disabilities, to fulfill their community service obligations. Any written agreements or partnerships with contractors and/or qualified organizations, including resident organizations, are described in the PHA Plan. The PHA will provide in-house opportunities for volunteer work or self-sufficiency programs when possible. When the PHA has a ROSS program, a ROSS Service Coordinator, or an FSS program, the PHA will coordinate individual training and service plans (ITSPs) with the community service requirement. Regular meetings with PHA coordinators will satisfy community service activities and PHA coordinators will verify community service hours within individual monthly logs. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-19 EXHIBIT 11-1: COMMUNITY SERVICE AND SELF-SUFFICIENCY POLICY A. Background The Quality Housing and Work Responsibility Act of 1998 requires that all nonexempt (see definitions) public housing adult residents (18 or older) contribute eight (8) hours per month of community service (volunteer work) or participate in eight (8) hours of training, counseling, classes or other activities that help an individual toward self-sufficiency and economic independence. This is a requirement of the public housing lease. B. Definitions Community Service – community service activities include, but are not limited to, work at: • Local public or nonprofit institutions such as schools, head start programs, before or after school programs, child care centers, hospitals, clinics, hospices, nursing homes, recreation centers, senior centers, adult day care programs, homeless shelters, feeding programs, food banks (distributing either donated or commodity foods), or clothes closets (distributing donated clothing) • Nonprofit organizations serving PHA residents or their children such as: Boy or Girl Scouts, Boys or Girls Club, 4-H clubs, Police Assistance League (PAL), organized children’s recreation, mentoring or education programs, Big Brothers or Big Sisters, garden centers, community clean-up programs, beautification programs • Programs funded under the Older Americans Act, such as Green Thumb, Service Corps of Retired Executives, senior meals programs, senior centers, Meals on Wheels • Public or nonprofit organizations dedicated to seniors, youth, children, residents, citizens, special-needs populations or with missions to enhance the environment, historic resources, cultural identities, neighborhoods, or performing arts • PHA housing to improve grounds or provide gardens (so long as such work does not alter the PHA’s insurance coverage); or work through resident organizations to help other residents with problems, including serving on the Resident Advisory Board • Care for the children of other residents so parent may volunteer Note: Political activity is excluded. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-20 Self-Sufficiency Activities – self-sufficiency activities include, but are not limited to: • Job readiness or job training • Training programs through local one-stop career centers, workforce investment boards (local entities administered through the U.S. Department of Labor), or other training providers • Employment counseling, work placement, or basic skills training • Education, including higher education (junior college or college), or reading, financial, or computer literacy classes • Apprenticeships (formal or informal) • English proficiency or English as a second language classes • Budgeting and credit counseling • Any other program necessary to ready a participant to work (such as substance abuse or mental health counseling) Exempt Adult – an adult member of the family who meets any of the following criteria: • Is 62 years of age or older • Is blind or a person with disabilities (as defined under section 216[i][l] or 1614 of the Social Security Act), and who certifies that because of this disability they are unable to comply with the service provisions, or is the primary caretaker of such an individual • Is engaged in work activities • Is able to meet requirements under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare-to-work program; or • Is a member of a family receiving assistance, benefits, or services under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare-to-work program and the supplemental nutrition assistance program (SNAP), and has not been found by the state or other administering entity to be in noncompliance with such program • Is a member of a non-public housing over-income family. PHAs can use reasonable guidelines in clarifying the work activities in coordination with TANF, as appropriate. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-21 Work Activities – as it relates to an exemption from the community service requirement, work activities means: • Unsubsidized employment • Subsidized private sector employment • Subsidized public sector employment • Work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available • On-the-job training • Job search and job readiness assistance • Community service programs • Vocational educational training (not to exceed 12 months with respect to any individual) • Job skills training directly related to employment • Education directly related to employment, in the case of a recipient who has not received a high school diploma or a certificate of high school equivalency • Satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of a recipient who has not completed secondary school or received such a certificate • Provision of child care services to an individual who is participating in a community service program © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-22 C. Requirements of the Program 1. The eight (8) hours per month may be either volunteer work or self-sufficiency program activity, or a combination of the two. 2. At least eight (8) hours of activity must be performed each month, or may be aggregated across a year. Any blocking of hours is acceptable as long as long as 96 hours is completed by each annual certification of compliance. 3. Family obligation: • At lease execution, all adult members (18 or older) of a public housing resident family must: − Sign a certification (Attachment A) that they have received and read this policy and understand that if they are not exempt, failure to comply with the community service requirement will result in a nonrenewal of their lease; and − Declare if they are exempt. If exempt, they must complete the Exemption Form (Exhibit 11-3) and provide documentation of the exemption. • Upon written notice from the PHA, nonexempt family members must present complete documentation of activities performed during the applicable lease term. This documentation will include places for signatures of supervisors, instructors, or counselors, certifying the number of hours. • If a family member is found to be noncompliant at the end of the 12-month lease term, they, and the head of household, will be required to sign an agreement with the housing authority to make up the deficient hours over the next twelve (12) month period, or the lease will be terminated. • At annual reexamination, the family must also sign a certification certifying that they understand the community service requirement. 4. Change in exempt status: • If, during the twelve (12) month lease period, a nonexempt person becomes exempt, it is their responsibility to report this to the PHA and provide documentation of exempt status. • If, during the twelve (12) month lease period, an exempt person becomes nonexempt, it is their responsibility to report this to the PHA. Upon receipt of this information the PHA will provide the person with the appropriate documentation form(s) and a list of agencies in the community that provide volunteer and/or training opportunities. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-23 D. Authority Obligation 1. To the greatest extent possible and practicable, the PHA will: • Provide names and contacts at agencies that can provide opportunities for residents, including residents with disabilities, to fulfill their community service obligations. • Provide in-house opportunities for volunteer work or self-sufficiency activities. 2. The PHA will provide the family with a copy of this policy, and all applicable exemption verification forms and community service documentation forms, at lease-up, lease renewal, when a family member becomes subject to the community service requirement during the lease term, and at any time upon the family’s request. 3. Although exempt family members will be required to submit documentation to support their exemption, the PHA will verify the exemption status in accordance with its verification policies. The PHA will make the final determination as to whether or not a family member is exempt from the community service requirement. Residents may use the PHA’s grievance procedure if they disagree with the PHA’s determination. 4. Noncompliance of family member: • At least thirty (30) days prior to the end of the 12-month lease term, the PHA will begin reviewing the exempt or nonexempt status and compliance of family members; • If, at the end of the initial 12-month lease term under which a family member is subject to the community service requirement, the PHA finds the family member to be noncompliant, the PHA will not renew the lease unless: − The head of household and any other noncompliant resident enter into a written agreement with the PHA, to make up the deficient hours over the next twelve (12) month period; or − The family provides written documentation satisfactory to the PHA that the noncompliant family member no longer resides in the unit. • If, at the end of the next 12-month lease term, the family member is still not compliant, a 30-day notice to terminate the lease will be issued and the entire family will have to vacate, unless the family provides written documentation satisfactory to the PHA that the noncompliant family member no longer resides in the unit; • The family may use the PHA’s grievance procedure to dispute the lease termination. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-24 All adult family members must sign and date below, certifying that they have read and received a copy of this Community Service and Self-Sufficiency Policy. Resident Date Resident Date Resident Date Resident Date © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-25 EXHIBIT 11-2: DEFINITION OF A PERSON WITH A DISABILITY UNDER SOCIAL SECURITY ACTS 216(i)(l) and Section 1416(excerpt) FOR PURPOSES OF EXEMPTION FROM COMMUNITY SERVICE Social Security Act: 216(i)(1): Except for purposes of sections 202(d), 202(e), 202(f), 223, and 225, the term “disability” means (A) inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months, or (B) blindness; and the term “blindness” means central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees shall be considered for purposes of this paragraph as having a central visual acuity of 20/200 or less. Section 1416 (excerpt): SEC. 1614. [42 U.S.C. 1382c] (a)(1) For purposes of this title, the term “aged, blind, or disabled individual” means an individual who— (A) is 65 years of age or older, is blind (as determined under paragraph (2)), or is disabled (as determined under paragraph (3)), and (B)(i) is a resident of the United States, and is either (I) a citizen or (II) an alien lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law (including any alien who is lawfully present in the United States as a result of the application of the provisions of section 212(d)(5) of the Immigration and Nationality Act), or (ii) is a child who is a citizen of the United States and, who is living with a parent of the child who is a member of the Armed Forces of the United States assigned to permanent duty ashore outside the United States. (2) An individual shall be considered to be blind for purposes of this title if he has central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees shall be considered for purposes of the first sentence of this subsection as having a central visual acuity of 20/200 or less. An individual shall also be considered to be blind for purposes of this title if he is blind as defined under a State plan approved under title X or XVI as in effect for October 1972 and received aid under such plan (on the basis of blindness) for December 1973, so long as he is continuously blind as so defined. (3)(A) Except as provided in subparagraph (C), an individual shall be considered to be disabled for purposes of this title if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-26 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-27 EXHIBIT 11-3: PHA DETERMINATION OF EXEMPTION FOR COMMUNITY SERVICE Family: Adult family member: This adult family member meets the requirements for being exempted from the PHA’s community service requirement for the following reason: 62 years of age or older (Documentation of age in file) Is a person with disabilities and self-certifies below that they are unable to comply with the community service requirement (Documentation of HUD definition of disability in file) Tenant certification: I am a person with disabilities and am unable to comply with the community service requirement. Signature of Family Member Date Is the primary caretaker of such an individual in the above category (Documentation in file) Is engaged in work activities (Verification in file) Is able to meet requirements under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare-to-work program (Documentation in file) Is a member of a family receiving assistance, benefits, or services under a state program funded under part A of title IV of the Social Security Act, or under any other welfare program of the state in which the PHA is located, including a state-administered welfare- to-work program and the supplemental nutrition assistance program (SNAP), and has not been found by the state or other administering entity to be in noncompliance with such program (Documentation in file) Signature of Family Member Date Signature of PHA Official Date © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-28 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-29 EXHIBIT 11-4: CSSR WORK-OUT AGREEMENT Date: Noncompliant Adult: Adult family member: Community Service & Self-Sufficiency Requirement (CSSR): Under Section 12 of the U.S. Housing Act, the _______________ (insert name of PHA) is required to enforce the community service and self-sufficiency requirement (CSSR). Under the CSSR, each nonexempt adult family member residing in public housing must perform 8 hours per month of community service or self sufficiency activities. Noncompliance: ____________ (insert name of PHA) has found that the nonexempt individual named above is in noncompliance with the CSSR. This work-out agreement is the PHA’s written notification to you of this noncompliance. Our records show that for the most recent lease term you were required to perform hours of CSSR activities. However, there were hours of verified CSSR activities. Therefore, you are in noncompliance for hours. __________ (insert name of PHA) will not renew the lease at the end of the current 12-month lease term unless the head of household and noncompliant adult sign a written work-out agreement with __________ (insert name of PHA) or the family provides written assurance that is satisfactory to _______________ (insert name of PHA) explaining that the noncompliant adult no longer resides in the unit. The regulations require that the work-out agreement include the means through which a noncompliant family member will comply with the CSSR requirement. [24 CFR 960.607(c), Notice PIH 2015-12]. The terms of the CSSR work-out agreement are on the reverse side of this page. Enforcement: Should a family member refuse to sign this CSSR work-out agreement, or fail to comply with the terms of this CSSR work-out agreement, or fail to provide satisfactory written assurance that the noncompliant adult no longer resides in the unit, _________ (insert name of PHA) is required to initiate termination of tenancy proceedings at the end of the current 12-month lease [24 CFR 966.53(c)]. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 11-30 Terms of CSSR Work-Out Agreement Noncompliant Adult: Please check one of the below boxes: I [head of household or spouse/cohead] certify that the noncompliant adult named above no longer resides in the unit. [Verification attached.] I, the noncompliant adult named above, agree to complete hours in the upcoming 12-month lease term. These hours include the hours not fulfilled in the most previous lease term, plus the 96 hours for the upcoming lease term. Below is a description of means through which I will comply with the CSSR requirement: Description of Activity Number of Hours 1. 2. 3. 4. 5. Total Hours SIGNED AND ATTESTED THIS DATE Signature: Date: Head of Household Signature: Date: Noncompliant Adult, if other than Head of Household Signature: Date: PHA Official © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-1 Chapter 12 TRANSFER POLICY INTRODUCTION This chapter explains the PHA’s transfer policy, based on HUD regulations, HUD guidance, and Hopkins HRA Policy decisions. This chapter describes HUD regulations and PHA policies related to transfers in four parts: Part I: Emergency Transfers. This part describes emergency transfers, emergency transfer procedures, and payment of transfer costs. Part II: PHA Required Transfers. This part describes types of transfers that may be required by the PHA, notice requirements, and payment of transfer costs. Part III: Transfers Requested by Residents. This part describes types of transfers that may be requested by residents, eligibility requirements, security deposits, payment of transfer costs, and handling of transfer requests. Part IV: Transfer Processing. This part describes creating a waiting list, prioritizing transfer requests, the unit offer policy, examples of good cause, deconcentration, transferring to another development and reexamination. The PHA may require the tenant to move from the unit under some circumstances. There are also emergency circumstances under which alternate accommodations for the tenant must be provided, that may or may not require a transfer. The tenant may also request a transfer, such as a request for a new unit as a reasonable accommodation. The PHA must have specific policies in place to deal with acceptable transfer requests. PART I: EMERGENCY TRANSFERS 12-I.A. OVERVIEW HUD categorizes certain situations that require emergency transfers [PH Occ GB, p. 147]. The emergency transfer differs from a typical transfer in that it requires immediate action by the PHA. In the case of a genuine emergency, it may be unlikely that the PHA will have the time or resources to immediately transfer a tenant. Due to the immediate need to vacate the unit, placing the tenant on a transfer waiting list would not be appropriate. Under such circumstances, if an appropriate unit is not immediately available, the PHA should find alternate accommodations for the tenant until the emergency passes, or a permanent solution, i.e., return to the unit or transfer to another unit, is possible. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-2 12-I.B. EMERGENCY TRANSFERS If the dwelling unit is damaged to the extent that conditions are created which are hazardous to life, health, or safety of the occupants, the PHA must offer standard alternative accommodations, if available, where necessary repairs cannot be made within a reasonable time [24 CFR 966.4(h)]. VAWA requires the PHA to adopt an emergency transfer plan for victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking. Hopkins HRA Policy The following are considered emergency circumstance warranting an immediate transfer of the tenant or family: A verified incident of domestic violence, dating violence, sexual assault, stalking, or human trafficking. For instances of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the threat may be established through documentation outlined in section 16-VII.D. In order to request the emergency transfer, the requestor must submit an emergency transfer request form (HUD- 5383) (Exhibit 16-4 of this ACOP), although, the PHA may waive this requirement in order to expedite the transfer process. The PHA will immediately process requests for transfers due to domestic violence, dating violence, sexual assault, stalking, or human trafficking. The PHA will allow a tenant to make an internal emergency transfer under VAWA when a safe unit is immediately available. The PHA defines immediately available as a vacant unit, that is ready for move-in within a reasonable period of time, not to exceed 30 days. If an internal transfer to a safe unit is not immediately available, the PHA will assist the resident in seeking an external emergency transfer either within or outside the PHA’s programs. The PHA has adopted a VAWA emergency transfer plan, which is included as Exhibit 16-3 to this plan. Maintenance conditions in the resident’s unit, building or at the site that pose an immediate, verifiable threat to the life, health, or safety of the resident or family members that cannot be repaired or abated within 24 hours. Examples of such unit or building conditions would include: a gas leak, no heat in the building during the winter, no water, toxic contamination, and serious water leaks. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-3 12-I.C. EMERGENCY TRANSFER PROCEDURES Hopkins HRA Policy Any condition that would produce an emergency work order would qualify a family for an emergency transfer if the repairs cannot be made within 24 hours. If the transfer is necessary because of maintenance conditions, and an appropriate unit is not immediately available, the PHA will provide temporary accommodations to the tenant by arranging for temporary lodging at a hotel or similar location. The family is entitled to alternative accommodations even if the tenant, household member, guest, or other covered person is responsible for the damage that caused the hazard or if a family is in the process of being evicted. If the conditions that required the transfer cannot be repaired, or the condition cannot be repaired in a reasonable amount of time, the PHA will transfer the resident to the first available and appropriate unit after the temporary relocation. Emergency transfers that arise due to maintenance conditions are mandatory for the tenant. If the emergency transfer is necessary to protect a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will follow procedures outlined in Exhibit 16-4. 12-I.D. COSTS OF TRANSFER Hopkins HRA Policy The PHA will bear the reasonable costs of temporarily accommodating the tenant and of long-term transfers, if any, due to emergency conditions. The reasonable cost of transfers includes the cost of packing, moving, and unloading. The PHA will establish a moving allowance based on the typical costs in the community of packing, moving, and unloading. To establish typical costs, the PHA will collect information from companies in the community that provide these services. The PHA will reimburse the family for eligible out-of-pocket moving expenses up to the PHA’s established moving allowance. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-4 © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-5 PART II: PHA REQUIRED TRANSFERS 12-II.A. OVERVIEW HUD regulations regarding transfers are minimal, leaving it up to the PHA to develop reasonable transfer policies. The PHA may require that a resident transfer to another unit under some circumstances. For example, the PHA may require a resident to transfer to make an accessible unit available to a disabled family. The PHA may also transfer a resident in order to maintain occupancy standards based on family composition. Finally, a PHA may transfer residents in order to demolish or renovate the unit. A transfer that is required by the PHA is an adverse action, and is subject to the notice requirements for adverse actions [24 CFR 966.4(e)(8)(i)]. 12-II.B. TYPES OF PHA REQUIRED TRANSFERS Hopkins HRA Policy The types of transfers that may be required by the PHA, include, but are not limited to, transfers to make an accessible unit available for a disabled family, transfers for demolition, disposition, revitalization, or rehabilitation, and emergency transfers as discussed in Part I of this chapter. Transfers required by the PHA are mandatory for the tenant. The family will be given 15 days to vacate the unit after receipt of written notice. Transfers to Make an Accessible Unit Available When a family is initially given an accessible unit, but does not require the accessible features, the PHA may require the family to agree to move to a non-accessible unit when it becomes available [24 CFR 8.27(b)]. Hopkins HRA Policy When a non-accessible unit becomes available, the PHA will transfer a family living in an accessible unit that does not require the accessible features, to an available unit that is not accessible. The PHA may wait until a disabled resident requires the accessible unit before transferring the family that does not require the accessible features out of the accessible unit. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-6 Demolition, Disposition, Revitalizations, or Rehabilitation, Including Rental Assistance Demonstration (RAD) Conversions Transfers These transfers permit the PHA to demolish, sell or do major capital or rehabilitation work at a building site [PH Occ GB, page 148]. Hopkins HRA Policy The PHA will relocate a family when the unit or site in which the family lives is undergoing major rehabilitation that requires the unit to be vacant, or the unit is being disposed of or demolished. The PHA’s relocation plan may or may not require transferring affected families to other available public housing units. If the relocation plan calls for transferring public housing families to other public housing units, affected families will be placed on the transfer list. In cases of revitalization or rehabilitation, the family may be offered a temporary relocation if allowed under Relocation Act provisions, and may be allowed to return to their unit, depending on contractual and legal obligations, once revitalization or rehabilitation is complete. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-7 12-II.C. ADVERSE ACTION [24 CFR 966.4(e)(8)(i)] A PHA required transfer is an adverse action. As an adverse action, the transfer is subject to the requirements regarding notices of adverse actions. If the family requests a grievance hearing within the required timeframe, the PHA may not take action on the transfer until the conclusion of the grievance process. 12-II.D. COST OF TRANSFER Hopkins HRA Policy The PHA will bear the reasonable costs of transfers that the PHA requires. The reasonable costs of transfers include the cost of packing, moving, and unloading. The PHA will establish a moving allowance based on the typical costs in the community of packing, moving, and unloading. To establish typical costs, the PHA will collect information from companies in the community that provide these services. The PHA will reimburse the family for eligible out-of-pocket moving expenses up to the PHA’s established moving allowance. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-8 PART III: TRANSFERS REQUESTED BY TENANTS 12-III.A. OVERVIEW HUD provides the PHA with discretion to consider transfer requests from tenants. The only requests that the PHA is required to consider are requests for reasonable accommodation. All other transfer requests are at the discretion of the PHA. To avoid administrative costs and burdens, this policy limits the types of requests that will be considered by the PHA. Some transfers that are requested by tenants should be treated as higher priorities than others due to the more urgent need for the transfer. 12-III.B. TYPES OF RESIDENT-REQUESTED TRANSFERS Hopkins HRA Policy The types of requests for transfers that the PHA will consider are limited to requests for transfers to alleviate a serious or life-threatening medical condition, transfers due to a threat of physical harm or criminal activity, reasonable accommodation. No other transfer requests will be considered by the PHA. The PHA will consider the following as high priority transfer requests: When a transfer is needed to alleviate verified medical problems of a serious or life-threatening nature. When there has been a verified threat of physical harm or criminal activity. Such circumstances may, at the PHA’s discretion, include an assessment by law enforcement indicating that a family member is the actual or potential victim of a criminal attack, retaliation for testimony, or a hate crime. When a family requests a transfer as a reasonable accommodation. Examples of a reasonable accommodation transfer include, but are not limited to, a transfer to a first-floor unit for a person with mobility impairment, or a transfer to a unit with accessible features. Transfers requested by the tenant are considered optional for the tenant. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-9 12-III.C. ELIGIBILITY FOR TRANSFER Transferring residents do not have to meet the admission eligibility requirements pertaining to income or preference. However, the PHA may establish other standards for considering a transfer request [PH Occ GB, p. 150]. Hopkins HRA Policy Except where reasonable accommodation is being requested, the PHA will only consider transfer requests from residents that meet the following requirements: Have not engaged in criminal activity that threatens the health and safety of residents and staff Owe no back rent or other charges, or have a pattern of late payment Have no housekeeping lease violations or history of damaging property A resident with housekeeping standards violations will not be transferred until the resident passes a follow-up housekeeping inspection. Exceptions to the good record requirement may be made when it is to the PHA’s advantage to make the transfer. Exceptions will also be made when the PHA determines that a transfer is necessary to protect the health or safety of a resident who is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and who provides documentation of abuse in accordance with section 16-VII.D of this ACOP. Tenants who are not in good standing may still request an emergency transfer under VAWA. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-10 12-III.D. SECURITY DEPOSITS Hopkins HRA Policy When a family transfers from one unit to another, the PHA will transfer their security deposit to the new unit. The tenant will be billed for any maintenance or others charges due for the “old” unit. 12-III.E. COST OF TRANSFER The PHA must pay moving expenses to transfer a resident with a disability to an accessible unit as an accommodation for the resident’s disability [Notice PIH 2010-26]. Hopkins HRA Policy The resident will bear all of the costs of transfer they request. However, the PHA will bear the transfer costs when the transfer is done as a reasonable accommodation. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-11 12-III.F. HANDLING OF REQUESTS Hopkins HRA Policy Residents requesting a transfer to another unit will be required to submit a written request for transfer. In order to request the emergency transfer under VAWA, the resident will be required to submit an emergency transfer request form (HUD-5383) (Exhibit 16-4 of this ACOP). The PHA may, on a case-by-case basis, waive this requirement and accept a verbal request to expedite the transfer process. If the PHA accepts an individual’s statement, the PHA will document acceptance of the statement in the individual’s file in accordance with 16-VII.D. of this ACOP. Transfer requests under VAWA will be processed in accordance with the PHA’s Emergency Transfer Plan (Exhibit 16-3). In case of a reasonable accommodation transfer, the PHA will encourage the resident to make the request in writing using a reasonable accommodation request form. However, the PHA will consider the transfer request any time the resident indicates that an accommodation is needed whether or not a formal written request is submitted. The PHA will respond by approving the transfer and putting the family on the transfer list, by denying the transfer, or by requiring more information or documentation from the family, such as documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking in accordance with section 16-VII.D of this ACOP. If the family does not meet the “good record” requirements under Section 12-III.C., the manager will address the problem and, until resolved, the request for transfer will be denied. The PHA will respond within ten (10) business days of the submission of the family’s request. If the PHA denies the request for transfer, the family will be informed of its grievance rights. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-12 PART IV: TRANSFER PROCESSING 12-IV.A. OVERVIEW Generally, families who request a transfer should be placed on a transfer list and processed in a consistent and appropriate order. The transfer process must be clearly auditable to ensure that residents do not experience inequitable treatment. 12-IV.B. TRANSFER LIST Hopkins HRA Policy The PHA will maintain a centralized transfer list to ensure that transfers are processed in the correct order and that procedures are uniform across all properties. Emergency transfers will not automatically go on the transfer list. Instead emergency transfers will be handled immediately, on a case by case basis. If the emergency cannot be resolved by a temporary accommodation, and the resident requires a permanent transfer, the family will be placed at the top of the transfer list. Transfers will be processed in the following order: 1. Emergency transfers (hazardous maintenance conditions, VAWA) 2. High-priority transfers (verified medical condition, threat of harm or criminal activity, and reasonable accommodation) 3. Transfers to make accessible units available 4. Demolition, renovation, etc. 5. Other PHA-required transfers Within each category, transfers will be processed in order of the date a family was placed on the transfer list, starting with the earliest date. With the approval of the executive director, the PHA may, on a case-by-case basis, transfer a family without regard to its placement on the transfer list to address the immediate need of a family in crisis. Demolition and renovation transfers will gain the highest priority as necessary to allow the PHA to meet the demolition or renovation schedule. Transfers will take precedence over waiting list admissions. © Copyright 2023 by Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. Page 12-13 12-IV.C. TRANSFER OFFER POLICY Hopkins HRA Policy Residents will receive one offer of a transfer. When the transfer is required by the PHA, the refusal of that offer without good cause will result in lease termination. When the transfer has been requested by the resident, the refusal of that offer without good cause will result in the removal of the family from the transfer list. In such cases, the family must wait six months to reapply for another transfer. 12-IV.D. GOOD CAUSE FOR UNIT REFUSAL Hopkins HRA Policy Examples of good cause for refusal of a unit offer include, but are not limited to, the following: The family demonstrates to the PHA’s satisfaction that accepting the offer will place a family member’s life, health, or safety in jeopardy. The family should offer specific and compelling documentation such as restraining orders, other court orders, risk assessments related to witness protection from a law enforcement agency, or documentation of domestic violence, dating violence, stalking, or human trafficking in accordance with section 16-VII.D of this ACOP. Reasons offered must be specific to the family. A health professional verifies temporary hospitalization or recovery from illness of the principal household member, other household members (as listed on final application) or live-in aide necessary to the care of the principal household member. The unit is inappropriate for the applicant’s disabilities, or the family does not need the accessible features in the unit offered and does not want to be subject to a 30-day notice to move. The PHA will require documentation of good cause for unit refusals. 12-IV.E. REEXAMINATION POLICIES FOR TRANSFERS Hopkins HRA Policy The reexamination date will not be changed because of a transfer. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-1 Chapter 13 LEASE TERMINATIONS INTRODUCTION Either party to the dwelling lease agreement may terminate the lease in accordance with the terms of the lease. A public housing lease is different from a private dwelling lease in that the family’s rental assistance is tied to their tenancy. When the family moves from their public housing unit, they lose their rental assistance. Therefore, there are additional safeguards to protect the family’s tenancy in public housing. Likewise, there are safeguards to protect HUD’s interest in the public housing program. The PHA has the authority to terminate the lease because of the family’s failure to comply with HUD regulations, for serious or repeated violations of the terms of the lease, and for other good cause. HUD regulations also specify when termination of the lease is mandatory by the PHA. When determining PHA policy on terminations of the lease, the PHA must consider state and local landlord-tenant laws in the area where the PHA is located. Such laws vary from one location to another, and these variances may be either more or less restrictive than federal law or HUD regulation. This chapter presents the policies that govern voluntary termination of the lease by the family and the mandatory and voluntary termination of the lease by the PHA. It is presented in four parts: Part I: Termination by Tenant. This part discusses the PHA requirements for voluntary termination of the lease by the family. Part II: Termination b y PHA - Mandatory. This part describes circumstances when termination of the lease by the PHA is mandatory. This part also explains nonrenewal of the lease for noncompliance with community service requirements and families that have been over the income limit for 24 consecutive months. Part III: Termination by PHA – Other Authorized Reasons. This part describes the PHA’s options for lease termination that are not mandated by HUD regulation but for which HUD authorizes PHAs to terminate. For some of these options HUD requires the PHA to establish policies and lease provisions for termination, but termination is not mandatory. For other options the PHA has full discretion whether to consider the options as just cause to terminate as long as the PHA policies are reasonable, nondiscriminatory, and do not violate state or local landlord-tenant law. This part also discusses the alternatives that the PHA may consider in lieu of termination, and the criteria the PHA will use when deciding what actions to take. Part IV: Notification Requirements. This part presents the federal requirements for disclosure of criminal records to the family prior to termination, the HUD requirements and PHA policies regarding the timing and content of written notices for lease termination and eviction, and notification of the post office when eviction is due to criminal activity. This part also discusses record keeping related to lease termination. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-2 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-3 PART I: TERMINATION BY TENANT 13-I.A. TENANT CHOOSES TO TERMINATE THE LEASE [24 CFR 966.4(k)(1)(ii) and 24 CFR 966.4(l)(1)] The family may terminate the lease at any time, for any reason, by following the notification procedures as outlined in the lease. Such notice must be in writing and delivered to the property site office or the PHA central office or sent by pre-paid first-class mail, properly addressed. Hopkins HRA Policy If a family desires to move and terminate their tenancy with the PHA, they must give at least 30 calendar days advance written notice to the PHA of their intent to vacate. When a family must give less than 30 days’ notice due to circumstances beyond their control the PHA, at its discretion, may waive the 30-day requirement. The notice of lease termination must be signed by the head of household, spouse, or cohead. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-4 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-5 PART II: TERMINATION BY PHA – MANDATORY 13-II.A. OVERVIEW HUD requires mandatory termination of the lease for certain actions or inactions of the family. There are other actions or inactions of the family that constitute grounds for lease termination, but the lease termination is not mandatory. The PHA must establish policies for termination of the lease in these cases where termination is optional for the PHA. For those tenant actions or failures to act where HUD requires termination, the PHA has no such option. In those cases, the family’s lease must be terminated. This part describes situations in which HUD requires the PHA to terminate the lease. 13-II.B. FAILURE TO PROVIDE CONSENT [24 CFR 960.259(a) and (b)] The PHA must terminate the lease if any family member fails to sign and submit any consent form s/he is required to sign for any reexamination. See Chapter 7 for a complete discussion of consent requirements. 13-II.C. FAILURE TO DOCUMENT CITIZENSHIP [24 CFR 5.514(c) and (d) and 24 CFR 960.259(a)] The PHA must terminate the lease if (1) a family fails to submit required documentation within the required timeframe concerning any family member’s citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family, resulting in no eligible family members; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to reside (on a permanent basis) in the unit. For (3), such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family’s assistance has been prorated. See Chapter 7 for a complete discussion of documentation requirements. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-6 13-II.D. FAILURE TO DISCLOSE AND DOCUMENT SOCIAL SECURITY NUMBERS [24 CFR 5.218(c), 24 CFR 960.259(a)(3), Notice PIH 2018-24] The PHA must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number. However, if the family is otherwise eligible for continued program assistance, and the PHA determines that the family’s failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family’s control, the PHA may defer the family’s termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant. Hopkins HRA Policy The PHA will defer the family’s termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant’s control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline. See Chapter 7 for a complete discussion of documentation and certification requirements. 13-II.E. FAILURE TO ACCEPT THE PHA’S OFFER OF A LEASE REVISION [24 CFR 966.4(l)(2)(ii)(E)] The PHA must terminate the lease if the family fails to accept the PHA’s offer of a lease revision to an existing lease, provided the PHA has done the following: • The revision is on a form adopted by the PHA in accordance with 24 CFR 966.3 pertaining to requirements for notice to tenants and resident organizations and their opportunity to present comments. • The PHA has made written notice of the offer of the revision at least 60 calendar days before the lease revision is scheduled to take effect. • The PHA has specified in the offer a reasonable time limit within that period for acceptance by the family. See Chapter 8 for information pertaining to PHA policies for offering lease revisions. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-7 13-II.F. METHAMPHETAMINE CONVICTION [24 CFR 966.4(l)(5)(i)(A)] The PHA must immediately terminate the lease if the PHA determines that any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally assisted housing. See Part 13-III.B. below for the HUD definition of premises. 13-II.G. LIFETIME REGISTERED SEX OFFENDERS [Notice PIH 2012-28] Should a PHA discover that a member of an assisted household was subject to a lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately terminate assistance for the household member. In this situation, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household. 13-II.H. NONCOMPLIANCE WITH COMMUNITY SERVICE REQUIREMENTS [24 CFR 966.4(l)(2)(ii)(D), 24 CFR 960.603(b) and 24 CFR 960.607(b)(2)(ii) and (c)] The PHA is prohibited from renewing the lease at the end of the 12-month lease term when the family fails to comply with the community service requirements as described in Chapter 11. 13-II.I. DEATH OF A SOLE FAMILY MEMBER [Notice PIH 2012-4] The PHA must immediately terminate the lease following the death of the sole family member. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-8 13-II.J. FAILURE TO MEET ASSET LIMITATION REQUIREMENTS [24 CFR 5.618 and 24 CFR 966.4(a)(iv)(2)(iii)] (Effective TBD but no later than January 1, 2025) The PHA must terminate assistance based on the restrictions on net family assets and real property ownership, which are discussed in detail in Chapter 3. When recertifying the income of a family that is subject to the asset limitation, a PHA may adopt a policy to not enforce such restrictions for a period of up to six months from the effective date of the family’s annual or interim reexamination, during which time the family is given an opportunity to cure noncompliance with the asset limitation. The PHA may apply such policy to all families or may establish exceptions based on certain eligibility criteria, provided those criteria conform with applicable fair housing statutes and regulations. In either case, the PHA may delay for a period of not more than six months the initiation of eviction or termination proceedings unless it conflicts with other provisions of law. Hopkins HRA Policy If at any interim or annual reexamination, a previously eligible family is found to no longer meet the limitation on net family assets or real property described at 24 CFR 5.618, the PHA will notify the family in writing of such findings. The notice will inform the family that they do not meet the restriction on net family assets and that they have up to six months after the effective date of their annual or interim reexamination to cure the noncompliance. The notice will further explain that should the family continue to be in noncompliance, the PHA will terminate the family’s assistance and provide the expected date of termination. The notice will also inform the family of their right to request a hearing in accordance with PHA policies. The PHA will delay the initiation of termination proceedings for a period of six months from the effective date of the reexamination for all families found to be in noncompliance with the asset limitation. The PHA will give such families the opportunity to cure the noncompliance by presenting evidence that the family’s net assets no longer exceed $100,000 (adjusted annually), that the family meets one of the exceptions for real property ownership (as applicable and detailed in Chapter 3 of this policy), or that the family has sold or no longer effectively owns real property that is suitable for occupancy. The family must present such evidence to the PHA in writing prior to the termination date listed in the PHA’s notice to the family. For any family not meeting the asset limitation requirements, under no circumstances will the PHA delay termination of assistance for a period of more than six months. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-9 13-II.K. OVER_INCOME FAMILIES [24 CFR 960.507; FR Notice 7/26/18; Notice PIH 2023-03; FR Notice 2/14/23] In the public housing program, an over-income family is defined as a family whose income exceeds the over-income limit for 24 consecutive months. When this occurs, the PHA must either: • Terminate the family’s tenancy within six months of the PHA’s final notification of the end of the 24-month grace period; or • Within 60 days of the PHA’s final notification of the end of the 24-month grace period or the next lease renewal (whichever is sooner), have the family execute a new lease that is consistent with 24 CFR 960.509 and charge the family a monthly rent that is the higher of the applicable fair market rent (FMR) or the amount of monthly subsidy for the unit, including amounts from the operating and capital funds. Hopkins HRA Policy For families whose income exceeds the over-income limit for 24 consecutive months, the PHA will terminate the family’s tenancy within six months of the PHA’s final notification of the end of the 24-month grace period. Over-Income Limit [Notice PIH 2023-03] The PHA must publish over-income limits in their ACOP and update them no later than 60 days after HUD publishes new income limits each year. The over-income limit is calculated by multiplying the very low-income limit (VLI) by 2.4, as adjusted for family size. Hopkins HRA Policy The PHA will rely on the following over-income limits. These numbers will be updated within 60 days of HUD publishing new income limits each year and will be effective for all annual and interim reexaminations once these policies have been adopted. Family Size 1 2 Over-Income Limit $104,400 $119,280 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-10 Decreases in Income [24 CFR 960.507(c)(4)] If, at any time during the consecutive 24-month period following the initial over-income determination, the PHA determines that the family’s income is below the over-income limit, the PHA’s over-income policies no longer apply to the family. If the PHA later determines that the family’s income exceeds the over-income limit at a subsequent annual or interim reexamination, the family is entitled to a new 24 consecutive month period and new notices under this section. Hopkins HRA Policy If, at any time during the 24-month period following the initial over-income determination, an over-income family experiences a decrease in income, the family may request an interim redetermination of rent in accordance with PHA policy in Chapter 9. If, as a result, the previously over-income family is now below the over-income limit, the family is no longer subject to over-income provisions as of the effective date of the recertification. The PHA will notify the family in writing within 10 business days of the determination that over-income policies no longer apply to them. Initial Notice of Over-Income Status [24 CFR 960.507(c)(1); Notice PIH 2023-03] If the PHA determines the family has exceeded the over-income limit during an annual or interim reexamination, the PHA must provide written notice to the family of the over-income determination no later than 30 days after the income examination. The notice must state that the family has exceeded the over-income limit and continuing to do so for a total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-income families. The PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA’s determination that the family has exceeded the over-income limit. Exhibits 13-1 and 13-2 provide sample initial notices based on HUD’s model notices. Hopkins HRA Policy At annual or interim reexamination, if a family’s income exceeds the applicable over- income limit, the PHA will make a note in the tenant file to calculate the family’s income again 12 months later. Within 10 business days the PHA will notify the family in writing of the determination and that if the family continues to be over-income for 24 consecutive months, the family will be subject to the PHA’s over-income policies. The notice will state that the family may request a hearing if the family disputes the PHA’s determination in accordance with PHA policies in Chapter 14. The PHA will ensure that all notices and communications are provided in a manner that is effective for persons with hearing, visual, and other impairments. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-11 Second Notice of Over-Income Status [24 CFR 960.507(c)(2); Notice PIH 2023-03] The PHA must conduct an income examination 12 months after the initial over-income determination, unless the PHA determined the family’s income fell below the over-income limit since the initial over-income determination. If the PHA determines the family continues to exceed the over-income limit for 12 consecutive months, the PHA must provide written notification of this 12-month over-income determination no later than 30 days after the income examination. The notice must state that the family has exceeded the over-income limit for 12 consecutive months and continuing to do so for a total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-income families. Additionally, if applicable under PHA policy, the notice must include an estimate (based on current data) of the alternative non-public housing rent for the family’s unit. The PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA’s determination that the family has exceeded the over-income limit. Exhibits 13-3 and 13-4 provide sample 12-month notices based on HUD’s model notices. Hopkins HRA Policy If a family’s income exceeds the applicable over-income limit after 12 consecutive months, the PHA will make a note in the tenant file to calculate the family’s income again 12 months later. Within 10 business days, the PHA will notify the family in writing of the determination and that if the family continues to be over-income for 24 consecutive months, the family will be subject to the PHA’s over-income policies. The notice will also state that the family may request a hearing if the family disputes the PHA’s determination in accordance with PHA policies in Chapter 14. The PHA will ensure that all notices and communications are provided in a manner that is effective for persons with hearing, visual, and other impairments. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-12 Final Notice of Over-Income Status [24 CFR 960.507(c)(3) and 960.509; Notice PIH 2023-03] Unless the PHA determined the family’s income fell below the over-income limit since the second over-income determination, the PHA must conduct an income examination 24 months after the initial over income determination. If the family continues to be over-income based on this determination, the PHA must provide written notification of this determination no later than 30 days after the income examination. The notice must state that the family has exceeded the over-income limit for 24 consecutive months and that the PHA will follow its continued occupancy policies for over-income families. The PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA’s determination that the family has exceeded the over-income limit. Exhibits 13-5 and 13-6 provide sample 24-month notices based on HUD’s model notices. Hopkins HRA Policy If a family’s income exceeds the applicable over-income limit for 24 consecutive months, the PHA will notify the family in writing of the determination within 10 business days of the date of the determination. The PHA will ensure that all notices and communications are provided in a manner that is effective for persons with hearing, visual, and other impairments. The notice will state that the family will be terminated within six months. For families whose income exceeds the over-income limit for 24 consecutive months, the PHA will terminate the tenancy of the family no more than six months after the final notification of the family’s over-income status in accordance with the continued occupancy policies below. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-13 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-14 PART III: TERMINATION BY PHA – OTHER AUTHORIZED REASONS 13-III.A. OVERVIEW Besides requiring PHAs to terminate the lease under the circumstances described in Part II, HUD requires the PHA to establish provisions in the lease for termination pertaining to certain criminal activity, alcohol abuse, and certain household obligations stated in the regulations. While these provisions for lease termination must be in the lease agreement, HUD does not require PHAs to terminate for such violations in all cases. The PHA has the discretion to consider circumstances surrounding the violation or, in applicable situations, whether the offending household member has entered or completed rehabilitation, and the PHA may, as an alternative to termination, require the exclusion of the culpable household member. The PHA must adopt policies concerning the use of these options. In addition, HUD authorizes PHAs to terminate the lease for other grounds, but for only those grounds that constitute serious or repeated violations of material terms of the lease or for other good cause. The PHA must develop policies pertaining to what constitutes serious or repeated lease violations, and other good cause, based upon the content of the PHA lease. In the development of the terms of the lease, the PHA must consider the limitations imposed by state and local landlord-tenant law, as well as HUD regulations and federal statutes. Because of variations in state and local landlord-tenant law, and because HUD affords PHAs wide discretion in some areas, a broad range of policies could be acceptable. The PHA also has the option to terminate the tenancies of certain over-income families. The PHA may consider alternatives to termination and must establish policies describing the criteria the PHA will use when deciding what action to take, the types of evidence that will be acceptable, and the steps the PHA must take when terminating a family’s lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-15 13-III.B. MANDATORY LEASE PROVISIONS [24 CFR 966.4(l)(5)] This section addresses provisions for lease termination that must be included in the lease agreement according to HUD regulations. Although the provisions are required, HUD does not require PHAs to terminate for such violations in all cases, therefore PHA policies are needed. Definitions [24 CFR 5.100] The following definitions will be used for this and other parts of this chapter: Affiliated individual is defined in section 16-VII.B. Covered person means a tenant, any member of the tenant’s household, a guest, or another person under the tenant’s control. Dating violence is defined in section 16-VII.B. Domestic violence is defined in section 16-VII.B. Drug means a controlled substance as defined in section 102 of the Controlled Substances Act [21 U.S.C. 802]. Drug-related criminal activity means the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with the intent to manufacture, sell, distribute, or use the drug. Guest means a person temporarily staying in the unit with the consent of a tenant or other member of the household who has express or implied authority to so consent on behalf of the tenant. Household means the family and PHA-approved live-in aide. The term household also includes foster children and/or foster adults that have been approved to reside in the unit [HUD-50058, Instruction Booklet, p. 65]. Other person under the tenant’s control means that the person, although not staying as a guest in the unit, is, or was at the time of the activity in question, on the premises because of an invitation from the tenant or other member of the household who has express or implied authority to so consent on behalf of the tenant. Absent evidence to the contrary, a person temporarily and infrequently on the premises solely for legitimate commercial purposes is not under the tenant’s control. Premises means the building or complex or development in which the public or assisted housing dwelling unit is located, including common areas and grounds. Sexual assault is defined in section 16-VII.B. Stalking is defined in section 16-VII.B. Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-16 Drug Crime On or Off the Premises [24 CFR 966.4(l)(5)(i)(B)] The lease must provide that drug-related criminal activity engaged in on or off the premises by the tenant, member of the tenant’s household or guest, or any such activity engaged in on the premises by any other person under the tenant’s control is grounds for termination. Hopkins HRA Policy The PHA will terminate the lease for drug-related criminal activity engaged in on or off the premises by any tenant, member of the tenant’s household or guest, and any such activity engaged in on the premises by any other person under the tenant’s control. The PHA will consider all credible evidence, including but not limited to, any record of arrests or convictions of covered persons related to the drug-related criminal activity. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. The PHA will also consider violations of the crime-free, drug-free addendum required of all renters in the City of Hopkins to be grounds for terminations. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. Illegal Use of a Drug [24 CFR 966.4(l)(5)(i)(B)] The lease must provide that a PHA may evict a family when the PHA determines that a household member is illegally using a drug or that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. Hopkins HRA Policy The PHA will terminate the lease when the PHA determines that a household member is illegally using a drug or the PHA determines that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. A pattern of illegal drug use means more than one incident of any use of illegal drugs during the previous six months. The PHA will also consider violations of the crime-free, drug-free addendum required of all renters in the City of Hopkins to be grounds for terminations. The PHA will consider all credible evidence, including but not limited to, any record of arrests or convictions of household members related to the use of illegal drugs. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-17 Threat to Other Residents [24 CFR 966.4(l)(5)(ii)(A)] The lease must provide that any criminal activity by a covered person that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including PHA management staff residing on the premises) or by persons residing in the immediate vicinity of the premises is grounds for termination of tenancy. Hopkins HRA Policy The PHA will terminate the lease when a covered person engages in any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including PHA management staff residing on the premises) or by persons residing in the immediate vicinity of the premises. Immediate vicinity means within a three-block radius of the premises. The PHA will consider all credible evidence, including but not limited to, any record of arrests or convictions of covered persons related to the criminal activity. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. The PHA will also consider violations of the crime-free, drug-free addendum required of all renters in the City of Hopkins to be grounds for terminations. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-18 Alcohol Abuse [24 CFR 966.4(l)(5)(vi)(A)] PHAs must establish standards that allow termination of tenancy if the PHA determines that a household member has engaged in abuse or pattern of abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Hopkins HRA Policy The PHA will terminate the lease if the PHA determines that a household member has engaged in abuse or a pattern of abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. A pattern of such alcohol abuse means more than one incident of any such abuse of alcohol during the previous six months. The PHA will consider all credible evidence, including but not limited to, any record of arrests or convictions of household members related to the abuse of alcohol. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. The PHA will also consider violations of the crime-free, drug-free addendum required of all renters in the City of Hopkins to be grounds for terminations. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-19 Furnishing False or Misleading Information Concerning Illegal Drug Use or Alcohol Abuse or Rehabilitation [24 CFR 966.4(l)(5)(vi)(B)] PHAs must establish standards that allow termination of tenancy if the PHA determines that a household member has furnished false or misleading information concerning illegal drug use, alcohol abuse, or rehabilitation of illegal drug users or alcohol abusers. Hopkins HRA Policy The PHA will terminate the lease if the PHA determines that a household member has furnished false or misleading information concerning illegal drug use, alcohol abuse, or rehabilitation of illegal drug users or alcohol abusers. The PHA will consider all credible evidence, including but not limited to, any record of arrests or convictions of household members related to the use of illegal drugs or the abuse of alcohol, and any records or other documentation (or lack of records or documentation) supporting claims of rehabilitation of illegal drug users or alcohol abusers. The PHA will also consider violations of the crime-free, drug-free addendum required of all renters in the City of Hopkins to be grounds for terminations. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-20 Other Serious or Repeated Violations of Material Terms of the Lease – Mandatory Lease Provisions [24 CFR 966.4(l)(2)(i) and 24 CFR 966.4(f)] HUD regulations require certain tenant obligations to be incorporated into the lease. Violations of such regulatory obligations are considered to be serious or repeated violations of the lease and grounds for termination. Incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed as serious or repeated violations of the lease by the victim or threatened victim [24 CFR 5.2005(c)(1)]. Hopkins HRA Policy The PHA will terminate the lease for the following violations of tenant obligations under the lease: Failure to make payments due under the lease, including nonpayment of rent (see Chapter 8 for details pertaining to lease requirements for payments due); Repeated late payment of rent or other charges. Four late payments within a 12-month period shall constitute a repeated late payment. Failure to fulfill the following household obligations: Not to assign the lease or to sublease the dwelling unit. Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member. Not to provide accommodations for boarders or lodgers To use the dwelling unit solely as a private dwelling for the tenant and the tenant’s household as identified in the lease, and not to use or permit its use for any other purpose To abide by necessary and reasonable regulations promulgated by the PHA for the benefit and well-being of the housing project and the tenants which shall be posted in the project office and incorporated by reference in the lease To comply with all obligations imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety To keep the dwelling unit and such other areas as may be assigned to the tenant for the tenant’s exclusive use in a clean and safe condition To dispose of all ashes, garbage, rubbish, and other waste from the dwelling unit in a sanitary and safe manner © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-21 To use only in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other facilities and appurtenances including elevators To refrain from, and to cause the household and guests to refrain from destroying, defacing, damaging, or removing any part of the dwelling unit or project To pay reasonable charges (other than for normal wear and tear) for the repair of damages to the dwelling unit, or to the project (including damages to project buildings, facilities or common areas) caused by the tenant, a member of the household or a guest To act, and cause household members or guests to act, in a manner which will not disturb other residents’ peaceful enjoyment of their accommodations and will be conducive to maintaining the project in a decent, safe and sanitary condition To act in a cooperative manner with neighbors and PHA staff. To refrain from acting or speaking in an abusive or threatening manner towards neighbors, PHA staff, or PHA contractors. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors as described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-22 13-III.C. OTHER AUTHORIZED REASONS FOR TERMINATION [24 CFR 966.4(l)(2) and (5)(ii)(B)] HUD authorizes PHAs to terminate the lease for reasons other than those described in the previous sections. These reasons are referred to as “other good cause.” Other Good Cause [24 CFR 966.4(l)(2)(ii)(B) and (C)] HUD regulations state that the PHA may terminate tenancy for other good cause. The regulations provide a few examples of other good cause, but do not limit the PHA to only those examples. The Violence against Women Act prohibits PHAs from considering incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking as “other good cause” for terminating the assistance, tenancy, or occupancy rights of the victim or threatened victim of such violence [see 24 CFR 5.2005(c)(1)]. Hopkins HRA Policy The PHA will terminate the lease for the following reasons. Fugitive Felon or Parole Violator. If a tenant is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime, or attempt to commit a crime, that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or violating a condition of probation or parole imposed under federal or state law. Persons subject to sex offender registration requirement. If any member of the household has, during their current public housing tenancy, become subject to a registration requirement under a state sex offender registration program. Discovery of facts after admission to the program that would have made the tenant ineligible Discovery of material false statements or fraud by the tenant in connection with an application for assistance or with a reexamination of income Failure to furnish such information and certifications regarding family composition and income as may be necessary for the PHA to make determinations with respect to rent, eligibility, and the appropriateness of the dwelling unit size Failure to transfer to an appropriate size dwelling unit based on family composition, upon appropriate notice by the PHA that such a dwelling unit is available Failure to permit access to the unit by the PHA after proper advance notification for the purpose of performing routine inspections and maintenance, for making improvements or repairs, or to show the dwelling unit for re-leasing, or without advance notice if there is reasonable cause to believe that an emergency exists Failure to promptly inform the PHA of the birth, adoption or court-awarded custody of a child. In such a case, promptly means within 10 business days of the event. Failure to abide by the provisions of the PHA pet policy If the family has breached the terms of a repayment agreement entered into with the PHA © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-23 If a family member has violated federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises. If a household member has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to terminate the lease, the PHA will consider alternatives as described in Section 13-III.D and other factors described in Sections 13-III.E and 13-III.F. Upon consideration of such alternatives and factors, the PHA may, on a case-by- case basis, choose not to terminate the lease. Family Absence from Unit [24 CFR 982.551(i)] It is reasonable that the family may be absent from the public housing unit for brief periods. However, the PHA needs a policy on how long the family may be absent from the unit. Absence in this context means that no member of the family is residing in the unit. Hopkins HRA Policy The family must supply any information or certification requested by the PHA to verify that the family is living in the unit, or relating to family absence from the unit, including any PHA-requested information or certification on the purposes of family absences. The family must cooperate with the PHA for this purpose. The family must promptly notify the PHA when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. In such a case promptly means within 10 business days of the start of the extended absence. If a family is absent from the public housing unit for more than 180 consecutive days, and the family does not adequately verify that they are living in the unit, the PHA will terminate the lease for other good cause. Abandonment of the unit. If the family appears to have vacated the unit without giving proper notice, the PHA will follow state and local landlord-tenant law pertaining to abandonment before taking possession of the unit. If necessary, the PHA will secure the unit immediately to prevent vandalism and other criminal activity. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-24 13-III.D. ALTERNATIVES TO TERMINATION OF TENANCY Exclusion of Culpable Household Member [24 CFR 966.4(l)(5)(vii)(C)] As an alternative to termination of the lease for criminal activity or alcohol abuse HUD provides that the PHA may consider exclusion of the culpable household member. Such an alternative can be used for any other reason where such a solution appears viable in accordance with PHA policy. Additionally, under the Violence against Women Act, the PHA may bifurcate a lease in order to terminate the tenancy of an individual who is a tenant or lawful occupant of a unit and engages in criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking. Hopkins HRA Policy The PHA will consider requiring the tenant to exclude a household member in order to continue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination. As a condition of the family’s continued occupancy, the head of household must certify that the culpable household member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former household member’s current address upon PHA request. Repayment of Family Debts Hopkins HRA Policy If a family owes amounts to the PHA, as a condition of continued occupancy, the PHA will require the family to repay the full amount or to enter into a repayment agreement, within 30 days of receiving notice from the PHA of the amount owed. See Chapter 16 for policies on repayment agreements. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-25 13-III.E. CRITERIA FOR DECIDING TO TERMINATE TENANCY A PHA that has grounds to terminate a tenancy is not required to do so, except as explained in Part II of this chapter, and may consider all of the circumstances relevant to a particular case before making a decision. Evidence [24 CFR 982.553(c)] For criminal activity, HUD permits the PHA to terminate the lease if a preponderance of the evidence indicates that a household member has engaged in the activity, regardless of whether the household member has been arrested or convicted, and without satisfying the standard of proof used for a criminal conviction. Hopkins HRA Policy The PHA will use the preponderance of the evidence as the standard for making all termination decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-26 Consideration of Circumstances [24 CFR 966.4(l)(5)(vii)(B)] Although it is required that certain lease provisions exist for criminal activity and alcohol abuse, HUD provides that the PHA may consider all circumstances relevant to a particular case in order to determine whether or not to terminate the lease. Such relevant circumstances can also be considered when terminating the lease for any other reason. Hopkins HRA Policy The PHA will consider the following facts and circumstances before deciding whether to terminate the lease for any of the HUD required lease provisions or for any other reasons: The seriousness of the offending action, especially with respect to how it would affect other residents’ safety or property The extent of participation or culpability of the leaseholder, or other household members, in the offending action, including whether the culpable member is a minor, a person with disabilities, or (as discussed further in section 13-III.F) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking The effects that the eviction will have on other family members who were not involved in the action or failure to act The effect on the community of the termination, or of the PHA’s failure to terminate the tenancy The effect of the PHA’s decision on the integrity of the public housing program The demand for housing by eligible families who will adhere to lease responsibilities The extent to which the leaseholder has shown personal responsibility and whether they have taken all reasonable steps to prevent or mitigate the offending action The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family’s recent history, and the likelihood of favorable conduct in the future © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-27 While a record or records of arrest will not be used as the sole basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, the PHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. The PHA may also consider: Any statements made by witnesses or the participant not included in the police report Whether criminal charges were filed Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property. In the case of program abuse, the dollar amount of the underpaid rent and whether or not a false certification was signed by the family © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-28 Consideration of Rehabilitation [24 CFR 966.4(l)(5)(vii)(D)] HUD authorizes PHAs to take into consideration whether a household member who had used illegal drugs or abused alcohol and is no longer engaging in such use or abuse is participating in or has successfully completed a supervised drug or alcohol rehabilitation program. Hopkins HRA Policy In determining whether to terminate the lease for illegal drug use or a pattern of illegal drug use, or for abuse or a pattern of abuse of alcohol, by a household member who is no longer engaging in such use or abuse, the PHA will consider whether such household member has successfully completed a supervised drug or alcohol rehabilitation program. For this purpose, the PHA will require the tenant to submit evidence of the household member’s successful completion of a supervised drug or alcohol rehabilitation program. Reasonable Accommodation [24 CFR 966.7] If the family includes a person with disabilities, the PHA’s decision to terminate the family’s lease is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. Hopkins HRA Policy If a family indicates that the behavior of a family member with a disability is the reason for a proposed termination of lease, the PHA will determine whether the behavior is related to the disability. If so, upon the family’s request, the PHA will determine whether alternative measures are appropriate as a reasonable accommodation. The PHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed lease termination. See Chapter 2 for a discussion of reasonable accommodation. Nondiscrimination Limitation [24 CFR 966.4(l)(5)(vii)(F)] The PHA’s eviction actions must be consistent with fair housing and equal opportunity provisions of 24 CFR 5.105. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-29 13-III.F. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING This section addresses the protections against termination of tenancy that the Violence against Women Act (VAWA) provides for public housing residents who are victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking. For general VAWA requirements and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-VII of this ACOP, where definitions of key VAWA terms are also located. VAWA Protections against Termination [24 CFR 5.2005(c)] VAWA provides that no person may deny assistance, tenancy, or occupancy rights to public housing to a tenant on the basis or as a direct result of criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking that is engaged in by a member of the household of the tenant or any guest or other person under the control of the tenant, if the tenant or affiliated individual is the victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalking [FR Notice 8/6/13]. VAWA further provides that incidents of actual or threatened domestic violence, dating violence, sexual assault, or stalking may not be construed either as serious or repeated violations of the lease by the victim or threatened victim of such violence or as good cause for terminating the tenancy or occupancy rights of the victim of such violence [24 CFR 5.2005(c)(1), FR Notice 8/6/13] • Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR Notice 1/4/23]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-30 Limits on VAWA Protections [24 CFR 5.2005(d) and (e), FR Notice 8/6/13] While VAWA prohibits a PHA from using domestic violence, dating violence, sexual assault, stalking, or human trafficking as the cause for a termination or eviction action against a public housing tenant who is the victim of the abuse, the protections it provides are not absolute. Specifically: • VAWA does not limit a PHA’s otherwise available authority to terminate assistance to or evict a victim for lease violations not premised on an act of domestic violence, dating violence, sexual assault, stalking, or human trafficking providing that the PHA does not subject the victim to a more demanding standard than the standard to which it holds other tenants. • VAWA does not limit a PHA’s authority to terminate the tenancy of any public housing tenant if the PHA can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the property if that tenant’s tenancy is not terminated. HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: • The duration of the risk • The nature and severity of the potential harm • The likelihood that the potential harm will occur • The length of time before the potential harm would occur [24 CFR 5.2005(e)] In order to demonstrate an actual and imminent threat, the PHA must have objective evidence of words, gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim’s assistance “only when there are no other actions that could be taken to reduce or eliminate the threat, including but not limited to transferring the victim to a different unit, barring the perpetrator from the property, contacting law enforcement to increase police presence or develop other plans to keep the property safe, or seeking other legal remedies to prevent the perpetrator from acting on a threat” [24 CFR 5.2005(d)(3)]. Additionally, HUD regulations state that restrictions “predicated on public safety cannot be based on stereotypes, but must be tailored to particularized concerns about individual residents” [24 CFR 5.2005(d)(3)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-31 Hopkins HRA Policy In determining whether a public housing tenant who is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking is an actual and imminent threat to other tenants or those employed at or providing service to a property, the PHA will consider the following, and any other relevant, factors: Whether the threat is toward an employee or tenant other than the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking Whether the threat is a physical danger beyond a speculative threat Whether the threat is likely to happen within an immediate time frame Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location, transferring the victim to another unit, or seeking a legal remedy to prevent the perpetrator from acting on the threat If the tenant wishes to contest the PHA’s determination that they are an actual and imminent threat to other tenants or employees, the tenant may do so as part of the grievance hearing or in a court proceeding. Documentation of Abuse [24 CFR 5.2007] Hopkins HRA Policy When an individual facing termination of tenancy for reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking claims protection under VAWA, the PHA will request in writing that the individual provide documentation supporting the claim in accordance with the policies in section 16-VII.D of this ACOP. The PHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases the PHA will document the waiver in the individual’s file. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-32 Terminating or Evicting a Perpetrator of Domestic Violence Although VAWA provides protection from termination for victims of domestic violence, it does not provide such protection for perpetrators. In fact, VAWA gives the PHA the explicit authority to bifurcate a lease, or remove a household member from a lease, “in order to evict, remove, or terminate assistance to any individual who is a tenant or lawful occupant of the housing and who engages in criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual, without evicting, removing, terminating assistance to, or otherwise penalizing a victim of such criminal activity who is also a tenant or lawful occupant of the housing” [FR Notice 8/6/13]. Moreover, HUD regulations impose on the PHA the obligation to consider lease bifurcation in any circumstances involving domestic violence, dating violence, stalking, or human trafficking [see 24 CFR 966.4(e)(9)]. Specific lease language affirming the PHA’s authority to bifurcate a lease is not necessary, and the authority supersedes any local, state, or federal law to the contrary. However, if the PHA chooses to exercise its authority to bifurcate a lease, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law for eviction, lease termination, or termination of assistance. This means that the PHA must follow the same rules when terminating or evicting an individual as it would when terminating or evicting an entire family [FR Notice 3/16/07]. However, perpetrators should be given no more than 30 days’ notice of termination in most cases [Notice PIH 2017-08]. Hopkins HRA Policy The PHA will bifurcate a family’s lease and terminate the tenancy of a family member if the PHA 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, nonculpable family members. In making its decision, the PHA will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to the PHA by the victim in accordance with this section and section 16-VII.D. The PHA will also consider the factors in section 13.III.E. Upon such consideration, the PHA may, on a case-by-case basis, choose not to bifurcate the lease and terminate the tenancy of the culpable family member. If the PHA does bifurcate the lease and terminate the tenancy of the culpable family member, it will do so in accordance with the lease, applicable law, and the policies in this ACOP. If the person removed from the lease was the only tenant eligible to receive assistance, the PHA must provide any remaining tenant a chance to establish eligibility for the unit. If the remaining tenant cannot do so, the PHA must provide the tenant reasonable time to find new housing or to establish eligibility for another housing program covered under VAWA. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-33 PART IV: NOTIFICATION REQUIREMENTS, EVICTION PROCEDURES AND RECORD KEEPING 13-IV.A. OVERVIEW HUD regulations specify the requirements for the notice that must be provided prior to lease termination. This part discusses those requirements and the specific requirements that precede and follow termination for certain criminal activities which are addressed in the regulations. This part also discusses specific requirements pertaining to the actual eviction of families and record keeping. 13-IV.B. CONDUCTING CRIMINAL RECORDS CHECKS [24 CFR 5.903(e)(ii) and 24 CFR 960.259] HUD authorizes PHAs to conduct criminal records checks on public housing residents for lease enforcement and eviction. PHA policy determines when the PHA will conduct such checks. Hopkins HRA Policy The PHA will conduct criminal records checks when it has come to the attention of the PHA, either from local law enforcement or by other means, that an individual has engaged in the destruction of property, engaged in violent activity against another person, or has interfered with the right to peaceful enjoyment of the premises of other residents. Such checks will also include sex offender registration information. The PHA may not pass along to the tenant the costs of a criminal records check. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-34 13-IV.C. DISCLOSURE OF CRIMINAL RECORDS TO FAMILY [24 CFR 5.903(f), 24 CFR 5.905(d) and 24 CFR 966.4(l)(5)(iv)] In conducting criminal records checks, if the PHA uses the authority of 24 CFR 5.903 and 5.905 to obtain such information, certain protections must be afforded the tenant before any adverse action is taken. In such cases if the PHA obtains criminal records information from a state or local agency showing that a household member has been convicted of a crime, or is subject to a sex offender registration requirement, relevant to lease enforcement or eviction, the PHA must notify the household of the proposed action and must provide the subject of the record and the tenant a copy of such information, and an opportunity to dispute the accuracy and relevance of the information before an eviction or lease enforcement action is taken. Hopkins HRA Policy In all cases where criminal record or sex offender registration information would result in lease enforcement or eviction, the PHA will notify the household in writing of the proposed adverse action and will provide the subject of the record and the tenant a copy of such information, and an opportunity to dispute the accuracy and relevance of the information before an eviction or lease enforcement action is taken. The family will be given 10 business days from the date of the PHA notice, to dispute the accuracy and relevance of the information. If the family does not contact the PHA to dispute the information within that 10-business day period, the PHA will proceed with the termination action. Should the tenant not exercise their right to dispute prior to any adverse action, the tenant still has the right to dispute in the grievance hearing or court trial. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-35 13-IV.D. LEASE TERMINATION NOTICE [24 CFR 966.4(l)(3); Notice PIH 2021-29] Form, Delivery, and Content of the Notice Notices of lease termination must be in writing. The notice must state the specific grounds for termination, the date the termination will take place, the resident’s right to reply to the termination notice, and their right to examine PHA documents directly relevant to the termination or eviction. If the PHA does not make the documents available for examination upon request by the tenant, the PHA may not proceed with the eviction [24 CFR 996.4(m)]. Hopkins HRA Policy If the PHA offers remote hearings, the notice will also state that the resident may request a remote hearing. If the PHA will require that the hearing be conducted remotely, at the time the notice is sent to the resident informing them of the right to request a hearing, the resident will be notified that the hearing will be conducted remotely. The resident will be informed of the processes involved in a remote hearing and that the PHA will provide technical assistance, if needed, before the hearing. Further, during the period of time for which HUD determines that a national emergency requires additional time for families to secure funding, all termination notifications for nonpayment of rent must include, at a minimum, the language provided in the Appendix of Notice PIH 2021-29. When the PHA is required to offer the resident an opportunity for a grievance hearing, the notice must also inform the resident of their right to request a hearing in accordance with the PHA’s grievance procedure. In these cases, the tenancy shall not terminate until the time for the tenant to request a grievance hearing has expired and the grievance procedure has been completed. When the PHA is not required to offer the resident an opportunity for a grievance hearing because HUD has made a due process determination and the lease termination is for criminal activity that threatens health, safety or right to peaceful enjoyment or for drug-related criminal activity, the notice of lease termination must state that the tenant is not entitled to a grievance hearing on the termination. It must specify the judicial eviction procedure to be used by the PHA for eviction of the tenant, and state that HUD has determined that the eviction procedure provides the opportunity for a hearing in court that contains the basic elements of due process as defined in HUD regulations. The notice must also state whether the eviction is for a criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises of other residents or employees of the PHA, or for a drug-related criminal activity on or off the premises. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-36 Hopkins HRA Policy The PHA will attempt to deliver notices of lease termination directly to the tenant or an adult member of the household. If such attempt fails, the notice will be sent by first-class mail and/or emailed the same day. All notices of lease termination will include a copy of the forms HUD-5382 and HUD- 5380 to accompany the termination notice. Any tenant who claims that the cause for termination involves domestic violence, dating violence, sexual assault, stalking, or human trafficking of which the tenant or affiliated individual of the tenant is the victim will be given the opportunity to provide documentation in accordance with the policies in sections 13-III.F and 16-VII.D. Timing of the Notice [24 CFR 966.4(l)(3)(i); 24 CFR 966.8; Notice PIH 2021-29] The PHA must give written notice of lease termination of: • During the period of time for which HUD determines that a national emergency requires additional time for families to secure federal funding that is available due to a Presidential declaration of a national emergency, at least 30 days from the date the tenant receives the notice in the case of failure to pay rent • When such emergency is not present, 14 calendar days in the case of failure to pay rent • A reasonable period of time considering the seriousness of the situation (but not to exceed 30 calendar days) If the health or safety of other residents, PHA employees, or persons residing in the immediate vicinity of the premises is threatened If any member of the household has engaged in any drug-related criminal activity or violent criminal activity If any member of the household has been convicted of a felony • 30 calendar days in any other case, except that if a state or local law allows a shorter notice period, such shorter period shall apply Hopkins HRA Policy The PHA will give written notice of 30 calendar days from the date the tenant receives the notice for nonpayment of rent (during nationwide emergency orders) or 14 calendar days from the date the tenant receives the notice for nonpayment of rent (upon expiration of nationwide emergency orders). For all other lease terminations, the PHA will give 30 days written notice or, if state or local law allows less than 30 days, such shorter notice will be given. The Notice to Vacate that may be required under state or local law may be combined with or run concurrently with the notice of lease termination. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-37 Notice of Nonrenewal Due to Community Service Noncompliance [24 CFR 966.4(l)(2)(ii)(D), 24 CFR 960.603(b) and 24 CFR 960.607(b)] When the PHA finds that a family is in noncompliance with the community service requirement, the tenant and any other noncompliant resident must be notified in writing of this determination. Notices of noncompliance will be issued in accordance with the requirements and policies in Section 11-I.E. Hopkins HRA Policy If after receiving a notice of initial noncompliance the family does not request a grievance hearing or does not take either corrective action required by the notice within the required timeframe, a termination notice will be issued in accordance with the policies above. If a family agreed to cure initial noncompliance by signing an agreement and is still in noncompliance after being provided the 12-month opportunity to cure, the family will be issued a notice of continued noncompliance. The notice of continued noncompliance will be sent in accordance with the policies in Section 11-I.E. and will also serve as the notice of termination of tenancy. Notice of Termination Based on Citizenship Status [24 CFR 5.514 (c) and (d)] In cases where termination of tenancy is based on citizenship status, HUD requires the notice of termination to contain additional information. In addition to advising the family of the reasons their assistance is being terminated, the notice must also advise the family of any of the following that apply: the family’s eligibility for proration of assistance, the criteria and procedures for obtaining relief under the provisions for preservation of families, the family’s right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or a written explanation in support of the appeal, and the family’s right to request an informal hearing with the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. Please see Chapter 14 for the PHA’s informal hearing procedures. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-38 13-IV.E. EVICTION [24 CFR 966.4(l)(4) and 966.4(m)] Eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The PHA may only evict the tenant from the unit by instituting a court action, unless the law of the jurisdiction permits eviction by administrative action, after a due process administrative hearing, and without a court determination of the rights and liabilities of the parties. Hopkins HRA Policy When a family does not vacate the unit after receipt of a termination notice, by the deadline given in the notice, the PHA will follow state and local landlord-tenant law in filing an eviction action with the local court that has jurisdiction in such cases. If the eviction action is finalized in court and the family remains in occupancy beyond the deadline to vacate given by the court, the PHA will seek the assistance of the court to remove the family from the premises as per state and local law. The PHA may not proceed with an eviction action if the PHA has not made available the documents to be used in the case against the family and has not afforded the family the opportunity to examine and copy such documents in accordance with the provisions of 24 CFR 966.4(l)(3) and (m). 13-IV.F. NOTIFICATION TO POST OFFICE [24CFR 966.4(l)(5)(iii)(B)] When the PHA evicts an individual or family for criminal activity, including drug-related criminal activity, the PHA must notify the local post office serving the dwelling unit that the individual or family is no longer residing in the unit. 13-IV.G. RECORD KEEPING For more information concerning general record keeping, see Chapter 16. PHA Policy A written record of every termination and/or eviction will be maintained by the PHA at the development where the family was residing, and will contain the following information: Name of resident, number and identification of unit occupied Date of the notice of lease termination and any other notices required by state or local law; these notices may be on the same form and will run concurrently Specific reason(s) for the notices, citing the lease section or provision that was violated and other facts pertinent to the issuing of the notices described in detail (other than any criminal history reports obtained solely through the authorization provided in 24 CFR 5.903 and 5.905) Date and method of notifying the resident Summaries of any conferences held with the resident including dates, names of conference participants, and conclusions © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-39 EXHIBIT 13-1: NOTICE FOR OVER-INCOME FAMILIES – INITIAL NOTIFICATION FOR TERMINATE ONLY OPTION 1 This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. Neither the United States Government, nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately- owned rights. Reference herein to any individuals, agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s), contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or any Federal agency. These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as instruction to the PHA.] 1 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-notices-for-overincome- families/. Only the formatting has been changed to be consistent with the formatting used throughout this ACOP. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-40 OVER-INCOME FAMILY INITIAL NOTIFICATION Hopkins Housing and Redevelopment Authority (Hopkins HRA) Resident name: Address: Date: Purpose The purpose of this notice is to inform you that ________ [name of PHA] has determined that your family’s income is above the income limit (over-income) according to federal rules for the public housing program. This is your initial (first) notice. What happens next? For now, your rent will continue to be calculated as usual, you will continue to be offered a choice between income-based and flat rent, and you do not have to move. If your family remains over-income for the following 24 consecutive months, you will no longer be eligible for assistance under the public housing program. If you think that we have made a mistake and your family should not be considered over-income, you may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. If you do not wish to request a hearing, you do not need to do anything at this time. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-41 What about changes to my income? We will continue to reexamine your income every 12 months as usual. After each reexamination, you will receive a notification like this one if your family is still over-income. If your family’s income drops below the over-income limit before the end of the 24 consecutive-month grace period, you will no longer be considered over-income. If your family’s income increases again to an amount that is over-income, you will receive another 24 consecutive month grace period. If your income changes, contact us using the information provided below to learn the policy for requesting an interim reexamination. What if my family remains over-income for 24 consecutive months? Within 30 days of the recertification, you will receive a notice like this one informing you that your family has remained over-income for 24 consecutive months. According to the Continued Occupancy Policy, families that remain over-income for 24 consecutive months must leave their units and find other housing in no more than six months after receiving notification. If your family continues to reside in the unit after six months, the PHA will begin eviction proceedings by issuing a notice to vacate. Until the time of lease termination, you will continue to be a public housing program participant and will continue to be charged your choice of income-based or flat rent. [INSERT PHA CONTACT INFORMATION] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-42 EXHIBIT 13-2: NOTICE FOR OVER-INCOME FAMILIES – 12-MONTH NOTIFICATION FOR TERMINATE ONLY OPTION 2 This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. Neither the United States Government, nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately- owned rights. Reference herein to any individuals, agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s), contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or any Federal agency. These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as instruction to the PHA.] 2 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-notices-for-overincome- families/. Only the formatting has been changed to be consistent with the formatting used throughout this ACOP. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-43 OVER-INCOME FAMILY 12 MONTH NOTIFICATION Hopkins Housing and Redevelopment Agency (Hopkins HRA) Resident name: Address: Date: Purpose The purpose of this notice is to inform you that Hopkins HRA has determined that your family’s income is above the income limit (over-income) according to federal rules for public housing. This is your 12- month (second) notice. What happens next? For now, your rent will continue to be calculated as usual, you will continue to be offered a choice between income-based and flat rent, and you do not have to move. If your family remains over-income for the following 12 consecutive months, you will no longer be eligible for assistance under the public housing program. If you think that we have made a mistake and your family should not be considered over-income, you may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. If you do not wish to request a hearing, you do not need to do anything at this time. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-44 What about changes to my income? We will need to re-examine your income in 12 months. After the reexamination, you will receive a notification like this one if your family is still over-income. If your family’s income drops below the over-income limit before the end of the 24 consecutive-month grace period, you will no longer be considered over-income. If your family’s income increases again to an amount that is over-income, you will receive another 24 consecutive month grace period. If your income changes, contact us using the information provided below to learn the policy for requesting an interim reexamination. What if my family remains over-income in consecutive 12 months? Within 30 days of the recertification, you will receive a notice like this one informing you that your family has remained over-income for 24 consecutive months. According to the Continued Occupancy Policy, families that remain over-income for 24 consecutive months must leave their units and find other housing in no more than six months after receiving notification. If your family continues to reside in the unit after six months, the Hopkins HRA will begin eviction proceedings by issuing a notice to vacate. Until the time of lease termination, you will continue to be a public housing program participant and will continue to be charged your choice of income-based or flat rent. [INSERT PHA CONTACT INFORMATION] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-45 EXHIBIT 13-3: NOTICE FOR OVER-INCOME FAMILIES – 24-MONTH NOTIFICATION FOR TERMINATION ONLY OPTION 3 This material is based upon work supported, in whole or in part, by Federal award number NAL-C-17-094-05 awarded to NALCAB by the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. Neither the United States Government, nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately- owned rights. Reference herein to any individuals, agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s), contributor(s), the U.S. Government or any agency thereof. Opinions contained herein are those of the author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or any Federal agency. These Sample Notices include provisions required per 24 CFR 960.507(c). Anything included in brackets and italic is meant as instruction to the PHA in creating its own notices. Example: [This text is meant as instruction to the PHA.] 3 This sample notice is presented verbatim from HUD’s sample forms used in the HOTMA Income and Assets Training Series, available at https://www.hudexchange.info/resource/6849/hotma-sample-notices-for-overincome- families/. Only the formatting has been changed to be consistent with the formatting used throughout this ACOP. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-46 OVER-INCOME FAMILY 24 MONTH NOTIFICATION Hopkins Housing and Redevelopment Agency (Hopkins HRA) Resident name: Address: Date: Purpose The purpose of this notice is to inform you that Hopkins HRA has determined that your family’s income is above the income limit (over-income) according to federal rules for public housing. This is your 24- month (third) notice. You are no longer eligible for assistance under the public housing program. What if I disagree that my family is over-income? If you think that we have made a mistake and your family should not be considered over-income, you may request a hearing by calling: XXX-XXX-XXXX or emailing [address] or requesting more information from PHA staff at: [location]. If you wish to request a hearing, please do so as soon as possible. What about changes to my income? Changes to your income after you receive this notice will not change our determination. If necessary, you may request an interim reexamination, but a decrease in income or rent will not make you eligible to remain. Because your family has been over-income for 24 consecutive months, you are no longer eligible for assistance under the public housing program. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 13-47 What do I need to do now? According to the Continued Occupancy Policy, your family cannot continue your tenancy. You must find other housing as soon as possible. Our policy is to allow families up to six months to find other housing. If your family continues to reside in the unit after six months, the PHA will begin eviction proceedings by issuing a notice to vacate. Until the time of lease termination, you will continue to be a public housing program participant and will continue to be charged your choice of income-based or flat rent. [The following is an optional section where the PHA may include referral services to support a family in finding new housing.] The following services are available to assist you: [INSERT PHA CONTACT INFORMATION] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-1 Chapter 14 GRIEVANCES AND APPEALS INTRODUCTION This chapter discusses grievances and appeals pertaining to PHA actions or failures to act that adversely affect public housing applicants or residents. The policies are discussed in the following three parts: Part I: Informal Hearings for Public Housing Applicants. This part outlines the requirements and procedures for informal hearings for public housing applicants. Part II: Informal Hearings with Regard to Noncitizens. This part discusses informal hearings regarding citizenship status and where they differ from the requirements for general applicant and tenant grievances. Part III: Grievance Procedures for Public Housing Residents. This part outlines the requirements and procedures for handling grievances for public housing residents. Note that this chapter is not the PHA’s grievance procedure. The grievance procedure is a document separate from the ACOP. This chapter of the ACOP provides the policies that drive the grievance procedure. A sample grievance procedure is provided as Exhibit 14-1. However, please note that the procedure provided is only a sample and is designed to match up with the default policies in the model ACOP. As such, the PHA would need to modify accordingly should any alternative policy decisions be adopted. PART I: INFORMAL HEARINGS FOR PUBLIC HOUSING APPLICANTS 14-I.A. OVERVIEW When the PHA makes a decision that has a negative impact on an applicant family, the family is often entitled to appeal the decision. For applicants, the appeal takes the form of an informal hearing. HUD regulations do not provide a structure for or requirements regarding informal hearings for applicants (except with regard to citizenship status, to be covered in Part II). This part discusses the PHA policies necessary to respond to applicant appeals through the informal hearing process. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-2 14-I.B. INFORMAL HEARING PROCESS [24 CFR 960.208(a) and PH Occ GB, p. 58] Informal hearings are provided for public housing applicants. An applicant is someone who has applied for admission to the public housing program but is not yet a tenant in the program. Informal hearings are intended to provide a means for an applicant to dispute a determination of ineligibility for admission to a project [24 CFR 960.208(a)]. Applicants to public housing are not entitled to the same hearing process afforded tenants under the PHA grievance procedures [24 CFR 966.53(a) and PH Occ GB, p. 58]. Informal hearings provide applicants the opportunity to review the reasons for denial of admission and to present evidence to refute the grounds for denial. Use of Informal Hearing Process While the PHA must offer the opportunity of an informal hearing to applicants who have been determined as ineligible for admission, the PHA could make the informal hearing process available to applicants who wish to dispute other PHA actions that adversely affect them. Hopkins HRA Policy The PHA will only offer informal hearings to applicants for the purpose of disputing denials of admission. Notice of Denial [24 CFR 960.208(a)] The PHA must give an applicant prompt notice of a decision denying eligibility for admission. The notice must contain a brief statement of the reasons for the PHA decision and must also state that the applicant may request an informal hearing to dispute the decision. The notice must describe how to obtain the informal hearing. Hopkins HRA Policy As applicable, the PHA’s notice of denial will include information about required or requested remote informal hearings. When denying eligibility for admission, the PHA must provide the family a notice of VAWA rights (form HUD-5380) as well as the HUD VAWA self-certification form (form HUD-5382) in accordance with the Violence against Women Act, and as outlined in 16-VII.C. The notice and self-certification form must accompany the written notification of the denial of eligibility determination. Prior to notification of denial based on information obtained from criminal or sex offender registration records, the family, in some cases, must be given the opportunity to dispute the information in those records which would be the basis of the denial. See Section 3-III.G for details concerning this requirement. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-3 Scheduling an Informal Hearing Hopkins HRA Policy A request for an informal hearing must be made in writing and delivered to the PHA either in person, by email or first class mail, by the close of the business day, no later than 10 business days from the date of the PHA’s notification of denial of admission. The PHA will schedule and send written notice of the informal hearing within 10 business days of the family’s request. If the PHA informal hearing will be conducted remotely, at the time the notice is sent to the family, the family will be informed: Regarding the processes involved in a remote informal hearing; That the PHA will provide technical assistance prior to and during the informal hearing, if needed; and That if the family or any individual witness has any technological, resource, or accessibility barriers preventing them from fully accessing the remote informal hearing, the family may inform the PHA and the PHA will assist the family in either resolving the issues or allow the family to participate in an in-person informal hearing, as appropriate. Conducting an Informal Hearing [PH Occ GB, p. 58] Hopkins HRA Policy The applicant will be provided an opportunity to present written or oral objections to the decision of the PHA. The PHA is responsible for making the final decision as to whether admission should be granted or denied. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-4 Remote Informal Hearings [Notice PIH 2020-32] There is no requirement that informal hearings be conducted in-person, and as such, HUD allows PHAs to conduct all or a portion of their informal hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal hearings, applicants may still request an in-person informal hearing, as applicable. Hopkins HRA Policy The PHA has the sole discretion to require that informal hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, the PHA will conduct an informal hearing remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have child care or transportation that would enable them to attend the informal hearing, or if the applicant believes an in-person informal hearing would create an undue health risk. The PHA will consider other reasonable requests for a remote informal hearing on a case-by-case basis. Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in-person informal hearings, the platform for conducting remote informal hearings must be accessible to persons with disabilities and the informal hearing must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings. If no method of conducting a remote informal hearing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote informal review, and the PHA should consider whether postponing the remote informal hearing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances and requirements. As with in-person hearings, Limited English Proficiency (LEP) requirements also apply to remote informal hearings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal hearings. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-5 Conducting Remote Informal Hearings [Notice PIH 2020-32] The PHA must ensure that the lack of technology or inability to use technology for remote informal hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal hearing and, if the family does not have the proper technology to fully participate, either postpone the informal hearing or provide an alternative means of access. As with in-person informal hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal hearing. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and processes for remote informal hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations at 24 CFR 966.56 and the guidance for conducting remote hearings specified in Notice PIH 2020-32. Hopkins HRA Policy The PHA will conduct remote informal hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, applicants are unable to adequately access the video conferencing platform at any point, or upon applicant request, the informal hearing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote informal hearing will be postponed, and an in-person alternative will be provided promptly within a reasonable time. At least five business days prior to scheduling the remote hearing, the PHA will provide the family with login information and/or conferencing call-in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person hearing. If the informal hearing is to be conducted remotely, the PHA will require the family to provide any documents directly relevant to the informal hearing at least 24 hours before the scheduled hearing through the mail, via email, or text. The PHA will scan and email copies of these documents to the PHA representative and to the person conducting the informal hearing the same day. Documents will be shared electronically whenever possible. The PHA will follow up the email with a phone call and/or email to the applicant at least one business day prior to the remote informal hearing to ensure that the applicant received all information and is comfortable accessing the video conferencing or call- in platform. The PHA will ensure that all electronic information stored or transmitted with respect to the informal hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-6 Informal Hearing Decision [PH Occ GB, p. 58] Hopkins HRA Policy The PHA will notify the applicant of the PHA’s final decision, including a brief statement of the reasons for the final decision. In rendering a decision, the PHA will evaluate the following matters: Whether or not the grounds for denial were stated factually in the notice The validity of grounds for denial of admission. If the grounds for denial are not specified in the regulations or in PHA policy, then the decision to deny assistance will be overturned. See Chapter 3 for a detailed discussion of the grounds for applicant denial. The validity of the evidence. The PHA will evaluate whether the facts presented prove the grounds for denial of admission. If the facts prove that there are grounds for denial, and the denial is required by HUD, the PHA will uphold the decision to deny admission. If the facts prove the grounds for denial, and the denial is discretionary, the PHA will consider the recommendation of the person conducting the informal hearing in making the final decision whether to deny admission. The PHA will notify the applicant of the final decision, including a statement explaining the reason(s) for the decision. The notice will be mailed, with return receipt requested, within 10 business days of the informal hearing, to the applicant and their representative, if any. If the informal hearing decision overturns the denial, processing for admission will resume. If the family fails to appear for their informal hearing, the denial of admission will stand and the family will be so notified. Reasonable Accommodation for Persons with Disabilities [24 CFR 966.7] Persons with disabilities may request reasonable accommodations to participate in the informal hearing process and the PHA must consider such accommodations. The PHA must also consider reasonable accommodation requests pertaining to the reasons for denial if related to the person’s disability. See Chapter 2 for more detail pertaining to reasonable accommodation requests. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-7 PART II: INFORMAL HEARINGS WITH REGARD TO NONCITIZENS 14-II.A. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] Denial or termination of assistance based on immigration status is subject to special hearing and notice rules. These special hearings are referred to in the regulations as informal hearings, but the requirements for such hearings are different from the informal hearings used to deny applicants for reasons other than immigration status. Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while the PHA hearing is pending, but assistance to an applicant may be delayed pending the completion of the informal hearing. A decision against a family member, issued in accordance with the USCIS appeal process or the PHA informal hearing process, does not preclude the family from exercising the right, that may otherwise be available, to seek redress directly through judicial procedures. Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] As discussed in Chapters 3 and 13, the notice of denial or termination of assistance for noncitizens must advise the family of any of the following that apply: • That financial assistance will be denied or terminated and provide a brief explanation of the reasons for the proposed denial or termination of assistance. • The family may be eligible for proration of assistance. • In the case of a tenant, the criteria and procedures for obtaining relief under the provisions for preservation of families [24 CFR 5.514 and 5.518]. • That the family has a right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or explanation in support of the appeal. • That the family has a right to request an informal hearing with the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. • For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process, but assistance may be delayed during the period of the informal hearing process. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-8 United States Citizenship and Immigration Services Appeal Process [24 CFR 5.514(e)] When the PHA receives notification that the USCIS secondary verification failed to confirm eligible immigration status, the PHA must notify the family of the results of the USCIS verification. The family will have 30 days from the date of the notification to request an appeal of the USCIS results. The request for appeal must be made by the family in writing directly to the USCIS. The family must provide the PHA with a copy of the written request for appeal and proof of mailing. Hopkins HRA Policy The PHA will notify the family in writing of the results of the USCIS secondary verification within 10 business days of receiving the results. The family must provide the PHA with a copy of the written request for appeal and proof of mailing within 10 business days of sending the request to the USCIS. The family must forward to the designated USCIS office any additional documentation or written explanation in support of the appeal. This material must include a copy of the USCIS document verification request (used to process the secondary request) or such other form specified by the USCIS, and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification results. The USCIS will notify the family, with a copy to the PHA, of its decision. When the USCIS notifies the PHA of the decision, the PHA must notify the family of its right to request an informal hearing. Hopkins HRA Policy The PHA will send written notice to the family of its right to request an informal hearing within 10 business days of receiving notice of the USCIS decision regarding the family’s immigration status. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-9 Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, an applicant family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of denial, or within 30 days of receipt of the USCIS appeal decision. The informal hearing procedures for applicant families are described below. Informal Hearing Officer The PHA must provide an informal hearing before an impartial individual, other than a person who made or approved the decision under review, and other than a person who is a subordinate of the person who made or approved the decision. Evidence The family must be provided the opportunity to examine and copy at the family’s expense, at a reasonable time in advance of the hearing, any documents in the possession of the PHA pertaining to the family’s eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements), including any records and regulations that may be relevant to the hearing. Hopkins HRA Policy The family will be allowed to copy any documents related to the hearing at no cost to the family. The family must request discovery of PHA documents no later than 24 hours prior to the hearing. The family must be provided the opportunity to present evidence and arguments in support of eligible status. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. The family must also be provided the opportunity to refute evidence relied upon by the PHA, and to confront and cross-examine all witnesses on whose testimony or information the PHA relies. Representation and Interpretive Services The family is entitled to be represented by an attorney or other designee, at the family’s expense, and to have such person make statements on the family’s behalf. The family is entitled to request an interpreter. The PHA is obligated to provide a competent interpreter, free of charge, upon request. The family may also or instead provide its own interpreter, at the expense of the family. Recording of the Hearing The family is entitled to have the hearing recorded by audiotape. The PHA may, but is not required to, provide a transcript of the hearing. Hopkins HRA Policy The PHA will not provide a transcript of an audio taped informal hearing. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-10 Hearing Decision The PHA must provide the family with a written notice of the final decision, based solely on the facts presented at the hearing, within 14 calendar days of the date of the informal hearing. The notice must state the basis for the decision. Retention of Documents [24 CFR 5.514(h)] The PHA must retain for a minimum of 5 years the following documents that may have been submitted to the PHA by the family, or provided to the PHA as part of the USCIS appeal or the PHA informal hearing process: • The application for assistance • The form completed by the family for income reexamination • Photocopies of any original documents, including original USCIS documents • The signed verification consent form • The USCIS verification results • The request for a USCIS appeal • The final USCIS determination • The request for an informal hearing • The final informal hearing decision Informal Hearing Procedures for Residents [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, a resident family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of termination, or within 30 days of receipt of the USCIS appeal decision. The informal hearing procedures for resident families whose tenancy is being terminated based on immigration status is the same as for any grievance under the grievance procedures for resident families found in Part III below. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-11 PART III: GRIEVANCE PROCEDURES FOR PUBLIC HOUSING RESIDENTS 14-III.A. REQUIREMENTS [24 CFR 966.52] PHAs must have a grievance procedure in place through which residents of public housing are provided an opportunity to grieve any PHA action or failure to act involving the lease or PHA policies which adversely affect their rights, duties, welfare, or status. The PHA must not only meet the minimal procedural due process requirements provided under the regulations but must also meet any additional requirements imposed by local, state or federal law. The PHA grievance procedure must be included in, or incorporated by reference in, the lease. Hopkins HRA Policy The PHA grievance procedure will be incorporated by reference in the tenant lease. The PHA must provide at least 30 days’ notice to tenants and resident organizations setting forth proposed changes in the PHA grievance procedure and provide an opportunity to present written comments. Comments submitted must be considered by the PHA before adoption of any changes to the grievance procedure by the PHA. Hopkins HRA Policy Residents and resident organizations will have 30 calendar days from the date they are notified by the PHA of any proposed changes in the PHA grievance procedure, to submit written comments to the PHA. The PHA must furnish a copy of the grievance procedure to each tenant and to resident organizations. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-12 14-III.B. DEFINITIONS [24 CFR 966.53; 24 CFR 966.51(a)(2)(i)] There are several terms used by HUD with regard to public housing grievance procedures, which take on specific meanings different from their common usage. These terms are as follows: • Grievance – any dispute which a tenant may have with respect to PHA action or failure to act in accordance with the individual tenant’s lease or PHA regulations which adversely affect the individual tenant’s rights, duties, welfare or status • Complainant – any tenant whose grievance is presented to the PHA or at the project management office • Due Process Determination – a determination by HUD that law of the jurisdiction requires that the tenant must be given the opportunity for a hearing in court which provides the basic elements of due process before eviction from the dwelling unit • Expedited Grievance – a procedure established by the PHA for any grievance or termination that involves: − Any criminal activity that threatens the health, safety, or right to peaceful enjoyment or the PHA’s public housing premises by other residents or employees of the PHA; or − Any drug-related criminal activity on or off the premises • Elements of Due Process – an eviction action or a termination of tenancy in a state or local court in which the following procedural safeguards are required: − Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction − Right of the tenant to be represented by counsel − Opportunity for the tenant to refute the evidence presented by the PHA including the right to confront and cross-examine witnesses and to present any affirmative legal or equitable defense which the tenant may have − A decision on the merits • Hearing Officer – an impartial person or selected by the PHA, other than the person who made or approved the decision under review, or a subordinate of that person. The individual or individuals do not need legal training. • Tenant – the adult person (or persons) (other than a live-in aide) − Who resides in the unit, and who executed the lease with the PHA as lessee of the dwelling unit, or, if no such person now resides in the unit, − Who resides in the unit, and who is the remaining head of household of the tenant family residing in the dwelling unit • Resident Organization – includes a resident management corporation © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-13 14-III.C. APPLICABILITY [24 CFR 966.51] Grievances could potentially address most aspects of a PHA’s operation. However, there are some situations for which the grievance procedure is not applicable. The grievance procedure is applicable only to individual tenant issues relating to the PHA. It is not applicable to disputes between tenants not involving the PHA. Class grievances are not subject to the grievance procedure and the grievance procedure is not to be used as a forum for initiating or negotiating policy changes of the PHA. If HUD has issued a due process determination, a PHA may exclude from the PHA grievance procedure any grievance concerning a termination of tenancy or eviction that involves: • Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the premises of other residents or employees of the PHA; • Any violent or drug-related criminal activity on or off such premises; or • Any criminal activity that resulted in felony conviction of a household member In states without due process determinations, PHAs must grant opportunity for grievance hearings for all lease terminations, regardless of cause, with the following exception: PHAs may use expedited grievance procedures for the excluded categories listed above. These expedited grievance procedures are described in Section 14-III.E. below. If HUD has issued a due process determination, the PHA may evict through the state/local judicial eviction procedures. In this case, the PHA is not required to provide the opportunity for a hearing under the PHA’s grievance procedure as described above. Hopkins HRA Policy The PHA is located in a HUD-declared due process state. Therefore, the PHA will not offer grievance hearings for lease terminations involving criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises of other residents or employees of the PHA, for violent or drug-related criminal activity on or off the premises, or for any criminal activity that resulted in felony conviction of a household member. See Chapter 13 for related policies on the content of termination notices. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-14 14-III.D. INFORMAL SETTLEMENT OF GRIEVANCE [24 CFR 966.54] HUD regulations state that any grievance must be personally presented, either orally or in writing, to the PHA office or to the office of the housing development in which the complainant resides so that the grievance may be discussed informally and settled without a hearing. Hopkins HRA Policy The PHA will accept requests for an informal settlement of a grievance either orally or in writing (including emailed requests), to the PHA office within 10 business days of the grievable event. Within 10 business days of receipt of the request the PHA will arrange a meeting with the tenant at a mutually agreeable time and confirm such meeting in writing to the tenant. The informal settlement may be conducted remotely as required by the PHA or may be conducted remotely upon consideration of the request of the tenant. See 14-III.G for information on how and under what circumstances remote informal settlements may be conducted. If a tenant fails to attend the scheduled meeting without prior notice, the PHA will reschedule the appointment only if the tenant can show good cause for failing to appear, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family. HUD regulations require that a summary of such discussion will be prepared within a reasonable time and one copy will be given to the tenant and one retained in the PHA’s tenant file. The summary must specify the names of the participants, dates of meeting, the nature of the proposed disposition of the complaint and the specific reasons therefore, and will specify the procedures by which a hearing may be obtained if the complainant is not satisfied. Hopkins HRA Policy The PHA will prepare a summary of the informal settlement within five business days; one copy to be given to the tenant and one copy to be retained in the PHA’s tenant file. For PHAs who have the option to establish an expedited grievance procedure, and who exercise this option, the informal settlement of grievances is not applicable to those grievances for which the expedited grievance procedure applies. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-15 14-III.E. PROCEDURES TO OBTAIN A HEARING Requests for Hearing and Failure to Request Hopkins HRA Policy The resident must submit a written request (including emailed requests) for a grievance hearing to the PHA within five business days of the tenant’s receipt of the summary of the informal settlement. If the complainant does not request a hearing, the PHA’s disposition of the grievance under the informal settlement process will become final. However, failure to request a hearing does not constitute a waiver by the complainant of the right to contest the PHA’s action in disposing of the complaint in an appropriate judicial proceeding. Scheduling of Hearings [24 CFR 966.56(a)] If the complainant has complied with all requirements for requesting a hearing as described above, a hearing must be scheduled by the hearing officer promptly for a time and place reasonably convenient to both the complainant and the PHA. A written notification specifying the time, place and the procedures governing the hearing must be delivered to the complainant and the appropriate PHA official. Hopkins HRA Policy Within 10 business days of receiving a written request for a hearing, the hearing officer will schedule and send written notice of the hearing to both the complainant and the PHA. If the PHA hearing will be conducted remotely, at the time the notice is sent to the family, the family will be notified: Regarding the processes involved in a remote grievance hearing; That the PHA will provide technical assistance prior to and during the hearing, if needed; and That if the family or any individual witness has any technological, resource, or accessibility barriers, the family may inform the PHA and the PHA will assist the family in either resolving the issue or allow the family to participate in an in- person hearing, as appropriate. The PHA may wish to permit the tenant to request to reschedule a hearing for good cause. Hopkins HRA Policy The tenant may request to reschedule a hearing once. Should the tenant need to reschedule a second time, they may only do so for good cause, or if needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family. At its discretion, the PHA may request documentation of the “good cause” prior to rescheduling the hearing. Requests to reschedule a hearing must be made orally or in writing at least 24 hours prior to the hearing date. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-16 Expedited Grievance Procedure [24 CFR 966.52(a)] The PHA may establish an expedited grievance procedure for any grievance concerning a termination of tenancy or eviction that involves: • Any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents or employees of the PHA; • Any drug-related criminal activity on or near such premises; or • Any criminal activity that resulted in felony conviction of a household member. In such expedited grievances, the informal settlement of grievances as discussed in 14-III.D is not applicable. The PHA may adopt special procedures concerning expedited hearings, including provisions for expedited notice or scheduling, or provisions for expedited decision on the grievance. Hopkins HRA Policy The PHA will not offer expedited grievance procedures. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-17 14-III.F. SELECTION OF HEARING OFFICER [24 CFR 966.53(e)] The grievance hearing must be conducted by an impartial person or persons appointed by the PHA, other than the person who made or approved the PHA action under review, or a subordinate of such person. The PHA must describe their policies for selection of a hearing officer in their lease. Hopkins HRA Policy PHA grievance hearings will be conducted by either a single hearing officer or a panel. The hearing office will be someone other than the person who made or approved the decision under review, or a subordinate of such person. PHAs must describe their policies for selection of a hearing officer in their lease forms. Changes to the public housing lease are subject to a 30-day comment period [24 CFR 966.4]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-18 14-III.G. REMOTE HEARINGS [Notice PIH 2020-32] There is no requirement that grievance hearings be conducted in-person, and as such, HUD allows PHAs to conduct all or a portion of their grievance hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote grievance hearings, applicants may still request an in-person hearing, as applicable. Hopkins HRA Policy The PHA has the sole discretion to require that hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, the PHA will conduct a hearing remotely upon request as a reasonable accommodation for a person with a disability, if a tenant does not have child care or transportation that would enable them to attend the hearing, or if the tenant believes an in-person hearing would create an undue health risk. The PHA will consider other reasonable requests for a remote hearing on a case-by-case basis. Discovery of Documents Before the Remote Hearing Hopkins HRA Policy If the hearing will be conducted remotely, the PHA will compile a hearing packet, consisting of all documents the PHA intends to produce at the hearing. The PHA will mail copies of the hearing packet to the tenant, the tenant’s representatives, if any, and the hearing officer at least three days before the scheduled remote hearing. The original hearing packet will be in the possession of the PHA representative and retained by the PHA. If the hearing is to be conducted remotely, the PHA will require the resident to provide any documents directly relevant to the hearing at least 24 hours before the scheduled hearing through the mail, via email, or text. The PHA will scan and email copies of these documents to the hearing officer and the PHA representative the same day they are received. Documents will be shared electronically whenever possible. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-19 Ensuring Accessibility for Persons with Disabilities ad LEP Individuals As with in-person grievance hearings, the platform for conducting remote grievance hearings must be accessible to persons with disabilities and the grievance hearings must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote grievance hearings. If no method of conducting a remote grievance hearing is available that appropriately accommodates an individual’s disability, the PHA may not hold against the individual their inability to participate in the remote grievance hearing, and the PHA should consider whether postponing the remote hearing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation will depend on the specific circumstances and requirements. As with in-person reviews, Limited English Proficiency (LEP) requirements also apply to remote grievance hearings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote grievance hearings. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-20 Conducting Hearings Remotely The PHA must ensure that the lack of technology or inability to use technology for remote grievance hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote grievance hearing and, if the family does not have the proper technology to fully participate, either postpone the hearing or provide an alternative means of access. As with in-person grievance hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote grievance hearing. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA’s essential responsibility is to ensure grievance hearings meet the requirements of due process and comply with HUD regulations. Therefore, all PHA policies and processes for remote grievance hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations at 24 CFR 966.56 and the guidance for conducting remote hearings specified in Notice PIH 2020-32. Hopkins HRA Policy The PHA will conduct remote grievance hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, participants are unable to adequately access the video conferencing platform at any point, or upon request, the grievance hearing will be conducted by telephone conferencing call-in. If the family is unable to adequately access the telephone conferencing call-in at any point, the remote grievance hearing will be postponed, and an in-person alternative will be provided promptly within a reasonable time. At least five business days prior to scheduling the remote hearing, the PHA will provide the family with login information and/or conferencing call-in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify the PHA of any known barriers. The PHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2020-32, including offering the family the opportunity to attend an in-person hearing. The PHA will follow up with a phone call and/or email to the family at least one business day prior to the remote grievance hearing to ensure that the family received all information and is comfortable accessing the video conferencing or call-in platform. The PHA will ensure that all electronic information stored or transmitted with respect to the grievance hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-21 14-III.H. PROCEDURES GOVERNING THE HEARING [24 CFR 966.56] Rights of Complainant [24 CFR 966.56(b)] The complainant will be afforded a fair hearing. This includes: • The opportunity to examine before the grievance hearing any PHA documents, including records and regulations that are directly relevant to the hearing. The tenant must be allowed to copy any such document at the tenant’s expense. If the PHA does not make the document available for examination upon request by the complainant, the PHA may not rely on such document at the grievance hearing. Hopkins HRA Policy The tenant will be allowed to copy any documents related to the hearing at no cost to the family. There will be no charge for documents emailed by the PHA. The family must request discovery of PHA documents at least 24 hours prior to the hearing. • The right to be represented by counsel or other person chosen to represent the tenant, and to have such person make statements on the tenant’s behalf. Hopkins HRA Policy Hearings may be attended by the following applicable persons: The PHA representatives and any witnesses for the PHA The tenant and any witnesses for the tenant The tenant’s counsel or other representative Any other person approved by the PHA as a reasonable accommodation for a person with a disability • The right to a private hearing unless the complainant requests a public hearing. • The right to present evidence and arguments in support of the tenant’s complaint, to controvert evidence relied on by the PHA or project management, and to confront and cross-examine all witnesses upon whose testimony or information the PHA or project management relies. • A decision based solely and exclusively upon the facts presented at the hearing. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-22 Failure to Appear [24 CFR 966.56(c)] If the complainant or the PHA fails to appear at a scheduled hearing, the hearing officer may make a determination to postpone the hearing for no more than five business days or may make a determination that the party has waived their right to a hearing. Both the complainant and the PHA must be notified of the determination by the hearing officer: Provided, That a determination that the complainant has waived their right to a hearing will not constitute a waiver of any right the complainant may have to contest the PHA’s disposition of the grievance in an appropriate judicial proceeding. There may be times when a complainant does not appear due to unforeseen circumstances which are out of their control and are no fault of their own. Hopkins HRA Policy If the tenant does not appear at the scheduled time of the hearing, the hearing officer will wait up to 20 minutes. If the tenant appears within 20 minutes of the scheduled time, the hearing will be held. If the tenant does not arrive within 20 minutes of the scheduled time, they will be considered to have failed to appear. If the tenant fails to appear and was unable to reschedule the hearing in advance, the tenant must contact the PHA within 24 hours of the scheduled hearing date, excluding weekends and holidays. The hearing officer will reschedule the hearing only if the tenant can show good cause for the failure to appear, or it is needed as a reasonable accommodation for a person with disabilities. “Good cause” is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-23 General Procedures [24 CFR 966.56(d), (e)] At the hearing, the complainant must first make a showing of an entitlement to the relief sought and thereafter the PHA must sustain the burden of justifying the PHA action or failure to act against which the complaint is directed [24 CFR 966.56(d)]. The hearing is conducted informally by the hearing officer. The PHA and the tenant must be given the opportunity to present oral or documentary evidence pertinent to the facts and issues raised by the complaint, and to question any witnesses. Hopkins HRA Policy Any evidence to be considered by the hearing officer must be presented at the time of the hearing. There are four categories of evidence. Oral evidence: the testimony of witnesses Documentary evidence: a writing which is relevant to the case, for example, a letter written to the PHA. Writings include all forms of recorded communication or representation, including letters, emails, words, pictures, sounds, videotapes or symbols or combinations thereof. Demonstrative evidence: Evidence created specifically for the hearing and presented as an illustrative aid to assist the hearing officer, such as a model, a chart or other diagram. Real evidence: A tangible item relating directly to the case. Hearsay Evidence is evidence based not on a witness’ personal knowledge. In and of itself, hearsay evidence carries no weight when making a finding of fact. The hearing officer may include hearsay evidence when considering their decision if it is corroborated by other evidence. Even though hearsay evidence is generally admissible in a hearing, the hearing officer will not base a hearing decision on hearsay alone unless there is clear probative value and credibility of the evidence, and the party seeking the change has met the burden of proof. If the PHA fails to comply with the discovery requirements (providing the tenant with the opportunity to examine PHA documents prior to the grievance hearing), the hearing officer will refuse to admit such evidence. Other than the failure of the PHA to comply with discovery requirements, the hearing officer has the authority to overrule any objections to evidence. The complainant or the PHA may arrange, in advance and at the expense of the party making the arrangement, for a transcript of the hearing. Any interested party may purchase a copy of such transcript [24 CFR 966.56(e)]. Hopkins HRA Policy If the complainant would like the PHA to record the proceedings by audiotape, the request must be made to the PHA at least 24 hours prior to the hearing. The PHA will consider that an audio tape recording of the proceedings is a transcript. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-24 Accommodations of Persons with Disabilities [24 CFR 966.56(f)] The PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing. Reasonable accommodation may include qualified sign language interpreters, readers, accessible locations, or attendants. If the tenant is visually impaired, any notice to the tenant which is required in the grievance process must be in an accessible format. See Chapter 2 for a thorough discussion of the PHA’s responsibilities pertaining to reasonable accommodation. Limited English Proficiency (24 CFR 966.56(g) The PHA must comply with HUD’s LEP Final Rule in providing language services throughout the grievance process. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-25 14-III.I. DECISION OF THE HEARING OFFICER [24 CFR 966.57] The hearing officer must issue a written decision, stating the reasons for the decision, within a reasonable time after the hearing. Factual determinations relating to the individual circumstances of the family must be based on a preponderance of evidence presented at the hearing. A copy of the decision must be sent to the complainant and the PHA. The PHA must retain a copy of the decision in the tenant’s folder. A log of all hearing officer decisions must also be maintained by the PHA and made available for inspection by a prospective complainant, their representative, or the hearing officer [24 CFR 966.57(a)]. Hopkins HRA Policy In rendering a decision, the hearing officer will consider the following matters: PHA Notice to the Family: The hearing officer will determine if the reasons for the PHA’s decision are factually stated in the notice. Discovery: The hearing officer will determine if the family was given the opportunity to examine any relevant documents in accordance with PHA policy. PHA Evidence to Support the PHA Decision: The evidence consists of the facts presented. Evidence is not conclusion, and it is not argument. The hearing officer will evaluate the facts to determine if they support the PHA’s conclusion. Validity of Grounds for Termination of Tenancy (when applicable): The hearing officer will determine if the termination of tenancy is for one of the grounds specified in the HUD regulations and PHA policies. If the grounds for termination are not specified in the regulations or in compliance with PHA policies, then the decision of the PHA will be overturned. The hearing officer will issue a written decision to the family and the PHA no later than 10 business days after the hearing. The report will contain the following information: Hearing information: Name of the complainant Date, time and place of the hearing Name of the hearing officer Name of the PHA representatives Name of family representative (if any) Names of witnesses (if any) Background: A brief, impartial statement of the reason for the hearing and the date(s) on which the informal settlement was held, who held it, and a summary of the results of the informal settlement. Also includes the date the complainant requested the grievance hearing. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-26 Summary of the Evidence: The hearing officer will summarize the testimony of each witness and identify any documents that a witness produced in support of their testimony and that are admitted into evidence. Findings of Fact: The hearing officer will include all findings of fact, based on a preponderance of the evidence. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Conclusions: The hearing officer will render a conclusion derived from the facts that were found to be true by a preponderance of the evidence. The conclusion will result in a determination of whether these facts uphold the PHA’s decision. Order: The hearing report will include a statement of whether the PHA’s decision is upheld or overturned. If it is overturned, the hearing officer will instruct the PHA to change the decision in accordance with the hearing officer’s determination. In the case of termination of tenancy, the hearing officer will instruct the PHA to restore the family’s status. Procedures for Further Hearing Hopkins HRA Policy The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reaching a decision. If the family misses an appointment or deadline ordered by the hearing officer, the action of the PHA will take effect and another hearing will not be granted. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-27 Final Decision [24 CFR 966.57(b)] The decision of the hearing officer is binding on the PHA which must take the action, or refrain from taking the action cited in the decision unless the PHA Board of Commissioners determines within a reasonable time, and notifies the complainant that: • The grievance does not concern PHA action or failure to act in accordance with or involving the complainant’s lease on PHA policies which adversely affect the complainant’s rights, duties, welfare, or status; or • The decision of the hearing officer is contrary to federal, state, or local law, HUD regulations or requirements of the annual contributions contract between HUD and the PHA Hopkins HRA Policy When the PHA considers the decision of the hearing officer to be invalid due to the reasons stated above, it will present the matter to the PHA Board of Commissioners within 10 business days of the date of the hearing officer’s decision. The Board has 30 calendar days to consider the decision. If the Board decides to reverse the hearing officer’s decision, it must notify the complainant within 10 business days of this decision. A decision by the hearing officer or Board of Commissioners in favor of the PHA or which denies the relief requested by the complainant in whole or in part must not constitute a waiver of any rights, nor effect in any manner whatever, any rights the complainant may have to a subsequent trial or judicial review in court [24 CFR 966.57(c)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-28 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-29 EXHIBIT 14-1: GRIEVANCE PROCEDURE I. Introduction Public housing tenants have the right to request a grievance hearing for any PHA action or failure to act in accordance with the tenant’s lease. Grievance procedures do not apply in the following circumstances: A. Disputes between tenants not involving the PHA or class grievances [24 CFR 966.51(b)]. B. The grievance procedure is not intended as a forum for initiating or negotiating policy changes between a group or groups of tenants and the PHA’s Board of Commissioners [24 CFR 966.51(b)]. C. When the PHA is in a HUD-declared due process state, HUD allows the PHA to exclude from the PHA grievance procedure any grievance concerning a termination of tenancy or eviction that involves: i. Any criminal activity that threatens the health, safety or right to peaceful enjoyment of the premises of other residents or employees of the PHA; ii. Any violent or drug-related criminal activity on or off such premises; or iii. Any criminal activity that resulted in felony conviction of a household member [24 CFR 966.51(a)(2)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-30 II. Definitions [24 CFR 966.53] A. Grievance: Any dispute a tenant may have with respect to PHA action or failure to act in accordance with the individual tenant’s lease or PHA regulations that adversely affects the individual tenant’s rights, duties, welfare, or status. B. Complainant: Any tenant (as defined below) whose grievance is presented to the PHA or at the project management office in accordance with the requirements presented in this procedure. C. Elements of due process: An eviction action or a termination of tenancy in a state or local court in which the following procedural safeguards are required: i. Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction ii. Right of the tenant to be represented by counsel iii. Opportunity for the tenant to refute the evidence presented by the PHA, including the right to confront and cross-examine witnesses and to present any affirmative legal or equitable defense that the tenant may have iv. A decision on the merits of the case D. Hearing officer: An impartial person or persons selected by the PHA other than the person who made or approved the decision under review, or a subordinate of that person. Such individuals do not need legal training. E. Tenant: The adult person (or persons other than a live-in aide) who resides in the unit and who executed the lease with the PHA as lessee of the dwelling unit, or if no such person now resides in the unit, the person who resides in the unit and is the remaining head of the household of the tenant family residing in the dwelling unit. F. Resident organization: An organization of residents, which also may include a resident management corporation. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-31 III. This grievance procedure [24 CFR 966.51] This grievance procedure is included by reference in all tenant dwelling leases and will be furnished to each tenant and all resident organizations [24 CFR 966.52 (b) and (d)]. Any changes proposed in this grievance procedure must provide for at least 30 days’ notice to tenants and resident organizations, explaining the proposed changes and providing an opportunity to present written comments. Comments will be considered by the PHA before any revisions are made to the grievance procedure [24 CFR 966.52(c)]. IV. Informal settlement of a grievance [24 CFR 966.54] Any grievance request must be personally presented, either orally or in writing (including email), to the PHA’s central office or the management office of the development in which the tenant resides within 10 days after the violation. As soon as the grievance request is received, it will be reviewed by the PHA to ensure it meets the requirements for a grievance hearing. If the tenant is not entitled to a grievance, the PHA will notify the tenant that they may instead seek judicial review and the procedures for requesting such a review [24 CFR 966.4(l)(3)(i)(C)(v)(B)]. Otherwise, within 10 business days, the tenant will be contacted to arrange a mutually convenient time to meet so the grievance may be discussed and settled without a hearing. At the informal settlement, the tenant will present their grievance. Within five business days following the informal settlement, the PHA will prepare and either hand deliver, mail, or email to the tenant a summary of the discussion. The summary will specify the names of the participants; the date of the meeting; the nature of the proposed resolution of the complaint, with specific reason(s); and will specify the procedures by which a formal hearing under this procedure may be obtained if the tenant is not satisfied [24 CFR 966.54]. A copy of this summary will also be placed in the tenant’s file. V. Requesting a formal grievance hearing If the tenant is not satisfied with the outcome of the informal settlement, the tenant must submit a written request for a hearing to the management office of the development where the tenant lives no later than five business days after receiving the summary of the informal settlement. The written request must specify the reasons for the request and the action or relief sought from the PHA. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-32 VI. Selecting the hearing officer A grievance hearing will be conducted by an impartial person who was not involved in making or approving the decision under review, and is not a subordinate of that person. When a tenant submits a timely request for a grievance hearing, the PHA will immediately appoint an impartial hearing officer. Once the hearing has been scheduled, the tenant will receive written notice (which may be via email) of the hearing, sent by mail or email, return receipt requested. Within 10 days of receiving the written request, the hearing will be scheduled. The tenant, PHA, and hearing officer will be notified in writing of the date, time and location of the hearing. If the hearing will be held remotely, the PHA will also include information on the remote hearing process. The tenant may request to reschedule a hearing once. Should the tenant need to reschedule a second time, they may only do so for good cause, or if needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety, or welfare of the family. Requests to reschedule a hearing must be made orally or in writing at least one day prior to the hearing date. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-33 VII. Procedures governing the hearing [24 CFR 966.56] The hearing will be held before a hearing officer as described above in Section VI. The tenant will be afforded a fair hearing, which will include: A. The opportunity to examine any PHA documents before the hearing, including records and regulations, that are directly relevant to the hearing. The tenant must request to view and copy PHA documents relevant to the hearing by noon of the day before the hearing. The tenant is allowed to copy any such document at no cost to the tenant. If the PHA does not make the document available for examination upon request by the tenant, the PHA may not rely on such document at the grievance hearing. B. The right to be represented by counsel or any other person chosen as the tenant’s representative, at the tenant’s expense, and to have such person make statements on the tenant’s behalf. C. The right to a private hearing unless the tenant requests a public hearing. D. The right to present evidence and arguments in support of the tenant’s complaint, to refute evidence relied on by the PHA or project management, and to confront and cross-examine all witnesses upon whose testimony or information the PHA or project management relies. E. A decision based solely and exclusively upon the facts presented at the hearing [24 CFR 966.56(b)]. The hearing is conducted informally by the hearing officer. The PHA and the tenant must be given the opportunity to present oral or documentary evidence that is relevant to the facts and issues raised, and to question any witnesses. The hearing decision will be based on the preponderance of the evidence, defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. The tenant or the PHA may arrange in advance for a transcript or recording of the hearing at the expense of the party making the arrangement. The PHA must provide reasonable accommodation for persons with disabilities to participate in the hearing. Reasonable accommodation may include qualified sign language interpreters, readers, accessible locations, or attendants. If the tenant is visually impaired, any notice to the tenant that is required under this procedure must be in an accessible format [24 CFR 966.56(f)]. The PHA must comply with HUD’s requirements regarding limited English proficiency (LEP). The tenant has the right to request competent oral interpretation, free of charge. LEP requirements can be found at: https://www.hud.gov/program_offices/fair_housing_equal_opp/promotingfh/lep-faq © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 14-34 VIII. Remote Hearings The PHA has the authority to require that hearings be conducted remotely in certain situations. IX. Failure to appear at the hearing If the tenant does not arrive within 20 minutes of the scheduled time, it will be considered a failure to appear, which means they have given up their right to a hearing. Both the tenant and the PHA must be notified of the determination by the hearing officer. A determination that the tenant has waived their right to a hearing will not constitute a waiver of any right the tenant may have to contest the PHA’s disposition of the grievance in an appropriate judicial setting [24 CFR 966.56(c)]. X. Decision of the hearing officer [24 CFR 966.57] The hearing officer will prepare a written decision together with the reasons for the decision within 10 business days after the hearing. A copy of the decision will be sent to the tenant and the PHA. The PHA will retain a copy of the decision in the tenant’s file. The hearing officer may ask the family for additional information and/or might adjourn the hearing to reconvene at a later date before reaching a decision. If the family misses a deadline ordered by the hearing officer, the hearing officer will make a decision based on the evidence presented. The decision of the hearing officer will be binding on the PHA unless the PHA’s Board of Commissioners determines within a reasonable time and notifies the tenant of its determination that: A. The grievance does not concern PHA action or failure to act in accordance with or involving the tenant’s lease or PHA regulations, which adversely affect the tenant’s rights, duties, welfare, or status; or B. The decision of the hearing officer is contrary to applicable federal, state, or local law, HUD regulations, or requirements of the annual contributions contract (ACC) between HUD and the PHA. When the PHA considers the decision of the hearing officer to be invalid for either of the reasons stated above, it will present the matter to the PHA Board of Commissioners within 10 business days of the date of the hearing officer’s decision. The Board will have 30 calendar days to consider the decision. If the Board decides to reverse the hearing officer’s decision, it must notify the tenant within 10 business days of this decision. A decision by the hearing officer or Board of Commissioners in favor of the PHA or which denies the relief requested by the tenant, in whole or in part, will not constitute a waiver of nor affect in any way the tenant’s right to a trial or judicial review in any court proceedings, which may be brought in the matter later [24 CFR 966.57]. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-1 Chapter 15 PROGRAM INTEGRITY INTRODUCTION The PHA is committed to ensuring that funds made available to the PHA are spent in accordance with HUD requirements. This chapter covers HUD and PHA policies designed to prevent, detect, investigate and resolve instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions. Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents PHA policies related to preventing, detecting, and investigating errors and program abuse. Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA must and may take when errors or program abuses are found. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-2 © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-3 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 15-I.A. PREVENTING ERRORS AND PROGRAM ABUSE HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for preventing errors and program abuse. PHAs are required to use the EIV system at annual reexamination in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are further required to: • Provide applicants and residents with form HUD-52675, “Debts Owed to PHAs and Terminations” • Require all adult members of an applicant or participant family to acknowledge receipt of form HUD-52675 by signing a copy of the form for retention in the family file Hopkins HRA Policy The PHA anticipates that the vast majority of families and PHA employees intend to and will comply with program requirements and make reasonable efforts to avoid errors. To ensure that the PHA’s program is administered effectively and according to the highest ethical and legal standards, the PHA will employ a variety of techniques to ensure that both errors and intentional program abuse are rare. The PHA will provide each applicant and resident with a copy of “Is Fraud Worth It?” (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse. The PHA will provide each applicant and resident with a copy of “What You Should Know about EIV,” a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2017-12. In addition, the PHA will require the head of each household to acknowledge receipt of the guide by signing a copy for retention in the family file. The PHA will require mandatory orientation sessions for all prospective residents either prior to or upon execution of the lease. The PHA will discuss program compliance and integrity issues. At the conclusion of all program orientation sessions, the family representative will be required to sign a program briefing certificate to confirm that all rules and pertinent regulations were explained to them. The PHA will routinely provide resident counseling as part of every reexamination interview in order to clarify any confusion pertaining to program rules and requirements. PHA staff will be required to review and explain the contents of all HUD- and PHA-required forms prior to requesting family member signatures. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-4 The PHA will place a warning statement about the penalties for fraud (as described in 18 U.S.C. 1001 and 1010) on key PHA forms and form letters that request information from a family member. The PHA will provide each PHA employee with the necessary training on program rules and the organization’s standards of conduct and ethics. At every regular reexamination the PHA staff will explain any changes in HUD regulations or PHA policy that affect residents. For purposes of this chapter the term error refers to an unintentional error or omission. Program abuse or fraud refers to a single act or pattern of actions that constitute a false statement, omission, or concealment of a substantial fact, made with the intent to deceive or mislead. 15-I.B. DETECTING ERRORS AND PROGRAM ABUSE In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to detect errors and program abuse. Quality Control and Analysis of Data Hopkins HRA Policy The PHA will employ a variety of methods to detect errors and program abuse, including: The PHA routinely will use EIV and other non-HUD sources of up-front income verification. This includes the Work Number and any other private or public databases available to the PHA. At each annual reexamination, current information provided by the family will be compared to information provided at the last annual reexamination to identify inconsistencies and incomplete information. The PHA will compare family-reported income and expenditures to detect possible unreported income. Independent Audits and HUD Monitoring Notice PIH 2015-16 requires all PHAs that expend $750,000 or more in federal awards annually to have an independent audit (IPA). In addition, HUD conducts periodic on-site and automated monitoring of PHA activities and notifies the PHA of errors and potential cases of program abuse. Hopkins HRA Policy The PHA will use the results reported in any IPA or HUD monitoring reports to identify potential program abuses as well as to assess the effectiveness of the PHA’s error detection and abuse prevention efforts. Individual Reporting of Possible Errors and Program Abuse Hopkins HRA Policy The PHA will encourage staff, residents, and the public to report possible program abuse. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-5 15-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE When the PHA Will Investigate Hopkins HRA Policy The PHA will review all referrals, specific allegations, complaints, and tips from any source including other agencies, companies, and individuals, to determine if they warrant investigation. In order for the PHA to investigate, the allegation must contain at least one independently-verifiable item of information, such as the name of an employer or the name of an unauthorized household member. The PHA will investigate when inconsistent or contradictory information is detected through file reviews and the verification process. Consent to Release of Information [24 CFR 960.259] The PHA may investigate possible instances of error or abuse using all available PHA and public records. If necessary, the PHA will require families to sign consent forms for the release of additional information. Analysis and Findings Hopkins HRA Policy The PHA will base its evaluation on a preponderance of the evidence collected during its investigation. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence that as a whole shows that the fact sought to be proved is more probable than not. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. For each investigation the PHA will determine (1) whether an error or program abuse has occurred, (2) whether any amount of money is owed the PHA, and (3) what corrective measures or penalties will be assessed. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-6 Consideration of Remedies All errors and instances of program abuse must be corrected prospectively. Whether the PHA will enforce other corrective actions and penalties depends upon the nature of the error or program abuse. Hopkins HRA Policy In the case of family-caused errors or program abuse, the PHA will take into consideration (1) the seriousness of the offense and the extent of participation or culpability of individual family members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances related to the disability of a family member, (4) the effects of a particular remedy on family members who were not involved in the offense. Notice and Appeals Hopkins HRA Policy The PHA will inform the relevant party in writing of its findings and remedies within 10 business days of the conclusion of the investigation. The notice will include (1) a description of the error or program abuse, (2) the basis on which the PHA determined the error or program abuses, (3) the remedies to be employed, and (4) the family’s right to appeal the results through an informal hearing or grievance hearing (see Chapter 14). © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-7 PART II: CORRECTIVE MEASURES AND PENALTIES 15-II.A. UNDER- OR OVERPAYMENT An under- or overpayment includes an incorrect tenant rent payment by the family, or an incorrect utility reimbursement to a family. Corrections Whether the incorrect rental determination is an overpayment or underpayment, the PHA must promptly correct the tenant rent and any utility reimbursement prospectively. Hopkins HRA Policy Increases in the tenant rent will be implemented on the first of the month following a written 30-day notice. Any decreases in tenant rent will become effective the first of the month following the discovery of the error. Reimbursement Whether the family is required to reimburse the PHA or the PHA is required to reimburse the family depends upon which party is responsible for the incorrect payment and whether the action taken was an error or program abuse. Policies regarding reimbursement are discussed in the three sections that follow. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-8 15-II.B. FAMILY-CAUSED ERRORS AND PROGRAM ABUSE General administrative requirements for participating in the program are discussed throughout the ACOP. This section deals specifically with errors and program abuse by family members. An incorrect rent determination caused by a family generally would be the result of incorrect reporting of family composition, income, assets, or expenses, but also would include instances in which the family knowingly allows the PHA to use incorrect information provided by a third party. Family Reimbursement to PHA Hopkins HRA Policy In the case of family-caused errors or program abuse, the family will be required to repay any amounts of rent underpaid. The PHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the amount owed, the PHA will terminate the family’s lease in accordance with the policies in Chapter 13. PHA Reimbursement to Family Hopkins HRA Policy The PHA will not reimburse the family for any overpayment of rent when the overpayment clearly is caused by the family. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-9 Prohibited Actions An applicant or resident in the public housing program must not knowingly: • Make a false statement to the PHA [Title 18 U.S.C. Section 1001]. • Provide incomplete or false information to the PHA [24 CFR 960.259(a)(4)]. • Commit fraud, or make false statements in connection with an application for assistance or with reexamination of income [24 CFR 966.4(l)(2)(iii)(C)]. Hopkins HRA Policy Any of the following will be considered evidence of family program abuse: Offering bribes or illegal gratuities to the PHA Board of Commissioners, employees, contractors, or other PHA 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 PHA 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 PHA may determine other actions to be program abuse based upon a preponderance of the evidence, as defined earlier in this chapter. Penalties for Program Abuse In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the following remedies. • The PHA may require the family to repay any amounts owed to the program (see 15-II.B., Family Reimbursement to PHA). • The PHA may require, as a condition of receiving or continuing assistance, that a culpable family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 13 (for residents). • The PHA may deny admission or terminate the family’s lease following the policies set forth in Chapter 3 and Chapter 13 respectively. • The PHA may refer the family for state or federal criminal prosecution as described in section 15-II.D. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-10 15-II.C. PHA-CAUSED ERRORS OR PROGRAM ABUSE The responsibilities and expectations of PHA staff with respect to normal program administration are discussed throughout the ACOP. This section specifically addresses actions of a PHA staff member that are considered errors or program abuse related to the public housing program. Additional standards of conduct may be provided in the PHA personnel policy. PHA-caused incorrect rental determinations include (1) failing to correctly apply public housing rules regarding family composition, income, assets, and expenses, and (2) errors in calculation. De Minimis Errors [24 CFR 5.609(c)(4)] (Effective TBD but no later than January 1, 2025) The PHA will not be considered out of compliance when making annual income determinations solely due to de minimis errors in calculating family income. A de minimis error is an error where the PHA determination of family income deviates from the correct income determination by no more than $30 per month in monthly adjusted income ($360 in annual adjusted income) per family. The PHA must still take any corrective action necessary to credit or repay a family if the family has been overcharged for their rent as a result of the de minimis error in the income determination, but families will not be required to repay the PHA in instances where a PHA has miscalculated income resulting in a family being undercharged for rent. Repayment to the PHA The family is not required to repay an underpayment of rent if the error or program abuse is caused by PHA staff. PHA Reimbursement to Family Hopkins HRA Policy The PHA will reimburse a family for any family overpayment of rent, regardless of whether the overpayment was the result of staff-caused error or staff program abuse. © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-11 Prohibited Activities Hopkins HRA Policy Any of the following will be considered evidence of program abuse by PHA staff: Failing to comply with any public housing program requirements for personal gain Failing to comply with any public housing program requirements as a result of a conflict of interest relationship with any applicant or resident Seeking or accepting anything of material value from applicants, residents, vendors, contractors, or other persons who provide services or materials to the PHA Disclosing confidential or proprietary information to outside parties Gaining profit as a result of insider knowledge of PHA activities, policies, or practices Misappropriating or misusing public housing funds Destroying, concealing, removing, or inappropriately using any records related to the public housing program Committing any other corrupt or criminal act in connection with any federal housing program Committing sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment Allowing sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment, where the PHA knew or should have known such harassment was occurring Retaliating against any applicant, resident, or staff reporting sexual harassment or other harassment based on race, color, religion, national origin, familial status, disability, sexual orientation, or gender identity, either quid pro quo (supervisory harassment) or hostile environment © Copyright 2022 Nan McKay & Associates, Inc. ACOP 9/1/22 Unlimited copies may be made for internal use. Page 15-12 15-II.D. CRIMINAL PROSECUTION Hopkins HRA Policy When the PHA determines that program abuse by a family or PHA staff member has occurred and the amount of underpaid rent meets or exceeds the threshold for prosecution under local or state law, the PHA 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 public housing program will be referred to the appropriate local, state, or federal entity. 15-II.E. FRAUD AND PROGRAM ABUSE RECOVERIES PHAs who enter into a repayment agreement with a family to collect rent owed, initiate litigation against the family to recover rent owed, or begin eviction proceedings against a family may retain 100 percent of program funds that the PHA recovers [Notice PIH 2007-27 (HA)]. If the PHA does none of the above, all amounts that constitute an underpayment of rent must be returned to HUD. The family must be afforded the opportunity for a hearing through the PHA’s grievance process. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-1 Chapter 16 PROGRAM ADMINISTRATION INTRODUCTION This chapter discusses administrative policies and practices that are relevant to the activities covered in this ACOP. The policies are discussed in seven parts as described below: Part I: Setting Utility Allowances. This part describes how utility allowances are established and revised. Also discussed are the requirements to establish surcharges for excess consumption of PHA-furnished utilities. Part II: Establishing Flat Rents. This part describes the requirements and policies related to establishing and updating flat rent amounts. Part III: Repayment of Family Debts. This part contains policies for recovery of monies that have been underpaid by families and describes the circumstances under which the PHA will offer repayment agreements to families. Also discussed are the consequences for failure to make payments in accordance with a repayment agreement. Part IV: Public Housing Assessment System (PHAS). This part describes the PHAS indicators, how PHAs are scored under PHAS, and how those scores affect a PHA. Part V: Record Keeping. All aspects of the program involve certain types of record- keeping. This part outlines the privacy rights of applicants and participants and record retention policies the PHA will follow. Part VI: Reporting and Record Keeping for Children with Elevated Blood Lead Level. This part describes the PHA’s reporting responsibilities related to children with elevated blood lead levels that are living in public housing. Part VII: Violence against Women Act (VAWA): Notification, Documentation, and Confidentiality. This part contains key terms used in VAWA and describes requirements related to notifying families about their rights and responsibilities under VAWA; requesting documentation from victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking; and maintaining the confidentiality of information obtained from victims. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-2 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-3 PART I: SETTING UTILITY ALLOWANCES [24 CFR 965 Subpart E] 16-I.A. OVERVIEW PHAs must establish allowances for PHA-furnished utilities for all check metered utilities and for resident-purchased utilities for all utilities purchased directly by residents from a utility supplier [24 CFR 965.502(a)]. Hopkins HRA Policy The PHA’s one development does not have utility allowances. Air-Conditioning “If a PHA installs air conditioning, it shall provide, to the maximum extent economically feasible, systems that give residents the option of choosing to use air conditioning in their units. The design of systems that offer each resident the option to choose air conditioning shall include retail meters or check meters, and residents shall pay for the energy used in its operation. For systems that offer residents the option to choose air conditioning but cannot be check metered, residents are to be surcharged in accordance with 965.506. If an air conditioning system does not provide for resident option, residents are not to be charged, and these systems should be avoided whenever possible.” [24 CFR 965.505(e)] Hopkins HRA Policy The PHA has established a surcharge for resident-supplied air-conditioning. 16-I.C. NOTICE REQUIREMENTS [965.502] The PHA must give notice to all residents of proposed allowances and scheduled surcharges, and revisions thereof. The notice must be given in the manner provided in the lease and must: • Be provided at least 60 days before the proposed effective date of the allowances, scheduled surcharges, or revisions. • Describe the basis for determination of the scheduled surcharge, or revisions, including a statement of the tenant-installed air conditioner included in determining the amounts of the schedule of surcharges. • Notify residents of the place where the PHA’s documentation on surcharges are based is available for inspection. • Provide all residents an opportunity to submit written comments during a period expiring not less than 30 days before the proposed effective date of the scheduled surcharges, or revisions. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-4 16-I.E. REASONABLE ACCOMMODATION AND INDIVIDUAL RELIEF [24 CFR 965.508] Residents with disabilities may not be charged for the use of certain resident-supplied appliances if there is a verified need for special equipment because of the disability [24 CFR 8 and 100, PH Occ GB, p. 172]. See Chapter 2 for policies regarding the request and approval of reasonable accommodations. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-5 PART II: ESTABLISHING FLAT RENTS 16-II.A. OVERVIEW Flat rents are designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient. Flat rents are also used to prorate assistance for a mixed family. A mixed family is one whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigrations status [24 CFR 5.504]. This part discusses how the PHA establishes and updates flat rents. Policies related to the use of flat rents, family choice of rent, flat rent hardships, and proration of rent for a mixed family are discussed in Chapter 6. 16-II.B. FLAT RENTS [24 CFR 960.253(b) and Notice PIH 2022-33] Establishing Flat Rents The 2015 Appropriations Act requires that flat rents must be set at no less than 80 percent of the applicable fair market rent (FMR). Alternatively, the PHA may set flat rents at no less than 80 percent of the applicable small area FMR(SAFMR) for metropolitan areas, or 80 percent of the applicable unadjusted rents for nonmetropolitan areas. For areas where HUD has not determined a SAFMR or an unadjusted rent, PHAs must set flat rents at no less than 80 percent of the FMR or apply for an exception flat rent. The 2015 Appropriations Act permits PHAs to apply for an exception flat rent that is lower than either 80 percent of the FMR or SAFMR/unadjusted rent if the PHA can demonstrate, through the submission of a market analysis, that these FMRs do not reflect the market value of a particular property or unit and HUD agrees with the PHA’s analysis. The market analysis must be submitted using form HUD-5880, “Flat Rent Market Analysis Summary.” PHAs must receive written HUD approval before implementing exception flat rents. PHAs with a previously approved flat rent exception request may submit a written request to extend the approved flat rents for up to two additional years, provided local market conditions remain unchanged. Detailed information on how to request exception flat rents can be found in Notice PIH 2022-33. PHAs are now required to apply a utility allowance to flat rents as necessary. Flat rents set at 80 percent of the FMR must be reduced by the amount of the unit’s utility allowance, if any. Hopkins HRA Policy The PHA has established flat rent at 81 percent of FMR/SAFMR/unadjusted rent. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-6 Review of Flat Rents No later than 90 days after the effective date of the new annual FMRs/SAFMRs/unadjusted rent, PHAs must implement new flat rents as necessary based changes to the FMR/SAFMR/unadjusted rent or request an exception. If the FMR falls from year to year, the PHA may, but is not required to, lower the flat rent to 80 percent of the current FMR/SAFMR/unadjusted rent. Hopkins HRA Policy If the FMR/SAFMR/unadjusted rent is lower than the previous year, the PHA will not reduce flat rents to 81 percent of the current FMR/SAFMR. Applying Flat Rents Hopkins HRA Policy The PHA will apply updated flat rents at each family’s next annual reexamination after implementation of the new flat rents. Posting of Flat Rents Hopkins HRA Policy The PHA will publicly post the schedule of flat rents in a conspicuous manner in the applicable PHA or project office. Documentation of Flat Rents [24 CFR 960.253(b)(5)] The PHA must maintain records that document the method used to determine flat rents, and that show how flat rents were determined by the PHA in accordance with this method. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-7 PART III: FAMILY DEBTS TO THE PHA 16-III.A. OVERVIEW Families are required to reimburse the PHA if they were charged less rent than required because the family either underreported or failed to report income. PHAs are required to determine retroactive rent amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2018-18]. This part describes the PHA’s policies for recovery of monies owed to the PHA by families. Hopkins HRA Policy When an action or inaction of a resident family results in the underpayment of rent or other amounts, the PHA holds the family liable to return any underpayments to the PHA. The PHA will enter into repayment agreements in accordance with the policies contained in this part as a means to recover overpayments. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-8 16-III.B. REPAYMENT POLICY Family Debts to the PHA Hopkins HRA Policy Any amount owed to the PHA by a public housing family must be repaid. If the family is unable to repay the debt within 30 days, the PHA will offer to enter into a repayment agreement in accordance with the policies below. Refusal to Enter into An Agreement If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA will terminate the family’s tenancy. Hopkins HRA Policy When a family refuses to repay monies owed to the PHA, in addition to termination of program assistance, the PHA will utilize other available collection alternatives including, but not limited to, the following: Collection agencies Small claims court Civil lawsuit State income tax set-off program Repayment Agreement [24 CFR 792.103] The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods. General Repayment Agreement Guidelines Down Payment Requirement Hopkins HRA Policy Before executing a repayment agreement with a family, the PHA will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to the PHA that a down payment of 10 percent would impose an undue hardship, the PHA may, in its sole discretion, require a lesser percentage or waive the requirement. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-9 Payment Thresholds Notice PIH 2018-18 recommends that the total amount that a family must pay each month—the family’s monthly rent plus the monthly debt repayment amount—should not exceed 40 percent of the family’s monthly adjusted income, which is considered “affordable.” Moreover, Notice PIH 2018-18 acknowledges that PHAs have the discretion to establish “thresholds and policies” for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. Hopkins HRA Policy The PHA has established the following guidelines for repayment of debts: Amounts between $3,000 and the Federal or State threshold for criminal prosecution must be repaid within 36 months. Amounts between $2,000 and $2,999 must be repaid within 30 months. Amounts between $1,000 and $1,999 must be repaid within 24 months. Amounts under $1,000 must be repaid within 12 months If a family can provide evidence satisfactory to the PHA that the established monthly payment amount would impose an undue hardship, the PHA may, in its sole discretion, require a lower monthly payment amount. If the family’s income increases or decreases during the term of a repayment agreement, either the PHA or the family may request that the monthly payment amount be adjusted accordingly. Execution of the Agreement All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice PIH 2018-18]. Hopkins HRA Policy Any repayment agreement between the PHA and a family must be signed and dated by the PHA and by the head of household and spouse/cohead (if applicable). Due Dates Hopkins HRA Policy All payments are due by the close of business on the 15th day of the month. If the 15th does not fall on a business day, the due date is the close of business on the first business day after the 15th. Late or Missed Payments Hopkins HRA Policy © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-10 If a payment is not received by the end of the business day on the date due, and prior approval for the missed payment has not been given by the PHA, the PHA will send the family a delinquency notice giving the family 10 business days to make the late payment. If the payment is not received by the due date of the delinquency notice, it will be considered a breach of the agreement and the PHA will terminate tenancy in accordance with the policies in Chapter 13. If a family receives three delinquency notices for unexcused late payments in a 12-month period, the repayment agreement will be considered in default, and the PHA will terminate tenancy in accordance with the policies in Chapter 13. No Offer of Repayment Agreement Hopkins HRA Policy The PHA generally will not enter into a repayment agreement with a family if there is already a repayment agreement in place with the family, or if the amount owed by the family exceeds the federal or state threshold for criminal prosecution. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-11 Repayment Agreement Terms All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the total retroactive rent amount owed, amount of lump sum payment made at time of execution, if applicable, and the monthly repayment amount. Notice PIH 2018-18 requires certain provisions to be included in any repayment agreement involving amounts owed by a family because it underreported or failed to report income: • A reference to the items in the public housing lease that state the family’s obligation to provide true and complete information at every reexamination and the grounds on which the PHA may terminate assistance because of a family’s action or failure to act • A statement clarifying that each month the family not only must pay to the PHA the monthly payment amount specified in the agreement but must also pay to the PHA the monthly tenant rent • A statement that the terms of the repayment agreement may be renegotiated if the family’s income decreases or increases • A statement that late or missed payments constitute default of the repayment agreement and may result in termination of tenancy © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-12 PART IV: PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS) 16-IV.A. OVERVIEW The purpose of the Public Housing Assessment System (PHAS) is to improve the delivery of services in public housing and enhance trust in the public housing system among PHAs, public housing residents, HUD and the general public by providing a management tool for effectively and fairly measuring the performance of a public housing agency in essential housing operations. 16-IV.B. PHAS INDICATORS [24 CFR 902 Subparts A, B, C, D, and E] The table below lists each of the PHAS indicators, the points possible under each indicator, and a brief description of each indicator. A PHA’s performance is based on a combination of all four indicators. Indicator 1: Physical condition of the PHA’s projects Maximum Score: 40 • The objective of this indicator is to determine the level to which a PHA is maintaining its public housing in accordance with the standard of safe, habitable dwelling units. • To determine the physical condition of a PHA’s projects, inspections are performed using the National Standards for the Inspection of Real Estate (NSPIRE). The inspections are performed by an independent inspector arranged by HUD and include a statistically valid sample of the units in each project in the PHA’s public housing portfolio. Indicator 2: Financial condition of the PHA’s projects Maximum Score: 25 • The objective of this indicator is to measure the financial condition of the PHA’s public housing projects for the purpose of evaluating whether the PHA has sufficient financial resources and is capable of managing those financial resources effectively to support the provision of housing that is decent, safe, sanitary, and in good repair. • A PHA’s financial condition is determined by measuring each public housing project’s performance in each of the following subindicators: quick ratio, months expendable net assets ratio, and debt service coverage ratio. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-13 Indicator 3: Management operations of the PHA’s projects Maximum Score: 25 • The objective of this indicator is to measure certain key management operations and responsibilities of a PHA’s projects for the purpose of assessing the PHA’s management operations capabilities. • Each project’s management operations are assessed based on the following sub- indicators: occupancy, tenant accounts receivable, and accounts payable. • An on-site management review may be conducted as a diagnostic and feedback tool for problem performance areas, and for compliance. Management reviews are not scored. Indicator 4: Capital Fund Maximum Score: 10 • The objective of this indicator is to measure how long it takes the PHA to obligate capital funds and to occupy units. • The PHA’s score for this indicator is measured at the PHA level and is based on the following subindicators: timeliness of fund obligation and occupancy rate. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-14 16-IV.C. PHAS SCORING [24 CFR 902 Subpart F] HUD’s Real Estate Assessment Center (REAC) issues overall PHAS scores, which are based on the scores of the four PHAS indicators, and the subindicators under each indicator. The PHA’s indicator scores are based on a weighted average of the PHA’s public housing projects’ scores. PHAS scores translate into a designation for each PHA as high performing, standard, substandard, or troubled. A high performer is a PHA that achieves an overall PHAS score of 90 or greater, and achieves a score of at least 60 percent of the points available under the physical, financial, and management indicators and at least 50 percent of the points available under the capital fund indicator. A standard performer is a PHA that has an overall PHAS score between 60 and 89, and achieves a score of at least 60 percent of the points available under the physical, financial, and management indicators and at least 50 percent of the points available under the capital fund indicator. A substandard performer is a PHA that has an overall PHAS score of at least 60 percent and achieves a score of less than 60 percent under one or more of the physical, financial, or management indicators. A troubled performer is a PHA that achieves an overall PHAS score of less than 60, or achieves less than 50 percent of the total points available under the capital fund indicator. These designations can affect a PHA in several ways: • High-performing PHAs are eligible for incentives including relief from specific HUD requirements and bonus points in funding competitions [24 CFR 902.71]. • PHAs that are standard performers may be required to submit and operate under a corrective action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(1)]. • PHAs that are substandard performers will be required to submit and operate under a corrective action plan to eliminate deficiencies in the PHA’s performance [24 CFR 902.73(a)(2)]. • PHAs with an overall rating of “troubled” are subject to additional HUD oversight, and are required to enter into a memorandum of agreement (MOA) with HUD to improve PHA performance [24 CFR 902.75]. • PHAs that fail to execute or meet MOA requirements may be referred to the Assistant Secretary to determine remedial actions, including, but not limited to, remedies available for substantial default [24 CFR 902.75(g) and 24 CFR Part 907]. PHAs must post a notice of its final PHAS score and status in appropriate conspicuous and accessible locations in its offices within two weeks of receipt of its final score and designation [24 CFR 902.64(b)(2)]. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-15 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-16 PART V: RECORD KEEPING 16-V.A. OVERVIEW The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such records must be made available to HUD or the Comptroller General of the United States upon request. In addition, the PHA must ensure that all applicant and participant files are maintained in a way that protects an individual’s privacy rights, and that comply with VAWA confidentiality requirements. 16-V.B. RECORD RETENTION The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during the term of each assisted lease, and for a period of at least three years from the end of participation (EOP) date [24 CFR 908.101]. The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH 2018-18]. Notice PIH 2014-20 requires the PHA to keep records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act or the equal access final rule. The PHA must keep confidential records of all emergency transfer requested under the PHA’s Emergency Transfer Plan, and the outcomes of such requests, and retain the records for a period of three years, or for a period of time as specific in program regulations [24 CFR 5.2002(e)(12)]. Hopkins HRA Policy The PHA will keep the last three years of the Form HUD-50058 and supporting documentation, and for at least three years after end of participation all documents related to a family’s eligibility, tenancy, and termination. The PHA will keep Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy and for three years from the end of participation date. In addition, the PHA will keep the following records for at least three years: An application from each ineligible family and notice that the applicant is not eligible Lead-based paint records as required by 24 CFR 35, Subpart B Documentation supporting the establishment of flat rents Documentation supporting the establishment of surcharges Documentation related to PHAS Accounts and other records supporting PHA budget and financial statements for the program © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-17 Complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act, the equal access final rule, or VAWA Confidential records of all emergency transfers related to VAWA requested under the PHA’s Emergency Transfer Plan and the outcomes of such requests Other records as determined by the PHA or as required by HUD If a hearing to establish a family’s citizenship status is held, longer retention requirements apply for some types of documents. For specific requirements, see Section 14-II.A. 16-V.C. RECORDS MANAGEMENT PHAs must maintain applicant and participant files and information in accordance with the regulatory requirements described below. Hopkins HRA Policy All applicant and participant information will be kept in a secure location and access will be limited to authorized PHA staff. PHA staff will not discuss personal family information unless there is a business reason to do so. Inappropriate discussion of family information or improper disclosure of family information by staff will result in disciplinary action. Privacy Act Requirements [24 CFR 5.212 and Form-9886] The collection, maintenance, use, and dissemination of social security numbers (SSN), employer identification numbers (EIN), any information derived from these numbers, and income information of applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and local law. Applicants and participants, including all adults in the household, are required to sign a consent form, HUD-9886, Authorization for Release of Information. This form incorporates the Federal Privacy Act Statement and describes how the information collected using the form may be used, and under what conditions HUD or the PHA may release the information collected. Upfront Income Verification (UIV) Records PHAs that access UIV data through HUD’s Enterprise Income Verification (EIV) system are required to adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with federal laws, regardless of the media on which the data is recorded (e.g. electronic, paper). These requirements are contained in the HUD-issued document, Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification (UIV) Data. Hopkins HRA Policy Prior to utilizing HUD’s EIV system, the PHA will adopt and implement EIV security procedures required by HUD. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-18 Criminal Records The PHA may only disclose the criminal conviction records which the PHA receives from a law enforcement agency to officers or employees of the PHA, or to authorized representatives of the PHA who have a job-related need to have access to the information [24 CFR 5.903(e)]. The PHA must establish and implement a system of records management that ensures that any criminal record received by the PHA from a law enforcement agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)]. The PHA must establish and implement a system of records management that ensures that any sex offender registration information received by the PHA from a State or local agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation. However, a record of the screening, including the type of screening and the date performed must be retained [Notice PIH 2012-28]. This requirement does not apply to information that is public information, or is obtained by a PHA other than under 24 CFR 5.905. Medical/Disability Records PHAs are not permitted to inquire about the nature or extent of a person’s disability. The PHA may not inquire about a person’s diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA should not place this information in the tenant file. The PHA should destroy the document. Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking Records For requirements and PHA policies related to management of documentation obtained from victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, see section 16-VII.E. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-19 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-20 PART VI: REPORTING REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL 16-VI.A. REPORTING REQUIREMENTS [24 CFR 35.1130(e); Notice PIH 2017-13] The PHA has certain responsibilities relative to children with elevated blood lead levels that are living in public housing. The PHA must report the name and address of a child identified as having an elevated blood lead level (EBLL) to the public health department within five business days of being so notified by any other medical health care professional. The PHA must also report each known case of a child with an EBLL to the HUD field office. Hopkins HRA Policy The PHA will provide the public health department written notice of the name and address of any child identified as having an elevated blood lead level. The PHA will provide written notice of each known case of a child with an EBLL to the HUD field office, and to HUD’s Office of Lead Hazard Control (OLHCHH), within five business days of receiving the information. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-21 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-22 PART VII: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, AND CONFIDENTIALITY 16-VII.A. OVERVIEW The Violence against Women Act (VAWA) provides special protections for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking who are applying for or receiving assistance under the public housing program. If your state or local laws provide greater protection for such victims, those apply in conjunction with VAWA. • Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2022-06, PIH 2022-22, and PIH 2022-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD’s recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and PHA policies in three areas: notification, documentation, and confidentiality. Specific VAWA requirements and PHA policies are located in Chapter 3, “Eligibility” (sections 3-I.C and 3-III.F); Chapter 5, “Occupancy Standards and Unit Offers” (section 5-II.D); Chapter 8, “Leasing and Inspections” (section 8-I.B); Chapter 12, “Transfer Policy” (sections 12-III.C, 12-III.F, and 12-IV.D); and Chapter 13, “Lease Terminations” (sections 13-III.F and 13-IV.D). 16-VII.B. DEFINITIONS [24 CFR 5.2003, FR Notice 8/6/13] As used in VAWA: • The term affiliated individual means, with respect to a person: - A spouse, parent, brother or sister, or child of that individual, or an individual to whom that person stands in the position or place of a parent; or - Any individual, tenant or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking. • The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. • The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-23 • The term domestic violence includes felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: - The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim - A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner - A person with whom the victim shares a child in common - A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction • The term economic abuse means behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitled, including using coercion, fraud, and manipulation to: - Restrict a person’s access to money, assets, credit, or financial information - Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage - Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty • The term sexual assault means: - Any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks the capacity to consent • The term stalking means: - To engage in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others, or suffer substantial emotional distress. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-24 • The term technological abuse means an act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies 16-VII.C. NOTIFICATION [24 CFR 5.2005(a)] Notification to Public The PHA adopts the following policy to help ensure that all actual and potential beneficiaries of its public housing program are aware of their rights under VAWA. Hopkins HRA Policy The PHA will post the following information regarding VAWA in its offices. It will also make the information readily available to anyone who requests it. A notice of occupancy rights under VAWA to public housing program applicants and participants who are or have been victims of domestic violence, dating violence, sexual assault, or stalking (Form HUD-5380, see Exhibit 16-1) A copy of form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation (see Exhibit 16-2) A copy of the PHA’s VAWA emergency transfer plan (Exhibit 16-3) A copy of HUD’s Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 (Exhibit 16-4) The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800- 787-3224 (TTY) (included in Exhibit 16-1) Contact information for local victim advocacy groups or service providers © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-25 Notification to Applicants and Tenants [24 CFR 5.2005(a)(1)] PHAs are required to inform public housing applicants and tenants of their rights under VAWA, including their right to confidentiality and the limits thereof, when they are denied assistance, when they are admitted to the program, and when they are notified of an eviction or termination of housing benefits. The PHA must distribute a notice of VAWA rights, along with the VAWA self-certification form (HUD-5382) at each of these three junctures. Hopkins HRA Policy The VAWA information provided to applicants and participants will consist of the notices in Exhibit 16-1 and 16-2. The PHA will provide all applicants with information about VAWA at the time they request an application for housing assistance. The PHA will also include such information in all notices of denial of assistance (see section 3-III.F). The PHA will provide all tenants with information about VAWA at the time of admission (see section 8-I.B) and at annual reexamination. The PHA will also include such information in all lease termination notices (see section 13-IV.D). The PHA is not limited to providing VAWA information at the times specified in the above policy. If the PHA decides to provide VAWA information to a tenant following an incident of domestic violence, Notice PIH 2017-08 cautions against sending the information by mail, since the abuser may be monitoring the mail. The notice recommends that in such cases the PHA make alternative delivery arrangements that will not put the victim at risk. Hopkins HRA Policy Whenever the PHA has reason to suspect that providing information about VAWA to a public housing tenant might place a victim of domestic violence at risk, it will attempt to deliver the information by hand directly to the victim or by having the victim come to an office or other space that may be safer for the individual, making reasonable accommodations as necessary. For example, the PHA may decide not to send mail regarding VAWA protections to the victim’s unit if the PHA believes the perpetrator may have access to the victim’s mail, unless requested by the victim. When discussing VAWA with the victim, the PHA will take reasonable precautions to ensure that no one can overhear the conversation such as having conversations in a private room. The victim may, but is not required to, designate an attorney, advocate, or other secure contact for communications regarding VAWA protections. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-26 16-VII.D. DOCUMENTATION [24 CFR 5.2007] A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic violence, dating violence, sexual assault, stalking, human trafficking, or criminal activity related to any of these forms of abuse may—but is not required to—request that the individual making the claim document the abuse. Any request for documentation must be in writing, and the individual must be allowed at least 14 business days after receipt of the request to submit the documentation. The PHA may extend this time period at its discretion. [24 CFR 5.2007(a)] The individual may satisfy the PHA’s request by providing any one of the following three forms of documentation [24 CFR 5.2007(b)]: (1) A completed and signed HUD-approved certification form (HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the perpetrator only if the name of the perpetrator is safe to provide and is known to the victim. The form may be filled out and submitted on behalf of the victim. (2) A federal, state, tribal, territorial, or local police report or court record, or an administrative record (3) Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, stalking, or human trafficking, or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person’s belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation. The PHA may not require third-party documentation (forms 2 and 3) in addition to certification (form 1), except as specified below under “Conflicting Documentation,” nor may it require certification in addition to third-party documentation [FR Notice 11/16/16]. Hopkins HRA Policy Any request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking will be in writing (including email), will specify a deadline of 14 business days following receipt of the request, will describe the three forms of acceptable documentation, will provide explicit instructions on where and to whom the documentation must be submitted, and will state the consequences for failure to submit the documentation or request an extension in writing by the deadline. The PHA may, in its discretion, extend the deadline for 10 business days. In determining whether to extend the deadline, the PHA will consider factors that may contribute to the victim’s inability to provide documentation in a timely manner, including cognitive limitations, disabilities, limited English proficiency, absence from the unit, administrative delays, the danger of further violence, and the victim’s need to address health or safety issues. Any extension granted by the PHA will be in writing. Once the victim provides documentation, the PHA will acknowledge receipt of the documentation within 10 business days. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-27 Conflicting Documentation [24 CFR 5.2007(e)] In cases where the PHA receives conflicting certification documents from two or more members of a household, each claiming to be a victim and naming one or more of the other petitioning household members as the perpetrator, the PHA may determine which is the true victim by requiring each to provide acceptable third-party documentation, as described above (forms 2 and 3). The PHA may also request third-party documentation when submitted documentation contains information that conflicts with existing information already available to the PHA. The PHA must honor any court orders issued to protect the victim or to address the distribution of property. Individuals have 30 calendar days to return third-party verification to the PHA. If the PHA does not receive third-party documentation, and the PHA will deny or terminate assistance as a result, the PHA must hold separate hearings for the tenants [Notice PIH 2017-08]. Hopkins HRA Policy If presented with conflicting certification documents from members of the same household, the PHA will attempt to determine which is the true victim by requiring each of them to provide third-party documentation in accordance with 24 CFR 5.2007(e) and by following any HUD guidance on how such determinations should be made. When requesting third-party documents, the PHA will provide contact information for local domestic violence and legal aid offices. In such cases, applicants or tenants will be given 30 calendar days from the date of the request to provide such documentation. If the PHA does not receive third-party documentation within the required timeframe (and any extensions) the PHA will deny VAWA protections and will notify the applicant or tenant in writing of the denial. If, as a result, the applicant or tenant is denied or terminated from the program, the PHA will hold separate hearings for the applicants or tenants. Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] The PHA has the discretion to provide benefits to an individual based solely on the individual’s statement or other corroborating evidence—i.e., without requiring formal documentation of abuse in accordance with 24 CFR 5.2007(b). HUD recommends documentation in a confidential manner when a verbal statement or other evidence is accepted. Hopkins HRA Policy If the PHA accepts an individual’s statement or other corroborating evidence (as determined by the victim) of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA will document acceptance of the statement or evidence in the individual’s file. Failure to Provide Documentation [24 CFR 5.2007(c)] In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief with a written request for documentation of abuse. If the individual fails to provide the documentation within 14 business days from the date of receipt, or such longer time as the PHA may allow, the PHA may deny relief for protection under VAWA. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-28 16-VII.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] All information provided to the PHA regarding domestic violence, dating violence, sexual assault, stalking, or human trafficking, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, must be retained in confidence. This means that the PHA (1) may not enter the information into any shared database, (2) may not allow employees or others to access the information unless they are explicitly authorized to do so and have a need to know the information for purposes of their work, and (3) may not provide the information to any other entity or individual, except to the extent that the disclosure is (a) requested or consented to by the individual in writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law. Hopkins HRA Policy If disclosure is required for use in an eviction proceeding or is otherwise required by applicable law, the PHA will inform the victim before disclosure occurs so that safety risks can be identified and addressed. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-29 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-30 EXHIBIT 16-1: NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380 [Insert Name of Housing Provider] Notice of Occupancy Rights under the Violence Against Women Act 1 To all Tenants and Applicants The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating violence, sexual assault, or stalking. VAWA protections are not only available to women, but are available equally to all individuals regardless of sex, gender identity, or sexual orientation.2 The U.S. Department of Housing and Urban Development (HUD) is the Federal agency that oversees that public housing is in compliance with VAWA. This notice explains your rights under VAWA. A HUD-approved certification form is attached to this notice. You can fill out this form to show that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your rights under VAWA.” Protections for Applicants If you otherwise qualify for assistance under public housing, you cannot be denied admission or denied assistance because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Protections for Tenants If you are receiving assistance under public housing, you may not be denied assistance, terminated from participation, or be evicted from your rental housing because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence, sexual assault, or stalking by a member of your household or any guest, you may not be denied rental assistance or occupancy rights under public housing solely on the basis of criminal activity directly relating to that domestic violence, dating violence, sexual assault, or stalking. Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any individual, tenant, or lawful occupant living in your household. 1 Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation. 2 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-31 Removing the Abuser or Perpetrator from the Household The PHA may divide (bifurcate) your lease in order to evict the individual or terminate the assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault, or stalking. If the PHA chooses to remove the abuser or perpetrator, the PHA may not take away the rights of eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have established eligibility for assistance under the program, the PHA must allow the tenant who is or has been a victim and other household members to remain in the unit for 30 days, in order to establish eligibility under the program or under another HUD housing program covered by VAWA, or, find alternative housing. In removing the abuser or perpetrator from the household, the PHA must follow Federal, State, and local eviction procedures. In order to divide a lease, the PHA may, but is not required to, ask you for documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or stalking. Moving to Another Unit Upon your request, the PHA may permit you to move to another unit, subject to the availability of other units, and still keep your assistance. In order to approve a request, the PHA may ask you to provide documentation that you are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or stalking. If the request is a request for emergency transfer, the PHA may ask you to submit a written request or fill out a form where you certify that you meet the criteria for an emergency transfer under VAWA. The criteria are: 1. You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your PHA does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation, as described in the documentation section below. 2. You expressly request the emergency transfer. Your PHA may choose to require that you submit a form, or may accept another written or oral request. 3. You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar- day period before you expressly request the transfer. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-32 The PHA will keep confidential requests for emergency transfers by victims of domestic violence, dating violence, sexual assault, or stalking, and the location of any move by such victims and their families. The PHA’s emergency transfer plan provides further information on emergency transfers, and the PHA must make a copy of its emergency transfer plan available to you if you ask to see it. Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or Stalking The PHA can, but is not required to, ask you to provide documentation to “certify” that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Such request from the PHA must be in writing, and the PHA must give you at least 14 business days (Saturdays, Sundays, and federal holidays do not count) from the day you receive the request to provide the documentation. The PHA may, but does not have to, extend the deadline for the submission of documentation upon your request. You can provide one of the following to the PHA as documentation. It is your choice which of the following to submit if HP asks you to provide documentation that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. • A complete HUD-approved certification form given to you by the PHA with this notice, that documents an incident of domestic violence, dating violence, sexual assault, or stalking. The form will ask for your name, the date, time, and location of the incident of domestic violence, dating violence, sexual assault, or stalking, and a description of the incident. The certification form provides for including the name of the abuser or perpetrator if the name of the abuser or perpetrator is known and is safe to provide. • A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency that documents the incident of domestic violence, dating violence, sexual assault, or stalking. Examples of such records include police reports, protective orders, and restraining orders, among others. • A statement, which you must sign, along with the signature of an employee, agent, or volunteer of a victim service provider, an attorney, a medical professional or a mental health professional (collectively, “professional”) from whom you sought assistance in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse, and with the professional selected by you attesting under penalty of perjury that they believe that the incident or incidents of domestic violence, dating violence, sexual assault, or stalking are grounds for protection. • Any other statement or evidence that the PHA has agreed to accept. If you fail or refuse to provide one of these documents within the 14 business days, the PHA does not have to provide you with the protections contained in this notice. If the PHA receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or stalking has been committed (such as certification forms from two or more members of a household each claiming to be a victim and naming one or more of the other petitioning household members as the abuser or perpetrator), the PHA has the right to request that you provide third-party documentation within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to provide third-party documentation where there is conflicting evidence, the PHA does not have to provide you with the protections contained in this notice. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-33 Confidentiality The PHA must keep confidential any information you provide related to the exercise of your rights under VAWA, including the fact that you are exercising your rights under VAWA. The PHA must not allow any individual administering assistance or other services on behalf of the PHA (for example, employees and contractors) to have access to confidential information unless for reasons that specifically call for these individuals to have access to this information under applicable federal, state, or local law. The PHA must not enter your information into any shared database or disclose your information to any other entity or individual. The PHA, however, may disclose the information provided if: • You give written permission to the PHA to release the information on a time limited basis. • The PHA needs to use the information in an eviction or termination proceeding, such as to evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under this program. • A law requires the PHA to release the information. VAWA does not limit the PHA’s duty to honor court orders about access to or control of the property. This includes orders issued to protect a victim and orders dividing property among household members in cases where a family breaks up. Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be Terminated You can be evicted and your assistance can be terminated for serious or repeated lease violations that are not related to domestic violence, dating violence, sexual assault, or stalking committed against you. However, the PHA cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or stalking to a more demanding set of rules than it applies to tenants who have not been victims of domestic violence, dating violence, sexual assault, or stalking. The protections described in this notice might not apply, and you could be evicted and your assistance terminated, if the PHA can demonstrate that not evicting you or terminating your assistance would present a real physical danger that: 1. Would occur within an immediate time frame, and 2. Could result in death or serious bodily harm to other tenants or those who work on the property. If the PHA can demonstrate the above, the PHA should only terminate your assistance or evict you if there are no other actions that could be taken to reduce or eliminate the threat. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-34 Other Laws VAWA does not replace any Federal, State, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing protections for victims of domestic violence, dating violence, sexual assault, or stalking under other Federal laws, as well as under State and local laws. Non-Compliance with The Requirements of This Notice You may report your PHA for violations of these rights and seek additional assistance, if needed, by contacting or filing a complaint with [insert contact information for any intermediary, if applicable] or [insert HUD field office]. For Additional Information You may view a copy of HUD’s final VAWA rule at: https://www.gpo.gov/fdsys/pkg/FR-2016- 11-16/pdf/2016-25888.pdf. Additionally, the PHA must make a copy of HUD’s VAWA regulations available to you if you ask to see them. For questions regarding VAWA, please contact [insert name of program or rental assistance contact information able to answer questions on VAWA]. For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact [Insert contact information for relevant local organizations]. For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. For help regarding sexual assault, you may contact [Insert contact information for relevant organizations] Victims of stalking seeking help may contact [Insert contact information for relevant organizations]. Attachment: Certification form HUD-5382 [form approved for this program to be included] © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-35 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-36 EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382 CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286 DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017 DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, AND ALTERNATE DOCUMENTATION Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalking. In response to this request, you or someone on your behalf may complete this optional form and submit it to your housing provider, or you may submit one of the following types of third-party documentation: (1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, “professional”) from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse. The document must specify, under penalty of perjury, that the professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or “stalking” in HUD’s regulations at 24 CFR 5.2003. (2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or (3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant. Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification. Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-37 TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING 1. Date the written request is received by victim: _________________________________________ 2. Name of victim: ___________________________________________________________________ 3. Your name (if different from victim’s):________________________________________________ 4. Name(s) of other family member(s) listed on the lease:___________________________________ ___________________________________________________________________________________ 5. Residence of victim: ________________________________________________________________ 6. Name of the accused perpetrator (if known and can be safely disclosed):____________________ __________________________________________________________________________________ 7. Relationship of the accused perpetrator to the victim:___________________________________ 8. Date(s) and times(s) of incident(s) (if known):___________________________________________ _________________________________________________________________ 10. Location of incident(s):_____________________________________________________________ This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature __________________________________Signed on (Date) ___________________________ Public Reporting Burden: The public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The information provided is to be used by the housing provider to request certification that the applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid Office of Management and Budget control number. In your own words, briefly describe the incident(s): ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-38 EXHIBIT 16-3: EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING Attachment: Certification form HUD-5382 [Insert name of covered housing provider] Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking Public Housing Program Emergency Transfers The PHA is concerned about the safety of its tenants, and such concern extends to tenants who are victims of domestic violence, dating violence, sexual assault, or stalking. In accordance with the Violence Against Women Act (VAWA),3 the PHA allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to request an emergency transfer from the tenant’s current unit to another unit. The ability to request a transfer is available regardless of sex, gender identity, or sexual orientation. 4 The ability of the PHA to honor such request for tenants currentl y receiving assistance, however, may depend upon a preliminary determination that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, and on whether the PHA has another dwelling unit that is available and is safe to offer the tenant for temporary or more permanent occupancy. This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security. This plan is based on a model emergency transfer plan published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that oversees that the public housing and housing choice voucher (HCV) programs are in compliance with VAWA. Eligibility for Emergency Transfers A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, as provided in HUD’s regulations at 24 CFR part 5, subpart L, is eligible for an emergency transfer, if the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant remains within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for an emergency transfer. 3Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 4Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-39 A tenant requesting an emergency transfer must expressly request the transfer in accordance with the procedures described in this plan. Tenants who are not in good standing ma y still request an emergenc y transfer if the y meet the eligibilit y requirements in this section. Emergency Transfer Request Documentation To request an emergenc y transfer, the tenant shall notify the PHA’s management office and submit a written request for a transfer to any PHA office. The PHA will provide reasonable accommodations to this policy for individuals with disabilities. The tenant’s written request for an emergenc y transfer should include either: 1. A statement expressing that the tenant reasonabl y believes that there is a threat of imminent harm from further violence if the tenant were to remain in the same dwelling unit assisted under the PHA’s program; OR 2. A statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-calendar-day period preceding the tenant’s request for an emergency transfer. Confidentiality The PHA will keep confidential an y information that the tenant submits in requesting an emergenc y transfer, and information about the emergency transfer, unless the tenant gives the PHA written permission to release the information on a time-limited basis, or disclosure of the information is required by law or required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program. This includes keeping confidential the new location of the dwelling unit of the tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating violence, sexual assault, or stalking against the tenant. See the Notice of Occupancy Rights under the Violence against Women Act for All Tenants for more information about the PHA’s responsibility to maintain the confidentiality of information related to incidents of domestic violence, dating violence, sexual assault, or stalking. Emergency Transfer Timing and Availability The PHA cannot guarantee that a transfer request will be approved or how long it will take to process a transfer request. The PHA will, however, act as quickl y as possible to move a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking to another unit, subject to availability and safety of a unit. If a tenant reasonably believes a proposed transfer would not be safe, the tenant may request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide b y the terms and conditions that govern occupancy in the unit to which the tenant has been transferred. The PHA may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish eligibility for that unit. If the PHA has no safe and available units for which a tenant who needs an emergenc y transfer is eligible, the PHA will assist the tenant in identifying other housing providers who may have safe and available units to which the tenant could move. At the tenant’s request, the PHA will also assist tenants in contacting the local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking that are attached to this plan. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-40 Emergency Transfers: Public Housing (PH) Program If you are a public housing resident and request an emergency transfer as described in this plan, the PHA will attempt to assist you in moving to a safe unit quickly. The PHA will make exceptions as required to policies restricting moves. Emergency transfers for which you are not required to apply for assistance include the following: • Public housing unit in a different development • Public housing unit in the same development, if you determine that the unit is safe At your request, the PHA will refer you to organizations that may be able to further assist you. You may also request an emergency transfer to the following programs for which you are required to apply for assistance: • HCV tenant-based program • HCV project-based assistance • Other programs administered by the PHA (such as state housing programs) Emergency transfers will not take priority over waiting list admissions for these types of assistance. At your request, the PHA will refer you to organizations that may be able to further assist you. Safety and Security of Tenants Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is urged to take all reasonable precautions to be safe. Tenants who are or have been victims of domestic violence are encouraged to contact the National Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1-800-787-3224 (TTY). Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network’s National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at https://ohl.rainn.org/online/. Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime’s Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-41 © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-42 EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383 EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286 REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017 VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency transfer plan for more information about the availability of emergency transfers. The requirements you must meet are: (1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form. (2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form, or may accept another written or oral request. Please see your housing provider’s emergency transfer plan for more details. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer. Submission of Documentation: If you have third-party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts. © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-43 Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking, and concerning your request for an emergency transfer shall be kept confidential. Such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections or an emergency transfer to you. Such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER 1. Name of victim requesting an emergency transfer: ______________________________________ 2. Your name (if different from victim’s)_________________________________________________ 3. Name(s) of other family member(s) listed on the lease:____________________________________ ___________________________________________________________________________________ 4. Name(s) of other family member(s) who would transfer with the victim:____________________ ____________________________________________________________________________________ 5. Address of location from which the victim seeks to transfer: _______________________________________ 6. Address or phone number for contacting the victim:____________________________________ 7. Name of the accused perpetrator (if known and can be safely disclosed):___________________ 8. Relationship of the accused perpetrator to the victim:___________________________________ 9. Date(s), Time(s) and location(s) of incident(s):___________________________________________ _____________________________________________________________________________________ 10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90 days on the premises of the property from which the victim is seeking a transfer? If yes, skip question 11. If no, fill out question 11. ______________ 11. Describe why the victim believes they are threatened with imminent harm from further violence if they remain in their current unit. ___________________________________________________________________________________ _____________________________________________________________________________________ 12. If voluntarily provided, list any third-party documentation you are providing along with this notice: ___________________________________________________________________ © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-44 This is to certify that the information provided on this form is true and correct to the best of my knowledge, and that the individual named above in Item 1 meets the requirement laid out on this form for an emergency transfer. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature __________________________________Signed on (Date) ___________________________ © Copyright 2023 Nan McKay & Associates, Inc. ACOP 3/1/23 Unlimited copies may be made for internal use. Page 16-45 © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-1 GLOSSARY A. ACRONYMS USED IN PUBLIC HOUSING ACC Annual contributions contract ACOP Admissions and continued occupancy policy ADA Americans with Disabilities Act of 1990 AIDS Acquired immune deficiency syndrome AMI Area median income AMP Asset management project BR Bedroom CDBG Community Development Block Grant (Program) CFP Capital fund program CFR Code of Federal Regulations (published federal rules that define and implement laws; commonly referred to as “the regulations”) COCC Central office cost center CPI Consumer price index (published monthly by the Department of Labor as an inflation indicator) EIV Enterprise Income Verification FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration (HUD Office of Housing) FHEO Fair Housing and Equal Opportunity (HUD Office of) FICA Federal Insurance Contributions Act (established Social Security taxes) FMR Fair market rent FR Federal Register FSS Family Self-Sufficiency (Program) FY Fiscal year FYE Fiscal year end GAO Government Accountability Office © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-2 HA Housing authority or housing agency HCV Housing choice voucher HIP Housing Information Portal HOPE VI Revitalization of Severely Distressed Public Housing Program HOTMA Housing Opportunity through Modernization Act of 2016 HUD Department of Housing and Urban Development HUDCLIPS HUD Client Information and Policy System IPA Independent public accountant IRA Individual retirement account IRS Internal Revenue Service IVT Income Validation Tool JTPA Job Training Partnership Act LBP Lead-based paint LEP Limited English proficiency LIHTC Low-income housing tax credit MTW Moving to Work NOFA Notice of funding availability NSPIRE National Standards for the Physical Inspection of Real Estate OGC HUD's Office of General Counsel OIG HUD’s Office of Inspector General OMB Office of Management and Budget PASS Plan to Achieve Self-Support PHA Public housing agency PHAS Public Housing Assessment System PIH (HUD Office of) Public and Indian Housing QC Quality control QHWRA Quality Housing and Work Responsibility Act of 1998 (also known as the Public Housing Reform Act) © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-3 RAD Rental Assistance Demonstration Program REAC (HUD) Real Estate Assessment Center RFP Request for proposals RIGI Regional inspector general for investigation (handles fraud and program abuse matters for HUD at the regional office level) ROSS Resident Opportunity and Supportive Services SSA Social Security Administration SSI Supplemental security income SWICA State wage information collection agency TANF Temporary assistance for needy families TR Tenant rent TTP Total tenant payment UA Utility allowance UFAS Uniform Federal Accessibility Standards UIV Upfront income verification URP Utility reimbursement payment VAWA Violence Against Women Act VCA Voluntary Compliance Agreement © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-4 B. GLOSSARY OF PUBLIC HOUSING TERMS Accessible. The facility or portion of the facility can be approached, entered, and used by persons with disabilities. Adjusted income. Annual income (as determined under 24 CFR 5.609), of the members of the family residing or intending to reside in the dwelling unit less allowable HUD deductions and allowances. Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in loco parentis (in the position or place of a parent), or any individual, tenant, or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking. Alternative non-public housing rent. A monthly rent equal to the greater of: - The applicable fair market rent, as defined in 24 CFR part 888, subpart A, for the unit; or - The amount of the monthly subsidy provided for the unit, which will be determined by adding the per unit assistance provided to a public housing property as calculated through the applicable formulas for the Public Housing Capital Fund and Public Housing Operating Fund. Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD requirements for the program. Applicant (applicant family). A family that has applied for admission to a program but is not yet a participant in the program. As-paid states. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs. Assets. (See net family assets.) Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities receiving federal financial assistance. Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members’ lease and occupancy rights are allowed to remain intact. Ceiling rent. The highest rent amount the PHA will require a family to pay, for a particular unit size, when the family is paying an income-based rent. Child. A member of the family other than the family head or spouse who is under 18 years of age. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-5 Child care expenses. Amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for child care. In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income. Citizen. A citizen or national of the United States. Cohead. An individual in the household who is equally responsible for the lease with the head of household. A family may have a cohead or spouse but not both. A cohead never qualifies as a dependent. The cohead must have legal capacity to enter into a lease. Consent form. Any consent form approved by HUD to be signed by assistance applicants and participants to obtain income information from employers and SWICAs; return information from the Social Security Administration (including wages, net earnings from self- employment, and retirement income); and return information for unearned income from the IRS. Consent forms expire after a certain time and may authorize the collection of other information to determine eligibility or level of benefits. Covered families. Statutory term for families who are required to participate in a welfare agency economic self-sufficiency program and who may be subject to a welfare benefit sanction for noncompliance with this obligation. Includes families who receive welfare assistance or other public assistance under a program for which federal, state, or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for the assistance. Dating violence. Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship Day laborer. An individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future. Dependent. A member of the family (which excludes foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Dependent child. In the context of the student eligibility restrictions, a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent as specified above. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-6 Disability assistance expenses. Reasonable expenses that are anticipated, during the period for which annual income is computed, for attendant care and auxiliary apparatus for a disabled family member, and that are necessary to enable a family member (including the disabled member) to be employed, provided that the expenses are neither paid to a member of the family nor reimbursed by an outside source. Disabled family. A family whose head, cohead, spouse, or sole member is a person with disabilities; two or more persons with disabilities living together; or one or more persons with disabilities living with one or more live-in aides. Disabled person. See person with disabilities. Disallowance. Exclusion from annual income. Displaced family. A family in which each member, or whose sole member, is a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws. Domestic violence. Felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: - The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim - A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner - A person with whom the victim shares a child in common - A person who commits acts against a youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction Domicile. The legal residence of the household head or spouse as determined in accordance with state and local law. Drug-related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-7 Earned income. Income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, Social Security, and governmental subsidies for certain benefits), or any cash or in-kind benefits. Economic abuse. Behavior that is coercive, deceptive, or unreasonably controls or restrains a person’s ability to acquire, use, or maintain economic resources to which they are entitle, including using coercion, fraud, and manipulation to: - Restrict a person’s access to money, assets, credit, or financial information - Unfairly use a person’s personal economic resources, including money, assets, and credit, for one’s own advantage - Exert undue influence over a person’s financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty Economic self-sufficiency program. Any program designed to encourage, assist, train, or facilitate the economic independence of assisted families, or to provide work for such families. Can include job training, employment counseling, work placement, basic skills training, education, English proficiency, Workfare, financial or household management, apprenticeship, or any other program necessary to ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR 5.603(c). Effective date. The “effective date” of an examination or reexamination refers to: (i) in the case of an examination for admission, the date of initial occupancy and (ii) in the case of reexamination of an existing tenant, the date the redetermined rent becomes effective. Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least 62 years of age; two or more persons who are at least 62 years of age living together; or one or more persons who are at least 62 years of age living with one or more live-in aides. Elderly person. An individual who is at least 62 years of age. Eligible family (Family). A family that is income eligible and meets the other requirements of the 1937 Act and Part 5 of 24 CFR. Employer identification number (EIN). The nine-digit taxpayer identifying number that is assigned to an individual, trust, estate, partnership, association, company, or corporation. Evidence of citizenship or eligible status. The documents which must be submitted as evidence of citizenship or eligible immigration status. (See 24 CFR 5.508(b).) Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area as determined by HUD, whichever number is higher, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of median income if HUD finds such variations are necessary due to unusually high or low family incomes. (See 24 CFR 5.603.) © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-8 Facility. All or any portion of buildings, structures, equipment, roads, walks, parking lots, rolling stock, or other real or personal property or interest in the property. Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988. Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities. See periodic publications in the Federal Register in accordance with 24 CFR Part 888. Family. Includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, and can be further defined in PHA policy. - A single person, who may be: o An elderly person, displaced person, disabled person, near-elderly person, or any other single person; o An otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or - A group of persons residing together, and such group includes, but is not limited to: o 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); o An elderly family; o A near-elderly family; o A disabled family; o A displaced family; and o The remaining member of a tenant family. Family self-sufficiency program (FSS program). The program established by a PHA within its jurisdiction to promote self-sufficiency among participating families, including the coordination of supportive services to these families (24 CFR 984.103). Federal agency. A department of the executive branch of the federal government. Flat rent. Rent that is based on the market rent charged for comparable units in the private unassisted rental market, set at no less than 80 percent of the current fair market rent (FMR), 80 percent of the small area fair market rent (SAFMR), or 80 percent of the unadjusted rent, with utility allowances applied as necessary. The unadjusted rent is the FMR estimated directly from source data that HUD uses to calculate FMRs in nonmetropolitan areas. Foster adult. A member of the household who is 18 years of age or older and meets the definition of a foster adult under State law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-9 condition and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Foster child. A member of the household who meets the definition of a foster child under State law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction. Foster child care payment. A payment to eligible households by state, local, or private agencies appointed by the state to administer payments for the care of foster children. Full-time student. A person who is attending school or vocational training on a full-time basis (carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended). (See 24 CFR 5.603) Gender identity. Actual or perceived gender-related characteristics. Handicap. Any condition or characteristic that renders a person an individual with handicaps. (See person with disabilities.) Head of household. The adult member of the family who is the head of the household for purposes of determining income eligibility and rent. Health and medical care expenses. Health and medical care expenses are any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed. Household. A household includes additional people other than the family who, with the PHA’s permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. Housing agency (HA). See public housing agency. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-10 HUD. The U.S. Department of Housing and Urban Development. Human trafficking. A crime involving the exploitation of a person for labor, services, or commercial sex. The Trafficking Victims Protection Act of 2000 and its subsequent reauthorizations recognize and define two primary forms of human trafficking: - Sex trafficking is the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age. See 22 U.S.C. § 7102(11)(A). - Forced labor is the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. See 22 U.S.C. § 7102(11)(B). Imputed asset. An asset disposed of for less than fair market value during the two years preceding examination or reexamination. Imputed asset income. When the value of net family assets exceeds $50,000 and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD. Imputed welfare income. An amount of annual income that is not actually received by a family as a result of a specified welfare benefit reduction but is included in the family’s annual income and therefore reflected in the family’s rental contribution. Income-based rent. A tenant rent that is based on the family’s income and the PHA’s rent policies for determination of such rents. Income information means information relating to an individual’s income, including: - All employment income information known to current or previous employers or other income sources - All information about wages, as defined in the state's unemployment compensation law, including any social security number; name of the employee; quarterly wages of the employee; and the name, full address, telephone number, and, when known, employer identification number of an employer reporting wages under a state unemployment compensation law - Whether an individual is receiving, has received, or has applied for unemployment compensation, and the amount and the period received - Unearned IRS income and self-employment wages and retirement income - Wage, social security, and supplemental security income data obtained from the Social Security Administration. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-11 Income Validation Tool (IVT) Accessible through HUD's EIV system, provides validation of tenant reported wages, unemployment compensation, and Social Security benefits by comparing the income reported in IMS-PIC via form HUD-50058 to information received from the Department of Health and Human Services’ (HHS) National Directory of New Hires (NDNH), and the Social Security Administration (SSA) data sharing agreements. Independent contractor. An individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self-Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. Individual with handicaps. See person with disabilities. Jurisdiction. The area in which the PHA has authority under state and local law to administer the program. Lease. A written agreement between the PHA and a tenant family for the leasing a public housing unit. The lease establishes the legal relationship between the PHA and the tenant family. Live-in aide. A person who resides with one or more elderly persons, or near-elderly persons, or persons with disabilities, and who: - Is determined to be essential to the care and well-being of the persons; - Is not obligated for the support of the persons; and - Would not be living in the unit except to provide the necessary supportive services. Local preference. A preference used by the PHA to select among applicant families. Low-income family. A family whose income does not exceed 80 percent of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80 percent for areas with unusually high or low incomes. Minimum rent. An amount established by the PHA of zero to $50. Minor. A member of the family household other than the family head or spouse, who is under 18 years of age. Mixed family. A family whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigration status. Monthly adjusted income. One twelfth of adjusted income. Monthly income. One twelfth of annual income. National. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession. Near-elderly family. A family whose head, spouse, or sole member is a person who is at least 50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age but below the age of 62, living together; or one or more persons who are at least 50 years of age but below the age of 62 living with one or more live-in aides. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-12 Net family assets. (1) Net family assets is the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. (2) In determining net family assets, PHAs or owners, as applicable, must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. (3) Excluded from the calculation of net family assets are: (i) The value of necessary items of personal property; (ii) The combined value of all non- necessary items of personal property if the combined total value does not exceed $50,000 (which amount will be adjusted by HUD in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers); (iii) The value of any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals; (iv) The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located; (v) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability; (vi) The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986, the value of any qualified tuition program under section 529 of such Code, the value of any Achieving a Better Life Experience (ABLE) account authorized under Section 529A of such Code, and the value of any “baby bond” account created, authorized, or funded by Federal, State, or local government. (vii) Interests in Indian trust land; (viii) Equity in a manufactured home where the family receives assistance under 24 CFR part 982; (ix) Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982; (x) Family Self-Sufficiency Accounts; and (xi) Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family. (4) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the trust fund is not a family asset and the value of the trust is not included in the calculation of net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household. Noncitizen. A person who is neither a citizen nor national of the United States. Non-public housing over-income family. A family whose income exceeds the over-income limit for 24 consecutive months and is paying the alternative non-public housing rent. Over-income family. A family whose income exceeds the over-income limit. Over-income limit. The over-income limit is determined by multiplying the applicable income limit for a very low-income family, as defined in 24 CFR 5.603(b), by a factor of 2.4. PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-13 Participant (participant family). A family that has been admitted to the PHA program and is currently assisted in the program. Person with disabilities. For the purposes of program eligibility. A person who has a disability as defined under the Social Security Act or Developmental Disabilities Care Act, or a person who has a physical or mental impairment expected to be of long and indefinite duration and whose ability to live independently is substantially impeded by that impairment but could be improved by more suitable housing conditions. This includes persons with AIDS or conditions arising from AIDS but excludes persons whose disability is based solely on drug or alcohol dependence. For the purposes of reasonable accommodation. A person with a physical or mental impairment that substantially limits one or more major life activities, a person regarded as having such an impairment, or a person with a record of such an impairment. Premises. The building or complex in which the dwelling unit is located, including common areas and grounds. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-14 Previously unemployed. With regard to the earned income disallowance, a person who has earned, in the 12 months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage. Public assistance. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by federal, state, or local governments. Public housing agency (PHA). Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act. Real property. Has the same meaning as that provided under the law of the State in which the property is located. Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or service to allow a person with disabilities to fully access the PHA’s programs or services. Recertification. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported. Remaining member of the tenant family. The person left in assisted housing who may or may not normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies, leaving widow age 47 who is not disabled). Residency preference. A PHA preference for admission of families that reside anywhere in a specified area, including families with a member who works or has been hired to work in the area (See residency preference area). Residency preference area. The specified area where families must reside to qualify for a residency preference. Responsible entity. For the public housing program, the PHA administering the program under an ACC with HUD. Secretary. The Secretary of Housing and Urban Development. Seasonal worker. An individual who is hired into a short-term position and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry. Section 8. Section 8 of the United States Housing Act of 1937; refers to the housing choice voucher program. Security deposit. A dollar amount (maximum set according to the regulations) which can be used for unpaid rent or damages to the PHA upon termination of the lease. Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent (42 U.S.C. 13925(a)) Sexual orientation. Homosexuality, heterosexuality or bisexuality. Single person. A person living alone or intending to live alone. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-15 Social security number (SSN). The nine-digit number that is assigned to a person by the Social Security Administration and that identifies the record of the person’s earnings reported to the Social Security Administration. The term does not include a number with a letter as a suffix that is used to identify an auxiliary beneficiary. Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family) that may not result in a reduction of the family rental contribution. A reduction of welfare benefits because of fraud in connection with the welfare program, or because of welfare sanction due to noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. Spouse. The marriage partner of the head of household. Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate another person; and in the course of, or as a result of, such following, pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to cause substantial emotional harm to (1) that person, (2) a member of the immediate family of that person, or (3) the spouse or intimate partner of that person. State wage information collection agency (SWICA). The state agency, including any Indian tribal agency, receiving quarterly wage reports from employers in the state, or an alternative system that has been determined by the Secretary of Labor to be as effective and timely in providing employment-related income and eligibility information. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-16 Technological abuse. An act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the dwelling unit. Tenant rent. The amount payable monthly by the family as rent to the PHA. Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay toward rent and utilities. Unearned income. Any annual income, as calculated under § 5.609, that is not earned income. Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and sewage services. Telephone service is not included. Utility allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the family occupying the unit, an amount equal to the estimate made or approved by a PHA of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy- conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment. Utility reimbursement. The amount, if any, by which the utility allowance for the unit, if applicable, exceeds the total tenant payment (TTP) for the family occupying the unit. Veteran. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released therefrom under conditions other than dishonorable. Violence Against Women Act (VAWA). Prohibits denying admission to, denying assistance under, or evicting from a public housing unit an otherwise qualified applicant or tenant on the basis that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking. © Copyright 2023 Nan McKay & Associates ACOP 3/1/23 Unlimited copies may be made for internal use. GL-17 Violent criminal activity. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting for a unit to become available. Welfare assistance. Income assistance from federal or state welfare programs, including assistance provided under TANF and general assistance. Does not include assistance directed solely to meeting housing expenses, nor programs that provide health care, child care or other services for working families. For the FSS program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to meet a family’s ongoing basic needs. Does not include nonrecurring short term benefits designed to address individual crisis situations, work subsidies, supportive services such as child care and transportation provided to families who are employed, refundable earned income tax credits, contributions to and distributions from Individual Development Accounts under TANF, services such as counseling, case management, peer support, child care information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment- related services that to not provide basic income support, amounts solely directed to meeting housing expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and emergency rental and utilities assistance, SSI, SSDI, or social security, and child-only or non-needy TANF grants made to or on behalf of a dependent child solely on the basis of the child’s need and not the need of the child’s current non-parental caretaker.