HomeMy WebLinkAboutHousing Choice Voucher (HCV) Administrative Plan1
S:\PHA Policies\October 2018 HCV Administrative Plan PBV.docx
Adopted October 2, 2018 (Resolution #18-276)
HOUSING CHOICE VOUCHER PROGRAM (HCVP)
ADMINISTRATIVE PLAN TABLE OF CONTENTS
INTRODUCTION......................................................................................................................... 5
1.0 EQUAL OPPORTUNITY 24 CFR 982.53...................................................................... 5
1.1 FAIR HOUSING ............................................................................................................... 5
1.2 REASONABLE ACCOMODATION 24 CFR 100.204 ................................................. 6
1.3 SERVICES FOR NON-ENGLISH SPEAKING APPLICANTS AND PARTICIPANTS
6
1.4 HOUSEHOLD/OWNER OUTREACH ............................................................................ 6
1.5 RIGHT TO PRIVACY 24 CFR 5.212............................................................................. 7
1.6 REQUIRED AVAILABILITY OF INFORMATION ...................................................... 7
2.0 IOWA CITY HOUSING AUTHORITY/OWNER
RESPONSIBILITIES/OBLIGATIONS OF THE HOUSEHOLD ........................................... 8
2.1 IOWA CITY HOUSING AUTHORITY RESPONSIBILITIES ....................................... 8
2.2 OWNER RESPONSIBILITIES 24 CFR 982.452 ......................................................... 10
2.3 OBLIGATIONS OF THE PARTICIPANT 24 CFR 982.551 ....................................... 11
3.0 ELIGIBILITY FOR ADMISSION ................................................................................. 14
3.1 INTRODUCTION ........................................................................................................... 14
3.2 ELIGIBILITY CRITERIA .............................................................................................. 14
4.0 APPLICATION AND WAITING LIST PROCESS ...................................................... 18
4.1 OPENING AND CLOSING THE WAITING LIST ....................................................... 18
4.2 ACCEPTING AND PROCESSING APPLICATIONS 24 CFR 982.202 ....................... 18
4.3 ORGANIZATION OF THE WAITING LIST 24 CFR 982.204(B) ............................. 19
4.4 FAMILIES NEARING THE TOP OF THE WAITING LIST ........................................ 19
4.5 MISSED APPOINTMENTS ........................................................................................... 20
4.6 PURGING THE WAITING LIST ................................................................................... 20
4.7 REMOVAL OF APPLICANTS FROM THE WAITING LIST 24 CFR 982.204(C) .... 20
4.8 HCVP TENANT SELECTION CRITERIA (24CFR 982.552 & 982.553) ........................ 21
4.9 NOTIFICATION OF NEGATIVE ACTIONS ............................................................... 25
4.10 INFORMAL REVIEW ................................................................................................ 26
5.0 SELECTING FAMILIES FROM THE WAITING LIST ............................................ 26
5.1 WAITING LIST ADMISSIONS AND SPECIAL ADMISSIONS 24 CFR 982.203 AND
.204 26
5.2.1 PREFERENCES 24 CFR 982.207 ............................................................................... 26
5.2.2 TARGETED PREFERENCES: ........................................................................................ 27
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5.3 SELECTION FROM THE WAITING LIST 24 CFR 982.204 ....................................... 27
6.0 ASSIGNMENT OF BEDROOM SIZES (SUBSIDY STANDARDS) 24 CFR 982.402
28
6.1 BRIEFING 24 CFR 982.301(A) .................................................................................... 29
6.2 BRIEFING PACKET 24 CFR 982.301 (B) .................................................................... 30
6.3 ISSUANCE OF VOUCHER: REQUEST FOR TENANCY APPROVAL (RFTA) ...... 32
6.4 TERM OF THE VOUCHER 24 CFR 982.303 ............................................................... 32
6.5 APPROVAL TO LEASE A UNIT 24 CFR 982.305 ...................................................... 33
6.6 IOWA CITY HOUSING AUTHORITY DISAPPROVAL OF OWNER ...................... 34
6.7 SPECIAL HOUSING TYPES ......................................................................................... 34
6.8 SECURITY DEPOSIT 24 CFR 982.313 ....................................................................... 35
7.0 MOVES WITH CONTINUED ASSISTANCE 24 CFR 982.314 .................................. 35
7.1 PROCEDURES REGARDING HOUSEHOLD MOVES 24 CFR 982.314 ................... 36
8.0 PORTABILITY 24 CFR 982.353 .................................................................................... 36
8.1 GENERAL POLICIES OF THE ICHA .......................................................................... 36
8.2 INCOME ELIGIBILITY ................................................................................................. 37
8.3 PORTABILITY: ADMINISTRATION BY RECEIVING HOUSING AUTHORITY .. 37
8.4 PORTABILITY PROCEDURES .................................................................................... 38
9.0 DETERMINATION OF FAMILY INCOME 24 CFR 5.609 AND .611 ................. 40
9.1 INCOME, EXCLUSIONS FROM INCOME, DEDUCTIONS FROM INCOME ......... 40
9.2 INCOME 24 CFR 5.609 ................................................................................................ 40
9.3 EXCLUSIONS FROM INCOME 24 CFR 5.609(C) .................................................... 42
9.4 DEDUCTIONS FROM ANNUAL INCOME 24 CFR5.611 ........................................ 42
10.0 VERIFICATION 24 CFR PART 5, SUBPART B ................................................... 42
10.1 ACCEPTABLE METHODS OF VERIFICATION ..................................................... 43
10.2 TYPES OF VERIFICATION ...................................................................................... 44
10.3 VERIFICATION OF CITIZENSHIP OR ELIGIBLE NONCITIZEN STATUS ........ 48
10.4 VERIFICATION OF SOCIAL SECURITY NUMBERS 24 CFR 5.216 .................. 49
10.5 TIMING OF VERIFICATION .................................................................................... 49
10.6 FREQUENCY OF OBTAINING VERIFICATION.................................................... 50
11.0 RENT AND HOUSING ASSISTANCE PAYMENT ................................................. 50
11.1 RENT REASONABLENESS 24 CFR 982.507 (A) .................................................. 50
11.2 COMPARABILITY 24 CFR 982.507 (B) AND 3507 (C) ........................................ 50
11.3 MAXIMUM SUBSIDY 24 CFR 982.508 ............................................................... 51
11.3.1 SETTING THE PAYMENT STANDARD .................................................................... 51
11.3.3 AREA EXCEPTION RENTS ......................................................................................... 52
11.4 ASSISTANCE AND RENT FORMULAS 24 CFR 982.505 .................................... 52
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11.5 UTILITY ALLOWANCE 24 CFR 982.517 ............................................................. 55
11.6 DISTRIBUTION OF HOUSING ASSISTANCE PAYMENT 24 CFR 982.514 ..... 56
11.7 CHANGE OF OWNERSHIP ....................................................................................... 56
12.0 INSPECTION POLICIES, HOUSING QUALITY STANDARDS 24 CFR 982.405
57
12.1 HOUSING QUALITY STANDARDS (HQS) 24 CFR 982.401 ................................. 57
13.0 RECERTIFICATION ................................................................................................... 57
13.1 ANNUAL REEXAMINATION 24 CFR 982.516 .................................................... 57
13.1.1 EFFECTIVE DATE OF RENT CHANGES FOR ANNUAL REEXAMINATIONS 58
13.1.2 MISSING PAPERWORK ............................................................................................ 58
13.2 INTERIM REEXAMINATIONS ................................................................................ 58
13.2.1 SPECIAL REEXAMINATIONS ................................................................................. 61
13.2.2 EFFECTIVE DATE OF RENT CHANGES DUE TO INTERIM OR SPECIAL
REEXAMINATIONS ................................................................................................................ 61
14.0 HCVP TENANT TERMINATION CRITERIA (24CFR 982.552 & 982.553) .............. 61
15.0 PENALTIES, COMPLAINTS, INFORMAL REVIEWS FOR APPLICANTS,
INFORMAL HEARINGS FOR PARTICIPANTS.................................................................. 67
15.1 PENALTIES................................................................................................................. 67
15.2 COMPLAINTS ............................................................................................................... 67
15.3 INFORMAL REVIEW FOR THE APPLICANT 24 CFR 982.554 .......................... 67
15.4 INFORMAL HEARINGS FOR PARTICIPANTS 24 CFR 982.555 ........................ 69
16.0 REPAYMENT AGREEMENTS 24 CFR 982.552 (C) (1) (VII) ................................... 74
17.0 PROJECT-BASED VOUCHERS...................................................................................... 75
PART I: GENERAL REQUIREMENTS ................................................................................. 75
PART II: PBV OWNER PROPOSALS .................................................................................... 78
PART III: DWELLING UNITS ................................................................................................ 87
PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ........................... 90
PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) ............................. 93
PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ........................................ 99
PART VII: OCCUPANCY....................................................................................................... 105
PART VIII: DETERMINING RENT TO OWNER .............................................................. 113
PART IX: PAYMENTS TO OWNER .................................................................................... 119
18.0 RENTING TO FAMILY MEMBERS 982.306 (D) ........................................................ 122
19. HOMEOWNERSHIP 24 CFR 982.625-641 .................................................................... 122
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19.1. GENERAL PROVISIONS: ............................................................................................ 122
19.2 QUALIFICATIONS FOR PARTICIPATION: ......................................................... 123
19.3 TIME FRAME FOR UTILIZATION: ....................................................................... 125
19.4 CONTRACT FOR SALE AND INSPECTION REQUIREMNTS: .......................... 125
19.5 FINANCING: ............................................................................................................. 126
19.6 FAILURE TO COMPLETE PURCHASE:................................................................ 126
19.7 HOMEOWNERSHIP ASSISTANCE PAYMENTS: ................................................ 127
19.8 HOMEOWNER OBLIGATIONS: ............................................................................ 128
19.9 DEFAULTS: .............................................................................................................. 130
19.10 WAIVER: ................................................................................................................... 130
20.0 ELIGIBILITY OF STUDENTS FOR ASSISTED HOUSING UNDER HCVP OF THE
U.S. HOUSING ACT OF 1937: ............................................................................................... 130
20.1 INCOME FACTORS: ..................................................................................................... 131
21.0 VISITORS ......................................................................................................................... 131
GLOSSARY............................................................................................................................... 131
APPENDIX A ............................................................................................................................ 146
(A COPY OF THE IRS PUBLICATION 502 WILL BE INSERTED UPON ADOPTION
OF THE ADMINISTRATIVE PLAN) ................................................................................... 146
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Adopted October 2, 2018 (Resolution #18-276)
HOUSING CHOICE VOUCHER PROGRAM (HCVP)
ADMINISTRATIVE PLAN
INTRODUCTION
The purpose of this Administrative Plan is to:
Establish policies for issues not covered under Federal regulations for the HCVP Voucher, and
Family Self-Sufficiency programs administered by the Iowa City Housing Authority.
The provisions of this Administrative Plan govern administration of the HCVP Voucher and
Family Self-Sufficiency programs administered by the Iowa City Housing Authority.
This plan conforms to all current HUD regulations. The Authority will comply with any
subsequent changes in HUD regulations pertaining to program administration. If such changes
conflict with the provisions of this policy, HUD regulations will have precedence.
The ICHA administers the HCVP Rental Voucher programs in the Metropolitan Statistical Area
(MSA) of Iowa City, which includes all of Johnson and parts of Iowa and Washington Counties
in Iowa. The primary objective of these programs is to provide decent, safe, sanitary and
affordable rental housing for low income households and to provide these households with
housing choices and the opportunity to move outside of areas with a concentration of low income
households.
The ICHA also operates a HCVP Homeownership Program to assist qualified low-income
families in becoming homeowners.
1.0 EQUAL OPPORTUNITY 24 CFR 982.53
1.1 FAIR HOUSING
It is the policy of the Iowa City Housing Authority (ICHA) to comply fully with all federal,
state, and local nondiscrimination laws, the Americans with Disabilities Act and the U.S.
Department of Housing and Urban Development regulations governing Fair Housing and
Equal Opportunity.
No person shall, on the grounds of race, color, sex, religion, marital status, creed, sexual
orientation, gender identity, age, national or ethnic origin, familial status or disability, be
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excluded from participation in, denied the benefits of, or otherwise subjected to
discrimination under the Iowa City Housing Authority's programs.
To further its commitment to full compliance with applicable civil rights laws, the Iowa
City Housing Authority will provide federal/state/local information to applicants/tenants
of the HCVP Program regarding discrimination and any recourse available to them if they
believe they may be victims of discrimination. Such information and all other applicable
Fair Housing information and discrimination complaint forms will be made available at the
ICHA office.
The Iowa City Housing Authority will assist any household that believes it has suffered
illegal discrimination by providing copies of the housing discrimination form. If requested,
the Iowa City Housing Authority will also assist them in completing the form and will
provide them with the address of the nearest HUD Office of Fair Housing and Equal
Opportunity.
1.2 REASONABLE ACCOMODATION 24 CFR 100.204
Individuals with disabilities may need a reasonable accommodation in order to take full
advantage of the Iowa City Housing Authority housing programs and related services.
Request for reasonable accommodations must be submitted in writing and include
supporting documentation including statements from medical professionals. When such
accommodations are granted, they do not confer special treatment or advantage for the
person with a disability, rather, they make the program accessible to them in a way that
would not otherwise be possible due to their disability.
1.3 SERVICES FOR NON-ENGLISH SPEAKING APPLICANTS AND PARTICIPANTS
24 CFR 5.502
The Iowa City Housing Authority will endeavor to provide accommodations for people
who are not proficient in the English language. The City of Iowa City subscribes to a
telephone interpreter service that provides interpretation in over 140 languages. At any
time, a non-English speaking client family may request the use of this service in their
contacts with the Housing Authority.
1.4 HOUSEHOLD/OWNER OUTREACH
When necessary, the Iowa City Housing Authority will publicize the availability and nature
of the HCVP Program for extremely low-income, very low and low-income families by all
suitable media.
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To reach persons who cannot or do not read newspapers, the Iowa City Housing Authority
may distribute fact sheets to the broadcasting media and initiate personal contacts with
members of the news media and community service personnel. The ICHA may also try to
utilize public service announcements.
The Iowa City Housing Authority will communicate the status of program availability to
other service providers in the community and advise them of housing eligibility guidelines
so that they can make proper referral of their clients to the program.
The Iowa City Housing Authority will assist managers and owners who participate in, or
who are seeking information about the HCVP Program by:
A. Explaining how the program works;
B. Explaining how the program benefits owners;
C. Explaining owners’ responsibilities under the program; and
D. Providing opportunities for owners to ask questions, obtain written materials, and
meet ICHA staff.
1.5 RIGHT TO PRIVACY 24 CFR 5.212
All adult members of both applicant and participant households are required to sign HUD
Form 9886, Authorization for Release of Information and Privacy Act Notice. The
Authorization for Release of Information and Privacy Act Notice states how household
information will be released and includes the Federal Privacy Act Statement.
Any request for applicant or participant information received and pursuant to said
authorization will not be released unless there is a signed release of information from the
applicant or participant, with the exception of that information subject to the Iowa Open
Records law.
1.6 REQUIRED AVAILABILITY OF INFORMATION
The Iowa City Housing Authority will post in a conspicuous place or have available at the
reception desk the following information:
A. The HCVP Administrative Plan
B. Notice of the status of the waiting list (opened or closed)
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C. Address of the Iowa City Housing Authority office, office hours, telephone
numbers, TDD numbers and hours of operation
D. Income Limits for Admission
E. Informal Review and Informal Hearing Procedures
F. Fair Housing Poster
G. Equal Opportunity in Employment Poster
2.0 IOWA CITY HOUSING AUTHORITY/OWNER
RESPONSIBILITIES/OBLIGATIONS OF THE
HOUSEHOLD
This section outlines the responsibilities and obligations of the Iowa City Housing
Authority, the HCVP landlords and the participating families.
2.1 IOWA CITY HOUSING AUTHORITY RESPONSIBILITIES
A. The Iowa City Housing Authority will comply with the consolidated HUD Annual
Contributions Contract (ACC), the application, HUD regulations and other
requirements and the Iowa City Housing Authority HCVP Administrative Plan. 24
CFR 982.153
B. In administering the program, the Iowa City Housing Authority must:
1. Publish and disseminate information about the availability and nature of
housing assistance under the program
2. Explain the program to owners and families
3. Seek expanded opportunities for assisted families to locate housing in all
locations
4. Encourage owners to make units available for leasing in the program
5. Further fair housing goals and comply with equal opportunity requirements
6. Make efforts to help disabled persons find satisfactory housing
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7. Receive applications from families, determine eligibility, maintain the
waiting list, select applicants, issue a voucher to each approved household
and provide housing information to families selected
8. Determine who can live in the assisted unit at admission and during the
household’s participation in the program
9. Obtain and verify evidence of citizenship and eligible immigration status in
accordance with 24 CFR, Part 5
10. Review the household’s request for approval of tenancy
11. Inspect the unit before the assisted occupancy begins and at least biennially
during the assisted tenancy
12. Determine the amount of the housing assistance payment for a household
13. Determine the maximum rent to the owner and whether the rent is
reasonable
14. Make timely housing assistance payments to an owner in accordance with
the HAP contract
15. Examine household income, size and composition at admission and
throughout the household’s participation in the program. The examination
includes verification of income and other household information
16. Establish and adjust the Iowa City Housing Authority’s utility allowance
17. Administer and enforce the Housing Assistance Payments Contract with an
owner including taking appropriate action as determined by the ICHA, if
the owner defaults (e.g., HQS violation)
18. Determine whether to terminate assistance to a participant household for
violation of household obligations
19. Conduct informal reviews of certain ICHA decisions concerning
application for participation in the program
20. Conduct informal hearings on certain ICHA decisions concerning
participant families
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21. Provide sound financial management of the program, including engaging
an independent public accountant to conduct audits
22. Administer a Family Self Sufficiency Program
2.2 OWNER RESPONSIBILITIES 24 CFR 982.452
A. The owner is responsible for performing all of the owner’s obligations under the
HAP contract and the lease.
B. The owner is responsible for:
1. Performing all management and rental functions for the assisted unit,
including selecting a voucher holder to lease the unit and deciding if the
household is suitable for tenancy of the unit
2. Maintaining the unit in accordance with HQS, including performance of
ordinary and extraordinary maintenance
3. Complying with equal opportunity requirements
4. Preparing and furnishing to the ICHA, information required under the HAP
contract
5. Collecting from the household:
a. Any security deposit required under the lease
b. The tenant contribution (the part of rent to owner not covered by the
housing assistance payment)
c. Any charges for unit damage by the household
6. Enforcing tenant obligations under the lease
7. Paying for utilities and services (unless paid by the household under the
lease)
C. Allow reasonable modifications to a dwelling unit occupied or to be occupied by a
person with disabilities 24 CFR 100.203
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D. Screening is the responsibility of the owner. Upon request, the Housing Authority
will also supply the following factual information if known:
1. Drug related or violent criminal activity
2. Landlord evictions
3. Lease violations
4. Termination of housing assistance
5. Client’s current address, name and previous landlord contact
2.3 OBLIGATIONS OF THE PARTICIPANT 24 CFR 982.551
This section states the obligations of a participant household under the program.
A. Supplying Required Information
1. The household must supply any information that the ICHA or HUD
determines is necessary in the administration of the program, including
submission of required evidence of citizenship or eligible immigration
status. Information includes any requested certification, release or other
documentation.
2. The household must supply any information requested by ICHA or HUD
for use in a regularly scheduled reexamination or interim reexamination of
household income and composition in accordance with HUD requirements.
3. The household must provide social security cards and certified birth
certificates for all members and photo identification for adult members, and
must sign and submit consent forms for obtaining information.
4. Any information supplied by the household must be true and complete.
B. HQS Breach Caused by the Household
The household is responsible for any HQS breach caused by the household or its
guests who are under the household’s control.
C. Allowing Iowa City Housing Authority Inspection
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The household must allow the ICHA to inspect the unit at reasonable times and
after at least 24 hours’ notice.
D. Violation of Lease
The household may not commit any serious or repeated violations of the lease.
E. Household Notice of Move or Lease Termination
The household must provide the ICHA with a 30-day written notice before the
household moves out of the unit or terminates the lease by a notice to the owner.
The household must provide notice to move or terminate the lease to the landlord
in accordance with the terms of the lease.
F. Owner Eviction Notice
The household must promptly provide the ICHA with a copy of any owner eviction
notice it receives.
G. Use and Occupancy of the Unit
1. The household must use the assisted unit for a residence by the household.
The unit must be the household’s only residence.
2. The Iowa City Housing Authority must approve the composition of the
assisted household residing in the unit after receiving written approval from
the landlord. The household must promptly inform ICHA of the birth,
adoption or court-awarded custody of a child. The household must request
approval from the ICHA to add any other household member as an occupant
of the unit. No other person (e.g., no one but members of the assisted
household) may reside in the unit (except for a foster child/foster adult or
live-in aide as provided in paragraph four (4) of this section.)
3. The household must promptly notify the Iowa City Housing Authority if
any household member no longer resides in the unit.
4. A foster child/foster adult or a live-in aide may reside in the unit, if the
ICHA has given approval.
5. Members of the household may engage in legal profit making activities in
the unit, but only if such activities are incidental to primary use of the unit
for residence by members of the household. Any business uses of the unit
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must comply with zoning requirements and the affected household member
must obtain all appropriate licenses and landlord approval if required by the
lease.
6. The household must not sublease or sublet the unit.
7. The household must not assign the lease or transfer the unit.
H. Absence from the Unit
The household must supply any information or certification requested by the Iowa
City Housing Authority to verify that the household is living in the unit, or relating
to household absence from the unit, including ICHA requested information or
certification on the purposes of household absences. The household must cooperate
with the ICHA for this purpose. The household must promptly notify the Iowa City
Housing Authority of any absence from the unit.
Absence means that no member of the household is residing in the unit. The
household may be absent from the unit for up to 30 days. The household must
request permission from the Iowa City Housing Authority for absences exceeding
30 days. An authorized absence may not exceed 180 days. Any household absent
for more than 30 days without authorization may be terminated from the program.
Authorized absences may include, but are not limited to:
1. Prolonged hospitalization
2. Absences beyond the control of the household (e.g., death in the household,
other household member illness)
3. Other absences that are deemed necessary by the Iowa City Housing
Authority
I. Interest in the Unit
The household may not own or have any interest in the unit (except for owners of
manufactured housing renting the manufactured home space.)
J. Fraud and Other Program Violation
The members of the household must not commit fraud, bribery, or any other corrupt
or criminal act in connection with the program.
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K. Crime by Household Members
The members of the household may not engage in drug-related criminal activity or
other violent criminal activity.
L. Other Housing Assistance
An assisted household, or members of the household, may not receive HCVP
tenant-based assistance while receiving another housing subsidy, for the same unit
or for a different unit, under any duplicative (as determined by HUD or in
accordance with HUD requirements) federal, state or local housing assistance
program.
3.0 ELIGIBILITY FOR ADMISSION
3.1 INTRODUCTION
There are six (6) eligibility requirements for admission to the HCVP Program: 1) Qualifies
as a family 2) Has an income within the income limits 3) Meets citizenship/eligible
immigrant criteria 4) Provides documentation of social security numbers 5) Signs consent
authorization documents 6) Has not been involved in drug-related or violent criminal
activity or has not displayed a pattern of criminal behavior in the past 5 years (See section
4.8).
3.2 ELIGIBILITY CRITERIA
A. Family status 24 CFR 982.201(c)
A family is defined as:
1. A single person 62 years or older
2. A disabled person either who is 18 years or older and is not declared as a
dependent by a parent or guardian or who is a dependent living in a group
home or similar supervised residence.
3. A household with a child or children who resides in the unit more than
51% of the time (A child who is temporarily away from the home because
of placement in foster care is considered a member of the family)
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4. Two or more elderly persons or disabled persons living together, or one or
more elderly or disabled persons living with one or more live-in aides
5. Two or more persons related by blood, marriage, domestic partnership
(certified by City of Iowa City Clerk), adoption or placement by a
governmental or social service agency, as defined by City of Iowa City
code.
6. A single adult that is not part of another household.
B. Income eligibility 24 CFR 982.201(b)
1. To be eligible to receive assistance, a household shall, at the time the
household initially receives assistance under the HCVP Program, be a low-
income household that is:
a. A very low-income household (below 50% median income); or
b. A low-income household continuously assisted under programs
authorized by the 1937 Housing Act (below 80% median income).
30% of median income is defined as an income targeting standard which
HUD requires the ICHA to admit 75% of all new admissions under this
level.
2. Income limits apply only at admission and are not applicable for continued
occupancy; however, as income rises, the assistance will decrease.
3. Eligibility for the HCVP program is based on the highest income limit (50%
of the median income) for the family size in ICHA's jurisdiction. Admission
to the program is based on the family's income qualifying under the income
limits for the location of the chosen unit.
4. Families who are moving into the ICHA’s jurisdiction under portability and
have the status of applicant rather than of participant at their initial housing
authority must meet the income limit for the area where they are assisted
under the program.
5. Families who are moving into the Iowa City Housing Authority's
jurisdiction under portability and are already program participants at their
initial housing authority do not have to meet the income eligibility
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requirement for the ICHA HCVP Program.
6. Income limit restrictions do not apply to families transferring units within
the ICHA HCVP Program.
C. Citizenship/Eligible Immigrant status 24 CRF 5.500
To be eligible, each member of the household must be a citizen, national, or a non-
citizen who has eligible immigration status under one of the categories set forth in
Section 214 of the Housing and Community Development Act of 1980 (see 42
U.S.C. 1436a(a)).
Household eligibility for assistance: 24 CFR 5.520
1. A household shall not be eligible for assistance unless every member of the
household residing in the unit is determined to have eligible status, with the
exception as described in paragraph two (2) below.
2. Despite the ineligibility of one or more household members, a mixed
household may be eligible for one of three types of assistance. (See Section
11.4(F) (2) for calculating rents under the non-citizen rule)
D. Social Security Number Documentation 24 CFR 5.216
To be eligible, all household members are required to provide a social security
number. All household members will be required to provide copies of social
security cards.
E. Signing Consent Forms 24 CFR 5.230
1. In order to be eligible each member of the household who is 18 years of age
and older and each household head and spouse regardless of age, shall sign
one or more consent forms.
2. The consent form must contain, at a minimum, the following:
a. A provision authorizing HUD and the ICHA to obtain from Iowa
Workforce Development Center any information or materials
necessary to complete or verify the application for participation or
for eligibility for continued occupancy;
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b. A provision authorizing HUD and ICHA to verify with previous or
current employers income information pertinent to the household's
eligibility for, or level of, assistance;
c. A provision authorizing HUD and the ICHA to request income
information from the IRS, Department of Human Services, and the
Social Security Administration for the sole purpose of verifying
income information pertinent to the household's eligibility or level
of benefits; and
d. A statement that the authorization to release the information
requested by the consent form expires 15 months after the date the
consent form is signed.
F. Screening Criteria.
The Iowa City Housing Authority determines eligibility for participation and will
conduct a national criminal background check (5 year “look-back” from the start
date of the eligibility determination process) on all household members (new
participants and families porting into our jurisdiction), including live-in aides
pursuant to 24 CFR 5.903. This check will be made through Iowa Courts Online,
the Iowa Department of Criminal Investigation (DCI), and the Federal Bureau of
Investigation’s (FBI) National Crime Information Center (NCIC). The ICHA may
contact law enforcement agencies and court officials, where the individual had
lived. The ICHA will check with the Dru Sjodin National Sex Offender Public
Website and any relevant state sex offender registration program and will ban for
life any individual who is registered as a lifetime sex offender. Any individual
subject to any other sex offender registry may be denied assistance.
3.3 SPECIAL ELIGIBILITY PROVISIONS RELATING TO LIVE-IN AIDE (24 CFR
5.403, 982.316)
A family may include a live-in aide who:
A. Has been verified by the ICHA to be essential to the care and well-being of the
elderly, handicapped or disabled;
B. Is not obligated for the support of the elderly, handicapped or disabled member;
C. Would not be living in the unit except to provide care of the elderly, handicapped
or disabled member;
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D. Has income which will not be counted for purposes of eligibility or rent; and
E. Will not be considered the remaining member of the household.
4.0 APPLICATION AND WAITING LIST PROCESS
4.1 OPENING AND CLOSING THE WAITING LIST
Opening of the waiting list will be announced via public notice that applications for HCVP
will again be accepted. The public notice will state where, when and how to apply. The
notice will be published in a local newspaper of general circulation. The public notice will
state any limitations to who may apply. 24 CFR 982.206 (a)
The notice will state that applicants already on waiting lists for other housing programs
must apply separately for this program and such applicants will not lose their place on other
waiting lists when they apply for HCVP. The notice will be in compliance with Fair
Housing requirements.
4.2 ACCEPTING AND PROCESSING APPLICATIONS 24 CFR 982.202
Families wishing to apply for the HCVP Program will be required to complete an
application for housing assistance.
Applications are available online and computers are available at the Iowa City Housing
Authority, 410 E. Washington Street, Iowa City, Iowa 52240. Applications may be mailed
to families upon written request for a reasonable accommodation.
Applications are taken to compile a waiting list. Due to the demand for HCVP assistance
in the Iowa City Housing Authority jurisdiction, the Iowa City Housing Authority may take
applications on an open enrollment basis depending on the length of the waiting list.
When the waiting list is open, completed applications will be accepted from all applicants.
The Iowa City Housing Authority will later verify the information in the applications
relevant to the applicant’s eligibility, admission and level of benefit.
All applications are electronically date and time stamped by HAPPY Software’s
WaitlistCheck system.
Persons with disabilities who require a reasonable accommodation in completing an
application may call the Iowa City Housing Authority to make special arrangements to
complete their application. A Telecommunication Device for the Deaf (TDD) is available
for the hearing impaired. The TDD telephone number is (319) 356-5404.
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The application process will involve two phases. The first phase requires the household to
provide limited basic information including name, address, phone number, household
composition, racial or ethnic designation, income and information establishing any
preferences to which they may be entitled. This first phase results in the household’s
placement on the waiting list.
Upon receipt of the family’s application, the Iowa City Housing Authority will make a
preliminary determination of eligibility. The Iowa City Housing Authority will notify the
household in writing of the date and time of placement on the waiting list. If the Iowa City
Housing Authority determines the household to be ineligible, the notice will state the
reasons and offer the household the opportunity for an informal review of this
determination.
An applicant must, at any time, report changes in their applicant status in writing including
changes in household composition, income, legal domicile, address, or preference factors.
The Iowa City Housing Authority will annotate the applicant’s file and will update their
placement on the waiting list.
The second phase is the final determination of eligibility. The full application takes place
when the household reaches the top of the waiting list. The Iowa City Housing Authority
will ensure that verification of all preferences, eligibility and suitability selection factors
are current in order to determine the household’s final eligibility for admission into the
HCVP Program.
4.3 ORGANIZATION OF THE WAITING LIST 24 CFR 982.204(b)
The waiting list will be maintained in accordance with the following guidelines:
A. The application will be part of an active applicant’s/tenant’s permanent file. All
inactive applications will be kept for three (3) years.
.
B. All applications will be maintained in order of preference and then in order of date
and time of application.
C. Contact or communication between the ICHA and the applicant will be documented
in the applicant file.
4.4 FAMILIES NEARING THE TOP OF THE WAITING LIST
When a household reaches the top of the waiting list, the household verification process
will begin. It is at this point the household’s waiting list preference will be verified. If the
household does not qualify for the preference, the household’s name will be returned to the
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appropriate spot on the waiting list with the original date and time of application. The Iowa
City Housing Authority must notify the household in writing of this determination and give
the household the opportunity for an informal review.
If not already done, the family will provide copies of social security cards, certified birth
certificates, photo identification for all adult members, citizenship/eligible immigrant
information and sign the consent for release of information forms.
4.5 MISSED APPOINTMENTS
All applicants who fail to keep a scheduled appointment in accordance with the paragraph
below will be sent a notice of denial.
The Iowa City Housing Authority will allow the household to reschedule appointments for
good cause, as determined by the ICHA. When good cause exists, the Iowa City Housing
Authority will work closely with the household to find a more suitable time.
4.6 PURGING THE WAITING LIST
If necessary the Iowa City Housing Authority will update and purge its waiting list to
ensure the pool of applicants reasonably represents interested families.
4.7 REMOVAL OF APPLICANTS FROM THE WAITING LIST 24 CFR 982.204(c)
The Iowa City Housing Authority will not remove an applicant’s name from the waiting
list unless:
A. The applicant requests in writing that their name be removed;
B. The applicant fails to respond to a written request for information or a request to
declare their continued interest in the program (this includes mail undeliverable by
the Postal Service which is returned to the ICHA) or missed scheduled
appointments; or
C. The applicant does not meet either the eligibility or screening criteria for the
program.
Application forms from applicants removed from the waiting list will be destroyed three
(3) years from date of removal.
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4.8 HCVP TENANT SELECTION CRITERIA (24CFR 982.552 & 982.553)
In selecting families for admission to its HCVP Housing Choice Voucher program, the Housing
Authority is responsible for screening family behavior and suitability for assistance. The Housing
Authority may consider all relevant information. The tenant selection criteria and information are
reasonably related to individual attributes and behavior of an applicant and not related to those
which may be imputed to a particular group or category of persons of which an applicant may be
a member. This policy takes into account the importance of screening for program integrity, and
the demand for assisted housing by families who will adhere to program responsibilities.
Under federal regulations found at 24 CFR 982.552, the Housing Authority must deny certain
applicants and it has the discretion to deny others based on certain actions or inactions by family
members. Denial of assistance for an applicant may include any or all of the following: denying
listing on the Housing Authority waiting list, denying or withdrawing a voucher, refusing to enter
into a HAP contract or approve a lease, and refusing to process or provide assistance under
portability procedures.
MUST DENY-LIFE TIME BAN
Is subject to a “lifetime” registration requirement under a State sex offender registrations program.
MUST DENY -3 YEAR PERIOD OF INELIGIBILITY
The Housing Authority must deny assistance:
1) For a family evicted from housing assisted under the program for serious violation of the
lease.
2) For three years from the date of eviction, if a household member has been evicted from
federally assisted housing for drug-related criminal activity. However, the Housing
Authority may admit the household if the Housing Authority determines:
a) That the evicted household member who engaged in drug-related criminal activity has
successfully completed a supervised drug rehabilitation program approved by the
Housing Authority; or
b) That the circumstances leading to eviction no longer exist (for example, the criminal
household member has died or is imprisoned).
3) If the Housing Authority determines that any household member is currently engaging in
illegal use of a drug.
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4) If the Housing Authority determines that it has reasonable cause to believe that a
household member's illegal drug use or a pattern of illegal drug use may threaten the
health, safety, or right to peaceful enjoyment of the premises by other residents.
5) If any household member has ever been convicted of drug-related criminal activity for
manufacture or production of methamphetamine on the premises of federally assisted
housing.
If a person is denied for any reason listed above, the person will be ineligible for assistance for
three years after the date of the denial notice.
MUST DENY - 1 YEAR PERIOD OF INELIGIBILITY
1) In accordance with 24 CFR 5.216, applicants and participants (including each member
of the household) must disclose his/her assigned Social Security Number. Failure to
disclose will result in denial of assistance.
2) If the family fails to sign and submit consent forms for obtaining information in
accordance with 24 CFR, part 5, subparts B and F.
MAY DENY-LIFE TIME BAN
The Housing Authority may deny assistance if any household member is subject to “any”
registration requirement under a State sex offender registration program.
MAY DENY – THREE (3) YEAR PERIOD OF INELIGIBILITY
A. Criminal Activity
If any household member is currently engaged in, or has engaged in within five years before
admission the following criminal activity, the Housing Authority may deny assistance based on a
preponderance of evidence, regardless of whether the household member has been arrested or
convicted for such activity:
1. Drug-related criminal activity (defined at 24 CFR 5.100). A “drug” is also any
controlled substance listed in Chapter 124 of the Iowa Code;
2. Violent criminal activity (defined at 24 CFR 5.100) [Note Section E: Exception for
persons subjected to dating violence, domestic violence, sexual assault, and stalking.];
3. Other criminal activity that threatens the health, safety or right to peaceful enjoyment
of other residents and persons residing in the immediate vicinity.
4. Other criminal activity which may threaten the health or safety of the owner, property
management staff, or persons performing a contract administration function or
responsibility on behalf of the Housing Authority (including a Housing Authority
employee or a Housing Authority contractor, subcontractor or agent);
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5. Criminal Street Gang Activity as defined in Chapter 723A of the Iowa Code or any
federal, state, or city law that substantially corresponds to this section;
6. Theft in the 3rd degree or higher or fraudulent practice in the 3rd degree or higher as
defined in Chapter 714 of the Iowa Code or any federal, state, or city law that
substantially corresponds to this section;
7. Forgery or fraudulent criminal acts as defined in Chapter 715A of the Iowa Code or
any federal, state, or city law that substantially corresponds to this section;
8. Burglary in the 3rd degree or higher as defined in Chapter 713 of the Iowa Code or any
federal, state, or city law that substantially corresponds to this section;
9. Disorderly conduct as defined in HCVP-5-1 of the City Code or section 723.4 of the
Iowa Code or any federal, state, or city law that substantially corresponds to this
section; If the activity constitutes violent criminal behavior.
10. Fraud, bribery or any other corrupt or criminal act in connection with the programs.
If a person is denied for any reason listed above, the person will be ineligible for assistance for
three years from the date of the denial notice.
B. Miscellaneous Reasons (1-year period of ineligibility)
The Housing Authority may deny assistance:
1. If a Housing Authority has ever terminated assistance under the program for any
member of the family.
2. Disorderly house as defined in HCVP-5-5 of the City Code or a law of any city, county,
or state that substantially corresponds to this section;
3. Disorderly conduct as defined in HCVP-5-1 of the City Code or section 723.4 of the
Iowa Code or a law of any city, county, or state that substantially corresponds to this
section. If the activity does not constitute violent criminal behavior.
4. If the family currently owes rent or other amounts to the a) ICHA; b) to any other
Housing Authority; c) to other Federally assisted housing under the 1937 Act (as
amended); d) Federally assisted housing as defined in 24 CFR 5.100; or, e) any other
affordable housing program receiving any Federal, State, or Local government
assistance (e.g., CDBG, HOME, Tax Credits, General Obligation bonds, other grants
and/or loans that establish limits on the rent a landlord may charge).
5. If the family has not reimbursed any Housing Authority for amounts paid to an owner
under a HAP contract for rent, damages to the unit, or other amounts owed by the family
under the lease.
6. If the family breaches an agreement with the Housing Authority to pay amounts owed
to a Housing Authority, or amounts paid to an owner by a Housing Authority. (The
Housing Authority, at its discretion, may offer a family the opportunity to enter an
agreement to pay amounts owed to a Housing Authority or amounts paid to an owner
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by a Housing Authority. The Housing Authority may prescribe the terms of the
agreement.)
7. If a family participating in the FSS program fails to comply, without good cause, with
the family's FSS contract of participation.
8. If the family has engaged in or threatened abusive or violent behavior toward Housing
Authority personnel.
9. If a family member has violated a public housing requirement including but not limited
to community service requirements.
10. If the Housing Authority determines that it has reasonable cause to believe that a
household member's abuse or pattern of abuse of alcohol may threaten the health,
safety, or right to peaceful enjoyment of the premises by other residents.
11. Use of an alias in the commission of a crime, in the application for government benefits
or assistance, or to mislead or defraud a creditor.
12. The family must supply any information requested by the Housing Authority or HUD
in accordance with HUD requirements.
13. Any information supplied by the family must be true and complete.
14. Other housing assistance. An assisted family, or members of the family, may not
receive HCVP tenant-based assistance while receiving another housing subsidy, for the
same unit or for a different unit, under any duplicative (as determined by HUD or in
accordance with HUD requirements) federal, State or local housing assistance program.
If a person is denied for any reason listed above, the person will be ineligible for assistance for one
year after the date of the denial notice
C. Additional Considerations
In determining whether to deny assistance because of action or failure to act by members of the
family:
1. The Housing Authority may consider all relevant circumstances such as the seriousness
of the case, the extent of participation or culpability of individual family members,
mitigating circumstances related to the disability of a family member, and the effects
of denial or termination of assistance on other family members who were not involved
in the action or failure. Such consideration also includes the effect the denial will have
on family members not involved in the criminal activity and the extent to which the
offending family member and applicant have taken personal responsibility and have
taken all reasonable steps to prevent or mitigate the offending behavior.
2. The Housing Authority may impose, as a condition of continued assistance for other
family members, a requirement that other family members who participated in or were
culpable for the action or failure will not reside in the unit. The Housing Authority may
permit the other members of a participant family to continue receiving assistance.
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3. In determining whether to deny admission for illegal use of drugs or alcohol abuse by
a household member who is no longer engaged in such behavior, the Housing Authority
consider whether such household member is participating in or has successfully
completed a supervised drug or alcohol rehabilitation program, or has otherwise been
rehabilitated successfully (42 U.S.C. 13661). For this purpose, the Housing Authority
may require the applicant or tenant 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.
4. If the family includes a person with disabilities, the Housing Authority decision
concerning such action is subject to consideration of reasonable accommodation in
accordance with part 8 of this title.
E. Exception for persons subjected to dating violence, domestic violence, sexual assault, and
stalking.
Although the Housing Authority may deny HCVP assistance if a member of the tenant family has
engaged in violent criminal activity, there is an exception for persons subjected to dating violence,
domestic violence, sexual assault, and stalking, as those terms are defined in 42 U.S.C. 1437f.
The Housing Authority may deny the voucher assistance to the member of the household who
committed the dating violence, domestic violence, sexual assault, and stalking but not to the
victim. The Housing Authority may, however, deny the assistance to the victim for other reasons
not premised on the act of dating violence, domestic violence, sexual assault, and stalking.
4.9 NOTIFICATION OF NEGATIVE ACTIONS
Any applicant whose name is being removed from the waiting list will be notified by the
Iowa City Housing Authority, in writing, that they have ten (10) calendar days, from the
date of the written correspondence, to present mitigating circumstances or request an
informal review. The letter will also indicate that their name will be removed from the
waiting list if they fail to respond within the time frame specified. The Iowa City Housing
Authority's system of removing applicants’ names from the waiting list will not violate the
rights of persons with disabilities. If an applicant’s failure to respond to a request for
information or updates was caused by the applicant’s disability, the Iowa City Housing
Authority may provide a reasonable accommodation. If the applicant indicates that they
did not respond due to a disability, the Iowa City Housing Authority will consider this
when determining whether to grant a reasonable accommodation. An example of a
reasonable accommodation would be to reinstate the applicant on the waiting list based on
the date and time of the original application.
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4.10 INFORMAL REVIEW
If the Iowa City Housing Authority determines that an applicant does not meet the criteria
for receiving HCVP assistance, the Iowa City Housing Authority will promptly provide
the applicant with written notice of the determination. The notice must contain a brief
statement of the reason(s) for the decision and state that the applicant may request an
informal review of the decision within ten (10) calendar days of the denial. The Iowa City
Housing Authority will describe how to obtain the informal review. The informal review
process is described in Section 15.3 of this plan.
5.0 SELECTING FAMILIES FROM THE WAITING LIST
5.1 WAITING LIST ADMISSIONS AND SPECIAL ADMISSIONS 24 CFR 982.203 AND
.204
The Housing Authority may admit an applicant for participation in the program either as a
special admission or as a waiting list admission.
If HUD awards funding that is targeted for families with specific characteristics such as
families living in specific units (e.g. HUD project based opt out), the Iowa City Housing
Authority will use the special admission for those families.
5.2.1 PREFERENCES 24 CFR 982.207
A. Displaced: Individuals or families displaced by government action or 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. For the State of
Iowa only.
B. Families with children under the age of 18 or elderly or disabled families who are
residents (have a legal domicile) in the Iowa City Housing Authority jurisdiction 24
CFR 982.207(b)(1);
C. Adult families (2 or more household members) with no children under 18 years of age
who are residents (have a legal domicile) in the Iowa City Housing Authority
jurisdiction;
D. Elderly or disabled families who are not residents (do not have a legal domicile) in the
Iowa City Housing Authority jurisdiction;
E. Families with children under the age of 18 who are not residents (do not have a legal
domicile) in the Iowa City Housing Authority jurisdiction 24 CFR 982.207(b)(1);
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F. Adult families (2 or more household members) with no children under 18 years of age
who are not residents (do not have a legal domicile) in the Iowa City Housing Authority
jurisdiction;
G. Single, non-elderly, non-disabled families with no children under the age of 18 years
of age regardless of residency.
5.2.2 TARGETED PREFERENCES:
• Families referred by the Mid-Eastern Council on Chemical Abuse (MECCA);
• Public housing tenants who have resided in their Public Housing unit longer than 1
year and whose total tenant payment is higher than $499 (See Section 19
Homeownership);
• If HOME Investment Funds received from the State of Iowa and City of Iowa City
to provide Tenant-Based-Rental-Assistance is depleted, participating families will
be admitted into the HCV program.
• Individuals referred by Shelter House for HUD funded Permanent Supportive
Housing (e.g., Fairweather Lodge, Cross Park Place).
NOTE: The use of a residency preference will not have the purpose or effect of delaying
or otherwise denying admission to the HCV program based on the race, color, ethnic origin,
gender, religion, disability, or age of any member of an applicant family.
5.3 SELECTION FROM THE WAITING LIST 24 CFR 982.204
The date and time of application will be utilized to determine the admission sequence for
all applicants including special admission within the above-prescribed preferences.
The Iowa City Housing Authority retains the right to skip higher income families on the
waiting list if necessary to meet the statutory requirement that 75% of newly admitted
families in any fiscal year be families who are extremely low-income as defined by HUD.
This measure will only be taken if it appears the goal will not otherwise be met. To ensure
this goal is met, the Housing Authority will monitor incomes of newly admitted families
and the income of the families on the waiting list.
If there are not enough extremely low-income families on the waiting list, the ICHA will
conduct outreach on a non-discriminatory basis to attract extremely low-income families
to reach the statutory requirement.
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6.0 ASSIGNMENT OF BEDROOM SIZES (SUBSIDY
STANDARDS) 24 CFR 982.402
The intent of HUD requirements is that the smallest appropriate bedroom size be assigned
to participant families without overcrowding. Subsidy assignments will allow at least one
bedroom for each two persons.
Subsidy will be determined using the following guidelines:
A. A zero (0) bedroom will be assigned to any family consisting of a single person
(excluding elderly and disabled).
B. An unborn child will not be counted in determining subsidy standards when the family
size is greater than one (1).
C. A family that consists of a pregnant women only, and (no other persons), will be treated
as a two-person family.
D. One-bedroom will be assigned to a single adult with a child under the age of one (1).
E. One-bedroom will be assigned for two children of the same sex regardless of age.
F. One-bedroom will be assigned for children of the opposite sex who are both under the
age of six (6).
G. One-bedroom will be assigned for every two adults regardless of relationship, unless
18 or older and a High School student.
H. One-bedroom will be added for a live-in aide.
I. In the case of shared custody of a child (children), the child (children) must be in the
household no less than 51% of the time to be considered when determining subsidy.
Pending custody issues will be evaluated on a case by case basis taking into account
the reasonable likelihood of success. The household may be required to provide written
verification that a child resides with the family such as a court order, school registration
documents, etc. At the sole discretion of the Housing Authority, additional subsidy may
be granted for 50/50 shared custody. Only one (1) household will be granted the
dependent deduction.
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J. In determining subsidy, the Iowa City Housing Authority will include children who are
temporarily away from home because of placement in foster care. Temporary is
defined as less than one year.
K. Subsidy allowances will be adjusted accordingly for foster parents who have not had a
foster child in placement for one year.
The Iowa City Housing Authority may grant exceptions to its established subsidy
standards if the ICHA determines the age, sex, handicap, or relationship of family
members or other personal circumstance justifies the exception. The ICHA will review
documents from DHS, physicians, or other similar sources to make this determination.
The household unit size will be determined by the Iowa City Housing Authority in
accordance with the above guidelines and will determine the maximum rent subsidy for
the household. However, the household may select a unit that is larger or smaller than
the household unit size. If the household selects a smaller unit, the payment standard for
the actual unit size will be used to calculate the subsidy. If the household selects a larger
size unit, the payment standard for the issued voucher size will determine the maximum
subsidy.
The Iowa City Housing Authority will issue a voucher for a particular bedroom size; the
bedroom size is a factor in determining the household’s level of assistance. The following
guidelines will determine each household’s unit size without overcrowding or over-
housing:
Number of Bedrooms Number of Persons
Minimum Maximum
0 1 1
1 1 2
2 2 4
3 3 6
4
5
4
5
8
10
6.1 BRIEFING 24 CFR 982.301(a)
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When the Iowa City Housing Authority selects a household from the waiting list and
determines eligibility, the household will be invited to attend a briefing explaining how the
program works. In order to receive a voucher the household is required to attend the
briefing. If they cannot attend the originally scheduled briefing, they may attend a later
session. If the household fails to attend one of two offered briefings without good cause,
they will be denied admission.
If an applicant with a disability requires additional aids to gain full benefit from the
briefing, the Housing Authority will furnish such aids where doing so would not result in
a major alteration of the nature of the program, or an undue financial or administrative
burden. In determining the most suitable aid, the housing authority will give consideration
to the requests of the applicant. Families unable to attend a briefing due to a disability may
submit a written request a reasonable accommodation.
The briefing will cover at least the following subjects:
A. A description of how the program works;
B. Household and owner responsibilities;
C. Where the household may rent a unit, including inside and outside the housing
authority’s jurisdiction;
D. Types of eligible housing;
E. An explanation of how portability works;
F. An explanation of the advantages of living in an area that does not have a high
concentration of low-income families; and
G. An explanation that the household share of rent may not exceed 40% of the
household’s monthly adjusted income.
6.2 BRIEFING PACKET 24 CFR 982.301 (b)
During the briefing, the ICHA is required to give the household a briefing packet covering
at least the following subjects:
A. The term of the voucher and the ICHA’s policy on extensions and suspensions of
the term, how to request an extension;
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B. How the ICHA determines the housing assistance payment (HAP) and total tenant
payment (TTP) for the household;
C. Information on the payment standard, exception payment standard rent areas and
the utility allowance schedule;
D. How the ICHA determines the maximum rent for an assisted unit;
E. Where the household may lease a unit and an explanation of how portability works;
F. The HUD-required tenancy addendum that provides the language that must be
included in any assisted lease;
G. The Request for Tenancy Approval form and an explanation of how to request
ICHA approval of a unit;
H. A statement of the ICHA’s policy on providing information to prospective owners.
Upon request, the ICHA will also supply the following factual information, if
known:
1. Drug-related or violent criminal activity
2. Landlord evictions
3. Lease violations
4. Termination of housing assistance
I. The ICHA’s subsidy standards, including when the ICHA will consider granting
exceptions to the standards;
J. The HUD brochure on how to select a unit (“A Good Place to Live”);
K. The HUD-required lead-based paint brochure;
L. Information on federal, state and local equal opportunity laws; the brochure “Fair
Housing: It’s Your Right”, and a copy of the housing discrimination complaint
form;
M. Links to online landlord listings;
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N. Notice that if the household includes a person with disabilities, the household may
request a current list of accessible units known to the Iowa City Housing Authority
that may be available;
O. The family’s obligations under the program;
P. The grounds upon which the Housing Authority may terminate assistance because
of the household’s action or inaction;
Q. Iowa City Housing Authority informal hearing procedures, including when the
Housing Authority is required to provide the opportunity for an informal hearing,
and information on how to request a hearing; and
R. Other information; e.g. FSS, change of income/family composition form.
6.3 ISSUANCE OF VOUCHER: REQUEST FOR TENANCY APPROVAL (RFTA)
24 CFR 982.302
Once all household information has been verified, eligibility determined, and their subsidy
size determined, the Iowa City Housing Authority will issue a voucher to the household
when they attend the briefing. At this point the household begins their search for a unit.
When the household finds a unit that the owner is willing to lease under the program, the
household and the owner will complete and sign the RFTA form. The household will
submit the proposed lease and the RFTA form to the ICHA during the term of the voucher.
The ICHA will review and make an initial determination for approval of tenancy. The
ICHA may assist in negotiating changes that may be required for the tenancy to be
approvable. Once it appears the tenancy may be approvable, ICHA will schedule an
appointment to inspect the unit within 15 days after the receipt of the RFTA. The 15 day
period is suspended during any period the unit is unavailable for inspection. The ICHA will
promptly notify the owner and the household whether the unit and tenancy is approved.
During the initial stage of qualifying the unit, the ICHA will provide the prospective owner,
upon request, with information regarding the program. Information can include Housing
Authority and owner responsibilities for screening and other essential program elements.
All tenant screening is the responsibility of the owner.
6.4 TERM OF THE VOUCHER 24 CFR 982.303
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The initial term of the voucher will be 120 days and will be stated on the Housing Choice
Voucher.
The Iowa City Housing Authority may grant extensions of the initial term, but the initial
term plus any extensions may not exceed 365 calendar days from the initial date of
issuance, unless approved as a reasonable accommodation. To obtain an extension, the
household must make a request in writing prior to the expiration date. If the household
documents their efforts and additional time can reasonably be expected to result in success,
the ICHA will grant the length of request sought by the household, or in 60 day increments,
whichever is less.
If the household includes a person with disabilities and the household requires an extension
due to the disability, the ICHA will grant an extension allowing the household time to
search for a unit.
Upon submission of a completed RFTA, the Iowa City Housing Authority will suspend the
term of the voucher. The term will be in suspended until the date the RFTA is approved or
denied which may be after the owner makes any necessary repairs. This policy allows
families the full term (120 days, or more, with extensions) to find a unit, not penalizing
them for the period during which the ICHA is taking action on their request.
6.5 APPROVAL TO LEASE A UNIT 24 CFR 982.305
The Iowa City Housing Authority will approve a tenancy if all of the following conditions
are met:
A. The unit is eligible;
B. The unit is inspected by the Housing Authority and passes inspection;
C. The lease includes the language of the tenancy addendum;
D. The rent to owner is reasonable;
E. The household’s share of the rent does not exceed 40% of their monthly adjusted
income;
F. The owner has not been found to be debarred, suspended, or subject to a limited
denial of participation by HUD or the Housing Authority; (24 CFR 982.306) and
G. The household continues to meet all eligibility and screening criteria.
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If tenancy approval is denied, the Housing Authority will advise the owner and the
household of any actions they could take that would enable the Housing Authority to
approve the tenancy.
The assisted lease term may begin only after all of the following conditions are met:
A. The unit passes the Iowa City Housing Code/HQS inspection;
B. The household’s share of rent does not exceed 40% of their monthly adjusted
income;
C. The landlord and tenant sign the lease to include the HUD required addendum; and
D. The Housing Authority approves the assisted tenancy.
The Housing Authority will prepare the HAP contract after the unit passes inspection and
the signed lease is received. The Housing Authority will not pay any housing assistance to
the owner until the contract is executed and a signed lease is received by the ICHA.
The contract must be executed no later than 60 days after the beginning of the assisted lease
term.
Any contract executed after the 60-day period will be void and the Housing Authority will
not pay housing assistance to the owner.
6.6 IOWA CITY HOUSING AUTHORITY DISAPPROVAL OF OWNER
The Housing Authority will deny participation by an owner at the direction of HUD. The
Housing Authority will also deny the owner’s participation for any of the reasons per 24
CFR 982.453
6.7 SPECIAL HOUSING TYPES
The Iowa City Housing Authority may approve the following special housing types:
A. Congregate housing;
B. Group homes;
C. Shared housing *;
D. Cooperative housing;
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E. Homeownership;
I. Single room occupancy housing;
J. Single household dwellings;
K. Apartments/Duplex/Condominiums/Townhouse;
L. Manufactured housing;
M. Manufactured home space rentals;
* Shared housing is limited to the population of families (including individuals) with disabilities
that significantly interfere with their ability to obtain and maintain housing; Such families will not
be able to obtain or maintain themselves in housing without appropriate supportive services from
a recognized service provider; and Such services cannot be provided in a non-segregated setting.
Definition is adapted from the HOME Investments Partnership Program 24 CFR 92.253(d)(3)(ii)
6.8 SECURITY DEPOSIT 24 CFR 982.313
The owner may collect a security deposit from the tenant in an amount not in excess of
amounts charged in private market practice and not in excess of amounts charged by the
owner to unassisted tenants per Iowa Code §562A.12.
7.0 MOVES WITH CONTINUED ASSISTANCE 24 CFR 982.314
Participating families are allowed to move to another unit after the initial lease term has
expired or if the landlord and the participant have mutually agreed to terminate the lease,
or if the Housing Authority has terminated the HAP contract. The Iowa City Housing
Authority will issue the household a new voucher if the following apply:
A. The household does not owe the Iowa City Housing Authority or any other Housing
Authority money,
B. The household has not violated a Family Obligation,
C. The ICHA has sufficient funding for continued assistance, and
D. The household has fulfilled lease obligations and proper notice was given to the
landlord and the ICHA.
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E. Provisions for persons subjected to dating violence, domestic violence, sexual
assault, and stalking.
1. If a family breaks up as a result of dating violence, domestic violence,
sexual assault, and stalking, the ICHA will ensure the victim retains
HCVP assistance.
2. A move with continued assistance will be approved if the move is
needed to protect the health or safety of the family, or any family
member that has been the victim of a sexual assault that occurred on the
premises during the 90-day calendar-day period preceding the family’s
request to move.
7.1 PROCEDURES REGARDING HOUSEHOLD MOVES 24 CFR 982.314
Families are required to give the ICHA proper written notice (no less than 30 days) of their
intent to vacate the unit. During the lease, families may not end the lease. Owners may
generate a request to the tenant to mutually agree to end the lease. If the household moves
from the unit before the initial term of the lease ends without the owner’s and the Iowa City
Housing Authority’s approval, it will be considered a serious lease violation, a violation of
family obligation, and subject the household to termination from the program.
The household is required to give the Iowa City Housing Authority a copy of the notice to
vacate the unit at the same time as it gives notice to the landlord. A household’s failure to
provide a copy of the lease termination notice to the Iowa City Housing Authority will be
considered a violation of Family Obligations and may cause the household to be terminated
from the program.
The ICHA can provide a standard notice to vacate form for the client. The ICHA also can
provide a standard rescind notice to the owner if requested.
If a family has moved out of their assisted unit in violation of the lease, the ICHA will
terminate assistance in compliance with Section 14.0, Grounds for Termination of the
Lease and Contract.
Failure to follow the above procedures may subject the household to termination from the
program.
8.0 PORTABILITY 24 CFR 982.353
8.1 GENERAL POLICIES OF THE ICHA
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A family, whose head of household or spouse has a domicile (legal residence) in the
jurisdiction of the ICHA at the time the family first submits its application for participation
in the program to the ICHA, may lease a unit anywhere in the jurisdiction of the ICHA or
outside the ICHA jurisdiction as long as there is another entity operating a tenant-based
HCVP Program covering the location of the proposed unit.
If the head of household or spouse of the assisted family did not have a legal residence in
the jurisdiction of the ICHA at the time of its application, the family will not have any right
to lease a unit outside of the ICHA jurisdiction for a 12-month period beginning when the
family is first admitted to the program (has an assisted lease). During this period, the family
may only lease a unit located in the jurisdiction of the ICHA.
Assisted families may only move to a jurisdiction where a HCVP Program is being
administered.
The Iowa City Housing Authority may deny permission to move if the Iowa City Housing
Authority does not have sufficient funding for continued assistance. (24 CFR 982.314(e)
(1).
If funds are owed to the Iowa City Housing Authority, the amount must be paid in full prior
to an approval to move.
8.2 INCOME ELIGIBILITY
A. At admission, a family must be income-eligible in the area where the family first
leases a unit with assistance in the voucher program.
B. If a portable family is already a participant in the initial housing authority's voucher
program, income eligibility is not re-determined.
8.3 PORTABILITY: ADMINISTRATION BY RECEIVING HOUSING AUTHORITY
A. When a family utilizes portability to move to an area outside the initial housing
authority jurisdiction, another housing authority (the receiving housing authority)
must administer assistance for the family if that housing authority has a tenant-
based program covering the area where the unit is located.
B. A housing authority with jurisdiction in the area where the family wants to lease a
unit must issue the family a voucher. If there is more than one such housing
authority, the family may choose which housing authority shall become the
receiving housing authority.
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8.4 PORTABILITY PROCEDURES
A. When the ICHA is the initial housing authority:
1. The ICHA will brief the family on the process that must take place to
exercise portability.
2. The ICHA will determine whether the applicant family is income-eligible
in the area where the family wants to lease a unit.
3. The ICHA will advise the family how to contact and request assistance from
the receiving housing authority.
4. The ICHA will, within ten (10) calendar days, notify the receiving housing
authority to expect the family.
5. The ICHA will mail to the receiving housing authority the most recent HUD
Form 50058 (Family Report) for the family and related verification
information.
B. When the ICHA is the receiving housing authority:
1. When the portable family requests assistance from the ICHA, the ICHA
will, within ten (10) calendar days, inform the initial housing authority
whether it will bill the initial housing authority for assistance on behalf of
the portable family, or absorb the family into its own program.
2. The ICHA will issue a voucher to the family. The term of the ICHA's
voucher will not expire before 30 days have passed from the expiration date
of any initial housing authority's voucher. The ICHA will determine
whether to extend the voucher term. The family must submit a Request for
Tenancy Approval (RFTA) to the ICHA during the term of the ICHA's
voucher.
3. The ICHA will determine the family unit size for the portable family. The
family unit size is determined in accordance with the ICHA's subsidy
standards.
4. The ICHA will, within ten (10) calendar days, notify the initial housing
authority if the family has leased an eligible unit under the program, or if
the family fails to submit a RFTA for an eligible unit within the term of the
voucher.
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5. If the ICHA opts to conduct a new reexamination, the ICHA will not delay
issuing a participating family a voucher or otherwise delay approval of a
unit unless the re-certification is necessary to determine income eligibility
for an applicant.
6. In order to provide tenant-based assistance for portable families, the ICHA
will perform all housing authority program functions, such as
reexaminations of family income and composition. At any time, either the
initial housing authority or the ICHA may make a determination to deny or
terminate assistance to the family in accordance with 24 CFR 982.552.
7. A portable family will be required to attend a client briefing.
8. Portable families are subject to the same criminal background check as
applicants (see Section 3.2 F. above). The processing of applicant families
may be delayed.
C. Absorption by the ICHA
1. If funding is available under the Annual Contributions Contract (ACC) for
the ICHA's voucher program when the portable family is received, the
ICHA may absorb the family into its voucher program. After absorption,
the family is assisted with funds available under the consolidated ACC for
the ICHA's tenant-based program.
D. Portability Billing
1. To cover assistance for a portable family, the receiving housing authority
may bill the initial housing authority for housing assistance payments and
administrative fees. The billing procedure will be as follows:
a. As the initial housing authority, the ICHA will promptly reimburse
the receiving housing authority for the full amount of the housing
assistance payments made by the receiving housing authority for the
portable family. The amount of the housing assistance payment for
a portable family in the receiving housing authority's program is
determined in the same manner as for other families in the receiving
housing authority's program.
b. The initial housing authority will promptly reimburse the receiving
housing authority for 80% of the initial housing authority's on-going
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administrative fee for each unit month that the family receives
assistance under the tenant-based programs and is assisted by the
receiving housing authority. If both housing authorities agree, they
may negotiate a different amount of reimbursement.
E. When a Portable Family Moves
When a portable family moves out of the tenant-based program of a receiving
housing authority that has not absorbed the family, the housing authority in the new
jurisdiction to which the family moves becomes the receiving housing authority
and the first receiving housing authority is no longer required to provide assistance
for the family. The initial receiving Housing Authority will notify the initial
Housing Authority of the family’s intention by forwarding the necessary paperwork
to them. It is then the initial Housing Authority’s responsibility to notify the new
Housing Authority.
9.0 DETERMINATION OF FAMILY INCOME
24 CFR 5.609 AND .611
9.1 INCOME, EXCLUSIONS FROM INCOME, DEDUCTIONS FROM INCOME
To determine annual income, the Iowa City Housing Authority will count the income of
all family members, excluding the types and sources of income that are specifically
excluded. Once annual income is determined, the ICHA subtracts all allowable deductions
(allowances) as the next step in determining the Total Tenant Payment. When determining
income, deductions and exclusions, the ICHA reference is 24 CFR 5.609 and IRS
Publication 502 (see Appendix B), HUD Handbook 4350.3 Change 27 and HUD
Guidebook 7420.10G.
9.2 INCOME 24 CFR 5.609
Annual income, as defined in 24 CFR 5.609 and HUD Guidebook 7420.10G will be used
to determine tenant rent. Income includes, but is not limited to payment for services,
business earnings, income from real or personal property, payments from pensions, SSI,
annuities, insurance policies and the like, unemployment, disability, and worker's
compensation payments, welfare assistance, alimony, child support, and regular gifts from
persons not living in the household.
A. The following will also apply:
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1. If it is not feasible to anticipate a level of income over a 12-month period (e.g.,
seasonal or cyclic income), the ICHA will use past income to estimate future
income.
2. Average income from various sources will be used when there is a history of
temporary work employment that is steady throughout the year.
3. The ICHA will calculate projected annual income by annualizing current
income.
B. Income of Temporarily Absent Family Members:
If a family member is out of the home for employment or other similar purposes,
their income will be counted as part of the household income, even if this person is
in a lease agreement elsewhere.
C. Alimony or Child Support Income:
The ICHA will include all amounts contained in the court or administration order
unless able to verify the amounts that are not received or that an amount other than
what was ordered is being received. The ICHA will attempt to verify this by
reviewing correspondence from attorneys, computer print-outs from the Child
Support Recovery Unit, court documents or any other documentation submitted for
review that can be verified.
D. Income from Real Estate:
Notes & Mortgages Held by Active HCVP Participants - The interest portion of the
payment multiplied by the number of payments will be counted as income.
Income Producing Real Estate owned by HCVP Participants - If income tax returns
are available, the net income on the return will be included with annual income.
If no income tax return is available, the following will be calculated:
1. Rental income received multiplied by the frequency of payment
2. If there is a balance owed on the property, the annual interest will be
deducted from income.
E. Overpayment Deductions:
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When previous overpayments, such as from the Social Security Administration, are
currently being deducted, the gross amount of the benefit minus the deduction for
repayment will be used when determining annual income
F. Assets converted to Trusts.
9.3 EXCLUSIONS FROM INCOME 24 CFR 5.609(c)
Annual income as defined in 24 CFR 5.609(c) and HUD Guidebook 7420.10G, Section
5.3., will be excluded from income. Examples of exclusion from annual income include
but are not limited to wages of children, payments received for providing foster care, lump
sum payments or periodic gifts, student financial aid, payments under HUD funded training
programs.
The following will also apply:
A. The ICHA must include welfare amounts withheld from participants for
noncompliance with welfare-to-work requirements; however such welfare income
will be excluded in calculating annual income for new applicants.
B. If the family member is a full time student, living away from home and is in a
current lease agreement, this person will not be considered a dependent and
therefore they will not be considered part of the assisted family. Their income will
not be counted.
C. If a family member is residing outside of the assisted family home and the ICHA
verifies that they are not currently part of the “family” (such as a divorce decree,
restraining order, or other documentation), the income of this family member will
not be counted.
9.4 DEDUCTIONS FROM ANNUAL INCOME 24 CFR5.611
Applicable deductions will be made as provided in 24 CFR (5.611) and HUD Guidebook
7420.10G, Section 5.5 Adjusted Income.
In addition, when calculating medical expenses the ICHA will use IRS Publication 502 for
allowable medical deductions. Only those expenses specifically outlined in IRS 502 or 24
CFR 5.611 will be allowed.
10.0 VERIFICATION 24 CFR PART 5, SUBPART B
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The Iowa City Housing Authority will verify information related to waiting list
preferences, eligibility, admission and level of benefits prior to admission. Periodically
during occupancy, items related to eligibility and rent determination shall also be reviewed
and verified. Income, assets, and expenses will be verified, as well as disability status, need
for a live-in aide and other reasonable accommodations, full time student status of
household members 18 years of age and older, social security numbers, and
citizenship/eligible non-citizen status. Age and relationship will only be verified in those
instances where needed to make a determination of level of assistance.
10.1 ACCEPTABLE METHODS OF VERIFICATION
Age, relationship, U.S. citizenship and social security numbers will generally be verified
with documentation provided by the household. For United States citizenship, the
household's self-certification will be accepted. Other necessary verifications utilized are
social security cards and other documents presented by the household, INS verification,
certified copies of birth certificates and other forms signed by the household.
Other information will be verified by third party verification. This type of verification
includes a) written documentation, b) computer generated information supplied by clients
(e.g., pay stubs, bank statements, etc.). This verification may also be direct contact with
the source, in person or by telephone. It may also be a report generated by a request from
the Iowa City Housing Authority or automatically by another government agency, e.g. the
Social Security Administration. Verification forms and reports received will be contained
in the applicant/tenant file. Oral third party documentation will include the same
information as if the documentation had been written, e.g. name, date of contact, amount
received, etc.
NOTICE PIH 2013-03 (HA)
The Iowa City Housing Authority will accept a family’s declaration of the amount of assets
less than $5,000, and the amount of income expected to be received from those assets. The
Tenant Information Packet will serve as the declaration.
If the family has net family assets in excess of $5,000, the PHA will obtain supporting
documentation (SEE 10.2 Types of Verification) from the family to confirm the assets.
NOTICE PIH 2016-05 (HA)
The Iowa City Housing Authority will verify all assets via 3rd party documentation every
3rd year regardless of total asset amounts. Self-declaration for assets under $5,000 is
acceptable for years 1 and 2.
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10.2 TYPES OF VERIFICATION
The chart below outlines the factors that may be verified and gives common examples of
the verification that will be sought. To obtain written third party verification, the ICHA
will send a request form to the source or client.
Verification Requirements for Individual Items
Item to be Verified
3rd Party Verification
Provided by Client
Social Security Number
An original SSN card issued by
SSA;
An original SSA-issued document,
which contains the name and SSN of
the individual; or
An original document issued by a
federal, state, or local government
agency, which contains the name
and SSN of the individual.
Social security card.
Citizenship
N/A
Signed HUD self-certification,
birth certificate, etc.
Eligible immigration status
Proof of Age
Physical Characteristics (if
>18)
INS verification
N/A
N/A
Permanent lawful resident card,
I 551 stamp on passport, or
other INS documentation
State certified birth certificate
Photo ID
Disability
Disability verification form signed
by a medical professional
(MD/Psychologist), SSI, etc.
Proof of SSI or Social Security
disability payments
Full time student status (if
>18)
Verification from the
school/educational institution where
enrolled
High school students
documents showing enrollment
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Verification Requirements for Individual Items
Item to be Verified
3rd Party Verification
Provided by Client
Need for a live-in aide
Form signed by MD/Psychologist
verifying condition requires a live-
in-aide
Written request for a
reasonable accommodation
Childcare costs
Verification from child care provider
of out of pocket expenses
Bills and receipts, computer
printouts
Disability assistance
expenses
Verification from suppliers, care
givers, etc.
Bills and records of payment,
computer printouts
Medical expenses
Verification from providers,
Prescription record from pharmacy,
medical professional's letter stating
assistance or a companion animal is
needed, etc.
Bills, receipts, records of
payment, dates of trips,
mileage log, receipts for fares
and tolls
Value of and Income from Assets
Savings, checking
accounts
Verification from financial
institution
Most current statements;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
CDs, bonds, etc.
Verification from financial
institution
Tax return, information
brochure from institution, the
CD, the bond;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Stocks
Verification from broker or holding
company
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Verification Requirements for Individual Items
Item to be Verified
3rd Party Verification
Provided by Client
Stock or most current
statement, price in newspaper
or through the internet;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Real property
Letter from tax office, assessment,
etc. Notice PIH 2012-3 (HA)
Housing Choice Voucher –
Homeownership Option 10 Year
Asset Exclusion
Property tax statement (for
current value), assessment,
records or income and
expenses, tax return;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Personal property
Assessment, bluebook, etc.
Receipt for purchase, other
evidence of worth;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Cash value of life
insurance policies
Letter from insurance company
Current statement;
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Assets disposed of for less
than fair market value
N/A
Original receipt and receipt at
disposition, other evidence of
worth;
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Verification Requirements for Individual Items
Item to be Verified
3rd Party Verification
Provided by Client
Family’s declaration of the amount
of assets less than $5,000 and the
amount of income expected to be
received from those assets.
Income
Earned income
Verification from HUD (EIV);
Verification from employer or
employer’s agent (e.g., The Work
Number);
Verification from Iowa Workforce
Development
Most recent pay stubs.
Employer Wage Record.
Self-employed
N/A
Tax return from prior year,
books of accounts, Taxi logs,
etc.
Regular gifts and
contributions
Letter from source, letter from
organization receiving gift (e.g., if
grandmother pays day care provider,
letter from the day care provider
stating this)
Bank deposits, other similar
evidence
Alimony/child support
Court order, letter from source, letter
from Human Services or Child
Support Recovery Unit
Record of deposits, Collection
Services Center, certified
payment history, payment
record from Clerk of Court
Periodic payments (i.e.,
social security, welfare,
pensions, workers'
Verification from HUD (EIV);
Award letter, letter announcing
change in amount of future
payments
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Verification Requirements for Individual Items
Item to be Verified
3rd Party Verification
Provided by Client
compensation,
unemployment)
Verification or electronic reports
from the source
Training program
participation
Letter from program provider
indicating
- whether enrolled or completed
- whether training is HUD-funded
- whether Federal, State, local govt.,
or local program
- whether it is employment training
- whether it has clearly defined goals
and objectives
- whether program has supportive
services
- whether payments are for out-of-
pocket expenses incurred in order to
participate in a program
- date of first job after program
completion
Letter of acceptance from
Institution, Agency, or
Program.
10.3 VERIFICATION OF CITIZENSHIP OR ELIGIBLE NONCITIZEN STATUS
24 CFR 5.512
The citizenship or eligible non-citizen status of each household member, regardless of age,
must be determined.
Prior to being admitted all citizens and nationals will be required to sign a declaration under
penalty of perjury. They will also be required to show proof of their status by such means
as social security card, birth certificate, military ID or military DD 214 Form.
Prior to admission, all eligible non-citizens must sign a declaration of their status and a
verification consent form and provide their original INS documentation. The ICHA will
make a copy of the individual's INS documentation and place the copy in the file. The
ICHA also will verify their status through the INS system. If the INS system cannot
confirm initial eligibility, the Iowa City Housing Authority will request additional
information via the internet from the INS.
Household members who do not claim to a citizen, national or eligible non-citizen, or
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whose status cannot be confirmed, must identify in writing to the responsible entity, the
family member (or members) who will elect not to contend that he or she has eligible
immigration status.
Non-citizen students on student visas, though in the country legally, are not eligible to be
admitted to the HCVP Program.
If no household member is determined to be eligible under this section, the household's
admission will be denied.
The household's assistance will not be denied, delayed, reduced or terminated because of
a delay in the process of determining eligible status under this section, with the exception
of a delay caused by the household.
If the ICHA determines that a household member has knowingly permitted an ineligible
non-citizen (other than any ineligible non-citizens listed on the lease) to permanently reside
in their assisted unit, the household’s assistance will be terminated.
10.4 VERIFICATION OF SOCIAL SECURITY NUMBERS 24 CFR 5.216
Prior to admission, each household member who has been assigned a social security
number must provide verification of the number to the ICHA, in accordance with Notice
PIH 2016-05.
If necessary, participant families will have 90 days to provide the SSN of a newborn;
however, the number should be provided to the ICHA upon receipt.
Verification of the social security number is the original social security card; an original
SSA issued document containing the name and SSN of the individual; or an original
document issued by a federal, state, or local government agency, which contains the name
and SSN of the individual.
10.5 TIMING OF VERIFICATION
3rd party verifications must be dated within 60 days of issuance of a voucher or 120 days
of a reexamination. If the verification is older than this, the source will be contacted and
asked to provide information regarding any changes.
When an interim reexamination is conducted, the ICHA will verify and update only those
elements reported to have changed. It is the client's responsibility to report any changes
within 30 days of the event.
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10.6 FREQUENCY OF OBTAINING VERIFICATION
For each household member, citizenship/eligible non-citizen status will be verified only
once, unless a change is reported by the family. This verification will be obtained prior to
admission. In addition, prior to a new member joining the household, their status will be
verified. It is the household's responsibility to report any change in citizenship status to
ICHA within 30 days of the change.
For each household member, verification of social security number will be obtained only
once. This verification will be obtained prior to admission or with guidelines of PIH Notice
2016-05.
Family composition, annual household income, and other factors affecting subsidy level
will be verified at least annually.
11.0 RENT AND HOUSING ASSISTANCE PAYMENT
11.1 RENT REASONABLENESS 24 CFR 982.507 (a)
The ICHA will not approve an initial rent or a rent increase in the tenant-based program
without determining that the rent amount is reasonable. Reasonableness is determined prior
to the initial lease and at the following times:
A. Before any increase in rent to owner is approved;
B. If 60 days before the contract anniversary date there is a 5% decrease in the
published FMR as compared to the previous FMR; and
C. If the Iowa City Housing Authority or HUD directs that reasonableness be re-
determined.
11.2 COMPARABILITY 24 CFR 982.507 (b) AND 3507 (c)
In making a rent reasonableness determination, the ICHA will compare the rent for the unit
to the rent of comparable units in the same or comparable neighborhoods. The ICHA will
consider the location, quality, size, number of bedrooms, age, amenities, housing services,
maintenance and utilities of the unit and the comparable units.
The ICHA will maintain current survey information on rental units in its jurisdiction.
Owners are invited to submit information to the survey at any time. Owners may review
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the determination made on their unit and may submit additional information or make
improvements to the unit that will enable the ICHA to establish a higher value.
The owner must certify the rents charged for other units. By accepting the housing
assistance payment each month the owner is certifying that the rent to owner is not more
than the rent charged by the owner for comparable unassisted units in the premises.
11.3 MAXIMUM SUBSIDY 24 CFR 982.508
The maximum payment standard for a voucher issued by the ICHA will be set annually
between 90 - 110% of the published FMR or the exception payment standard approved by
HUD.
The Fair Market Rent (FMR) published by HUD is used in calculating the payment
standard which is used in determining the maximum subsidy for a household.
For manufactured home space rental, the maximum subsidy is calculated using 40% of the
two (2) bedroom FMR, as outlined in 24 CFR 982.623.
11.3.1 Setting the Payment Standard
HUD requires that the payment standard be set annually between 90 – 110% of the Fair
Market Rent (FMR). The ICHA will review its determination of the payment standard
annually after publication of the FMRs. The ICHA will consider vacancy rates and rents in
the market area, size and quality of units leased under the program, rents for units leased
under the program, success rates of voucher holders in finding units and the percentage of
annual income families are paying for rent under the voucher program, and HUD approved
budget authority (ABA).
If success levels are projected to be extremely high and rents are projected to be at or below
30% of income, then reduction of the payment standard will be considered. Payment
standards for each bedroom size are evaluated separately so that the payment standard for
one bedroom size may increase or decrease while another remains unchanged. The ICHA
may consider adjusting payment standards at times other than the annual review when
circumstances warrant.
Before increasing any payment standard, the Iowa City Housing Authority will conduct a
financial feasibility test to ensure that in using the higher standard, adequate funds will
continue to be available to assist families in the program.
11.3.2 Selecting the Correct Payment Standard for a Household
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The intent of HUD requirements is that the smallest appropriate bedroom size be assigned
to participant families without overcrowding. Bedroom size assignments will allow at least
one bedroom for each two persons (24 CFR 982.402)
A. The payment standard for a household is the lower of: 24 CFR 982.503
1. The payment standard for the issued family unit size (listed on voucher); or
2. The payment standard for the unit size rented by the household.
B. If the unit rented by a household is located in an exception rent area, the ICHA will
use the appropriate payment standard for the exception rent area.
C. If there is a change in household unit size resulting from a change in household size
or composition, the new household unit size will be considered when determining
the payment standard at the next annual reexamination.
11.3.3 Area Exception Rents
In order to help families find housing outside areas of high poverty, or when voucher
holders are having trouble finding housing for lease under the program, the ICHA may
request that HUD approve an exception payment standard rent for certain areas within its
jurisdiction. The areas may be of any size, though generally not smaller than a census tract.
The ICHA may request one such exception payment standard area or many. Exception
payment standard rent authority may be requested for all or some unit sizes, or for all or
some unit types.
When an exception payment standard rent has been approved and the FMR increases, the
exception rent remains unchanged until such time as the ICHA requests and HUD approves
a higher exception payment standard rent. If the FMR decreases, the exception payment
standard rent authority automatically expires.
11.4 ASSISTANCE AND RENT FORMULAS 24 CFR 982.505
A. Total Tenant Payment* 24 CFR 5.628
The total tenant payment is equal to the highest of:
1. 10% of monthly income
2. 30% of adjusted monthly income
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3. $50 Minimum rent
*Note that the participant is responsible to pay any rent above the payment standard.
B. Minimum Rent 24 CFR 5.630
The Iowa City Housing Authority has set the minimum rent as $50.00. If the
household requests a hardship exemption, the ICHA may suspend the minimum
rent for the household beginning the month following the household’s hardship
request. The suspension will continue until the ICHA can determine whether
hardship exists and whether the hardship is of a temporary or long-term nature.
During suspension, the household will not be required to pay a minimum rent and
the Housing Assistance Payment will be increased accordingly.
1. A hardship exists in the following circumstances:
a. When the household has lost eligibility for or is awaiting an eligibility
determination for a federal, state or local assistance program;
b. When the household would be evicted as a result of the imposition of
the minimum rent requirement;
c. When the income of the household has decreased because of changed
circumstances, including loss of employment (excludes termination or
voluntary dismissal);
d. When the household has an increase in expenses because of changed
circumstances, for medical costs, childcare, transportation, education,
or similar items; or
e. When a death has occurred in the household.
2. No hardship: If the ICHA determines there is no qualifying hardship, the
minimum rent will be reinstated, including requiring back payment of
minimum rent to the ICHA for the time of suspension.
3. Temporary hardship: If the ICHA determines that there is a qualifying
hardship, but that it is of a temporary nature, the minimum rent will not be
imposed for a period of 90 days from the date of the household’s request.
At the end of the 90-day period, the minimum rent will be imposed
retroactively to the time of suspension. The ICHA will offer a reasonable
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repayment agreement for any minimum rent back payment paid by the
ICHA on the household’s behalf during the period of suspension.
4. Long-term hardship: If the ICHA determines there is a long-term hardship,
the household will be exempt from the minimum rent requirement until the
hardship no longer exists.
5. Appeals: The household may use the informal hearing procedure to appeal
the ICHA’s determination regarding the hardship.
C. HCVP Housing Choice Vouchers 24 CFR 982.508 and .628
1. The payment standard is set by the ICHA between 90% and 110% of the
FMR or higher or lower with HUD approval. 24 CFR 982.503
2. The participant pays the greater of the Total Tenant Payment or the
minimum rent, plus the amount by which the gross rent exceeds the payment
standard. 24 CFR 982.518
3. No participant shall pay more than 40% of their monthly adjusted income
for rent when initially renting any unit (initial lease up & moves).
E. Manufactured Home Space Rental: HCVP Vouchers 24 CFR 982.620-.624
1. The payment standard for a participant renting a manufactured home space
is 40% of the published two (2) bedroom FMR.
2. The space rent is the sum of the following as determined by the Iowa City
Housing Authority:
a. Rent to the owner for the manufactured home space;
b. Owner maintenance and management charges for the space; and
c. Utility allowance for tenant paid utilities.
3. The participant pays the rent to owner less the HAP.
4. HAP equals the lesser of:
a. The payment standard minus the total tenant payment; or
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b. The rent paid for rental of the real property on which the
manufactured home owned by the household is located.
F. Rent for Families under the Non-citizen Rule 24 CFR 5.516, .518, and .520
1. A mixed household will receive full continuation of assistance if all of the
following conditions are met:
a. The household's head or spouse has eligible immigration status; and
b. The household does not include any person who does not have
eligible status other than the head of household, the spouse of the
head of household, any parent of the head or spouse, or any child
(under the age of 18) of the head or spouse.
2. If these conditions are not met the household's assistance is prorated in the
following manner:
a. Find the prorated Housing Assistance Payment (HAP) by dividing
the HAP by the total number of household members then
multiplying the result by the number of eligible household members.
b. Obtain the prorated household share by subtracting the prorated
HAP from the gross rent (contract rent plus utility allowance).
c. The prorated tenant rent equals the prorated household share minus
the full utility allowance.
11.5 UTILITY ALLOWANCE 24 CFR 982.517
The ICHA maintains a utility allowance schedule for tenant-paid utilities (telephone &
cable excluded), for cost of tenant-supplied refrigerators and ranges and for other tenant-
paid housing services (e.g., trash collection, disposal of waste and refuse).
The utility allowance schedule is determined based on the typical cost of utilities and
services paid by energy-conservative households that occupy housing of a similar size and
type in the same locality. In developing the schedule, the ICHA uses normal patterns of
consumption for the community as whole and current utility rates.
The ICHA reviews the utility allowance schedule annually and revises any allowance for
a utility category if there has been a change of 10% or more in the utility rate since the last
time the utility allowance schedule was revised. The ICHA maintains information
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supporting the annual review of utility allowances and any revisions made in its utility
allowance schedule. Participants may review this information at any time by making an
appointment with the ICHA.
The ICHA is required to use the lesser of the size of dwelling unit actually leased by the
family or the family unit size as determined under the Iowa City Housing Authority’s
subsidy standards. At each reexamination, the ICHA applies the utility allowance from the
most current utility allowance schedule.
The ICHA will approve a request for a utility allowance that is higher than the applicable
amount on the utility allowance schedule if a higher utility allowance is needed as a
reasonable accommodation to make the program accessible to and usable by the household
member with a disability.
The utility allowance will be subtracted from the household’s share to determine the
amount of the tenant rent. The tenant rent is the amount the household owes each month to
the owner. The amount of the utility allowance is then still available to the household to
pay the cost of their utilities. Any utility cost above the allowance is the responsibility of
the tenant. Any savings resulting from utility costs below the amount of the allowance
belong to the tenant.
11.6 DISTRIBUTION OF HOUSING ASSISTANCE PAYMENT 24 CFR 982.514
The Iowa City Housing Authority pays the Housing Assistance Payment (HAP)
documented on the HAP Contract or any subsequent addendums to the owner. The HAP
may be all or part of the total rent. The ICHA is responsible only for the HAP and not the
tenant payment. If HAP payments from the ICHA are not made when due, the owner may
charge the ICHA a late payment agreed to in the contract and in accordance with generally
accepted practices in the ICHA’s jurisdiction.
11.7 CHANGE OF OWNERSHIP
The ICHA requires a written request from a new owner to process a change of ownership.
The following documents must accompany the written request:
A. Deed showing the transfer of title; and
B. Tax Identification Number or social security number.
New owners will be required to execute IRS form W-9. ICHA may withhold the HAP until
the taxpayer identification number is received.
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In addition, the Iowa City Housing Authority requires a written request by the owner or
agent who executed the HAP contract in order to make changes regarding who is to receive
ICHA’s HAP payment or the address as to where the HAP payment should be sent.
12.0 INSPECTION POLICIES, HOUSING QUALITY
STANDARDS 24 CFR 982.405
The Iowa City Housing Authority will inspect all units to ensure that they meet Housing
Quality Standards (HQS). No unit will be initially accepted into the HCVP Program unless
the HQS are met. Units will be inspected at least bienuilly, and at other times as needed, to
determine if the units meet HQS.
The Iowa City Housing Authority must be allowed to inspect the dwelling unit at
reasonable times with reasonable notice. The household and owner will be notified of the
inspection appointment. If the household cannot be at home for the scheduled inspection
appointment, the household must call and reschedule the inspection or make arrangements
to enable the ICHA to enter the unit and complete the inspection.
If the household misses the scheduled inspection and fails to reschedule the inspection, the
Iowa City Housing Authority will schedule one more inspection. If the household misses
two inspections, the ICHA will consider the household to have violated a Family
Obligation and their assistance may be terminated.
12.1 HOUSING QUALITY STANDARDS (HQS) 24 CFR 982.401
The City of Iowa City has integrated the Housing Quality Standards (HQS) into the Iowa
City Housing Code to be enforced by the city, as stringent as, or more stringent than,
those in the HQS standard to insure the health safety and welfare of the occupants of
dwellings.
13.0 RECERTIFICATION
13.1 ANNUAL REEXAMINATION 24 CFR 982.516
At least annually, the Iowa City Housing Authority will conduct a reexamination of
household income, household composition and other circumstances. The results of the
reexamination determine the rent the household will pay and whether the household
subsidy is correct based on the household unit size.
The ICHA will send a notification letter to the household letting them know it is time for
their annual reexamination. The letter includes forms for the household to complete and
states what documents will need to be provided. The letter informs families who might
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need alternate arrangements, due to a disability, that they may contact staff to request
accommodations.
The household will provide all information regarding income, assets, expenses and other
information necessary to determine the household's share of rent. The household will sign
the HUD consent form and other consent forms that later will be used to verify the
household circumstances.
Upon receipt of verification, the Iowa City Housing Authority will determine the
household's adjusted annual income and will calculate tenant rent.
The Iowa City Housing Authority will determine whether any change in family
composition will make a change in allowable subsidy.
13.1.1 Effective Date of Rent Changes for Annual Reexaminations
The new household share will generally be effective on the annual renewal date with 30
days notice of any rent increase to the household.
If the rent determination is delayed due to a reason beyond the control of the household,
any rent increase will be effective the first of the month following the households receiving
a 30 day notice of the amount. If the new rent is a reduction and the delay is beyond the
control of the household, the reduction will be effective as scheduled on the anniversary
date.
If the household caused the delay they will not receive a 30 day notice of any increase in
rent. The increase will be effective on the annual renewal date.
If a client does not submit annual renewal paperwork in time for the ICHA to perform the
renewal, the client is responsible for the full contract rent to owner until the ICHA can
complete the review.
13.1.2 Missing Paperwork
If the household fails to respond to a letter requesting missing information, a second
reminder letter will be mailed. If there is no response to either request a termination letter
will be sent.
13.2 INTERIM REEXAMINATIONS
During an interim reexamination, only the information affected by the changes being
reported will be reviewed and verified.
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Families are required to report increases in household income or changes in family
composition, in writing, to the Iowa City Housing Authority between regular
reexaminations within 30 days of the effective date of the change (example, from the date
of employment.)
The following are samples of changes that will trigger an interim reexamination:
A. A member has been added to the household through birth, adoption or court-
awarded custody;
B. The family’s income changes for at least 30 days;
C. A household member is leaving or has left the household;
D. Household break-up: In circumstances of a household break-up, the ICHA will
make a determination which household member will retain the voucher, taking into
consideration the following factors:
1. To whom the voucher was issued;
2. The interest of minor children or of ill, elderly, or disabled household
members;
3. Whether the assistance should remain with the household members
remaining in the unit; and
4. Whether household members were forced to leave the unit as a result of
actual or threatened physical violence by a spouse or other member(s) of
the household.
If a court determines the disposition of property between members of the assisted
household in a divorce or separate maintenance decree, the Iowa City Housing Authority
will be bound by the court’s determination of which household members continue to
receive assistance in the program.
Because of the number of possible circumstances in which a determination will have to be
made, the ICHA will make determinations on a case by case basis.
The ICHA will issue a determination within ten (10) calendar days of the request for a
determination. The household member requesting the determination may request an
informal hearing in compliance with the informal hearings in Section 15.4.
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In order to add a household member other than through birth or adoption the household
must request from the owner that the new member be added to the lease. Before adding the
new member to the lease, the individual must complete an application form stating their
income, assets and all other information required of an applicant. The individual must
provide their social security number if they have one and must verify their
citizenship/eligible immigrant status (Their housing will not be delayed due to delays in
verifying eligible immigrant status other than delays caused by the household.) The new
household member will go through the screening process similar to the process for
applicants. The ICHA will determine the eligibility of the individual before allowing them
to be added to the household. If the individual is found to be ineligible, or does not pass
the screening criteria, the family will be advised in writing and given the opportunity for
an informal review.
If they are found to be eligible and do pass the screening criteria, the Iowa City Housing
Authority will grant approval to add them to the household. At the same time, the
household's annual income will be recalculated, taking into account the income and
circumstances of the new household member. The effective date of the new rent will be in
accordance with paragraph 13.2.2 below. In some instances new members are added prior
to the ICHA receiving criminal background information. If adverse information is received,
the new members would need to leave the household.
Families are not required to, but may at any time, request an interim reexamination based
on a decrease in income, an increase in allowable expenses, or other changes in household
circumstances. Upon such request, the ICHA will take timely action to process the interim
reexamination and recalculate the household share.
Rent reductions, based on tenant reported changes, will take effect the month following the
tenant’s written notification to the ICHA. If a 3rd party verification cannot be secured prior
to the first of the month, the ICHA will accept the tenant’s notification to process the
change and secure the 3rd party verification. If the 3rd party verification does not support
the information supplied by the family, the ICHA will require reimbursement by the tenant
and will enforce the family obligations.
Interim reexaminations based on increases in earned and unearned income will be
processed. *
* Social Security cost of living increases will be processed at annual review only; unless
this information is gathered as a result of other interim changes reported by the family
(e.g., Medicare changes).
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Decreases in income due to voluntary leaves of absence from employment without pay will
not result in an increase of HAP. Temporary absences for continuing education are
acceptable and will result in an increase in HAP.
13.2.1 Special Reexaminations
If a household's income is too unstable to project for 12 months, including families that
temporarily have no income or have a temporary decrease in income, the Iowa City
Housing Authority may schedule special reexaminations periodically until the income
stabilizes and an annual income can be determined.
The ICHA will conduct interim examinations in the event of maternity leave and temporary
decreases in income such as those employed by the school district (off for summer months)
or quitting employment at annual review time. Zero income households may also be subject
to special reexaminations.
13.2.2 Effective Date of Rent Changes Due to Interim or Special Reexaminations
A change in circumstances or household income that would result in a decrease in the
tenant’s rent must be expected to last for at least thirty days before an interim review will
be conducted. Any decrease in household income or increase in allowances or deductions
that is reported to the Iowa City Housing Authority will be effective the first of the
following month. The participant will receive a 30 day notice of any increase in their
portion of the rent due to reported increases of household income. This notice is waived if
the participant fails to report as required.
If the new rent is a reduction and the household caused the delay or did not report the
change in a timely manner, the change will be effective the first day of the month after the
rent amount is determined.
14.0 HCVP TENANT TERMINATION CRITERIA (24CFR
982.552 & 982.553)
Under federal regulations found at 24 CFR 982.552, the Housing Authority must terminate the
HCVP assistance of certain families and it has the discretion to terminate others based on certain
actions or inactions by family members. Termination of assistance for a participant may include
any or all of the following: refusing to enter into a HAP contract or approve a lease, terminating
housing assistance payments, and refusing to process or provide assistance under portability
procedures.
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MUST TERMINATE - LIFE TIME BAN
The Housing Authority must terminate assistance if any household member is subject to a lifetime
registration requirement under a State sex offender registration program.
MUST TERMINATE -3 YEAR PERIOD OF INELIGIBILITY
The HA must terminate assistance:
1. For three years from the date of eviction, if a household member has been evicted from
federally assisted housing for drug-related criminal activity. However, the Housing
Authority may admit the household if the Housing Authority determines:
a. That the evicted household member who engaged in drug-related criminal activity
has successfully completed a supervised drug rehabilitation program approved by
the Housing Authority; or
b. That the circumstances leading to eviction no longer exist (for example, the
criminal household member has died or is imprisoned).
2. The Housing Authority determines that any household member is currently engaging in
illegal use of a drug.
3. The Housing Authority determines that it has reasonable cause to believe that a household
member's illegal drug use or a pattern of illegal drug use may threaten the health, safety,
or right to peaceful enjoyment of the premises by other residents.
4. If any household member has ever been convicted of drug-related criminal activity for
manufacture or production of methamphetamine on the premises of federally assisted
housing.
If a person is terminated for any reason listed above, the person will be ineligible for assistance for
three years from the last day housing assistance is paid; if no assistance is currently being paid, the
3 year period of ineligibility begins with the date of the termination notice.
MUST TERMINATE - 1 YEAR PERIOD OF INELIGIBILITY
1. For a family evicted from housing assisted under the program for serious violation of the
lease.
2. If the family fails to sign and submit consent forms for obtaining information in accordance
with 24 CFR, part 5, subparts B and F.
MAY DENY-LIFE TIME BAN
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The Housing Authority may deny assistance if any household member is subject to a registration
requirement under a State sex offender registration program.
MAY TERMINATE – 3 YEAR PERIOD OF INELIGIBILITY
A. Criminal Activity
If any household member is currently engaged in, or has engaged in within five years the following
criminal activity, the Housing Authority may terminate assistance, based on a preponderance of
evidence, regardless of whether the household member has been arrested or convicted for such
activity:
1. Drug-related criminal activity (defined at 24 CFR 5.100)
2. Violent criminal activity (defined at 24 CFR 5.100) [Note Section E: Exception for persons
subjected to dating violence, domestic violence, sexual assault, and stalking.];
3. Other criminal activity that threatens the health, safety or right to peaceful enjoyment of
other residents and persons residing in the immediate vicinity.
4. Other criminal activity which may threaten the health or safety of the owner, property
management staff, or persons performing a contract administration function or
responsibility on behalf of the Housing Authority (including a Housing Authority
employee or a Housing Authority contractor, subcontractor or agent)
If a person is terminated for any reason listed above, the person will be ineligible for assistance for
a period of three years.
B. Family Obligations (1-year period of ineligibility)
The Housing Authority may terminate assistance for the violation of any obligation of a participant
family under the program, which is:
1. Supplying required information (“Information” includes any requested certification,
release or other documentation):
a. The family must supply any information that the Housing Authority or HUD
determines is necessary in the administration of the program, including submission
of required evidence of citizenship or eligible immigration status (as provided by
24 CFR part 5).
b. The family must supply any information requested by the Housing Authority or
HUD for use in a regularly scheduled reexamination or interim reexamination of
family income and composition in accordance with HUD requirements.
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c. The family must disclose and verify social security numbers (as provided by 24 CFR
part 5, subpart B, of this title) and must sign and submit consent forms for obtaining
information in accordance with 24 CFR part 5, subpart B, of this title.
d. Any information supplied by the family must be true and complete.
2. The family must not breach Housing Quality Standards as described in 24 CFR 982.404(b).
3. The family must allow the Housing Authority to inspect the unit at reasonable times and
after reasonable notice.
4. The family may not commit any serious or repeated violation of the lease.
5. The family must notify the Housing Authority in writing and the owner 30 days before the
family moves out of the unit, or terminates the lease on notice to the owner.
6. The family must promptly give the Housing Authority a copy of any owner eviction notice.
7. Use and occupancy of unit.
a. The family must use the assisted unit for residence by the family. The unit must be
the family's only residence.
b. The composition of the assisted family residing in the unit must be approved by the
Housing Authority. The family must promptly inform the Housing Authority of the
birth, adoption or court-awarded custody of a child. The family must request in
writing Housing Authority approval to add any other family member as an occupant
of the unit. No other person [i.e., nobody but members of the assisted family] may
reside in the unit (except for a foster child or live-in aide as provided in paragraph
(h) (4) of this section).
c. The family must promptly notify the Housing Authority in writing if any family
member no longer resides in the unit.
d. If the Housing Authority has given approval, a foster child or a live-in-aide may
reside in the unit. The Housing Authority has the discretion to adopt reasonable
policies concerning residence by a foster child or a live-in-aide, and defining when
Housing Authority consent may be given or denied.
e. Members of the household may engage in legal profit making activities in the unit,
but only if such activities are incidental to primary use of the unit for residence by
members of the family.
f. The family must not sublease or let the unit.
g. The family must not assign the lease or transfer the unit.
8. Absence from unit. The family must supply any information or certification requested by
the Housing Authority to verify that the family is living in the unit, or relating to family
absence from the unit, including any Housing Authority requested information or
certification on the purposes of family absences. The family must cooperate with the
Housing Authority for this purpose. The family must promptly notify the Housing
Authority of absence from the unit of more than 30 days.
9. Interest in unit. The family must not own or have any interest in the unit.
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10. Fraud and other program violation. The members of the family must not commit fraud,
bribery or any other corrupt or criminal act in connection with the programs.
11. Alcohol abuse by household members. The members of the household must not abuse
alcohol in a way that threatens the health, safety or right to peaceful enjoyment of other
residents and persons residing in the immediate vicinity of the premises.
12. Other housing assistance. An assisted family, or members of the family, may not receive
HCVP tenant-based assistance while receiving another housing subsidy, for the same unit
or for a different unit, under any duplicative (as determined by HUD or in accordance with
HUD requirements) federal, State or local housing assistance program.
13. Any increases in household income must be reported to the HA in writing within 30 days
of the change (Examples: employment start date; receipt of government benefits such as
FIP, Social Security, SSI, or unemployment benefits)
14. The family may not allow any person to use the address of the assisted unit to receive mail.
If a person is terminated for any reason listed above, the person will be ineligible for assistance for
one (1) year from the last day housing assistance is paid; if no assistance is currently being paid,
the 1-year period of ineligibility begins with the date of the termination notice.
C. Miscellaneous Reasons (1-year period of ineligibility)
The HA may terminate assistance for any of the following reasons:
1. If a Housing Authority has ever terminated assistance under the program for any member
of the family;
2. Fraud, bribery, or any other corrupt or criminal act in connection with any Federal housing
program;
3. If the family has not reimbursed any Housing Authority for amounts paid to an owner under
a HAP contract for rent, damages to the unit, or other amounts owed by the family under
the lease.
4. If the family breaches an agreement with the Housing Authority to pay amounts owed to a
Housing Authority, or amounts paid to an owner by a Housing Authority. (The Housing
Authority, at its discretion, may offer a family the opportunity to enter an agreement to pay
amounts owed to a Housing Authority or amounts paid to an owner by a Housing
Authority. The Housing Authority may prescribe the terms of the agreement.)
5. If a family participating in the FSS program fails to comply, without good cause, with the
family's FSS contract of participation.
6. If the family has engaged in or threatened abusive or violent behavior toward Housing
Authority personnel.
7. If a welfare-to-work (WTW) family fails, willfully and persistently, to fulfill its obligations
under the welfare-to-work voucher program.
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8. If the Housing Authority determines that a household member's abuse or pattern of abuse
of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises
by other residents.
If a person is terminated for any reason listed above, the person will be ineligible for assistance for
one (1) year from the last day housing assistance is paid; if no assistance is currently being paid,
the 1-year period of ineligibility begins with the date of the termination notice.
D. Additional Considerations
In determining whether to terminate assistance because of action or failure to act by members of
the family:
1. The Housing Authority may consider all relevant circumstances such as the seriousness of
the case, the extent of participation or culpability of individual family members, mitigating
circumstances related to the disability of a family member, and the effects of denial or
termination of assistance on other family members who were not involved in the action or
failure. Such consideration also includes the effect the termination will have on family
members not involved in the criminal activity and the extent to which the offending family
member and participant have taken personal responsibility and have taken all reasonable
steps to prevent or mitigate the offending behavior.
2. The Housing Authority may impose, as a condition of continued assistance for other family
members, a requirement that other family members who participated in or were culpable
for the action or failure will not reside in the unit. The Housing Authority may permit the
other members of a participant family to continue receiving assistance.
3. In determining whether to terminate assistance for illegal use of drugs or alcohol abuse by
a household member who is no longer engaged in such behavior, the Housing Authority
consider whether such household member is participating in or has successfully completed
a supervised drug or alcohol rehabilitation program, or has otherwise been rehabilitated
successfully (42 U.S.C. 13661). For this purpose, the Housing Authority may require the
applicant or tenant 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.
4. If the family includes a person with disabilities, the Housing Authority decision concerning
such action is subject to consideration of reasonable accommodation in accordance with
part 8 of this title.
E. Exception for persons subjected to dating violence, domestic violence, sexual assault, and
stalking.
Although the Housing Authority may terminate HCVP assistance if a member of the tenant family
has engaged in violent criminal activity, there is an exception for persons subjected to dating
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violence, domestic violence, sexual assault, and stalking, as those terms are defined in 42 U.S.C.
1437f. The Housing Authority may terminate the voucher assistance to the member of the
household who committed the dating violence, domestic violence, sexual assault, and stalking but
not to the victim. The Housing Authority may, however, deny the assistance to the victim for other
reasons not premised on the act of dating violence, domestic violence, sexual assault, and stalking.
15.0 PENALTIES, COMPLAINTS, INFORMAL REVIEWS FOR
APPLICANTS, INFORMAL HEARINGS FOR
PARTICIPANTS
15.1 PENALTIES
Tenants terminated (or applicants denied) by the Iowa City Housing Authority will be denied all
forms of rental assistance and are ineligible for assistance for a minimum of 1 year and a maximum
of 3 years pending the determination of the ICHA or the Hearing Officer. Severity and duplication
of the violation will be taken into consideration when determining the duration of the penalty and
the tenant will be notified in writing of the decision. An applicant will be denied for 1 or three
years from the date of denial. A participant will be denied assistance for 1 or three (3) years from
the date of the last Housing Assistance Payment; if no assistance is currently being paid, the 1-
year period of ineligibility begins with the date of the termination notice. Upon denial/termination
an applicant/participant will be removed from all ICHA waiting lists.
15.2 COMPLAINTS
The ICHA will investigate and respond to complaints by participant families, owners and
the general public. The ICHA may require that complaints, other than HQS violations be
put in writing. Anonymous complaints are investigated whenever possible.
15.3 INFORMAL REVIEW FOR THE APPLICANT 24 CFR 982.554
A. Informal Review for the Applicant:
The Iowa City Housing Authority will give an applicant for the HCVP Program,
prompt notice of a decision denying assistance. The notice will contain a brief
statement of the reasons for the ICHA decision. The notice will state that the
applicant may request an informal review within ten (10) calendar days of the denial
and will describe how to obtain the informal review.
B. When an Informal Review is not required:
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The ICHA will not provide the applicant an opportunity for an informal review for
any of the following reasons:
1. A determination of the household unit size under ICHA subsidy standards.
2. An ICHA determination not to approve an extension or suspension of a
voucher term.
3. An ICHA determination not to grant approval to lease a unit under the
program or to approve a proposed lease.
4. An ICHA determination that a unit selected by the applicant is not in
compliance with HQS.
5. An ICHA determination that the unit is not in accordance with HQS because
of household size or composition.
6. General policy issues or class grievances.
7. Discretionary administrative determinations by the ICHA.
C. Review Process:
The ICHA will give an applicant an opportunity for an informal review of the ICHA
decision denying assistance to the applicant. The procedure is as follows:
1. The review will be conducted by any person or persons designated by the
ICHA, other than the person who made or approved the decision under review,
or a subordinate of this person.
2. The applicant will be given an opportunity to present written or oral objections
to the ICHA decision.
3. The ICHA will notify the applicant of the Hearing Officer’s decision within
fourteen (14) calendar days of receiving the decision. The notification will
include a brief statement of the reasons for the final decision.
D. Consideration of Circumstances: 24 CFR 982.552 (c)(2)
In deciding whether to deny assistance because of action or inaction by members of the
household, the ICHA may consider all of the circumstances in each case, including the
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seriousness of the case, the extent of participation or culpability of individual household
members and the effects of denial of assistance on other household members who were
not involved in the action or inaction.
The ICHA may impose, as a condition of continued assistance for other household
members, a requirement that household members who participated in, or were culpable
for, the action or inaction will not reside in or visit the unit. The ICHA may permit
other members of a household to receive assistance.
If the ICHA denies assistance because of illegal use, or possession for personal use, of
a controlled substance or pattern of abuse of alcohol, ICHA provides notice to the
household of the ICHA determination to deny or terminate assistance. In determining
whether to terminate assistance for these reasons the ICHA may consider evidence of
whether the household member:
1. Has successfully completed a supervised drug or alcohol rehabilitation program
(as applicable) and is no longer engaging in the illegal use of a controlled
substance or abuse of alcohol;
2. Has otherwise been rehabilitated successfully and is no longer engaging in the
illegal use of a controlled substance or abuse of alcohol; or
3. Is participating in a supervised drug or alcohol rehabilitation program and is no
longer engaging in the illegal use of a controlled substance or abuse of alcohol.
E. Informal Review Procedures for Denial of Assistance on the Basis of Ineligible
Immigration Status: 24 CFR 982.554 (d)
The applicant household may request that the ICHA provide for an informal review
after the household has notification of the INS decision on appeal, or in lieu of
request of appeal to the INS. This request must be made by the applicant household
within 30 days of receipt of the Notice of Denial or Termination of Assistance, or
within 30 days of receipt of the INS appeal decision.
For applicant families, the Informal Review Process above will be utilized with the
exception that the applicant household will have up to 30 days from receipt of the
Notice of Denial or Termination of Assistance, or of the INS appeal decision to
request the review.
15.4 INFORMAL HEARINGS FOR PARTICIPANTS 24 CFR 982.555
A. When a Hearing is not required:
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The ICHA will not provide a participant household an opportunity for an informal
hearing for any of the following reasons:
1. Discretionary administrative determinations by the ICHA.
2. General policy issues or class grievances.
3. Establishment of the ICHA schedule of utility allowances for families in the
program.
4. An ICHA determination not to approve an extension or suspension of a
voucher term.
5. An ICHA determination not to approve a unit or lease.
6. An ICHA determination that an assisted unit is not in compliance with HQS.
However, the Iowa City Housing Authority will provide the opportunity for
an informal hearing for a decision to terminate assistance for a breach of the
HQS caused by the household.
7. An ICHA determination that the unit is not in accordance with HQS because
of the household size.
8. A determination by the ICHA to exercise or not exercise any right or remedy
against the owner under a HAP contract.
B. Notice to the Household:
1. The ICHA will notify the household that the household may ask for an
explanation of the basis of the ICHA’s determination and that if the
household does not agree with the determination, the household may
request an informal hearing on the decision.
2. The ICHA will give the household prompt written notice that the household
may request a hearing within ten (10) calendar days of the notification. The
notice will:
a. Contain a brief statement of the reasons for the decision; and
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b. State if the household does not agree with the decision, the
household may request an informal hearing on the decision within
ten (10) calendar days of the notification.
C. Hearing Procedures:
The ICHA and participants will adhere to the following procedures:
1. Discovery
a. The household will be given the opportunity to examine, before the
hearing, any ICHA documents that are directly relevant to the
hearing. The household will be allowed to copy any such documents
at the household’s expense. If ICHA does not make the documents
available for examination on request of the household, the ICHA
may not rely on the documents at the hearing.
b. The ICHA will be given the opportunity to examine, at ICHA’s
offices before the hearing, any household documents that are
directly relevant to the hearing. The ICHA will be allowed to copy
any such document at the ICHA’s expense. If the household does
not make the documents available for examination on request of the
ICHA, the household may not rely on the document at the hearing.
Note: The term document includes records and regulations.
2. Representation of the Household
A lawyer or other representative may represent the household at the
households’ expense.
3. Hearing Officer
a. The hearing will be conducted by any person or persons designated
by the ICHA, other than a person who made or approved the
decision under review, or a subordinate of this person.
b. The person who conducts the hearing will regulate the conduct of
the hearing in accordance with the ICHA hearing procedures.
4. Evidence
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The ICHA and the household must have the opportunity to present evidence
and may question any witnesses. Evidence may be considered without
regard to admissibility under the rules of evidence applicable to judicial
proceedings.
5. Issuance of Decision
The person who conducts the hearing must issue a written decision, stating
the reasons for the decision. The ICHA will notify the participant of Hearing
Officer’s decision within fourteen (14) calendar days of receiving the
decision. Factual determinations relating to the individual circumstances of
the household shall be based on a preponderance of the evidence presented
at the hearing.
6. Effect of the Decision
The Iowa City Housing Authority is not bound by a hearing decision:
a. Concerning a matter for which the ICHA is not required to provide
an opportunity for an informal hearing under this section, or that
otherwise exceeds the authority of the person conducting the hearing
under the ICHA hearing procedures.
b. Contrary to HUD regulations or requirements, or otherwise contrary
to federal, state, or local law.
d. If the ICHA determines that it is not bound by a hearing decision,
the ICHA will notify the household within fourteen (14) calendar
days of the determination and provide reasons for the determination.
D. Consideration of Circumstances: 24 CFR 982.552 (c) (2)
In deciding whether to terminate assistance because of action or inaction by members
of the household, the ICHA may consider all of the circumstances in each case,
including the seriousness of the case, the extent of participation or culpability of
individual household members and the effects of denial or termination of assistance on
other household members who were not involved in the action or inaction.
The ICHA may impose, as a condition of continued assistance for other household
members, a requirement that household members who participated in, or were culpable
for, the action or inaction will not reside in or visit the unit. The ICHA may permit the
other members of a participant household to continue receiving assistance.
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If the ICHA seeks to terminate assistance because of illegal use, or possession for
personal use, of a controlled substance or pattern of abuse of alcohol, ICHA provides
notice to the household of the ICHA determination to deny or terminate assistance. In
determining whether to terminate assistance for these reasons the ICHA may consider
evidence of whether the household member:
1. Has successfully completed a supervised drug or alcohol rehabilitation program
(as applicable) and is no longer engaging in the illegal use of a controlled
substance or abuse of alcohol;
2. Has otherwise been rehabilitated successfully and is no longer engaging in the
illegal use of a controlled substance or abuse of alcohol; or
3. Is participating in a supervised drug or alcohol rehabilitation program and is no
longer engaging in the illegal use of a controlled substance or abuse of alcohol.
E. Informal Hearing Procedures for Denial of Assistance on the Basis of Ineligible
Immigration Status: 24 CFR 982.555(g)
The participant household may request that the ICHA provide for an informal
hearing after the household has notification of the INS decision on appeal, or in lieu
of request of appeal to the INS. This request must be made by the participant
household within 30 days of receipt of the Notice of Denial or Termination of
Assistance, or within 30 days of receipt of the INS appeal decision.
For the participant families, the Informal Hearing Process above will be utilized
with the exception that the participant household will have up to 30 days of receipt
of the Notice of Denial or Termination of Assistance, or of the INS appeal decision.
F. Determination of Good Cause:
Purpose: To provide substantive guidelines for the determination of good cause for
permitting untimely action or excusing the failure to act as required for good cause
shown (e.g., late appeals, request to reschedule hearings, etc.).
Substantive Guidelines: In determining whether good cause has been shown for
permitting an untimely action or excusing the failure to act as required, the Housing
Authority may consider any relevant factors including, but not limited to, whether
the party acted in the manner that a reasonably prudent individual would have acted
under the same or similar circumstances, whether the party received timely notice
of the need to act, whether there was administrative error by the Housing Authority,
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whether there were factors outside the control of the party that prevented a timely
action, the efforts made by the party to seek an extension of time by promptly
notifying the Housing Authority, the party's physical inability to take timely action,
the length of time the action was untimely, and whether any other interested party
has been prejudiced by the untimely action. However, good cause cannot be
established to accept or permit an untimely action or to excuse the failure to act, as
required, that was caused by the party’s failure to keep the Housing Authority
directly and promptly informed by written, signed statement of his or her current
and correct mailing address in person, by mail, by facsimile machine, or by Housing
Authority-approved electronic means. A written decision concerning the existence
of good cause need not contain findings of fact on every relevant factor, but the
basis for the decision must be apparent from the order.
16.0 REPAYMENT AGREEMENTS 24 CFR 982.552 (C) (1) (VII)
Family Break-Ups - If there is a family break up and the initial household owes the ICHA
a debt, the person leaving the household (if head, spouse, other adult) will be held jointly
liable for the debt. The responsible parties may not receive assistance in another assisted
household until the debt is paid. This includes an individual being added as a live-in aid.
If a participant owes money to the ICHA, the ICHA requires the participant to enter into a
repayment agreement or repay the entire amount on demand. If the participant does not
comply with the repayment agreement, the ICHA may terminate the participant from the
program. However, the ICHA will consider extenuating circumstances on a case-by-case
basis.
If the ICHA determines that the family committed fraud or was grossly irresponsible, the
ICHA may require the family to repay the entire amount in full or terminate assistance,
since fraud or gross irresponsibility are considered a violation of a family obligation.
The ICHA does not have a responsibility to enter into a repayment agreement. If the
family’s assistance is terminated and repayment has not been made, the money will still be
considered a debt and the ICHA may take action to collect the amounts owed. The Iowa
City Housing Authority may file a claim in court or place the debt in the State of Iowa's
Income Offset Program (e.g., income taxes, casino/lottery winnings, other vendor
payments from the State of Iowa). The debt and termination information is reported to the
HUD EIV system for review by Public Housing Authorities nationwide.
(See also Section II, A. (8) Eligibility Criteria, Section XI, D. (6) Family Moves with
Continued Assistance and Section XII, B. Housing Assistance Terminations, 1.i.)
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17.0 PROJECT-BASED VOUCHERS
INTRODUCTION
This chapter describes HUD regulations and PHA policies related to the project-based voucher
(PBV) program in nine parts:
Part I: General Requirements. This part describes general provisions of the PBV program
including maximum budget authority requirements, relocation requirements, and equal
opportunity requirements.
Part II: PBV Owner Proposals. This part includes policies related to the submission and
selection of owner proposals for PBV assistance. It describes the factors the PHA will
consider when selecting proposals, the type of housing that is eligible to receive PBV
assistance, the cap on assistance at projects receiving PBV assistance, subsidy layering
requirements, site selection standards, and environmental review requirements.
Part III: Dwelling Units. This part describes requirements related to housing quality
standards, the type and frequency of inspections, and housing accessibility for persons
with disabilities.
Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements
and policies related to the development and completion of rehabilitated and newly
constructed housing units that will be receiving PBV assistance.
Part V: Housing Assistance Payments Contract. This part discusses HAP contract
requirements and policies including the execution, term, and termination of the HAP
contract. In addition, it describes how the HAP contract may be amended and identifies
provisions that may be added to the HAP contract at the PHA’s discretion.
Part VI: Selection of PBV Program Participants. This part describes the requirements
and policies governing how the PHA and the owner will select a family to receive PBV
assistance.
Part VII: Occupancy. This part discusses occupancy requirements related to the lease, and
describes under what conditions families are allowed or required to move. In addition,
exceptions to the occupancy cap (which limits PBV assistance to 25 percent of the units
in any project) are also discussed.
Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is
determined, and how rent will be redetermined throughout the life of the HAP contract.
Rent reasonableness requirements are also discussed.
Part IX: Payments to Owner. This part describes the types of payments owners may
receive under this program.
PART I: GENERAL REQUIREMENTS
17-I.A. OVERVIEW [24 CFR 983.5; FR Notice 1/18/17; Notice PIH 2017-21]
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The project-based voucher (PBV) program allows PHAs that already administer a tenant-based
voucher program under an annual contributions contract (ACC) with HUD to take up to 20
percent of its authorized units and attach the funding to specific units rather than using it for
tenant-based assistance [24 CFR 983.6]. PHAs may only operate a PBV program if doing so is
consistent with the PHA’s Annual Plan, and the goal of deconcentrating poverty and expanding
housing and economic opportunities [42 U.S.C. 1437f(o)(13)].
PHA Policy
The PHA will operate a project-based voucher program using up to 5% authorized units
for project-based assistance.
PBV assistance may be attached to existing housing or newly constructed or rehabilitated
housing [24 CFR 983.52]. If PBV units are already selected for project-based assistance either
under an agreement to enter into HAP Contract (Agreement) or a HAP contract, the PHA is not
required to reduce the number of these units if the amount of authorized units is subsequently
reduced. However, the PHA is responsible for determining the amount of budget authority that is
available for project-based vouchers and ensuring that the amount of assistance that is attached to
units is within the amounts available under the ACC, regardless of whether the PHA has
vouchers available for project-basing [FR Notice 1/18/17].
Additional Project-Based Units [FR Notice 1/18/17; Notice PIH 2017-21]
The PHA may project-base an additional 10 percent of its units above the 20 percent program
limit. The units may be distributed among one, all, or a combination of the categories as long as
the total number of units does not exceed the 10 percent cap. Units qualify under this exception if
the units:
• Are specifically made available to house individuals and families that meet the definition of
homeless under section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11302) and contained in the Continuum of Care Interim Rule at 24 CFR 578.3.
• Are specifically made available to house families that are comprised of or include a veteran.
- Veteran means an individual who has served in the United States Armed Forces.
• Provide supportive housing to persons with disabilities or elderly persons as defined in 24
CFR 5.403.
• Are located in a census tract with a poverty rate of 20 percent or less, as determined in the
most recent American Community Survey Five-Year Estimates.
PHA Policy
The PHA will not set aside units above the 5% authorized units.
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Units Not Subject to the PBV Program Limitation [FR Notice 1/18/17]
PBV units under the RAD program and HUD-VASH PBV set-aside vouchers do not count
toward the 20 percent limitation when PBV assistance is attached to them.
In addition, units that were previously subject to certain federal rent restrictions or were
receiving another type of long-term housing subsidy provided by HUD are not subject to the cap.
The unit must be covered under a PBV HAP contract that first became effective on or
after 4/18/17.
PHA Policy
The PHA will not set aside units above the 5% authorized units.
17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE
[24 CFR 983.2]
Much of the tenant-based voucher program regulations also apply to the PBV program.
Consequently, many of the PHA policies related to tenant-based assistance also apply to PBV
assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV
program are listed at 24 CFR 983.2.
PHA Policy
Except as otherwise noted in this chapter, or unless specifically prohibited by PBV
program regulations, the PHA policies for the tenant-based voucher program contained in
this administrative plan also apply to the PBV program and its participants.
17-I.C. RELOCATION REQUIREMENTS [24 CFR 983.7]
Any persons displaced as a result of implementation of the PBV program must be provided
relocation assistance in accordance with the requirements of the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (URA)[42 U.S.C. 4201-4655] and
implementing regulations at 49 CFR part 24.
The cost of required relocation assistance may be paid with funds provided by the owner, local
public funds, or funds available from other sources. PHAs may not use voucher program funds to
cover relocation costs, except that PHAs may use their administrative fee reserve to pay for
relocation expenses after all other program administrative expenses are satisfied, and provided
that payment of the relocation benefits is consistent with state and local law. Use of the
administrative fee for these purposes must also be consistent with other legal and regulatory
requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances.
The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24,
subpart B. It is the responsibility of the PHA to ensure the owner complies with these
requirements.
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17-I.D. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8]
The PHA must comply with all equal opportunity requirements under federal law and regulations
in its implementation of the PBV program. This includes the requirements and authorities cited
at 24 CFR 5.105(a). In addition, the PHA must comply with the PHA Plan certification on civil
rights and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o).
PART II: PBV OWNER PROPOSALS
17-II.A. OVERVIEW
With certain exceptions, the PHA must describe the procedures for owner submission of PBV
proposals and for PHA selection of PBV proposals [24 CFR 983.51]. Before selecting a PBV
proposal, the PHA must determine that the PBV proposal complies with HUD program
regulations and requirements, including a determination that the property is eligible housing [24
CFR 983.53 and 983.54], complies with the cap on the number of PBV units per project [24 CFR
983.56], and meets the site selection standards [24 CFR 983.57]. The PHA may not commit
PBVs until or unless it has followed the proposal selection requirements defined in 24 CFR
983.51 [Notice PIH 2011-54].
17-II.B. OWNER PROPOSAL SELECTION PROCEDURES [24 CFR 983.51(b)]
The PHA must select PBV proposals in accordance with the selection procedures in the PHA
administrative plan. The PHA must select PBV proposals by either of the following two
methods.
• PHA request for PBV Proposals. The PHA may solicit proposals by using a request for
proposals to select proposals on a competitive basis in response to the PHA request. The
PHA may not limit proposals to a single site or impose restrictions that explicitly or
practically preclude owner submission of proposals for PBV housing on different sites.
• The PHA may select proposal that were previously selected based on a competition. This
may include selection of a proposal for housing assisted under a federal, state, or local
government housing assistance program that was subject to a competition in accordance with
the requirements of the applicable program, community development program, or supportive
services program that requires competitive selection of proposals (e.g., HOME, and units for
which competitively awarded LIHTCs have been provided), where the proposal has been
selected in accordance with such program's competitive selection requirements within three
years of the PBV proposal selection date, and the earlier competitive selection proposal did
not involve any consideration that the project would receive PBV assistance. The PHA need
not conduct another competition.
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Units Selected Non-Competitively [FR Notice 1/18/17; Notice PIH 2017-21]
For certain public housing projects where the PHA has an ownership interest or control and will
spend a minimum amount per unit on rehabilitation or construction, the PHA may select a
project without following one of the two processes above.
PHA Policy
The PHA will not attach PBVs to projects owned by the PHA as described above.
Solicitation and Selection of PBV Proposals [24 CFR 983.51(c)]
PHA procedures for selecting PBV proposals must be designed and actually operated to provide
broad public notice of the opportunity to offer PBV proposals for consideration by the PHA.
The public notice procedures may include publication of the public notice in a local newspaper
of general circulation and other means designed and actually operated to provide broad public
notice. The public notice of the PHA request for PBV proposals must specify the submission
deadline. Detailed application and selection information must be provided at the request of
interested parties.
PHA Policy
PHA Request for Proposals for Rehabilitated and Newly Constructed Units
The City of Iowa City will only issue an RFP for City of Iowa City sponsored projects. All
request for proposals (RFP) for rehabilitated and newly constructed housing will follow
the procedures outlined in the City of Iowa City’s Purchasing policy. The criteria used by
the PHA to rate and rank proposals for rehabilitated and newly constructed housing will
include, but not be limited to the following:
• Owner experience and capability to build or rehabilitate housing as identified in
the RFP;
• Extent to which the project furthers the PHA goal of scattered site housing,
deconcentrating poverty and expanding housing and economic opportunities;
• If applicable, the extent to which services for special populations are provided on
site or in the immediate area for occupants of the property; and
• Percentage of units assisted. Projects with the lowest percent of assisted units will
receive the highest score.
PHA Requests for Proposals for Existing Housing Units
The City of Iowa City will only issue an RFP for City of Iowa City sponsored projects. All
request for proposals (RFP) for existing housing units will follow the procedures outlined
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in the City of Iowa City’s Purchasing policy. The criteria used by the PHA to rate and rank
proposals for existing housing will include, but not be limited to the following:
• Experience as an owner in the tenant-based voucher program and owner
compliance with the owner’s obligations under the tenant-based program;
• Extent to which the project furthers the PHA goal of scattered site housing,
deconcentrating poverty and expanding housing and economic opportunities;
• If applicable, extent to which services for special populations are provided on site
or in the immediate area for occupants of the property; and
• Extent to which units are occupied by families that are eligible to participate in
the PBV program.
PHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or
Local Housing Assistance Program
The PHA will review proposals for PBV assistance from owners that were competitively
selected under another federal, state or local housing assistance program, including
projects that were competitively awarded (e.g., funds via the National Housing Trust
Fund, Low-Income Housing Tax Credits, etc.). In addition to, or in place of advertising,
the PHA may also directly contact specific owners that have already been selected for
Federal, state, or local housing assistance based on a previously held competition, to
inform them of available PBV assistance.
If the City of Iowa City issues an RFP subject to a previous competition under a Federal,
State, or Local Housing Assistance Program, the City of Iowa City will follow the
procedures outlined in the City of Iowa City’s Purchasing policy. The criteria used by the
PHA to rate and rank proposals subject to a previous competition under a Federal, State,
or Local Housing Assistance program will include, but not be limited to the following:
• Extent to which the project furthers the PHA goal of scattered site housing,
deconcentrating poverty and expanding housing and economic opportunities; and
• Extent to which the proposal complements other local activities such as a “Housing
First” project providing permanent supportive housing for homeless
individuals/households with a disabling condition, the redevelopment of a public
housing site under the HOPE VI program, the HOME program, CDBG activities,
other development activities in a HUD-designated Enterprise Zone, Economic
Community, Renewal Community.
•
PHA-Owned Units [24 CFR 983.51(e), 983.59, FR Notice 1/18/17, and Notice PIH 2017-21]
A PHA-owned unit may be assisted under the PBV program only if the HUD field office or
HUD-approved independent entity reviews the selection process and determines that the PHA-
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owned units were appropriately selected based on the selection procedures specified in the PHA
administrative plan. If the PHA selects a proposal for housing that is owned or controlled by the
PHA, the PHA must identify the entity that will review the PHA proposal selection process and
perform specific functions with respect to rent determinations and inspections.
In the case of PHA-owned units, the term of the HAP contract and any HAP contract renewal
must be agreed upon by the PHA and a HUD-approved independent entity. In addition, an
independent entity must determine the rent to owner, the redetermined rent to owner, and
reasonable rent. Housing quality standards inspections must also be conducted by an
independent entity.
The independent entity that performs these program services may be the unit of general local
government for the PHA jurisdiction (unless the PHA is itself the unit of general local
government or an agency of such government) or another HUD-approved public or private
independent entity.
PHA Policy
The PHA does not plan on submitting proposals for PHA-owned housing.
The PHA may only compensate the independent entity from PHA ongoing administrative fee
income (including amounts credited to the administrative fee reserve). The PHA may not use
other program receipts to compensate the independent entity for its services. The PHA and
independent entity may not charge the family any fee for the appraisal or the services provided
by the independent entity.
PHA Notice of Owner Selection [24 CFR 983.51(d)]
The PHA must give prompt written notice to the party that submitted a selected proposal and
must also give prompt public notice of such selection. Public notice procedures may include
publication of public notice in a local newspaper of general circulation and other means designed
and actually operated to provide broad public notice.
PHA Policy
Within 10 business days of the PHA making the selection, the PHA will notify the
selected owner in writing of the owner’s selection for the PBV program. The PHA will
also notify in writing all owners that submitted proposals that were not selected and
advise such owners of the name of the selected owner.
The PHA will make available to any interested party its rating and ranking sheets and
documents that identify the PHA basis for selecting the proposal. These documents will
be available for review by the public and other interested parties for one month after
publication of the notice of owner selection. The PHA will not make available sensitive
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owner information that is privileged, such as financial statements and similar information
about the owner.
17-II.C. HOUSING TYPE [24 CFR 983.52]
The PHA may attach PBV assistance for units in existing housing or for newly constructed or
rehabilitated housing developed under and in accordance with an agreement to enter into a
housing assistance payments contract that was executed prior to the start of construction. A
housing unit is considered an existing unit for purposes of the PBV program, if, at the time of
notice of PHA selection, the units substantially comply with HQS. Units for which new
construction or rehabilitation began after the owner's proposal submission but prior to the
execution of the HAP do not subsequently qualify as existing housing. Units that were newly
constructed or rehabilitated in violation of program requirements also do not qualify as existing
housing.
The PHA must decide what housing type, new construction, rehabilitation, or existing housing,
will be used to develop project-based housing. The PHA choice of housing type must be
reflected in its solicitation for proposals.
17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS
Ineligible Housing Types [24 CFR 983.53]
The PHA may not attach or pay PBV assistance to shared housing units; units on the grounds of
a penal reformatory, medical, mental, or similar public or private institution; nursing homes or
facilities providing continuous psychiatric, medical, nursing services, board and care, or
intermediate care (except that assistance may be provided in assisted living facilities); units that
are owned or controlled by an educational institution or its affiliate and are designated for
occupancy by students; manufactured homes; and transitional housing. In addition, the PHA may
not attach or pay PBV assistance for a unit occupied by an owner and the PHA may not select or
enter into an agreement to enter into a HAP contract or HAP contract for a unit occupied by a
family ineligible for participation in the PBV program. A member of a cooperative who owns
shares in the project assisted under the PBV program is not considered an owner for purposes of
participation in the PBV program. Finally, PBV assistance may not be attached to units for
which construction or rehabilitation has started after the proposal submission and prior to the
execution of an AHAP.
Subsidized Housing [24 CFR 983.54]
A PHA may not attach or pay PBV assistance to units in any of the following types of subsidized
housing:
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• A public housing unit;
• A unit subsidized with any other form of Section 8 assistance;
• A unit subsidized with any governmental rent subsidy;
• A unit subsidized with any governmental subsidy that covers all or any part of the operating
costs of the housing;
• A unit subsidized with Section 236 rental assistance payments (except that a PHA may attach
assistance to a unit subsidized with Section 236 interest reduction payments);
• A Section 202 project for non-elderly with disabilities;
• Section 811 project-based supportive housing for persons with disabilities;
• Section 202 supportive housing for the elderly;
• A Section 101 rent supplement project;
• A unit subsidized with any form of tenant-based rental assistance;
• A unit with any other duplicative federal, state, or local housing subsidy, as determined by
HUD or the PHA in accordance with HUD requirements.
17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, FR Notice 11/24/08,
FR Notice 7/9/10, and FR Notice 6/25/14]
The PHA may provide PBV assistance only in accordance with HUD subsidy layering
regulations [24 CFR 4.13] and other requirements.
The subsidy layering review is intended to prevent excessive public assistance by combining
(layering) housing assistance payment subsidy under the PBV program with other governmental
housing assistance from federal, state, or local agencies, including assistance such as tax
concessions or tax credits.
Subsidy layering requirements do not apply to existing housing. A further subsidy layering
review is not required for new construction or rehabilitation if HUD's designee has conducted a
review that included a review of PBV assistance in accordance with the PBV subsidy layering
guidelines.
The PHA must submit the necessary documentation to HUD for a subsidy layering review.
Except in cases noted above, the PHA may not enter into an agreement to enter into a HAP
contract or a HAP contract until HUD, or a HUD-approved housing credit agency (HCA), has
conducted any required subsidy layering review and determined that the PBV assistance is in
accordance with HUD subsidy layering requirements. However, in order to satisfy applicable
requirements, HCAs must conduct subsidy layering reviews in compliance with the guidelines
set forth in the Federal Register notice published July 9, 2010.
The HAP contract must contain the owner's certification that the project has not received and
will not receive (before or during the term of the HAP contract) any public assistance for
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acquisition, development, or operation of the housing other than assistance disclosed in the
subsidy layering review in accordance with HUD requirements.
17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT
25 Percent per Project Cap [24 CFR 983.56, FR Notice 1/18/17, and Notice PIH 2017-21]
In general, the PHA may not select a proposal to provide PBV assistance for units in a project or
enter into an agreement to enter into a HAP or a HAP contract to provide PBV assistance for
units in a project, if the total number of dwelling units in the project that will receive PBV
assistance during the term of the PBV HAP contract is more than the greater of 25 units or 25
percent of the number of dwelling units (assisted or unassisted) in the project.
Exceptions to 25 Percent per Project Cap [FR Notice 1/18/17; Notice PIH 2017-21]
As of April 18, 2017, units are not counted against the 25 percent or 25-unit per project cap if:
• The units are exclusively for elderly families
• The units are for households eligible for supportive services available to all families
receiving PBV assistance in the project
- If the project is located in a census tract with a poverty rate of 20 percent or less, as
determined in the most recent American Community Survey Five-Year estimates, the
project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in
the project [FR Notice 7/14/17].
-
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) eliminated the project
cap exemption for projects that serve disabled families and modified the exception for supportive
services. Projects where these caps were implemented prior to HOTMA (HAP contracts
executed prior to 4/18/17) may continue to use the former exceptions and may renew their HAP
contracts under the old requirements, unless the PHA and owner agree to change the conditions
of the HAP contract. However, this change may not be made if it would jeopardize an assisted
family’s eligibility for continued assistance in the project.
Supportive Services
PHAs must include in the PHA administrative plan the type of services offered to families for a
project to qualify for the exception and the extent to which such services will be provided. As of
4/18/17, the project must make supportive services available to all families receiving PBV
assistance in the project, but the family does not actually have to accept and receive supportive
services for the exception to apply to the unit, although the family must be eligible to receive the
supportive services. It is not necessary that the services be provided at or by the project, but must
be reasonably available to families receiving PBV assistance at the project and designed to help
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families in the project achieve self-sufficiency or live in the community as independently as
possible A PHA may not require participation in the supportive service as a condition of living in
the excepted unit, although such services may be offered.
PHA Policy
Excepted units will be limited to units in a “Housing First” project providing permanent
supportive housing for homeless individuals/households with a disabling condition. List
services?
Projects not Subject to a Project Cap [FR Notice 1/18/17; Notice PIH 2017-21]
PBV units that were previously subject to certain federal rent restrictions or receiving another
type of long-term housing subsidy provided by HUD are exempt from the project cap. In other
words, 100 percent of the units in these projects may receive PBV assistance.
PHA Policy
The PHA does not have any PBV units that are subject to the per project cap exception.
Promoting Partially-Assisted Projects [24 CFR 983.56(c)]
A PHA may establish local requirements designed to promote PBV assistance in partially
assisted projects. A partially assisted project is a project in which there are fewer units covered
by a HAP contract than residential units [24 CFR 983.3].
A PHA may establish a per-project cap on the number of units that will receive PBV assistance
or other project-based assistance in a multifamily project containing excepted units or in a single-
family building. A PHA may also determine not to provide PBV assistance for excepted units, or
the PHA may establish a per-project cap of less than 25 percent.
PHA Policy:
Excepted units will be limited to units in a “Housing First” project providing permanent
supportive housing for homeless individuals/households with a disabling condition.
17-II.G. SITE SELECTION STANDARDS
Compliance with PBV Goals, Civil Rights Requirements, and HQS Site Standards
[24 CFR 983.57(b)]
The PHA may not select a proposal for existing, newly constructed, or rehabilitated PBV
housing on a site or enter into an agreement to enter into a HAP contract or HAP contract for
units on the site, unless the PHA has determined that PBV assistance for housing at the selected
site is consistent with the goal of deconcentrating poverty and expanding housing and economic
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opportunities. The standard for deconcentrating poverty and expanding housing and economic
opportunities must be consistent with the PHA Plan under 24 CFR 903 and the PHA
administrative plan.
In addition, prior to selecting a proposal, the PHA must determine that the site is suitable from
the standpoint of facilitating and furthering full compliance with the applicable Civil Rights
Laws, regulations, and Executive Orders, and that the site meets the HQS site and neighborhood
standards at 24 CFR 982.401(l).
PHA Policy
It is the PHA goal to select sites for PBV housing that comply with the City of Iowa
City’s Affordable Housing Location model.
Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)]
The PHA may not enter into an agreement to enter into a HAP contract nor enter into a HAP
contract for existing or rehabilitated housing until it has determined that the site complies with
the HUD required site and neighborhood standards. The site must:
• Be adequate in size, exposure, and contour to accommodate the number and type of units
proposed;
• Have adequate utilities and streets available to service the site;
• Promote a greater choice of housing opportunities and avoid undue concentration of assisted
persons in areas containing a high proportion of low-income persons;
• Be accessible to social, recreational, educational, commercial, and health facilities and
services and other municipal facilities and services equivalent to those found in
neighborhoods consisting largely of unassisted similar units; and
• Be located so that travel time and cost via public transportation or private automobile from
the neighborhood to places of employment is not excessive.
•
New Construction Site and Neighborhood Standards [24 CFR 983.57(e)]
In order to be selected for PBV assistance, a site for newly constructed housing must meet the
following HUD required site and neighborhood standards:
• The site must be adequate in size, exposure, and contour to accommodate the number and
type of units proposed;
• The site must have adequate utilities and streets available to service the site;
• The site must not be located in an area of minority concentration unless the PHA determines
that sufficient, comparable opportunities exist for housing for minority families in the income
range to be served by the proposed project outside areas of minority concentration or that the
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project is necessary to meet overriding housing needs that cannot be met in that housing
market area;
• The site must not be located in a racially mixed area if the project will cause a significant
increase in the proportion of minority to non-minority residents in the area.
• The site must promote a greater choice of housing opportunities and avoid undue
concentration of assisted persons in areas containing a high proportion of low-income
persons;
• The neighborhood must not be one that is seriously detrimental to family life or in which
substandard dwellings or other undesirable conditions predominate;
• The housing must be accessible to social, recreational, educational, commercial, and health
facilities and services and other municipal facilities and services equivalent to those found in
neighborhoods consisting largely of unassisted similar units; and
• Except for housing designed for elderly persons, the housing must be located so that travel
time and cost via public transportation or private automobile from the neighborhood to places
of employment is not excessive.
17-II.H. ENVIRONMENTAL REVIEW [24 CFR 983.58]
The PHA activities under the PBV program are subject to HUD environmental regulations in 24
CFR parts 50 and 58. The responsible entity is responsible for performing the federal
environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.). The PHA may not enter into an agreement to enter into a HAP contract nor enter into a
HAP contract until it has complied with the environmental review requirements.
In the case of existing housing, the responsible entity that is responsible for the environmental
review under 24 CFR part 58 must determine whether or not PBV assistance is categorically
excluded from review under the National Environmental Policy Act and whether or not the
assistance is subject to review under the laws and authorities listed in 24 CFR 58.5.
The PHA may not enter into an agreement to enter into a HAP contract or a HAP contract with
an owner, and the PHA, the owner, and its contractors may not acquire, rehabilitate, convert,
lease, repair, dispose of, demolish, or construct real property or commit or expend program or
local funds for PBV activities under this part, until the environmental review is completed.
The PHA must supply all available, relevant information necessary for the responsible entity to
perform any required environmental review for any site. The PHA must require the owner to
carry out mitigating measures required by the responsible entity (or HUD, if applicable) as a
result of the environmental review.
PART III: DWELLING UNITS
17-III.A. OVERVIEW
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This part identifies the special housing quality standards that apply to the PBV program, housing
accessibility for persons with disabilities, and special procedures for conducting housing quality
standards inspections.
17-III.B. HOUSING QUALITY STANDARDS [24 CFR 983.101]
The housing quality standards (HQS) for the tenant-based program, including those for special
housing types, generally apply to the PBV program. HQS requirements for shared housing,
manufactured home space rental, and the homeownership option do not apply because these
housing types are not assisted under the PBV program. The physical condition standards at 24
CFR 5.703 do not apply to the PBV program.
Lead-based Paint [24 CFR 983.101(c)]
The lead-based paint requirements for the tenant-based voucher program do not apply to the
PBV program. Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846),
the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and
implementing regulations at 24 CFR part 35, subparts A, B, H, and R, apply to the PBV
program.
17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES
The housing must comply with program accessibility requirements of section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The
PHA must ensure that the percentage of accessible dwelling units complies with the
requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented
by HUD's regulations at 24 CFR 8, subpart C. Housing first occupied after March 13, 1991, must
comply with design and construction requirements of the Fair Housing Amendments Act of 1988
and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102)
17-III.D. INSPECTING UNITS
Pre-selection Inspection [24 CFR 983.103(a)]
The PHA must examine the proposed site before the proposal selection date. If the units to be
assisted already exist, the PHA must inspect all the units before the proposal selection date, and
must determine whether the units substantially comply with HQS. To qualify as existing
housing, units must substantially comply with HQS on the proposal selection date. However, the
PHA may not execute the HAP contract until the units fully comply with HQS.
Pre-HAP Contract Inspections [24 CFR 983.103(b)]
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The PHA must inspect each contract unit before execution of the HAP contract. The PHA may
not enter into a HAP contract covering a unit until the unit fully complies with HQS.
Turnover Inspections [24 CFR 983.103(c), FR Notice 1/18/17, and Notice PIH 2017-20]
Before providing assistance to a new family in a contract unit, the PHA must inspect the unit.
The PHA may not provide assistance on behalf of the family until the unit fully complies with
HQS, unless the PHA has adopted a policy to enter into a HAP contract for units that fail the
initial HQS inspection as a result of only non-life-threatening conditions or if the unit passed an
alternative inspection.
PHA Policy
The PHA will not provide assistance in turnover units until the unit fully complies
with HQS.
Annual/Biennial Inspections [24 CFR 983.103(d); FR Notice 6/25/14]
At least once every 24 months during the term of the HAP contract, the PHA must inspect a
random sample consisting of at least 20 percent of the contract units in each building to
determine if the contract units and the premises are maintained in accordance with HQS.
Turnover inspections are not counted toward meeting this inspection requirement.
PHA Policy
The PHA will inspect all PBV units on a biennial basis to determine if the contract units
and the premises are maintained in accordance with HQS.
Other Inspections [24 CFR 983.103(e)]
The PHA must inspect contract units whenever needed to determine that the contract units
comply with HQS and that the owner is providing maintenance, utilities, and other services in
accordance with the HAP contract. The PHA must take into account complaints and any other
information coming to its attention in scheduling inspections.
The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable,
the family) has corrected an HQS violation, and must conduct inspections to determine the basis
for exercise of contractual and other remedies for owner or family violation of HQS.
In conducting PHA supervisory quality control HQS inspections, the PHA should include a
representative sample of both tenant-based and project-based units.
Inspecting PHA-Owned Units [24 CFR 983.103(f)]
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In the case of PHA-owned units, the inspections must be performed by an independent agency
designated by the PHA and approved by HUD. The independent entity must furnish a copy of
each inspection report to the PHA and to the HUD field office where the project is located. The
PHA must take all necessary actions in response to inspection reports from the independent
agency, including exercise of contractual remedies for violation of the HAP contract by the
PHA-owner.
PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS
17-IV.A. OVERVIEW [24 CFR 983.151]
There are specific requirements that apply to PBV assistance for newly constructed or
rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes
the requirements unique to this type of assistance. Housing selected for this type of assistance
may not at a later date be selected for PBV assistance as existing housing.
17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT
In order to offer PBV assistance in rehabilitated or newly constructed units, the PHA must enter
into an agreement to enter into HAP contract (Agreement) with the owner of the property. The
Agreement must be in the form required by HUD [24 CFR 983.152(b)]. The PHA may not enter
into an Agreement if commencement of construction or rehabilitation has commenced after
proposal submission [24 CFR 983.152(c)]. Construction begins when excavation or site
preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the
physical commencement of rehabilitation activity on the housing.
In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and
the PHA agrees that upon timely completion of such development in accordance with the terms
of the Agreement, the PHA will enter into a HAP contract with the owner for the contract units
[24 CFR 983.152(a)].
Content of the Agreement [24 CFR 983.152(d)]
At a minimum, the Agreement must describe the following features of the housing to be
developed and assisted under the PBV program:
• Site and the location of the contract units;
• Number of contract units by area (size) and number of bedrooms and bathrooms;
• Services, maintenance, or equipment to be supplied by the owner without charges in addition
to the rent;
• Utilities available to the contract units, including a specification of utility services to be paid
by the owner and utility services to be paid by the tenant;
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• An indication of whether or not the design and construction requirements of the Fair Housing
Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If
applicable, any required work item resulting from these requirements must be included in the
description of work to be performed under the Agreement;
• Estimated initial rents to owner for the contract units;
• Description of the work to be performed under the Agreement. For rehabilitated units, the
description must include the rehabilitation work write up and, where determined necessary
by the PHA, specifications and plans. For new construction units, the description must
include the working drawings and specifications.
• Any additional requirements for quality, architecture, or design over and above HQS.
Execution of the Agreement [24 CFR 983.153]
The Agreement must be executed promptly after PHA notice of proposal selection to the selected
owner. The PHA may not enter into the Agreement if construction or rehabilitation has started
after proposal submission. Generally, the PHA may not enter into the Agreement with the owner
until the subsidy layering review is completed. Likewise, the PHA may not enter into the
Agreement until the environmental review is completed and the PHA has received environmental
approval. However, the PHA does not need to conduct a subsidy layering review in the case of a
HAP contract for existing housing or if the applicable state or local agency has conducted such a
review. Similarly, environmental reviews are not required for existing structures unless
otherwise required by law or regulation.
PHA Policy
The PHA will enter into the Agreement with the owner within 10 business days of
receiving both environmental approval and notice that subsidy layering requirements
have been met, and before construction or rehabilitation work is started.
17-IV.C. CONDUCT OF DEVELOPMENT WORK
Labor Standards [24 CFR 983.154(b)]
If an Agreement covers the development of nine or more contract units (whether or not
completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis-
Bacon wages to laborers and mechanics employed in the development of housing. The HUD-
prescribed form of the Agreement will include the labor standards clauses required by HUD,
such as those involving Davis-Bacon wage rates.
The owner, contractors, and subcontractors must also comply with the Contract Work Hours and
Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable
federal labor relations laws and regulations. The PHA must monitor compliance with labor
standards.
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Equal Opportunity [24 CFR 983.154(c)]
The owner must comply with Section 3 of the Housing and Urban Development Act of 1968 and
the implementing regulations at 24 CFR part 135. The owner must also comply with federal
equal employment opportunity requirements.
Owner Disclosure [24 CFR 983.154(d) and (e)]
The Agreement and HAP contract must include a certification by the owner that the owner and
other project principals are not on the U.S. General Services Administration list of parties
excluded from federal procurement and non-procurement programs. The owner must also
disclose any possible conflict of interest that would be a violation of the Agreement, the HAP
contract, or HUD regulations.
17-IV.D. COMPLETION OF HOUSING
The Agreement must specify the deadlines for completion of the housing, and the owner must
develop and complete the housing in accordance with these deadlines. The Agreement must also
specify the deadline for submission by the owner of the required evidence of completion.
Evidence of Completion [24 CFR 983.155(b)]
At a minimum, the owner must submit the following evidence of completion to the PHA in the
form and manner required by the PHA:
• Owner certification that the work has been completed in accordance with HQS and all
requirements of the Agreement; and
• Owner certification that the owner has complied with labor standards and equal opportunity
requirements in development of the housing.
•
At the PHA’s discretion, the Agreement may specify additional documentation that must be
submitted by the owner as evidence of housing completion.
PHA Policy
The PHA will determine the need for the owner to submit additional documentation as
evidence of housing completion on a case-by-case basis depending on the nature of the
PBV project. The PHA will specify any additional documentation requirements in the
Agreement to enter into HAP contract.
PHA Acceptance of Completed Units [24 CFR 983.156]
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Upon notice from the owner that the housing is completed, the PHA must inspect to determine if
the housing has been completed in accordance with the Agreement, including compliance with
HQS and any additional requirements imposed under the Agreement. The PHA must also
determine if the owner has submitted all required evidence of completion. If the work has not
been completed in accordance with the Agreement, the PHA must not enter into the HAP
contract. If the PHA determines the work has been completed in accordance with the Agreement
and that the owner has submitted all required evidence of completion, the PHA must submit the
HAP contract for execution by the owner and must then execute the HAP contract.
PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP)
17-V.A. OVERVIEW
The PHA must enter into a HAP contract with an owner for units that are receiving PBV
assistance. The purpose of the HAP contract is to provide housing assistance payments for
eligible families. Housing assistance is paid for contract units leased and occupied by eligible
families during the HAP contract term. With the exception of single-family scattered-site
projects, a HAP contract shall cover a single project. If multiple projects exist, each project is
covered by a separate HAP contract. The HAP contract must be in the form required by HUD
[24 CFR 983.202(a)].
17-V.B. HAP CONTRACT REQUIREMENTS
Contract Information [24 CFR 983.203]
The HAP contract must specify the following information:
• The total number of contract units by number of bedrooms;
• The project’s name, street address, city or county, state and zip code, block and lot number
(if known), and any other information necessary to clearly identify the site and the building;
• The number of contract units in each building, the location of each contract unit, the area of
each contract unit, and the number of bedrooms and bathrooms in each contract unit;
• Services, maintenance, and equipment to be supplied by the owner and included in the rent
to owner;
• Utilities available to the contract units, including a specification of utility services to be paid
by the owner (included in rent) and utility services to be paid by the tenant;
• Features provided to comply with program accessibility requirements of Section 504 of the
Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8;
• The HAP contract term;
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• The number of units in any project that will exceed the 25 percent per project cap, which will
be set aside for occupancy by qualifying families (elderly and/or disabled families and
families receiving supportive services); and
• The initial rent to owner for the first 12 months of the HAP contract term.
Execution of the HAP Contract [24 CFR 983.204]
The PHA may not enter into a HAP contract until each contract unit has been inspected and the
PHA has determined that the unit complies with the Housing Quality Standards (HQS), unless
the PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS
inspection as a result of only non-life-threatening conditions. For existing housing, the HAP
contract must be executed promptly after the PHA selects the owner proposal and inspects the
housing units. For newly constructed or rehabilitated housing the HAP contract must be executed
after the PHA has inspected the completed units and has determined that the units have been
completed in accordance with the agreement to enter into HAP, and the owner furnishes all
required evidence of completion.
PHA Policy
For existing housing, the HAP contract will be executed within 10 business days of the
PHA determining that all units pass HQS. For rehabilitated or newly constructed housing,
the HAP contract will be executed within 10 business days of the PHA determining that
the units have been completed in accordance with the agreement to enter into HAP, all
units meet HQS, and the owner has submitted all required evidence of completion.
Term of HAP Contract [24 CFR 983.205, FR Notice 1/18/17, and Notice PIH 2017-21]
The PHA may enter into a HAP contract with an owner for an initial term of no less than one
year and no more than 20 years for each contract unit. The length of the term of the HAP
contract for any contract unit may not be less than one year, nor more than 20 years. In the case
of PHA-owned units, the term of the HAP contract must be agreed upon by the PHA and the
independent entity approved by HUD [24 CFR 983.59(b)(2)].
PHA Policy
The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case
basis.
At the time of the initial HAP contract term or any time before expiration of the HAP contract,
the PHA may extend the term of the contract for an additional term of up to 20 years if the PHA
determines an extension is appropriate to continue providing affordable housing for low-income
families. A HAP contract extension may not exceed 20 years. A PHA may provide for multiple
extensions; however, in no circumstances may such extensions exceed 20 years, cumulatively.
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Extensions after the initial extension are allowed at the end of any extension term, provided that
not more than 24 months prior to the expiration of the previous extension contract the PHA
agrees to extend the term, and that such extension is appropriate to continue providing affordable
housing for low-income families or to expand housing opportunities. Extensions after the initial
extension term shall not begin prior to the expiration date of the previous extension term.
Subsequent extensions are subject to the same limitations. All extensions must be on the form
and subject to the conditions prescribed by HUD at the time of the extension. In the case of
PHA-owned units, any extension of the term of the HAP contract must be agreed upon by the
PHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)].
PHA Policy
When determining whether or not to extend an expiring PBV contract, the PHA will
consider several factors including, but not limited to:
• The cost of extending the contract and the amount of available budget
authority;
• The condition of the contract units;
• The owner’s record of compliance with obligations under the HAP
contract and lease(s);
• Whether the location of the units continues to support the goals of
scattered site housing, deconcentrating poverty and expanding housing
opportunities; and
• Whether the funding could be used more appropriately for tenant-based
assistance.
Termination by PHA [24 CFR 983.205(c) and FR Notice 1/18/17]
The HAP contract must provide that the term of the PHA’s contractual commitment is subject to
the availability of sufficient appropriated funding as determined by HUD or by the PHA in
accordance with HUD instructions. For these purposes, sufficient funding means the availability
of appropriations, and of funding under the ACC from such appropriations, to make full payment
of housing assistance payments payable to the owner for any contract year in accordance with
the terms of the HAP contract. In times of insufficient funding, HUD requires that PHAs first
take all cost-saving measures prior to failing to make payments under existing PBV HAP
contracts. If it is determined that there may not be sufficient funding to continue housing
assistance payments for all contract units and for the full term of the HAP contract, the PHA may
terminate the HAP contract by notice to the owner. The termination must be implemented in
accordance with HUD instructions.
Termination by Owner [24 CFR 983.205(d)]
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If in accordance with program requirements the amount of rent to an owner for any contract unit
is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the
owner may terminate the HAP contract by giving notice to the PHA. In this case, families living
in the contract units must be offered tenant-based assistance.
Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206,
FR Notice 1/18/17, and Notice PIH 2017-21]
Not less than one year before the HAP contract terminates, or if the owner refuses to renew the
HAP contract, the owner must notify the PHA and assisted tenants of the termination. The notice
must be provided in the form prescribed by HUD. If the owner does not give timely notice, the
owner must permit the tenants in assisted units to remain in their units for the required notice
period with no increase in the tenant portion of their rent, and with no eviction as a result of the
owner's inability to collect an increased tenant portion of rent. An owner may renew the
terminating contract for a period of time sufficient to give tenants one-year advance notice under
such terms as HUD may require. Upon termination or expiration of the contract, a family living
at the property is entitled to receive a tenant-based voucher. Tenant-based assistance would not
begin until the owner’s required notice period ends. The PHA must provide the family with a
voucher and the family must also be given the option by the PHA and owner to remain in their
unit with HCV tenant-based assistance as long as the unit complies with inspection and rent
reasonableness requirements. The family must pay their total tenant payment (TTP) and any
additional amount if the gross rent exceeds the applicable payment standard. The family has the
right to remain in the project as long as the units are used for rental housing and are otherwise
eligible for HCV assistance. The owner may not terminate the tenancy of a family that exercises
its right to remain except for serious or repeated lease violations or other good cause. Families
that receive a tenant-based voucher at the expiration or termination of the PBV HAP contract are
not new admissions to the PHA HCV tenant-based program, and are not subject to income
eligibility requirements or any other admission requirements. If the family chooses to remain in
their unit with tenant-based assistance, the family may do so regardless of whether the family
share would initially exceed 40 percent of the family’s adjusted monthly income.
Remedies for HQS Violations [24 CFR 983.208(b)]
The PHA may not make any HAP payment to the owner for a contract unit during any period in
which the unit does not comply with HQS. If the PHA determines that a contract does not
comply with HQS, the PHA may exercise any of its remedies under the HAP contract, for any or
all of the contract units. Available remedies include termination of housing assistance payments,
abatement or reduction of housing assistance payments, reduction of contract units, and
termination of the HAP contract.
PHA Policy
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The PHA will abate and terminate PBV HAP contracts for non-compliance with HQS in
accordance with the policies used in the tenant-based voucher program.
17-V.C. AMENDMENTS TO THE HAP CONTRACT
Substitution of Contract Units [24 CFR 983.207(a)]
At the PHA’s discretion and subject to all PBV requirements, the HAP contract may be amended
to substitute a different unit with the same number of bedrooms in the same project for a
previously covered contract unit. Before any such substitution can take place, the PHA must
inspect the proposed unit and determine the reasonable rent for the unit.
Addition of Contract Units [FR Notice 1/18/17 and Notice PIH 2017-21]
The PHA and owner may amend the HAP contract to add additional PBV contract units in
projects that already have a HAP contract without having to fulfill the selection requirements
found at 24 CFR 983.51(b) for those additional PBV units, regardless of when the HAP contract
was signed. The additional PBV units, however, are still subject to the PBV program cap and
individual project caps. Prior to attaching additional units without competition, the PHA must
submit to the local field office information outlined in FR Notice 1/18/17. The PHA must also
detail in the administrative plan their intent to add PBV units and the rationale for adding units to
the specific PBV project.
PHA Policy
The PHA will not add contract units to the HAP contract.
17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24
CFR 983.207(b) and 983.302(e)]
The HAP contract year is the period of 12 calendar months preceding each annual anniversary of
the HAP contract during the HAP contract term. The initial contract year is calculated from the
first day of the first calendar month of the HAP contract term. The annual anniversary of the
HAP contract is the first day of the first calendar month after the end of the preceding contract
year. There is a single annual anniversary and expiration date for all units under a particular HAP
contract, even in cases where contract units are placed under the HAP contract in stages (on
different dates) or units are added by amendment. The anniversary and expiration dates for all
units coincide with the dates for the contract units that were originally placed under contract.
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17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP [24 CFR 983.210]
When the owner executes the HAP contract s/he certifies that at such execution and at all times
during the term of the HAP contract:
• All contract units are in good condition and the owner is maintaining the premises and
contract units in accordance with HQS;
• The owner is providing all services, maintenance, equipment and utilities as agreed to under
the HAP contract and the leases;
• Each contract unit for which the owner is receiving HAP, is leased to an eligible family
referred by the PHA, and the lease is in accordance with the HAP contract and HUD
requirements;
• To the best of the owner’s knowledge the family resides in the contract unit for which the
owner is receiving HAP, and the unit is the family’s only residence;
• The owner (including a principal or other interested party) is not the spouse, parent, child,
grandparent, grandchild, sister, or brother of any member of a family residing in a contract
unit;
• The amount of the HAP the owner is receiving is correct under the HAP contract;
• The rent for contract units does not exceed rents charged by the owner for comparable
unassisted units;
• Except for HAP and tenant rent, the owner has not received and will not receive any other
payment or consideration for rental of the contract unit;
• The family does not own or have any interest in the contract unit (does not apply to family's
membership in a cooperative); and
• Repair work on the project selected as an existing project that is performed after HAP
execution within such post-execution period as specified by HUD may constitute
development activity, and if determined to be development activity, the repair work
undertaken shall be in compliance with Davis-Bacon wage requirements.
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17-V.F. ADDITIONAL HAP REQUIREMENTS
Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)]
The owner is required to maintain and operate the contract units and premises in accordance with
HQS, including performance of ordinary and extraordinary maintenance. The owner must
provide all the services, maintenance, equipment, and utilities specified in the HAP contract with
the PHA and in the lease with each assisted family. In addition, maintenance, replacement and
redecoration must be in accordance with the standard practice for the building as established by
the owner.
The PHA may elect to establish additional requirements for quality, architecture, or design of
PBV housing. Any such additional requirements must be specified in the Agreement to enter into
a HAP contract and the HAP contract. These requirements must be in addition to, not in place of,
compliance with HQS.
PHA Policy
The PHA will identify the need for any special features on a case-by-case basis
depending on the intended occupancy of the PBV project. The PHA will specify any
special design standards or additional requirements in the invitation for PBV proposals,
the agreement to enter into HAP contract, and the HAP contract.
Vacancy Payments [24 CFR 983.352(b)]
At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner
for a PHA-determined period of vacancy extending from the beginning of the first calendar
month after the move-out month for a period not exceeding two full months following the move-
out month. The amount of the vacancy payment will be determined by the PHA and cannot
exceed the monthly rent to owner under the assisted lease, minus any portion of the rental
payment received by the owner (including amounts available from the tenant’s security deposit).
PHA Policy
The PHA will decide on a case-by-case basis if the PHA will provide vacancy payments
to the owner of a “Housing First” project providing permanent supportive housing for
homeless individuals/households with a disabling condition. The HAP contract with the
owner will contain any such agreement, including the amount of the vacancy payment
and the period for which the owner will qualify for these payments.
PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS
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17-VI.A. OVERVIEW
Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the
PBV program. This includes requirements related to determining eligibility and selecting
applicants from the waiting list. Even with these similarities, there are requirements that are
unique to the PBV program. This part describes the requirements and policies related to
eligibility and admission to the PBV program.
17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)]
The PHA may select families for the PBV program from those who are participants in the PHA’s
tenant-based voucher program and from those who have applied for admission to the voucher
program. For voucher participants, eligibility was determined at original admission to the
voucher program and does not need to be redetermined at the commencement of PBV assistance.
For all others, eligibility for admission must be determined at the commencement of PBV
assistance.
Applicants for PBV assistance must meet the same eligibility requirements as applicants for the
tenant-based voucher program. Applicants must qualify as a family as defined by HUD and the
PHA, have income at or below HUD-specified income limits, and qualify on the basis of
citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24
CFR 983.2(a)]. In addition, an applicant family must provide social security information for
family members [24 CFR 5.216 and 5.218] and consent to the PHA’s collection and use of
family information regarding income, expenses, and family composition [24 CFR 5.230]. The
PHA may also not approve a tenancy if the owner (including a principal or other interested party)
of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the
family, unless needed as a reasonable accommodation. An applicant family must also meet HUD
requirements related to current or past criminal activity.
PHA Policy
The PHA will determine an applicant family’s eligibility for the PBV program in
accordance with the policies in Chapter 3.
In-Place Families [24 CFR 983.251(b)]
An eligible family residing in a proposed PBV contract unit on the date the proposal is selected
by the PHA is considered an “in-place family.” These families are afforded protection from
displacement under the PBV rule. If a unit to be placed under contract (either an existing unit or
a unit requiring rehabilitation) is occupied by an eligible family on the date the proposal is
selected, the in-place family must be placed on the PHA’s waiting list. Once the family’s
continued eligibility is determined (the PHA may deny assistance to an in-place family for the
grounds specified in 24 CFR 982.552 and 982.553), the family must be given an absolute
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selection preference and the PHA must refer these families to the project owner for an
appropriately sized PBV unit in the project. Admission of eligible in-place families is not subject
to income targeting requirements.
This regulatory protection from displacement does not apply to families that are not eligible to
participate in the program on the proposal selection date.
17-VI.C. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(c)]
The PHA may establish a separate waiting list for PBV units or it may use the same waiting list
for both tenant-based and PBV assistance. The PHA may also merge the PBV waiting list with a
waiting list for other assisted housing programs offered by the PHA. If the PHA chooses to offer
a separate waiting list for PBV assistance, the PHA must offer to place applicants who are listed
on the tenant-based waiting list on the waiting list for PBV assistance.
If a PHA decides to establish a separate PBV waiting list, the PHA may use a single waiting list
for the PHA’s whole PBV program, or it may establish separate waiting lists for PBV units in
particular projects or buildings or for sets of such units.
PHA Policy
The PHA will use one waiting list for both the tenant-based and project-based voucher
programs. The PHA will accept referrals from a PBV owner operating a “Housing First”
project providing permanent supportive housing for homeless individuals/households
with a disabling condition.
17-VI.D. SELECTION FROM THE WAITING LIST [24 CFR 983.251(c)]
Applicants who will occupy units with PBV assistance must be selected from the PHA’s waiting
list. The PHA may establish selection criteria or preferences for occupancy of particular PBV
units. The PHA may place families referred by the PBV owner on its PBV waiting list.
Income Targeting [24 CFR 983.251(c)(6)]
At least 75 percent of the families admitted to the PHA’s tenant-based and project-based voucher
programs during the PHA fiscal year from the waiting list must be extremely-low income
families. The income targeting requirement applies to the total of admissions to both programs.
Units with Accessibility Features [24 CFR 983.251(c)(7)]
When selecting families to occupy PBV units that have special accessibility features for persons
with disabilities, the PHA must first refer families who require such features to the owner.
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Preferences [24 CFR 983.251(d), FR Notice 11/24/08]
The PHA may use the same selection preferences that are used for the tenant-based voucher
program, establish selection criteria or preferences for the PBV program as a whole, or for
occupancy of particular PBV developments or units. The PHA must provide an absolute
selection preference for eligible in-place families as described in Section 17-VI.B. above.
The PHA may establish a selection preference for families who qualify for voluntary services,
including disability-specific services, offered in conjunction with assisted units, provided that
preference is consistent with the PHA plan. The PHA may not, however, grant a preference to a
person with a specific disability [FR Notice 1/18/17].
In advertising such a project, the owner may advertise the project as offering services for a
particular type of disability; however, the project must be open to all otherwise eligible disabled
persons who may benefit from services provided in the project. In these projects, disabled
residents may not be required to accept the particular services offered as a condition of
occupancy.
If the PHA has projects with “excepted units” for elderly families or supportive services, the
PHA must give preference to such families when referring families to these units [24 CFR
983.261(b); FR Notice 1/18/17].
PHA Policy
The PHA will utilize the preferences outlined in Chapter 5.0 for all PBV projects. The
PHA will provide a selection preference when required by the regulation (e.g., eligible in-
place families, elderly families or units with supportive services, or mobility impaired
persons for accessible units).
17-VI.E. OFFER OF PBV ASSISTANCE
Refusal of Offer [24 CFR 983.251(e)(3)]
The PHA is prohibited from taking any of the following actions against a family who has applied
for, received, or refused an offer of PBV assistance:
• Refuse to list the applicant on the waiting list for tenant-based voucher assistance;
• Deny any admission preference for which the applicant qualifies;
• Change the applicant’s place on the waiting list based on preference, date, and time of
application, or other factors affecting selection under the PHA’s selection policy;
• Remove the applicant from the tenant-based voucher waiting list.
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Disapproval by Landlord [24 CFR 983.251(e)(2)]
If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect
the family’s position on the tenant-based voucher waiting list.
Acceptance of Offer [24 CFR 983.252]
Family Briefing
When a family accepts an offer for PBV assistance, the PHA must give the family an oral
briefing. The briefing must include information on how the program works and the
responsibilities of the family and owner. In addition to the oral briefing, the PHA must provide a
briefing packet that explains how the PHA determines the total tenant payment for a family, the
family obligations under the program, and applicable fair housing information.
Persons with Disabilities
If an applicant family’s head or spouse is disabled, the PHA must assure effective
communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing
the written information packet. This may include making alternative formats available. In
addition, the PHA must have a mechanism for referring a family that includes a member with a
mobility impairment to an appropriate accessible PBV unit.
Persons with Limited English Proficiency
The PHA should take reasonable steps to assure meaningful access by persons with limited
English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive
Order 13166 (see Chapter 1).
17-VI.F. OWNER SELECTION OF TENANTS
The owner is responsible for developing written tenant selection procedures that are consistent
with the purpose of improving housing opportunities for very low-income families and
reasonably related to program eligibility and an applicant’s ability to fulfill their obligations
under the lease. An owner must promptly notify in writing any rejected applicant of the grounds
for any rejection [24 CFR 983.253(a)(2) and (a)(3)].
Leasing [24 CFR 983.253(a)]
During the term of the HAP contract, the owner must lease contract units to eligible families that
are selected and referred by the PHA from the PHA’s waiting list. The contract unit leased to the
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family must be the appropriate size unit for the size of the family, based on the PHA’s subsidy
standards.
Filling Vacancies [24 CFR 983.254(a)]
The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit.
After receiving such notice, the PHA must make every reasonable effort to promptly refer a
sufficient number of families for the owner to fill such vacancies. The PHA and the owner must
make reasonable efforts to minimize the likelihood and length of any vacancy.
PHA Policy
The owner must notify the PHA in writing (mail, fax, or e-mail) within 5 business days of
learning about any vacancy or expected vacancy. The PHA will make every reasonable
effort to refer families to the owner within 10 business days of receiving such notice from
the owner.
Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)]
If any contract units have been vacant for 120 or more days since owner notice of the vacancy,
the PHA may give notice to the owner amending the HAP contract to reduce the number of
contract units by subtracting the number of contract units (according to the bedroom size) that
have been vacant for this period.
PHA Policy
If any contract units have been vacant for 120 days, the PHA will give notice to the
owner that the HAP contract will be amended to reduce the number of contract units that
have been vacant for this period. The PHA will provide the notice to the owner within 10
business days of the 120th day of the vacancy. The amendment to the HAP contract will
be effective the 1st day of the month following the date of the PHA’s notice.
17-VI.G. TENANT SCREENING [24 CFR 983.255]
PHA Responsibility
The PHA is not responsible or liable to the owner or any other person for the family’s behavior
or suitability for tenancy. However, the PHA may opt to screen applicants for family behavior or
suitability for tenancy and may deny applicants based on such screening.
PHA Policy
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The PHA will not conduct screening to determine a PBV applicant family’s suitability for
tenancy.
The PHA must provide the owner with an applicant family’s current and prior address (as shown
in PHA records) and the name and address (if known by the PHA) of the family’s current
landlord and any prior landlords.
In addition, the PHA may offer the owner other information the PHA may have about a family,
including information about the tenancy history of family members or about drug trafficking and
criminal activity by family members. The PHA must provide applicant families a description of
the PHA policy on providing information to owners, and the PHA must give the same types of
information to all owners.
The PHA may not disclose to the owner any confidential information provided in response to
a request for documentation of domestic violence, dating violence, sexual assault, or stalking
except at the written request or with the written consent of the individual providing the
documentation [24 CFR 5.2007(a)(4)].
PHA Policy
The PHA will inform owners of their responsibility to screen prospective tenants, and
will provide owners with the required known name and address information, at the time
of the turnover HQS inspection or before. The PHA will not provide any additional
information to the owner, such as tenancy history, criminal history, etc.
Owner Responsibility
The owner is responsible for screening and selection of the family to occupy the owner’s unit.
When screening families the owner may consider a family’s background with respect to the
following factors:
• Payment of rent and utility bills;
• Caring for a unit and premises;
• Respecting the rights of other residents to the peaceful enjoyment of their housing;
• Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or
property of others; and
• Compliance with other essential conditions of tenancy.
PART VII: OCCUPANCY
17-VII.A. OVERVIEW
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After an applicant has been selected from the waiting list, determined eligible by the PHA,
referred to an owner and determined suitable by the owner, the family will sign the lease and
occupancy of the unit will begin
.
17-VII.B. LEASE [24 CFR 983.256]
The tenant must have legal capacity to enter a lease under state and local law. Legal capacity
means that the tenant is bound by the terms of the lease and may enforce the terms of the lease
against the owner.
Form of Lease [24 CFR 983.256(b)]
The tenant and the owner must enter into a written lease agreement that is signed by both parties.
If an owner uses a standard lease form for rental units to unassisted tenants in the locality or
premises, the same lease must be used for assisted tenants, except that the lease must include a
HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all
provisions required by HUD.
If the owner does not use a standard lease form for rental to unassisted tenants, the owner may
use another form of lease, such as a PHA model lease.
The PHA may review the owner’s lease form to determine if the lease complies with state and
local law. If the PHA determines that the lease does not comply with state or local law, the PHA
may decline to approve the tenancy.
PHA Policy
The PHA may review the owner’s lease for compliance with state or local law.
Lease Requirements [24 CFR 983.256(c)]
The lease for a PBV unit must specify all of the following information
• The names of the owner and the tenant;
• The unit rented (address, apartment number, if any, and any other information needed to
identify the leased contract unit);
• The term of the lease (initial term and any provision for renewal);
• The amount of the tenant rent to owner, which is subject to change during the term of the
lease in accordance with HUD requirements;
• A specification of the services, maintenance, equipment, and utilities that will be provide by
the owner; and
• The amount of any charges for food, furniture, or supportive services.
•
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Tenancy Addendum [24 CFR 983.256(d)]
The tenancy addendum in the lease must state:
• The program tenancy requirements;
• The composition of the household as approved by the PHA (the names of family members
and any PHA-approved live-in aide);
• All provisions in the HUD-required tenancy addendum must be included in the lease. The
terms of the tenancy addendum prevail over other provisions of the lease.
Initial Term and Lease Renewal [24 CFR 983.256(f)]
The initial lease term must be for at least one year. The lease must provide for automatic renewal
after the initial term of the lease in either successive definitive terms (e.g. month-to-month or
year-to-year) or an automatic indefinite extension of the lease term. For automatic indefinite
extension of the lease term, the lease terminates if any of the following occur:
• The owner terminates the lease for good cause
• The tenant terminates the lease
• The owner and tenant agree to terminate the lease
• The PHA terminates the HAP contract
• The PHA terminates assistance for the family
Changes in the Lease [24 CFR 983.256(e)]
If the tenant and owner agree to any change in the lease, the change must be in writing, and the
owner must immediately give the PHA a copy of all changes.
The owner must notify the PHA in advance of any proposed change in the lease regarding the
allocation of tenant and owner responsibilities for utilities. Such changes may only be made if
approved by the PHA and in accordance with the terms of the lease relating to its amendment.
The PHA must redetermine reasonable rent, in accordance with program requirements, based on
any change in the allocation of the responsibility for utilities between the owner and the tenant.
The redetermined reasonable rent will be used in calculation of the rent to owner from the
effective date of the change.
Owner Termination of Tenancy [24 CFR 983.257]
With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an
owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In
the PBV program, terminating tenancy for “good cause” does not include doing so for a business
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or economic reason, or a desire to use the unit for personal or family use or other non-residential
purpose.
Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)]
The lease may specify a maximum period of family absence from the unit that may be shorter
than the maximum period permitted by PHA policy. According to program requirements, the
family’s assistance must be terminated if they are absent from the unit for more than 180
consecutive days. PHA termination of assistance actions due to family absence from the unit are
subject to 24 CFR 981.312, except that the unit is not terminated from the HAP contract if the
family is absent for longer than the maximum period permitted.
Continuation of Housing Assistance Payments [24 CFR 982.258]
Housing assistance payments shall continue until the tenant rent equals the rent to owner. The
cessation of housing assistance payments at such point will not affect the family's other rights
under its lease, nor will such cessation preclude the resumption of payments as a result of later
changes in income, rents, or other relevant circumstances if such changes occur within 180 days
following the date of the last housing assistance payment by the PHA. After the 180-day period,
the unit shall be removed from the HAP contract pursuant to 24 CFR 983.211.
PHA Policy
If a participating family receiving zero assistance experiences a change in circumstances
that would result in a HAP payment to the owner, the family must notify the PHA within
30 days of the change and request an interim reexamination before the expiration of the
180-day period.
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Security Deposits [24 CFR 983.259]
The owner may collect a security deposit from the tenant. The PHA may prohibit security
deposits in excess of private market practice, or in excess of amounts charged by the owner to
unassisted tenants.
PHA Policy
The PHA will allow the owner to collect a security deposit amount allowable in the State
of Iowa Code, Chapter 562A.
When the tenant moves out of a contract unit, the owner, subject to state and local law, may use
the security deposit, including any interest on the deposit, in accordance with the lease, as
reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the
tenant under the lease.
The owner must give the tenant a written list of all items charged against the security deposit and
the amount of each item. After deducting the amount used to reimburse the owner, the owner
must promptly refund the full amount of the balance to the tenant.
If the security deposit does not cover the amount owed by the tenant under the lease, the owner
may seek to collect the balance from the tenant. The PHA has no liability or responsibility for
payment of any amount owed by the family to the owner.
17-VII.C. MOVES
Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260]
If the PHA determines that a family is occupying a wrong size unit, based on the PHA’s subsidy
standards, or a unit with accessibility features that the family does not require, and the unit is
needed by a family that does require the features, the PHA must promptly notify the family and
the owner of this determination, and the PHA must offer the family the opportunity to receive
continued housing assistance in another unit.
PHA Policy
The PHA will notify the family and the owner of the family’s need to move based on the
occupancy of a wrong-size or accessible unit within 10 business days of the PHA’s
determination. The PHA will offer the family the following types of continued assistance
in the following order, based on the availability of assistance:
• PBV assistance in the same building or project;
• PBV assistance in another project; and
• Tenant-based voucher assistance.
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If the PHA offers the family a tenant-based voucher, the PHA must terminate the housing
assistance payments for a wrong-sized or accessible unit at the earlier of the expiration of the
term of the family’s voucher (including any extension granted by the PHA) or the date upon
which the family vacates the unit. If the family does not move out of the wrong-sized unit or
accessible unit by the expiration of the term of the family's voucher, the PHA must remove the
unit from the HAP contract.
If the PHA offers the family another form of assistance that is not a tenant-based voucher, and
the family does not accept the offer, does not move out of the PBV unit within a reasonable time
as determined by the PHA, or both, the PHA must terminate the housing assistance payments for
the unit at the expiration of a reasonable period as determined by the PHA and remove the unit
from the HAP contract.
PHA Policy
When the PHA offers a family another form of assistance that is not a tenant-based
voucher, the family will be given 30 days from the date of the offer to accept the offer
and move out of the PBV unit. If the family does not move out within this 30-day time
frame, the PHA will terminate the housing assistance payments at the expiration of this
30-day period.
The PHA may make exceptions to this 30-day period if needed for reasons beyond the
family’s control such as death, serious illness, or other medical emergency of a family
member.
Family Right to Move [24 CFR 983.261]
The family may terminate the lease at any time after the first year of occupancy. The family must
give advance written notice to the owner in accordance with the lease and provide a copy of such
notice to the PHA. If the family wishes to move with continued tenant-based assistance, the
family must contact the PHA to request the rental assistance prior to providing notice to
terminate the lease.
If the family terminates the lease in accordance with these requirements, the PHA is required to
offer the family the opportunity for continued tenant-based assistance, in the form of a voucher
or other comparable tenant-based rental assistance. If voucher or other comparable tenant-based
assistance is not immediately available upon termination of the family’s lease in the PBV unit,
the PHA must give the family priority to receive the next available opportunity for continued
tenant-based assistance.
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If the family terminates the assisted lease before the end of the first year, the family relinquishes
the opportunity for continued tenant-based assistance.
Emergency Transfers under VAWA [Notice PIH 2017-08]
Except where special consideration is needed for the project-based voucher program, the PHA
will follow VAWA policies as outlined in Notice PIH 2017-08.
HUD requires that the PHA include policies that address when a victim has been living in a unit
for less than a year or when a victim seeks to move sooner than a tenant-based voucher is
available.
PHA Policy
Provisions for persons subjected to dating violence, domestic violence, sexual assault, and
stalking.
1. If a family breaks up as a result of dating violence, domestic violence, sexual assault, and
stalking, the ICHA will ensure the victim will remain continually assisted.
2. A move with continued assistance will be approved if the move is needed to protect the
health or safety of the family, or any family member that has been the victim of a sexual
assault that occurred on the premises during the 90-day calendar-day period preceding the
family’s request to move.
17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262]
As of April 17, 2018, the PHA may not pay housing assistance under a PBV HAP contract for
more than the greater of 25 units or 25 percent of the number of dwelling units in a project
unless:
• The units are exclusively for elderly families
• The units are for households eligible for supportive services available to all families
receiving PBV assistance in the project
If the project is located in a census tract with a poverty rate of 20 percent or less, as determined
in the most recent American Community Survey Five-Year estimates, the project cap is the
greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice
7/14/17].
If a family at the time of initial tenancy is receiving and while the resident of an excepted unit
has received Family Self-Sufficiency (FSS) supportive services or any other service as defined
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by the PHA and successfully completes the FSS contract of participation or the supportive
services requirement, the unit continues to count as an excepted unit for as long as the family
resides in the unit. However, if the FSS family fails to successfully complete the FSS contract of
participation or supportive services objective and consequently is no longer eligible for the
supportive services, the family must vacate the unit within a reasonable period of time
established by the PHA, and the PHA shall cease paying HAP on behalf of the family.
Further, when a family (or remaining members of a family) residing in an excepted unit no
longer meets the criteria for a “qualifying family” because the family is no longer an elderly
family due to a change in family composition, the PHA has the discretion to allow the family to
remain in the excepted unit. If the PHA does not exercise this discretion, the family must vacate
the unit within a reasonable period of time established by the PHA, and the PHA must cease
paying housing assistance payments on behalf of the non-qualifying family.
Individuals in units with supportive services who choose to no longer participate in a service or
who no longer qualify for services they qualified for at the time of initial occupancy cannot
subsequently be denied continued housing opportunity because of this changed circumstance. A
PHA or owner cannot determine that a participant’s needs exceed the level of care offered by
qualifying services or require that individuals be transitioned to different projects based on
service needs.
If the family fails to vacate the unit within the established time, the unit must be removed from
the HAP contract unless the project is partially assisted, and it is possible for the HAP contract to
be amended to substitute a different unit in the building in accordance with program
requirements; or the owner terminates the lease and evicts the family. The housing assistance
payments for a family residing in an excepted unit that is not in compliance with its family
obligations to comply with supportive services requirements must be terminated by the PHA.
The PHA may allow a family that initially qualified for occupancy of an excepted unit based on
elderly family status to continue to reside in a unit, where through circumstances beyond the
control of the family (e.g., death of the elderly family member or long-term or permanent
hospitalization or nursing care), the elderly family member no longer resides in the unit. In this
case, the unit may continue to be counted as an excepted unit for as long as the family resides in
that unit. Once the family vacates the unit, in order to continue as an excepted unit under the
HAP contract, the unit must be made available to and occupied by a qualified family.
PHA Policy
The PHA will allow families who initially qualified to live in an excepted unit to remain
when circumstances change due to circumstances beyond the remaining family members’
control. In all other cases, the PHA will provide written notice to the family and owner
within 10 business days of making the determination. The family will be given 30 days
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from the date of the notice to move out of the PBV unit. If the family does not move out
within this 30-day time frame, the PHA will terminate the housing assistance payments at
the expiration of this 30-day period.
The PHA may make exceptions to this 30-day period if needed for reasons beyond the
family’s control such as death, serious illness, or other medical emergency of a family
member.
PART VIII: DETERMINING RENT TO OWNER
17-VIII.A. OVERVIEW
The amount of the initial rent to an owner of units receiving PBV assistance is established at the
beginning of the HAP contract term. Although for rehabilitated or newly constructed housing,
the agreement to enter into HAP Contract (Agreement) states the estimated amount of the initial
rent to owner, the actual amount of the initial rent to owner is established at the beginning of the
HAP contract term.
During the tem of the HAP contract, the rent to owner is redetermined at the owner’s request in
accordance with program requirements, and at such time that there is a five percent or greater
decrease in the published FMR.
17-VIII.B. RENT LIMITS [24 CFR 983.301]
Except for certain tax credit units (discussed below), the rent to owner must not exceed the
lowest of the following amounts:
• An amount determined by the PHA, not to exceed 110 percent of the applicable fair market
rent (or any HUD-approved exception payment standard) for the unit bedroom size minus
any utility allowance;
• The reasonable rent; or
• The rent requested by the owner.
Certain Tax Credit Units [24 CFR 983.301(c)]
For certain tax credit units, the rent limits are determined differently than for other PBV units.
Different limits apply to contract units that meet all of the following criteria:
• The contract unit receives a low-income housing tax credit under the Internal Revenue Code
of 1986;
• The contract unit is not located in a qualified census tract;
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• There are comparable tax credit units of the same bedroom size as the contract unit in the
same project, and the comparable tax credit units do not have any form of rental assistance
other than the tax credit; and
• The tax credit rent exceeds 110 percent of the fair market rent or any approved exception
payment standard;
For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of:
• The tax credit rent minus any utility allowance;
• The reasonable rent; or
• The rent requested by the owner.
•
Definitions
A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau
of the Census) in which at least 50 percent of households have an income of less than 60 percent
of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and
where the census tract is designated as a qualified census tract by HUD.
Tax credit rent is the rent charged for comparable units of the same bedroom size in the project
that also receive the low-income housing tax credit but do not have any additional rental
assistance (e.g., tenant-based voucher assistance).
Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)]
The PHA must determine reasonable rent in accordable with 24 CFR 983.303. The rent to owner
for each contract unit may at no time exceed the reasonable rent, except in cases where the PHA
has elected within the HAP contract not to reduce rents below the initial rent to owner and, upon
redetermination of the rent to owner, the reasonable rent would result in a rent below the initial
rent. However, the rent to owner must be reduced in the following cases:
• To correct errors in calculations in accordable with HUD requirements
• If additional housing assistance has been combined with PBV assistance after the execution
of the initial HAP contract and a rent decrease is required pursuant to 24 CFR 983.55
• If a decrease in rent to owner is required based on changes in the allocation of the
responsibility for utilities between owner and tenant
If the PHA has not elected within the HAP contract to establish the initial rent to owner as the
rent floor, the rent to owner shall not at any time exceed the reasonable rent.
PHA Policy
The PHA will elect within the HAP contract not to reduce rents below the initial level,
with the exception of circumstances listed in 24 CFR 983.302(c)(2). If, upon
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redetermination of the rent to owner, the reasonable rent would result in a rent below the
initial rent, the PHA will use the higher initial rent to owner amount.
Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)]
When determining the initial rent to owner, the PHA must use the most recently published FMR
in effect and the utility allowance schedule in effect at execution of the HAP contract. When
redetermining the rent to owner, the PHA must use the most recently published FMR and the
utility allowance schedule in effect at the time of redetermination. At its discretion, the PHA may
for initial rent, use the amounts in effect at any time during the 30-day period immediately before
the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period
immediately before the redetermination date.
Any HUD-approved exception payment standard amount under the tenant-based voucher
program also applies to the project-based voucher program. HUD will not approve a different
exception payment stand amount for use in the PBV program.
Likewise, the PHA may not establish or apply different utility allowance amounts for the PBV
program. The same utility allowance schedule applies to both the tenant-based and project-based
voucher programs.
PHA Policy
The PHA will use the published FMR and utility allowance schedule in effect at the time
the HAP contract is executed or at the time of rent determination.
Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h)]
While small area FMRs (SAFMRs) do not apply to PBV projects, PHAs that operate a tenant-
based program under SAFMRs may apply SAFMRs to all future PBV HAP contracts. If the
PHA adopts this policy, it must apply to all future PBV projects and the PHA’s entire
jurisdiction. The PHA and owner may not subsequently choose to revert back to use of the FMRs
once the SAFMRs have been adopted, even if the PHA subsequently changes its policy.
Further, the PHA may apply SAFMRs to current PBV projects where the notice of owner
selection was made on or before the effective date of PHA implementation, provided the owner
is willing to mutually agree to doing so and the application is prospective. The PHA and owner
may not subsequently choose to revert back to use of the FMRs once the SAFMRs have been
adopted, even if the PHA subsequently changes its policy. If rents increase as a result of the use
of SAFMRs, the rent increase may not be effective until the first anniversary of the HAP
contract.
PHA Policy
The PHA will not apply SAFMRs to the PHA’s PBV program.
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Redetermination of Rent [24 CFR 983.302]
The PHA must redetermine the rent to owner upon the owner’s request or when there is a
10 percent or greater decrease in the published FMR.
Rent Increase
If an owner wishes to request an increase in the rent to owner from the PHA, it must be requested
at the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in
writing and in the form and manner required by the PHA. The PHA may only make rent
increases in accordance with the rent limits described previously. There are no provisions in the
PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and
necessary expenses of owning and maintaining the units which have resulted from substantial
general increases in real property taxes, utility rates, or similar costs).
PHA Policy
An owner’s request for a rent increase must be submitted to the PHA 60 days prior to the
anniversary date of the HAP contract, and must include the new rent amount the owner is
proposing.
The PHA may not approve and the owner may not receive any increase of rent to owner until and
unless the owner has complied with requirements of the HAP contract, including compliance
with HQS. The owner may not receive any retroactive increase of rent for any period of
noncompliance.
Rent Decrease
If there is a decrease in the rent to owner, as established in accordance with program
requirements such as a change in the FMR or exception payment standard, or reasonable rent
amount, the rent to owner must be decreased regardless of whether the owner requested a rent
adjustment, except where the PHA has elected within the HAP contract to not reduce rents below
the initial rent under the initial HAP contract.
Notice of Rent Change
The rent to owner is redetermined by written notice by the PHA to the owner specifying the
amount of the redetermined rent. The PHA notice of rent adjustment constitutes an amendment
of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies
for the period of 12 calendar months from the annual anniversary of the HAP contract.
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PHA Policy
The PHA will provide the owner with at least 30 days written notice of any change in the
amount of rent to owner.
PHA-Owned Units [24 CFR 983.301(g)]
For PHA-owned PBV units, the initial rent to owner and the annual redetermination of rent at the
anniversary of the HAP contract are determined by the independent entity approved by HUD.
The PHA must use the rent to owner established by the independent entity.
17-VIII.C. REASONABLE RENT [24 CFR 983.303]
At the time the initial rent is established and all times during the term of the HAP contract, the
rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by
the PHA, except where the PHA has elected within the HAP contract to not reduce rents below
the initial rent under the initial HAP contract.
When Rent Reasonable Determinations Are Required
The PHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever any
of the following occur:
• There is a 10 percent or greater decrease in the published FMR in effect 60 days before the
contract anniversary (for the unit sizes specified in the HAP contract) as compared with the
FMR that was in effect one year before the contract anniversary date;
• The PHA approves a change in the allocation of responsibility for utilities between the owner
and the tenant;
• The HAP contract is amended to substitute a different contract unit in the same building or
project; or
• There is any other change that may substantially affect the reasonable rent.
How to Determine Reasonable Rent
The reasonable rent of a unit receiving PBV assistance must be determined by comparison to
rent for other comparable unassisted units. When making this determination, the PHA must
consider factors that affect market rent. Such factors include the location, quality, size, type and
age of the unit, as well as the amenities, housing services maintenance, and utilities to be
provided by the owner.
Comparability Analysis
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For each unit, the comparability analysis must use at least three comparable units in the private
unassisted market. This may include units in the premises or project that is receiving project-
based assistance. The analysis must show how the reasonable rent was determined, including
major differences between the contract units and comparable unassisted units, and must be
retained by the PHA. The comparability analysis may be performed by PHA staff or by another
qualified person or entity. Those who conduct these analyses or are involved in determining the
housing assistance payment based on the analyses may not have any direct or indirect interest in
the property.
PHA-Owned Units
For PHA-owned units, the amount of the reasonable rent must be determined by an independent
agency approved by HUD in accordance with PBV program requirements. The independent
entity must provide a copy of the determination of reasonable rent for PHA-owned units to the
PHA and to the HUD field office where the project is located.
Owner Certification of Reasonable Rent
By accepting each monthly housing assistance payment, the owner certifies that the rent to
owner is not more than rent charged by the owner for other comparable unassisted units in the
premises. At any time, the PHA may require the owner to submit information on rents charged
by the owner for other units in the premises or elsewhere.
17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL
In addition to the rent limits discussed in Section 17-VIII.B above, other restrictions may limit
the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are
not even eligible to receive PBV assistance (see Section 17-II.D).
Other Subsidy [24 CFR 983.304]
To comply with HUD subsidy layering requirements, at the discretion of HUD or its designee, a
PHA shall reduce the rent to owner because of other governmental subsidies, including tax
credits or tax exemptions, grants, or other subsidized funding.
For units receiving assistance under the HOME program, rents may not exceed rent limits as
required by that program.
For units in any of the following types of federally subsidized projects, the rent to owner may not
exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with
requirements for the applicable federal program:
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• An insured or non-insured Section 236 project;
• A formerly insured or non-insured Section 236 project that continues to receive Interest
Reduction Payment following a decoupling action;
• A Section 221(d)(3) below market interest rate (BMIR) project;
• A Section 515 project of the Rural Housing Service;
• Any other type of federally subsidized project specified by HUD.
•
Combining Subsidy
Rent to owner may not exceed any limitation required to comply with HUD subsidy layering
requirements.
Rent Control [24 CFR 983.305]
In addition to the rent limits set by PBV program regulations, the amount of rent to owner may
also be subject to rent control or other limits under local, state, or federal law.
PART IX: PAYMENTS TO OWNER
17-IX.A. HOUSING ASSISTANCE PAYMENTS [24 CFR 983.351]
During the term of the HAP contract, the PHA must make housing assistance payments to the
owner in accordance with the terms of the HAP contract. During the term of the HAP contract,
payments must be made for each month that a contract unit complies with HQS and is leased to
and occupied by an eligible family. The housing assistance payment must be paid to the owner
on or about the first day of the month for which payment is due, unless the owner and the PHA
agree on a later date.
Except for discretionary vacancy payments, the PHA may not make any housing assistance
payment to the owner for any month after the month when the family moves out of the unit (even
if household goods or property are left in the unit).
The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant
rent (total tenant payment minus the utility allowance).
In order to receive housing assistance payments, the owner must comply with all provisions of
the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner
does not have a right to receive housing assistance payments.
17-IX.B. VACANCY PAYMENTS [24 CFR 983.352]
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If an assisted family moves out of the unit, the owner may keep the housing assistance payment
for the calendar month when the family moves out. However, the owner may not keep the
payment if the PHA determines that the vacancy is the owner’s fault.
PHA Policy
If the PHA determines that the owner is responsible for a vacancy and, as a result, is not
entitled to the keep the housing assistance payment, the PHA will notify the landlord of
the amount of housing assistance payment that the owner must repay. At the discretion of
the PHA, the HAP contract may provide for vacancy payments to the owner. The PHA
may only make vacancy payments if:
• The owner gives the PHA prompt, written notice certifying that the family has vacated the
unit and identifies the date when the family moved out (to the best of the owner’s
knowledge);
• The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant
during the period for which payment is claimed;
• The owner certifies that it has taken every reasonable action to minimize the likelihood and
length of vacancy; and
• The owner provides any additional information required and requested by the PHA to verify
that the owner is entitled to the vacancy payment.
The owner must submit a request for vacancy payments in the form and manner required by the
PHA and must provide any information or substantiation required by the PHA to determine the
amount of any vacancy payment.
PHA Policy
If an owner’s HAP contract calls for vacancy payments to be made, and the owner wishes
to receive vacancy payments, the owner must have properly notified the PHA of the
vacancy in accordance with the policy in Section 17-VI.F. regarding filling vacancies.
In order for a vacancy payment request to be considered, it must be made within 10
business days of the end of the period for which the owner is requesting the vacancy
payment. The request must include the required owner certifications and the PHA may
require the owner to provide documentation to support the request. If the owner does not
provide the information requested by the PHA within 10 business days of the PHA’s
request, no vacancy payments will be made.
17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353]
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The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent
is determined by the PHA in accordance with HUD requirements. Any changes in the amount of
tenant rent will be effective on the date stated in the PHA notice to the family and owner.
The family is responsible for paying the tenant rent (total tenant payment minus the utility
allowance). The amount of the tenant rent determined by the PHA is the maximum amount the
owner may charge the family for rental of a contract unit. The tenant rent covers all housing
services, maintenance, equipment, and utilities to be provided by the owner. The owner may not
demand or accept any rent payment from the tenant in excess of the tenant rent as determined by
the PHA. The owner must immediately return any excess payment to the tenant.
Tenant and PHA Responsibilities
The family is not responsible for the portion of rent to owner that is covered by the housing
assistance payment and the owner may not terminate the tenancy of an assisted family for
nonpayment by the PHA.
Likewise, the PHA is responsible only for making the housing assistance payment to the owner
in accordance with the HAP contract. The PHA is not responsible for paying tenant rent, or any
other claim by the owner, including damage to the unit. The PHA may not use housing assistance
payments or other program funds (including administrative fee reserves) to pay any part of the
tenant rent or other claim by the owner.
Utility Reimbursements
If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the
amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant
rent to the owner must be zero.
The PHA may pay the utility reimbursement directly to the family or to the utility supplier on
behalf of the family. If the PHA chooses to pay the utility supplier directly, the PHA must notify
the family of the amount paid to the utility supplier.
PHA Policy
The PHA will make utility reimbursements to the family.
17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.354]
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Meals and Supportive Services
With the exception of PBV assistance in assisted living developments, the owner may not require
the tenant to pay charges for meals or supportive services. Non-payment of such charges is not
grounds for termination of tenancy.
In assisted living developments receiving PBV assistance, the owner may charge for meals or
supportive services. These charges may not be included in the rent to owner, nor may the value
of meals and supportive services be included in the calculation of the reasonable rent. However,
non-payment of such charges is grounds for termination of the lease by the owner in an assisted
living development.
Other Charges by Owner
The owner may not charge extra amounts for items customarily included in rent in the locality or
provided at no additional cost to unsubsidized tenants in the premises.
18.0 RENTING TO FAMILY MEMBERS 982.306 (D)
The PHA must not approve a unit if the owner is the parent, including step-parents, step-
grandparents, sister-in-law, brother-in-law, child, grandparent, grandchild, sister, or
brother of any member of the family, unless the PHA determines that approving the unit
would provide reasonable accommodation for a family member who is a person with
disabilities. This restriction against PHA approval of a unit only applies at the time a family
initially receives tenant-based assistance for occupancy of a particular unit, it does not
apply to PHA approval of a new tenancy with continued tenant-based assistance in the
same unit. The above provision will also apply to the “would be” parent or other relative
of an unborn child.
19. HOMEOWNERSHIP 24 CFR 982.625-641
The Iowa City Housing Authority has established a HCVP Tenant-based Voucher Homeownership
Option.
19.1. GENERAL PROVISIONS:
The HCVP Homeownership Program of the Iowa City Housing Authority (ICHA) permits
eligible participants in the HCVP Housing Choice Voucher Program, including
participants with portable vouchers, the option of purchasing a home with their HCVP
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assistance rather than renting. The homeownership option is limited to three percent (3%)
of the total HCVP voucher program budgeted by the ICHA in any fiscal year, excluding
disabled and elderly families.
Eligible participants for the HCVP Homeownership Program must complete at a minimum
a one-year lease term in an ICHA Public Housing unit or in a unit subsidized with HCVP
rental assistance in the ICHA jurisdiction. They must not owe the ICHA or any other
housing authority an outstanding debt and must meet the eligibility criteria set forth herein.
HCVP homeownership assistance payments may be used to purchase the following type of
housing within Johnson County: new or existing single-family units, condominiums,
cooperatives, lofts, and, or manufactured units. ICHA will also permit portability of HCVP
homeownership payments to another jurisdiction, provided the receiving jurisdiction
operates a HCVP Homeownership Program for which the participant qualifies, is accepting
new families, or authorizes the ICHA to administer the homeownership assistance in their
jurisdiction (24 CFR 982.636; 24 CFR 982.355(c)(5)).
19.2 QUALIFICATIONS FOR PARTICIPATION:
Any HCVP program participant may utilize his or her subsidy to purchase rather than rent a home,
if the following requirements are met:
A. General Requirements (24 CFR 982.627(a). A family must meet the general
requirements for admission to, or continued participation in, the ICHA HCVP
Housing Choice Voucher Program.
B. Previous Unsuccessful Participation (24 CFR 982.627(a) (5)). If a head of
household, spouse or other adult household member who will hold ownership in
the home has previously defaulted on a mortgage obtained through the HCVP
Homeownership Program, the family will be ineligible to participate in the
homeownership program.
C. Participants Must be First-time Homeowners (24 CFR 982.627(b)). A member
must not have owned title to a residence in the last three years, except single-parents
or displaced homemakers whom previously owned a home with a spouse. Residents
of limited equity cooperatives under the rental assistance program are eligible for
the homeownership option.
D. Homeownership Counseling Requirements (24 CFR 982.630). Program
participants must be deemed “mortgage ready” (adequately prepared with
information for the financial and physical responsibilities of owning a home) by the
homeownership counseling program.
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E. Mortgage readiness will also be evaluated by the Housing Inspection Services
Director or designee considering the following factors:
1. Verification of HCVP Housing Choice Voucher program compliance.
2. History of meeting financial obligations, including rent and utilities.
3. A satisfactory credit report.
4. A satisfactory rental reference.
5. Letter of recommendation from current employer.
6. Any pattern of criminal behavior for 3 years preceding application.
7. Other documentation as necessary.
F. Employment Requirement (24 CFR 982.627(d)). The persons who will receive
ownership of the home must, individually or jointly, be employed an average of 30
hours per week and have been continuously so employed throughout the year
preceding the commencement of homeownership assistance. Families in which the
head of household or spouse is disabled or elderly at the time of application are
exempt from this requirement, and families with another disabled member may
request an exemption by the Housing Inspection Services Director or designee as a
reasonable accommodation.
G. Minimum Income Requirements (24 CFR 982.627(c)). The purchasers' annual
income must be not less than equal to 2,000 hours worked at the federal minimum
wage or twelve times the monthly Federal Supplemental Security Income (SSI)
benefit for a disabled individual living alone at the commencement of
homeownership assistance. Income may not include public assistance income
unless the head of household or spouse is disabled or elderly at the time of
application. An exemption to this rule may be requested as a reasonable
accommodation if another family member is disabled. Public Assistance includes
federal housing assistance, TANF, SSI, SSDI, food stamps, or other assistance
provided under a federal, state, or local program that assists families in meeting
their living expenses.
H. Completion of One Year Lease Term. Participants in the HCVP Housing Choice
Voucher Program are ineligible for participation in the HCVP Homeownership
Program until the completion of a one year HCVP lease term and participation in
the first annual recertification for the HCVP Housing Choice Voucher Program.
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I. Repayment of Any Housing Authority Debts. Participants in the HCVP Housing
Choice Voucher Program shall be ineligible for participation in the HCVP
Homeownership Program in the event any debt remains owed to ICHA or other
Housing Authority.
J. Family Self-Sufficiency (FSS) Preference. Participants in the homeownership
program are not required to participate in ICHA’s FSS program; however FSS
participants will be given preference for participation in the HCVP
Homeownership Program.
19.3 TIME FRAME FOR UTILIZATION:
An applicant will have a maximum of 120 days from the date of issuance of a
homeownership voucher to find a home and enter into a "Contract for Sale".
An extension up to 60 additional days may be at the discretion of the Housing Inspection
Services Director or designee.
19.4 CONTRACT FOR SALE AND INSPECTION REQUIREMNTS:
A. Time Frame. Once a home is located and ICHA approves a sale agreement signed
by the family, the family shall have up to three (3) months to close, or such other
time approved by the Housing Inspection Services Director or designee.
B. Contract of Sale (Residential Purchase Agreement). Participants in the
homeownership program must complete a "Contract of Sale" with the owner of the
property to be purchased. The unit must exist or be under construction before the
contract of sale is executed.
The Contract of Sale must include the home's price and terms of sale, the
purchaser's pre-purchase inspection requirements and notice that the sale is
conditional on the purchaser's acceptance of the inspection report, an agreement
that the purchaser is not obligated to pay for necessary repairs, and certification that
the seller is not disbarred, suspended, or subject to limited denial of participation
(24 CFR 982.631(c) (2). ICHA will provide a document to the purchaser outlining
these items for inclusion in the Contract of Sale.
C. Inspections (24 CFR 982.631). The unit must pass a Housing Quality Standards
(HQS) inspection, unless the unit has passed one within the previous six (6) months.
The purchaser must then obtain, at his/her own expense, an independent inspection
by a licensed professional inspector. The inspection must include major building
systems and components, including but not limited to the foundation and structure,
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housing interior and exterior, roofing, plumbing, and electrical and heating systems.
The independent inspection report must be provided to the ICHA for review.
D. ICHA may disqualify a unit. The Housing Inspection Services Director or designee
retains the right to disqualify the unit for inclusion in the homeownership program
based on either the HQS inspection or the independent inspection report (24 CFR
982.631).
E. Environmental Requirements (24 CFR 982.626(c)). It must be determined if the
unit is in a flood hazard area, airport runway or airfield clear zones. Units in flood
hazard areas must be insured for flood damage.
19.5 FINANCING:
The purchaser is responsible for obtaining financing.
A. Financing Terms. The proposed financing terms must be submitted to and approved
by the ICHA prior to closing the sale (24 CFR 982.632(d)). The mortgager and
ICHA shall determine the affordability of the family’s proposed financing. The
following may be taken into account when making such determinations: other
family expenses, including but not limited to child care, un-reimbursed medical,
education and training expenses. Financing, including but not limited to, balloon
payment mortgages and interest rates; and personal circumstances that may
influence potential earnings. Seller-financed mortgages will be considered on a
case by case basis.
B. Underwriting. If the mortgage of a home is financed using Federal Housing
Administration (FHA) insurance, financing is subject to FHA mortgage
underwriting standards. If a mortgage is not an FHA-insured loan, the ICHA will
require the loan to comply with generally accepted mortgage underwriting
standards (24 CFR 982.632(b)).
C. Participant Obligations. All settlement costs required in the purchase of a home,
e.g. down payments, commissions, attorney, loan origination, application, and
appraisal fees, abstract and title searches, closing costs, and any other financial
obligations, will be the responsibility of the participant.
19.6 FAILURE TO COMPLETE PURCHASE:
If a HCVP Homeownership Program participant is unable to purchase the home within the
maximum time permitted by ICHA, the ICHA shall continue the family’s rental assistance in the
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HCVP Housing Choice Voucher Program. The family may not re-apply for the HCVP
Homeownership Program until they have completed an additional one-year lease.
19.7 HOMEOWNERSHIP ASSISTANCE PAYMENTS:
HCVP homeownership assistance will only be provided for the months the family is in
residence in the home (24 CFR 982.633(a)).
A. Determining Amount of Assistance Payment (24 CFR 982.635(a)). The family's
HCVP monthly homeownership assistance payment will be the lower of (1) the
HCVP voucher payment standard minus the total tenant payment or (2) the monthly
homeowner expenses minus the total tenant payment.
B. Annual Reexaminations: ICHA will annually reexamine family income and
composition and make appropriate adjustments to the amount of the monthly
housing assistance payment. The new payment standard is the greater of that
determined (1) at the commencement of homeownership assistance or (2) at the
most recent regular reexamination since the commencement of homeownership
assistance (24 CFR 982. 635(b) (3)).
C. Interim Reexaminations. Interim reexaminations based on increases in earned and
unearned income will be processed. *
* Social Security cost of living increases will be processed at annual review only;
unless this information is gathered as a result of other interim changes reported
by the family (e.g., Medicare changes).
D. Expenses Included. Homeownership expenses include principal and interest on
mortgage debt, mortgage debt refinancing charges, taxes and other public
assessments, homeowners' insurance, maintenance and major repair expenses, and
the Public Housing utility allowance schedule. The ICHA allowance for
maintenance expenses and major repairs or replacements will be based on standard
allowances. For families with a disabled or elderly member allowances may include
any debt incurred to make the home accessible for such persons (24 CFR
982.635(c) (2) (vii)). Expenses may also include land lease payments where a
family does not own fee title to the real property on which the home sits (24 CFR
982(c) (2) (viii)).
E. Payment. Homeownership assistance payments will be made directly to the lender.
If the homeownership assistance payment is greater than the mortgage payment and
the tax and insurance escrow payments, the difference will be paid to the family.
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F. Graduation from Assistance. If a family's income increases to the point that they no
longer require homeownership assistance payments, eligibility for such payments
will continue for 180 calendar days. At the end of 180 continuous days without
assistance payments, eligibility for HCVP homeownership assistance will
automatically terminate (24 CFR 982.635(e)).
G. Length of Assistance. The maximum length of assistance is 15 years for a mortgage
amortized over 20 years or more (24 CFR 982.634). Elderly and disabled families
are exempt from this time limit. Moving with Assistance. A participating
family may purchase another home with HCVP assistance upon the sale of the
previously occupied unit, provided there is no mortgage default and the family is
in compliance with the “Statement of Homeowner Obligations.” The length of
assistance is cumulative for all homes up to 15 years, except for those purchased
by elderly or disabled families (24 CFR 982.637).
19.8 HOMEOWNER OBLIGATIONS:
Before commencement of homeownership payments, the family must execute a "Statement
of Homeowner Obligations" in the form prescribed by the ICHA, signifying a commitment
to comply with responsibilities under the homeownership program (24 CFR 982.633).
To continue receiving homeownership assistance payments, the family must comply with
all family obligations under the HCVP Homeownership Program and ICHA’s
homeownership policies. These obligations include:
A. Ongoing Counseling. To the extent required by ICHA, the family must attend and
complete ongoing homeownership and housing counseling.
B. Mortgage Compliance. The family must comply with the terms of any mortgage
securing debt incurred to purchase the home, and any refinancing of such debt.
C. Prohibition against conveyance or transfer of the home.
1. So long as the family is receiving homeownership assistance payments:
a. The unit must be the one and only family residence, composition of the
assisted family must be approved by ICHA and changes must be
reported, any business activity in the unit must comply with Iowa City
codes and be incidental to the use of the unit as a residence, and the
family must not sublease the unit.
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b. The family must supply verification to ICHA that the family lives in the
unit or relating to any absences as requested. ICHA must be notified of
any absence from the unit greater than 30 days.
2. The family may grant a mortgage on the home for debt incurred to purchase
or refinance the home.
3. Upon the death of the deed holder[s], assistance may continue and the
remaining family members may continue to occupy the home in accordance
with 1(a) pending settlement of the decedent's estate, even though the title
may transfer.
D. Supplying Required Information. The family must supply all required information
to the ICHA
1. Information includes but is not limited to verification of income and family
composition, social security numbers, and citizenship status at regularly
scheduled reexaminations. All information must be true and complete.
2. The family must provide information to ICHA on any debt incurred on the
home, any sale or transfer of any interest in the home, and cost of
homeownership expenses.
3. The family must, at annual recertification, document that he/she is current
on mortgage, insurance, and utility payments.
E. Notice of Move-Out. The family must notify the ICHA before the family moves
out of the home.
F. Notice of Default. The family must notify the ICHA if the family defaults on a
mortgage securing any debt incurred on the home.
C. Prohibition of Owning a Second Home. At no time while the family is receiving
assistance may any member own interest in another residential property.
D. Other Obligations.
1. The family members must not commit fraud or bribery or participate in other
criminal activities.
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2. The members must not engage in drug-related criminal activities or abuse
alcohol in a manner that threatens the health, safety and quality of life of
surrounding residents,
3. Assistance must not be received for the unit or family members under any other
assistance program (federal, state, or local) while HCVP Homeownership
assistance is being received.
19.9 DEFAULTS:
If a participant in the HCVP Homeownership Program defaults on his or her home
mortgage loan or private contract, ICHA must terminate the homeownership assistance.
The participant may reapply for the HCVP rental assistance waiting list if aid is still
desired, unless the financing had been secured with FHA insurance. If the family defaults
on an FHA-insured home the family must be willing to convey the unit to HUD or HUD's
designee and move from the home within the timeframe established by HUD before the
family will be eligible to apply for rental assistance (24 CFR 982.638(d)).
19.10 WAIVER:
The Housing Inspection Services Director or designee shall have the discretion to waive or
modify any provision of the HCVP Homeownership Program or policies not governed by
statute or regulation for good cause or to comply with changes in HUD regulations or
directives.
20.0 ELIGIBILITY OF STUDENTS FOR ASSISTED HOUSING UNDER HCVP OF THE
U.S. HOUSING ACT OF 1937:
Family Characteristics – Subject to Student Eligibility and Income Rules: Any
financial assistance, in excess of amounts received for tuition that an individual receives
(see below) shall be considered income to that individual. Loan proceeds are not
considered “financial assistance” under this section:
1. Persons under the age of 24 with dependent children;
2. Persons under the age of 24 without dependent children.
Family Characteristics – Excluded from Student Eligibility and Income Rules: The
full amount of student financial assistance paid directly to the student or to the educational
institution is excluded from annual income:
1. Persons age 24 and older with dependent children;
2. Students currently living with their parents participating in the HCVP program.
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20.1 INCOME FACTORS:
1. Count as income: Any financial assistance, in excess of amounts received for
tuition received from the following sources:
•••• Higher Education Act of 1965 (i.e., Pell Grant, FSEOG, federal Work-Study
programs);
•••• Private sources;
•••• Institute of Higher Education;
•••• May include federal, State and local grants & scholarships (athletic &
academic) and student educational financial assistance from parents, guardians
or other persons residing outside of student family household.
2. Do not count as income: Although considered financial assistance under the
Higher Education Act of 1965, the following sources are not considered income for
purposes of determining student eligibility for HCVP housing assistance:
• Perkins loans;
• Stafford loans; and.
• Plus loans.
21.0 VISITORS
Approval for visitors must be obtained by a landlord in accordance with the lease. The
ICHA should be notified of any long-term visitors. Anyone “visiting” for longer than 30
days may be considered part of the assisted household.
GLOSSARY
1937 Housing Act: The United States Housing Act of 1937. [42 U.S.C. 1437 et seq.]
Absorption: In portability, the point at which a receiving housing authority stops billing the initial
housing authority for assistance on behalf of a portable household. [24 CFR 982.4]
Adjusted Annual Income: The amount of household income, after deductions for specified
allowances, on which tenant rent is based.
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Administrative fee: Fee paid by HUD to the housing authority for the administration of the
program.
Administrative Plan: The plan that describes housing authority policies for the administration of
the tenant-based programs.
Admission: This is the point when the household becomes a participant in the program. The
effective date of the first HAP Contract for a household (first day of initial lease term) in a tenant
based program.
Adult: A household member who is 18 years or older, or who is the head of the household, spouse
or co-head.
Allowances: Amounts deducted from the household's annual income in determining adjusted
annual income (the income amount used in the rent calculation). Allowances are given for elderly
families, dependents, medical expenses for elderly and disabled families, disability expenses and
child care expenses for children under thirteen (13) years of age. Other allowance can be given at
the discretion of the housing authority.
Annual Contributions Contract (ACC): The written contract between HUD and a housing
authority under which HUD agrees to provide funding for a program under the 1937 Act, and the
housing authority agrees to comply with HUD requirements for the program.
Annual Income: All amounts, monetary or not, that:
a. Go to (or on behalf of) the household head or spouse (even if temporarily absent) or to any
other household member, or
b. Are anticipated to be received from a source outside the household during the 12-month
period following admission or annual reexamination effective date; and
c. Are not specifically excluded from annual income.
d. Annual income also includes amounts derived (during the 12-month period) from assets to
which any member of the household has access.
Applicant (applicant household): A household that has applied for admission to a program but
is not yet a participant in the program.
Assets: Items of value owned by an individual or household.
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Assisted lease (lease): A written agreement between an owner and a household establishing
conditions for the occupancy of a dwelling unit by a household with housing assistance payments
under a HAP contract between the owner and the housing authority.
Certification: The examination of a household's income, expenses, and household composition to
determine the household's eligibility for program participation and to calculate the household's rent
for the following 12 months.
Child: For purposes of citizenship regulations, a member of the household other than the
household head or spouse who is under 18 years of age.
Child care expenses: Amounts anticipated to be paid by the household for the care of children
under thirteen (13) years of age during the period for which annual income is computed, but only
where such care is necessary to enable a household member to actively seek employment, be
gainfully employed, or to further his or her education and only to the extent such amounts are not
reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of
childcare necessary to permit employment, the amount deducted shall not exceed the amount of
employment income that is included in annual income.
Citizen: A US national by birth or naturalization.
Common space: In shared housing, space available for use by the assisted household and other
occupants of the unit.
Congregate housing: Collective or group housing for elderly or persons with disabilities that
meets the HQS as defined by state code
Consent form: Any consent form approved by HUD to be signed by assistance applicants and
participants for the purpose of obtaining income information from employers and State Wage
Information Collection Agencies, return information from the Social Security Administration, and
return information for unearned income from the Internal Revenue Service. The consent forms
may authorize the collection of other information from assistance applicants or participant to
determine eligibility or level of benefits.
Continuously assisted: An applicant is continuously assisted under the 1937 Housing Act if the
household is already receiving assistance under any 1937 Housing Act program when the
household is admitted to the voucher program.
Cooperative: Housing owned by a non-profit corporation or association, and where a member of
the corporation or association has the right to reside in a particular apartment, and to participate in
management of the housing as defined by state code.
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Decent, safe, and sanitary: Housing is decent, safe and sanitary if it satisfies the applicable
housing quality standards.
Department: The Department of Housing and Urban Development.
Dependent: A member of the household, (except foster children and foster adults) other than the
household head or spouse, who is under 18 years of age, is a person with a disability, or is a full-
time student.
Disability: See “person with disabilities”
Disability assistance expenses: Reasonable expenses that are anticipated, during the period for
which annual income is computed, for attendant care and additional equipment for a disabled
household member and that are necessary to enable a household member (including the disabled
member) to be employed, provided that the expenses are neither paid to a member of the household
nor reimbursed by an outside source.
Disabled household: A household whose head, spouse, or sole member is a person with
disabilities; or 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."
Displaced household: A household in which each member, or whose sole member is a person
displaced by governmental action (such as urban renewal), 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.
Displaced person: A person displaced by governmental action (such as urban renewal), 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.
Domicile: The legal residence of the household head or spouse as determined in accordance with
state and local law.
Drug-related criminal activity: Illegal use or personal use of a controlled substance, and the
illegal manufacture, sale, distribution, use or possession with intent to manufacture, sell, distribute
or use a controlled substance.
Drug trafficking: The illegal manufacture, sale, or distribution, or the possession with intent to
manufacture, sell, or distribute, of a controlled substance.
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Elderly household: A household whose head, spouse, or sole member is a person who is at least
62 years of age; or 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: A person who is at least 62 years of age.
Evidence of citizenship or eligible status: The documents that must be submitted to show
citizenship or eligible immigration status.
Exception rent: An amount that exceeds the published fair market rent.
Extremely low-income families: Those families whose income does not exceed 30% of the area
median income, as determined by HUD.
Fair Housing Act: Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988 (42 U.S.C. 3601 et seq.).
Fair market rent (FMR): The rent, including the cost of utilities (except telephone and cable), 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
a modest (non-luxury) nature with suitable amenities. FMRs are published periodically in the
Federal Register.
Family must meet one of the following:
1. A single person 62 years or older.
2. A disabled person either who is 18 years or older and is not declared as a
dependent by a parent or guardian or who is a dependent living in a group
home or similar supervised residence.
3. A household with a child or children who resides in the unit 51% of the
time. (A child who is temporarily away from the home because of
placement in foster care is considered a member of the family).
4. Two or more elderly persons or disabled persons living together, or one or
more elderly or disabled persons living with one or more live-in aides.
5. Two or more persons related by blood, marriage, domestic partnership
(certified by City of Iowa City Clerk), adoption or placement by a
governmental or social service agency, as defined by City of Iowa City
code.
6. A single adult that is not part of another household.
Family members: includes all household members except live-in aides, foster children and foster
adults. All household members permanently reside in the unit, though they may be temporarily
absent. All household members are listed on the HUD-50058.
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Family self-sufficiency program (FSS program): The program established by a housing
authority to promote self-sufficiency of assisted families, including the coordination of supportive
services (42 U.S.C. 1437u).
Family share: The portion of rent and utilities paid by the household.
Household: Same as family definitions/synonymous terms.
Household unit size: The appropriate number of bedrooms for a household as determined by the
housing authority under the housing authority's subsidy standards.
50058 Form: The HUD form that housing authorities are required to complete for each assisted
household in public or assisted housing to record information used in the certification and re-
certification process, and, at the option of the housing authority, for interim reexaminations.
FMR/exception rent limit: The HCVP existing housing fair market rent published by HUD
headquarters, or any exception rent. For a tenancy in the voucher program, the housing authority
may adopt a payment standard up to the FMR/exception rent limit.
Full-time student: A person who is carrying a subject load that is considered full-time for day
students under the standards and practices of the educational institution attended. An educational
institution includes a vocational school with a diploma or certificate program, as well as an
institution offering a college degree.
Gross rent: The sum of the rent to the owner plus any utilities.
Group Home: Congregate living quarters licensed by a state for the exclusively for residential
use for two to twelve elderly or disabled persons (including any live-in aide).
Head of household: The adult member of the family who is the head of the household for purposes
of determining income eligibility and rent.
Household members: Include all individuals who reside or will reside in the unit and who are
listed on the lease, including live-in aides, foster children and foster adults.
Housing Assistance Payment (HAP): The monthly assistance by a housing authority, which
includes a payment to the owner for rent to the owner under the household's lease and an additional
payment to the household if the total assistance payment exceeds the rent to owner.
Housing quality standards (HQS): The HUD minimum quality standards for housing assisted
under the HCVP Program.
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Housing voucher: A document issued by a housing authority to a household selected for
admission to the voucher program. This document describes the program and the procedures for
housing authority approval of a unit selected by the household. The voucher also states the
obligations of the household under the program.
Housing voucher holder: A household that has an unexpired housing voucher.
Income category: Designates a household's income range. There are three categories served by
ICHA: low income, very low income and extremely low-income.
Incremental income: The increased portion of income between the total amount of welfare and
earnings of a household member prior to enrollment in a training program and welfare and earnings
of the household member after enrollment in the training program. All other amounts, increases
and decreases, are treated in the usual manner in determining annual income.
Initial Housing Authority: In portability, both: (1) a housing authority that originally selected a
household that later decides to move out of the jurisdiction of the selected housing authority; and
(2) a housing authority that absorbed a household that later decides to move out of the jurisdiction
of the absorbing housing authority.
Initial payment standard: The payment standard at the beginning of the HAP contract term.
Initial rent to owner: The rent to owner at the beginning of the initial lease term.
Interim (examination): A reexamination of a household's income, expenses, and household status
conducted between the annual re-certifications when a change in a household's circumstances
warrant such a reexamination.
Jurisdiction: The area in which the housing authority has authority under state and local law to
administer the program.
Lease: A written agreement between an owner and tenant that establishes the conditions for
occupancy of a dwelling unit by a household with housing assistance payments under a HAP
Contract between the owner and the housing authority.
Live-in aide: A person who resides with one or more elderly persons, or near-elderly persons, or
persons with disabilities, and who:
a. Is determined to be essential to the care and well-being of the persons;
b. Is not obligated for the support of the persons; and
c. Would not be living in the unit except to provide the necessary supportive services.
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Low-income families: Those families whose incomes do not exceed 80% of the median income
for the area, as determined by HUD.
Manufactured home: A structure that is built on a permanent chassis is designed for use as a
principal place of residence and meets the HQS.
Manufactured home space: A space leased by an owner to a household on which a manufactured
home owned and occupied by the household is located.
Medical expenses: Medical expenses, (IRS Definition. See appendix) including medical
insurance premiums and uncover costs, that are anticipated during the period for which annual
income is determined. Expenses must total more than 3% of the annual income to be used as
medical expenses.
Mixed family: A household 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.
Mortgage Ready: An applicant has been provided information and acted in a manner that
demonstrates preparedness for the physical and financial obligations of homeownership.
MSA (METROPOLITAN STATISTICAL AREA): A city of more than 50,000 persons and the
surrounding region, which share many services.
National: A person who owes permanent allegiance to the United States, for example, as a result
of birth or naturalization.
Near-elderly household: A household 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.
Net household assets:
a. Net cash value after deducting reasonable costs that would be incurred in disposing of real
property, savings, stocks, bonds and other forms of capital investment, excluding interests
in Indian trust land and excluding equity accounts in HUD homeownership programs. The
value of necessary items of personal property such as furniture and automobiles shall be
excluded.
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b. In cases where a trust fund has been established and the trust is not revocable by, or under
the control of, any member of the household, the value of the trust fund will not be
considered an asset so long as the fund continues to be held in trust. Any income distributed
from the trust fund shall be counted when determining annual income.
c. In determining net household assets, housing authorities or owners, as applicable, shall
include the value of any business or household assets disposed of by an applicant or tenant
for less than fair market value (including a disposition in trust, but not in a foreclosure or
bankruptcy sale) during the two years preceding the date of application for the program or
reexamination, as applicable, in excess of the consideration received therefore. In the case
of a disposition as part of a separation or divorce settlement, the disposition will not be
considered to be for less than fair market value if the applicant or tenant receives important
consideration not measurable in dollar terms.
Non-citizen: A person who is neither a citizen nor national of the United States.
Occupancy standards: The standards that the housing authority establishes for determining the
appropriate number of bedrooms needed to house families of different sizes or composition.
Owner: Any person or entity, including a cooperative, having the legal right to lease or sublease
existing housing.
Participant (participant household): A household that has been admitted to the housing
authority's program and is currently assisted in the program. The household becomes a participant
on the effective date of the first HAP contract executed by the housing authority for the household
(first day of initial lease).
Payment standard: In a voucher tenancy, the maximum monthly assistance payment for a
household (before deducting the total tenant payment by household contribution). For a voucher
tenancy, the housing authority sets a payment standard in the range from 90% to 110% of the
current FMR.
Person with disabilities: A person who:
a. Has a disability as defined in Section 223 of the Social Security Act,
"Inability to engage in any substantial, gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or
that has lasted or can be expected to last for a continuous period of not less than 12
months, or
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In the case of an individual who attained the age of 55 and is blind and unable 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."
b. Is determined, pursuant to regulations issued by HUD, to have a physical, mental or
emotional impairment that:
(1) is expected to be of long-continued and indefinite duration,
(2) substantially impedes his or her ability to live independently, and
(3) is of such a nature that such ability could be improved by more suitable housing
conditions, or
c. Has a developmental disability as defined in Section 102(7) of the Developmental
Disabilities Assistance and Bill of Rights Act.
"Severe chronic disability that:
(1) is attributable to a mental or physical impairment or combination of mental and
physical impairments;
(2) is manifested before the person attains age 22;
(3) is likely to continue indefinitely;
(4) results in substantial functional limitation in three or more of the following areas of
major life activity: (1) self care, (2) receptive and responsive language, (3) learning, (4)
mobility, (5) self-direction, (6) capacity for independent living, and (7) economic self-
sufficiency; and
(5) Reflects the person's need for a combination and sequence of special, interdisciplinary,
or generic care, treatment, or other services that are of lifelong or extended duration
and are individually planned and coordinated."
This definition does not exclude persons who have the disease of acquired
immunodeficiency syndrome or any conditions arising from the etiologic agent for
acquired immunodeficiency syndrome.
No individual shall be considered to be a person with disabilities for purposes of eligibility
solely based on any drug or alcohol dependence.
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Portability: Renting a dwelling unit with HCVP tenant-based assistance outside the jurisdiction
of the initial housing authority.
Premises: The building or complex in which the dwelling unit is located, including common areas
and grounds.
Private space: In shared housing, the portion of a contract unit that is for the exclusive use of an
assisted household.
Proration of assistance: The reduction in a household's housing assistance payment to reflect the
proportion of household members in a mixed household who are eligible for assistance.
Public Housing Agency: A state, county, municipality, other governmental entity or public body
(or agency or instrumentality thereof) authorized to engage in or assist in the development or
operation of low-income housing.
Reasonable rent: A rent that is not more than charged: (a) for comparable units in the private
unassisted market; and (b) for a comparable unassisted unit in the premises.
Receiving Housing Authority: In portability, a housing authority that receives a household
selected for participation in the tenant-based program of another housing authority. The receiving
housing authority issues a certificate or voucher and provides program assistance to the household.
Re-certification: A reexamination of a household's income, expenses and household composition
to determine the household's rent for the following twelve (12) months.
Remaining member of a tenant household: A member of the household listed on the lease who
continues to live in an assisted household after all other household members have left.
Rent to owner: The monthly rent payable to the owner under the lease. Rent to owner covers
payment for any housing services, maintenance, and utilities that the owner is required to provide
and pay for.
Set-up charges: In a manufactured home space rental, charges payable by the household for
assembly, skirting and anchoring the manufactured home.
Shared housing: A unit occupied by two or more families. The unit consists of both common
space for shared use by the occupants of the unit and separate private space for each assisted
household.
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Single person: A person not a member of another household that is not elderly disabled, displaced,
or the remaining member of a tenant household.
Single room occupancy housing (SRO): A unit for occupancy by a single eligible individual
capable of independent living that contains no sanitary facilities or food preparation facilities, or
contains either, but not both, types of facilities.
Special admission: Admission of an applicant that is not on the housing authority waiting list or
without considering the applicant's waiting list position.
Special housing types: Special housing types include: SRO housing, congregate housing, group
homes, shared housing, cooperatives (including mutual housing), and manufactured homes
(including manufactured home space rental).
State Wage Information Collection Agency (SWICA): The state 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.
Statement of Family Obligations: An agreement in the form prescribed by HUD, between the
housing authority and a household to be assisted under the Moderate Rehabilitation Program,
stating the obligations and responsibilities of the household.
Subsidy standards: Standards established by a housing authority to determine the appropriate
number of bedrooms and amount of subsidy for families of different sizes and compositions.
Suspension (tolling): Stopping the clock on the term of a household's voucher, for such period as
determined by the housing authority, from the time when the household submits a request for
tenancy approval, until the time when the housing authority approves or denies the request.
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 household as rent to the owner minus any utility
allowance.
Third-party (verification): Oral or written confirmation of a household's income, expenses, or
household composition provided by a source outside the household, such as an employer, doctor,
school official, etc.
Total tenant payment (TTP): Total tenant payment is the amount calculated under Section 3(a)
(1) of the 1937 Act which is the higher of:
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1. 30% of the household's monthly adjusted income;
2. 10% of the household's monthly income; or
3. Minimum rent.
Utility allowance: An estimate of the average monthly cost of utilities (except telephone and
cable) for an energy efficient unit, based on type and size, used in the housing assistance and tenant
contribution calculation. If all utilities are included in the rent, there is no utility allowance.
Utility hook-up charge: In a manufactured home space rental, costs payable by a household for
connecting the manufactured home to utilities such as water, gas, electrical and sewer lines.
Verification:
1. The process of obtaining statements from individuals who can attest to the accuracy of the
amounts of income, expenses, or household member status (e.g., employers, public
assistance agency staff, doctors).
2. The three types of verification are:
a. Third-party verification, either written or oral, obtained from employers, public
assistance agencies, schools, etc.
b. Documentation, such as a copy of a birth certificate or bank statement
c. Household certification or declaration (e.g. citizenship verification)
Very low-income families: Low-income families whose incomes do not exceed 50% of the
median household income for the area, as determined by HUD.
Violent criminal activity: Any illegal 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.
Voucher (rental voucher): A document issued by a housing authority to a household selected for
admission to the Housing Choice Voucher Program. This document describes the program and the
procedure for housing authority approval of a unit selected by the household and states the
obligations of the household under the program.
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Voucher holder: A household holding a voucher with unexpired search time. (See also Housing
Voucher.)
Waiting list admission: An admission from the housing authority waiting list.
Welfare assistance. Welfare or other payments to families or individuals based on need, which is
made under programs funded by federal, state or local governments. [24 CFR 5.603(b)]
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ACRONYMS
ACC Annual Contributions Contract
CFR Code of Federal Regulations
FMR Fair Market Rent
FSS Family Self Sufficiency (Program)
HA Housing Authority
HAP Housing Assistance Payment
HCDA Housing and Community Development Act
HQS Housing Quality Standards
HUD Department of Housing and Urban Development
INS (U.S.) Immigration and Naturalization Service
NOFA Notice of Funding Availability
PHA Public Housing Agency
TTP Total Tenant Payment
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APPENDIX A
(A copy of the IRS Publication 502 will be inserted upon adoption of
the Administrative Plan)